OP-ED

Exempt military pension income

By Gov. DANIEL McKEE and KASIM J. YARN
Posted 2/8/22

The long list of brave Rhode Islanders who have made their careers serving in uniform to defend our freedoms could stretch from Westerly to Woonsocket many times over.

The sacrifices that these …

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OP-ED

Exempt military pension income

Posted

The long list of brave Rhode Islanders who have made their careers serving in uniform to defend our freedoms could stretch from Westerly to Woonsocket many times over.

The sacrifices that these men and women – and their families – gave during their service are often unknown by the vast majority of the U.S. population who have never served in the military, and that is why Rhode Island should continue to honor them into their retirement.

Recently, Rhode Island has been ranked among the ten best states for hiring veterans and received the second best rating in the nation for veteran access to medical care by U.S. Veterans Magazine and LendingTree.com.

Despite these notable rankings for employment and health services, Rhode Island consistently ranks poorly in best states for veterans to retire due to state taxation of military service pensions.

Rhode Island is a regional outlier in taxing military pensions. Our neighboring states of Massachusetts and Connecticut provide full exemption for military pension income, making it very easy for military retirees to move over the border taking their post-retirement income and spending power with them.

Military retirees often enter retirement in their forties or fifties and start second careers. They are well-trained, highly educated and high-earning veterans who we want to retain and attract to Rhode Island.

Their income feeds the local economy, while their civic participation and volunteer hours drive many community organizations forward.

It’s time to honor these veterans by exempting military service pensions from state taxation; Article 6 of the Fiscal Year 2023 state budget proposal will phase out taxation of these pensions over the next five years. This is not only the right thing to do in recognition of the many Rhode Islanders who courageously fought for our freedom, but it’s also an investment in our state’s work force – retaining toptier talent which can drive Rhode Island’s economy forward. Military retirees come with a wealth of knowledge and backgrounds, as well as their families, benefiting

Rhode Island in many ways.

As we’ve traversed the state, talking with veterans, active duty, guard and reservists, and military families, one thing has been clear: We all want to build a more resilient, prosperous, and equitable state. Rhode Island’s veterans want to continue to make the Ocean State their home and remain a part of the communities and the places that matter to them.

When military retirees look at where they want to move after service, we want them to pull up the list of “most friendly state for military retirees,” and see Rhode Island at the top of the list.

Daniel J. McKee is governor of the State of Rhode Island. Kasim J. Yarn is the director of

military, pensions

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