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Bailey Settlement When Buying Military Time Into Civil Service Time

Forum|Forum|5 years ago
February 5, 2021
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I started working as a federal employee (FERS) in Nov 1987. I also had with 4 years of active military duty (1976-1980). I was able to buy in those four military years towards my FERS retirement. As a result my civil service retirement computation date was changed Nov 1983.

Under these circumstances, does my federal retirement income qualify for the "Bailey Exemption" on the NC State tax return since buying my military time gives me more than 5 years of creditable service prior to 12 August 1989?

Thanks

Best answer by ReneeM7122

Yes, as long as you had 5 years of service credited before August 12, of 1989, then you would qualify for the Bailey Exemption.

Source:

According to the North Carolina Department of Revenue, The exclusion applies to retirement benefits received from certain defined benefit plans, such as the North Carolina Teachers' and State Employees' Retirement System, the North Carolina Local Governmental Employees' Retirement System, the North Carolina Consolidated Judicial Retirement System, the Federal Employees' Retirement System, or the United States Civil Service Retirement System, if the retiree had five or more years of creditable service as of August 12, 1989.

ReneeM7122Answer

Yes, as long as you had 5 years of service credited before August 12, of 1989, then you would qualify for the Bailey Exemption.

Source:

According to the North Carolina Department of Revenue, The exclusion applies to retirement benefits received from certain defined benefit plans, such as the North Carolina Teachers' and State Employees' Retirement System, the North Carolina Local Governmental Employees' Retirement System, the North Carolina Consolidated Judicial Retirement System, the Federal Employees' Retirement System, or the United States Civil Service Retirement System, if the retiree had five or more years of creditable service as of August 12, 1989.