---
kind: "section"
citation: "5 U.S.C. § 8469"
title: "5"
title_heading: "Government Organization and Employees"
number: "8469"
heading: "Withholding of State income taxes"
release: "119-102"
url: "https://uscodex.org/usc/5/8469"
units:
  - "Part III — Employees"
  - "Subpart G — Insurance and Annuities"
  - "Chapter 84 — Federal Employees’ Retirement System"
  - "Subchapter VI — General and Administrative Provisions"
---

# §8469. Withholding of State income taxes

- (a) The [Office](/usc/5/8401.md?p=24) shall, in accordance with this section, enter into an agreement with any [State](#e-1) within 120 days of a request for agreement from the proper [State](#e-1) official. The agreement shall provide that the [Office](/usc/5/8401.md?p=24) shall withhold [State](#e-1) income tax in the case of the monthly annuity of any [annuitant](#e-2) who voluntarily requests, in writing, such withholding. The amounts withheld during any calendar quarter shall be held in the [Fund](/usc/5/8401.md?p=6) and disbursed to the [States](#e-1) during the month following that calendar quarter.
- (b) An [annuitant](#e-2) may have in effect at any time only one request for withholding under this section, and an [annuitant](#e-2) may not have more than two such requests in effect during any one calendar year.
- (c) Subject to [subsection (b)](#b), an [annuitant](#e-2) may change the [State](#e-1) designated by that [annuitant](#e-2) for purposes of having withholdings made, and may request that the withholdings be remitted in accordance with such change. An [annuitant](#e-2) also may revoke any request of that [annuitant](#e-2) for withholding. Any change in the [State](#e-1) designated or revocation is effective on the first day of the month after the month in which the request or the revocation is processed by the [Office](/usc/5/8401.md?p=24), but in no event later than on the first day of the second month beginning after the day on which such request or revocation is received by the [Office](/usc/5/8401.md?p=24).
- (d) This section does not give the consent of the United States to the application of a statute which imposes more burdensome requirements on the United States than on employers generally, or which subjects the United States or any [annuitant](#e-2) to a penalty or liability because of this section. The [Office](/usc/5/8401.md?p=24) may not accept pay from a [State](#e-1) for [services](/usc/5/8401.md?p=26) performed in withholding [State](#e-1) income taxes from annuities. Any amount erroneously withheld from an annuity and paid to a [State](#e-1) by the [Office](/usc/5/8401.md?p=24) shall be repaid by the [State](#e-1) in accordance with regulations issued by the [Office](/usc/5/8401.md?p=24).
- (e) For the purpose of this section—
  - (1) the term “State” means a State, the District of Columbia, or any territory or possession of the United States; and
  - (2) the term “annuitant” includes a [survivor](/usc/5/8401.md?p=28) who is receiving an annuity from the [Fund](/usc/5/8401.md?p=6).

## Source credit

(Added Pub. L. 99–335, title I, § 101(a), June 6, 1986, 100 Stat. 576.)