In 1999 the N.C. Supreme Court ruled that taxing pensions of retired federal, state, local and military personnel was unconstitutional, ordering the refund of all monies collected, with interest.

The N.C. General Assembly enacted legislation to comply with the court decision, with a caveat: To be eligible for the tax refund and free from future pension taxation, an individual must have five years' credible service as of Aug. 12, 1989.

A prime mover in gaining this refund was Manila (Bud) Shaver, past president of Sandhills Chapter of the Military Officers Association of America (MOAA).

Most state and local working government personnel have no idea they may not be protected unless they have the five years' credible service.

The state has created two "classes" of government retirees -- those whose pensions are taxed, and those whose pensions are not. This is a double standard.

The State Employees Association of North Carolina (SEANC) has done little to help inform these workers of their dilemma. Bud Shaver has. Shaver has worked tirelessly to benefit taxpayers of this state through his involvement in the case described above, and was the lead plaintiff in the Intangibles Taxpayers lawsuit, which required the state to return $440 million taken unconstitutionally.

We in MOAA have been working with Bud Shaver for three years seeking legislation to end inequities for government retirees. We have endorsement for N.C. State Council of Chapters of MOAA, National Association of Federal Retirees, and N.C. Federal Retiree Task Force.

We have received no support from SEANC. Increasing numbers of legislators support ending this inequity, and we will continue to seek enacting legislation in the General Assembly. SEANC endorsement and support would add significant impetus for passage of this important legislation for their membership.

Verner N. Pike

Retired Col., U.S. Army

Pinehurst