1317.1 Do pension and retirement payments count as wages?
Effective January 1, 1984, your pension and retirement payments generally count as wages. However, they do not count as wages if the payments are made from tax-exempt trusts or qualified deferred compensation plans.
1317.2 Do retirement payments based on a disability count as wages?
If you receive retirement payments because of a disability, the payments are not wages if they are made under the following conditions:
They are made under your employer's plan;
They are made when or after your employment ends; and
Your retirement due to your disability was a condition or plan for the payment.