Sewards v. Commissioner of Internal Revenue

OPINION

QUIST, Senior District Judge:

This case involves the taxation of retirement payments made to Jay Sewards, a former employee of the Los Angeles County Sheriffs Department. Like all County employees who retire with a service-connected disability, Sewards was entitled to receive a disability pension equal to one-half his previous salary. Because Sewards had completed 34 years of service, however, he received an additional amount to bring his pension up to what he would have received as a service pension. The question presented in this case is whether that additional amount is taxable under…