In general, SERS pension payments are subject to federal income tax but exempt from Pennsylvania state and local income tax for PA residents.
Your basis of the payment is the sum of the nondeductible contributions minus any withdrawals or distributions of nondeductible contributions. Since the amount has never been previously taxed, and you received a tax benefit for the the contribution, then you would have to be taxed on it when you withdraw it. Therefore, your basis is $0.
Generally, if you take a distribution from your retirement plan before you turn 59 1/2, you will have to pay an additional 10% tax on the distribution. There are exceptions to this, such as retiring due to a disability.
The distribution code is in Box 7 of your 1099-R.
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