Inregard to the taxble portion of a contributory pension , under NJ law,is the cost of the annuity or basis, the amount contributed by the individual.

[ToddL · Accepted solution]

For state purposes, the cost (or basis) of an annuity is the amount of after-tax contributions you made to the contributory pension plan, if any. Some portion of the distributions is a return of those after-tax contributions and is non-taxable.