No, the pension for PBGC employees is not a private pension; it is a pension plan insured by the PBGC itself, which is a federal agency, and therefore, it is a public pension plan. It is a qualified plan. It is not an IRA.
What state are you entering this for? Is Government Pension one of the selected sources?
Thanks so much. I am in Michigan. Will this be free from state tax?
It may be free from tax in Michigan. Their Department of Revenue states the following about pension income:
The good news for Michigan retirees is that Social Security benefits are not taxed by the state, regardless of your age or birth year. Public pensions—such as those from federal government jobs or Michigan state government positions—are often exempt from state taxes, depending on your age and retirement year.
You can use this link to determine the taxability of your pension. Michigan taxes pension income based on several age groups, Before 1946, Born Jan 01, 1946-December 31, 1952 and Born after January 1, 1953. Click this link 2024 Retirement and Pension Information
To contact your state Department of Revenue you can use this link: How do I contact my state Department of Revenue?