California State Treasurer Fiona Ma, CPA, has framed her sponsorship of Senate Bill 1407 (Archuleta) as a pragmatic economic strategy and a clear commitment to military veterans. At its core, the measure aims to exempt or reduce state taxes on military retirement income, an approach designed to retain highly skilled veterans who might otherwise leave California for more tax-friendly states. 

The issue is straightforward but consequential. Each year, thousands of military service members transition into retirement with deep leadership experience, technical expertise, and a prove ability to perform in high-pressure environments. Yet many of these former service members choose to relocate to states that do not tax military pensions. The result is a quiet but persistent outflow of talent and income that California can ill afford to lose. 

Treasurer Ma has been direct in her assessment: this is not just a veteran’s issue. It is a workforce and talent competitiveness issue. By supporting bi-partisan Senate Bill 1407, she is advocating for a policy that keeps experienced professionals in California’s labor market while retaining the steady stream of federal retirement income they bring with them. That income, earned through years of service, continues to circulate locally, supporting housing markets, small businesses and community growth. 
 
According to the California Senate Committee on Military and Veterans Affairs, the state lost more than 24,000 military retirees between 2010 and 2022. During that same period, the national veteran retiree population grew by 17 percent, while California lost ground and saw a 14 percent reduction. As a result of this continuing exodus, it’s estimated the state loses more than $700 million a year in federal retirement and survivor payments. 

 
Why SB 1407 Matters to Veterans 

For veterans, the implications are significant. Military retirement benefits are often a foundational piece of long-term financial planning. State taxation of that income can meaningfully reduce its value, particularly in a high-cost state such as California. Relief through Senate Bill 1407 would provide veterans with greater financial flexibility as they transition into civilian careers, pursue education, or start businesses. 

New legislation that became law in California this year allows veterans to exclude up to $20,000 of their retirement pay from state taxes. While a good start, it doesn’t go far enough to offset the high cost of living. SB 1407 aims to take this further, offering a full exemption to every veteran and surviving spouse in the state. 

Retaining Veteran Talent Strengthens California’s Workforce

This is where the policy intersects with broader workforce development goals. Veterans are not simply retirees; many are in their 40s or 50s and entering a second, highly productive phase of their careers. They bring discipline, leadership and specialized training in fields ranging from logistics and engineering to cybersecurity and healthcare. Retaining that talent trengthens California’s workforce at a time when competition for skilled labor remains intense. 

“Military retirement benefits are earned through years of service, sacrifice, and commitment to our nation. They represent a promise that should be honored, not diminished. Exempting military retirement and survivor pay from income taxes honors that commitment to our veterans,” said Treasurer Fiona Ma, CPA. “When veterans choose to build their lives here, they strengthen our communities in ways that extend far beyond economics, bringing stability and leadership. Senate Bill 1407 helps ensure that California remains a place where veterans and their families can put down roots and thrive.” 

 
A Holistic View of Public Service 

Treasurer Ma’s support of SB1407 reflects a more holistic view of public service. Financial policy, in this case, becomes a tool to reinforce the state’s commitment to veterans beyond symbolic recognition. It acknowledges that honoring service includes creating an environment where veterans can thrive economically without being penalized for choosing to stay in California. 

The American Veterans Group webinar featuring Treasurer Ma offers a timely platform to explore these themes. It brings together the perspectives of public finance and veteran workforce development, highlighting how targeted policy decisions can drive measurable outcomes. In this context, Senate Bill 1407 stands out as a practical, actionable step that aligns fiscal policy. 

Join our upcoming webinar with California State Treasurer Fiona Ma, CPA, to hear how California State Bill 1407 and related initiatives are translating policy into real outcomes for veterans and their families.