AN ACT CONCERNING THE DEDUCTION AND WITHHOLDING OF PERSONAL INCOME TAX FROM PENSION PAYMENTS AND ANNUITY DISTRIBUTIONS.

HB 5148 eliminates the requirement for payers to deduct and withhold personal income tax from lump-sum pension payments and annuity distributions. This directly affects retirees receiving such lump-sum payments, as they will no longer have taxes automatically withheld at the source. The bill amends Section 12-705 of the general statutes to remove this withholding obligation, meaning retirees will handle tax payments directly instead of having them deducted upfront. The change simplifies tax handling for these payments but does not alter the tax rate or liability for recipients.