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

This bill proposes to remove the requirement for employers or payers to withhold personal income tax from lump-sum pension payments and annuity distributions. It directly affects individuals receiving these retirement payouts and the entities responsible for processing them. The change would allow recipients to take the full amount of their lump-sum payments without any tax being taken out at the time of distribution. Recipients would then be responsible for paying any applicable taxes through their regular annual tax filings rather than having taxes withheld upfront.