Increases the maximum pension and annuity exclusion from federal adjusted gross income

S 7211 increases the maximum exclusion amount for pension and annuity income from federal taxable income to $22,000 (up from $20,000). It directly affects retirees aged 59.5 or older who receive regular pension or annuity payments from employer plans, IRAs, or self-employed retirement accounts. The bill modifies state tax law to allow more of these retirement payments to be excluded from taxable income, while excluding lump-sum distributions. This change applies to both individual and joint tax filers, with joint returns treated as if filed separately for this exclusion. The policy change is a straightforward adjustment to tax eligibility for qualifying retirement income.