Cathy Osten

Sen. Osten Welcomes New Laws Effective January 1

HARTFORD — State Senator Cathy Osten (D-Sprague) today welcomed new laws slated to take effect on January 1, 2021, including lowering taxes on pension income and allowing pharmacists to dispense emergency insulin supplies.

“Despite the fact that we had an abbreviated legislative session this year, we did lay the groundwork for some necessary and positive public policy changes, including one that should save retirees with pensions a bit more money this year and a lot more money in the coming years,” Sen. Osten said. “I look forward to continuing my work for my constituents during the upcoming legislative session to help them get through this pandemic while remaining physically, mentally and financially fit.”

Sen. Osten notes that on January 1, Connecticut will continue its six-year plan to phase-out taxes on pension and annuity income for individuals earning less than $75,000 a year and for married couples earning under $100,000 a year. Starting January 1, 28% of pension and annuity income received in 2020 can be deducted when calculating Connecticut adjusted gross income for state income tax purposes. That is twice the 14% deduction that was in place for the 2019 tax year; in 2022, the deduction climbs to 42%, and it reaches 100% in 2025.

Another new law taking effect January 1 requires pharmacists to dispense a 30-day emergency supply of diabetes-related drugs and devices – with a price cap – for diabetics who have less than a one-week supply of insulin or related equipment. About 10 percent of Connecticut residents – about 275,000 people – have diabetes, which is the seventh-leading cause of death in the state, according to the state Department of Public Health.