(a) In General. Withholding of income tax is required under Section 13028 of the code from the taxable portion (as described in Chapters 3 and 5, Part 10, Division 2 of the Revenue and Taxation Code) of payments of pensions, annuities and other deferred income (as described in Section 3405 of the Internal Revenue Code) made on or after July 1, 1986, to residents of this state, as if such payment were a payment of wages by an employer to an employee for the appropriate period unless the individual elects not to have the tax withheld. In determining a payee's state of residence, for purposes of applying these rules, a payer may rely on the most recent address on file for the payee which is contained in the business records which payer deems to be most accurate. At payer's election, a separate reporting number may be used for a payee's pension and payroll withholding. see full law