Depends on the state involved....one normally interfaces with the pension provider to deal with State and Local tax withholding. (A plain W-4 is only for working wages,,,not pensions)
My pension providers have only been allowing a standard amount to be withheld for Federal and state taxes (no local taxes in NC)... if I need more withholding for Fed or state(I do need more paid in during the year), so I end up making quarterly Estimated tax payments to the IRS and state....using the Online IRS Direct Pay site for the Feds, and my state's website for state quarterly estimated payments.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
