Pension taxation confined to the resident state; definitions clarify periodic pension and annuity payments under treaty terms. Pension and annuity receipts by residents are taxable only in the State of residence. 'Pension' means periodic payments for past employment or compensation for injuries in the course of service. 'Annuity' means a stated sum payable periodically during life or for a specified period, payable in return for adequate and full consideration in money or money's worth.