A bill to exempt from the 10 percent additional tax on early distributions from qualified retirement plans certain amounts received as termination pay by New York City uniformed public safety officers, firefighters, and sanitation workers.

Amends the Internal Revenue Code to exempt from the ten percent penalty tax on early distributions from qualified retirement plans certain amounts received by certain New York City service employees (public safety officers, firefighters, and sanitation workers) under deferred compensation plans established and funded in accordance with particular collective bargaining agreements.