A bill to amend the Internal Revenue Code of 1954 to exclude from gross income a certain portion of amounts received under public retirement systems.

Amends the Internal Revenue Code to exclude from the gross income of an individual who has attained age 65 before the close of the taxable year any amount received as a pension or annuity under a public retirement system. Limits such exclusion to the excess of: (1) the maximum individual social security benefit which could be paid to such individual; or (2) the amounts actually received by such individual during the taxable year under title II (Old Age, Survivors, and Disability Insurance) of the Social Security Act.