A bill to amend the Internal Revenue Code of 1986 to restore the special 3-year basis recovery rule in computing the amount of an employee's annuity includible in gross income.

Amends the Tax Reform Act of 1986 to repeal provisions which eliminated the three-year use of the basis recovery rule in computing the amount of an employee's retirement benefits includable in gross income.

Provides that the Internal Revenue Code shall be applied and administered as if such provisions had not been enacted.