A bill to amend the Internal Revenue Code of 1954 to provide that pensions paid to retired policemen or firemen, shall not be subject to the income tax.

Provides, under the Internal Revenue Code, that gross income does not include any amount received as a pension, annuity, or similar benefit to the extent that such pension, annuity, or benefit is based on service which was performed as a full-time policeman or other law enforcement officer, or as a full-time fireman, in the employ of a Federal, State or local government or governmental entity. (Amends 26 U.S.C. 123)