To amend the Internal Revenue Code of 1954 to provide that the first $3,000 of an individual's civil service retirement annuity (or other Federal retirement annuity) shall be exempt form income tax.

Excludes the first $3,000 of an individual's civil service retirement annuity (or other Federal retirement annuity or pension) from the income tax under the Internal Revenue Code. (Amends 26 U.S.C. 124)