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

Excludes from gross income for income tax purposes under the Internal Revenue Code, retirement benefit amounts received from public retirement systems up to $5,000, less any amount received during the taxable year as a monthly benefit under title II (Old-Age, Survivors, and Disability Insurance) of the Social Security Act. (Amends 26 U.S.C. 124)