A bill relating to the application of certain provisions of the Internal Revenue Code of 1954 to specified transactions by certain public employee retirement systems created by the State of New York or any of its political subdivisions.

Provides that no pension plan or trust which was a party to the November 26, 1975, agreement of exchange of specified bonds of the Municipal Assistance Corporation for the City of New York (M.A.C.) for outstanding short-term obligations of New York City shall be considered to fail the requirements for qualified pension, profit-sharing, and stock bonus plans under the Internal Revenue Code or to have engaged in transactions which would nullify its tax-exempt status under the Code by merely engaging in enumerated transactions including: (1) agreeing to an amendment to the exchange agreement; (2) forebearing from any act prohibited by such agreement; (3) acquiring or holding any bond or note; and (4) investing or retaining investments in order to maintain the city of New York or to protect the sources of funds for retirement plans.

Requires trustees of each pension plan or trust which participates in the exchange offer to furnish a copy of the annual report filed with the New York State Insurance Department to the Secretary of the Treasury, the Chairman of the House Ways and Means Committee, and the Chairman of the Senate Finance Committee.