A bill to amend the Internal Revenue Code of 1954 to treat Federal retirement system income the same as social security income to the extent that such retirement income does not exceed the sum of old-age benefits which may be received under title II of the Social Security Act and amounts which may be earned without reducing such benefits.

Amends the Internal Revenue Code to exclude from gross income amounts received by an individual as a pension, annuity, or other benefit under a retirement system maintained by the United States or any agency thereof to the extent that such amounts do not exceed the maximum social security benefit for such taxable year.

Defines the term maximum social security benefits to include the maximum amount of earnings which could be received by an individual entitled to old-age insurance benefits without a reduction in such benefits.