A bill to amend the Internal Revenue Code of 1954 to provide that a taxpayer receiving a disability pension may, upon reaching age 65, continue to exclude a portion of such pension from taxable income.

Amends the Internal Revenue Code to permit the recipient of a disability pension to elect to exclude a portion of such pension from his taxable income after he has reached age 65.

Delays the starting date for annuity payments until the first taxable year in which a recipient of a disability pension decides not to make an election to exclude disability benefits from his taxable income.