A bill to amend the Tax Reform Act of 1976 to provide that certain individuals who retired before January 1, 1977, shall be entitled to exclude disability payments under section 105(d) of the Internal Revenue Code of 1954 without regard to the income limitation in such section, and for other purposes.

Amends the Internal Revenue Code to entitle individuals who retired before January 1, 1977, and either retired on disability or were entitled to retire on disability, to the exclusion from gross income for amounts received under accident and health plans without regard to the applicable income restrictions.