A bill to amend the Internal Revenue Code of 1954 to provide a retirement savings deduction for persons covered by pension plans.

Amends the Internal Revenue Code to allow an income tax deduction for cash contributions made by an eligible employee to certain retirement savings and pension plans. Limits the amount of such deduction to the lesser of 15 percent of the employee's gross annual compensation or $7,500. Defines "eligible employee" as an employee who is an active participant for any part of the taxable year in: (1) a tax-exempt pension or profit-sharing plan; (2) an annuity plan; (3) a qualified bond purchase plan; (4) an individual retirement account or annuity or bond plan; (5) a group retirement trust maintained by a labor organization; or (6) a retirement plan established for its employees by the United States, by a State, or by a local political subdivision, or by an agency or instrumentality thereof.