A bill to amend the Internal Revenue Code of 1954 to exclude from gross income a certain portion of amounts received under public retirement systems.

Amends the Internal Revenue Code to allow individuals over age 65 an exclusion from gross income of a portion of any amounts received as a pension or annuity under a public retirement system.

Limits the amount of such exclusion to the excess of: (1) the applicable limit for the taxpayer; over, (2) amounts received by the taxpayer under title II (Old Age, Survivors and Disability Insurance) of the Social Security Act.

Defines "applicable limit" as: (1) for an individual, the maximum individual social security benefit; (2) for a joint return, the product of 1 1/2 and the maximum individual social security benefit; or, (3) for married individuals filing separately, 3/4 of the maximum individual social security benefit.