A bill to amend the Internal Revenue Code of 1954 to permit foreign pension plans to invest in the United States on a nontaxable basis.

Amends the Internal Revenue Code to grant tax-exempt status to foreign pension trusts which invest in the United States. Requires that such pension trusts: (1) be maintained primarily to provide retirement benefits to employees who are primarily nonresident alien individuals; (2) have assets which are segregated from the assets of the employer maintaining the trust pursuant to the laws of the foreign country in which the trust is maintained; and (3) be maintained in a foreign country which grants preferential tax treatment to such pension trusts.

Provides that such exemption shall not apply to any income or gain derived by such trusts for any interest in land used in farming.

Authorizes the President to withdraw such tax-exempt status from such trusts if the country in which the trust is maintained in a country which does not grant preferential tax treatment to U.S. pension trusts investing in that country.