Pension Correction Act of 1983

Pension Correction Act of 1983 - Amends the Internal Revenue Code to allow employers to make certain retroactive changes in pension plans if a short form amendment incorporating specific changes in the Internal Revenue Code is adopted by reference and notice is provided to the Secretary of the Treasury.

Provides for any extension for a period of five years to any participant loan entered into prior to August 12, 1982 and by its terms was due and payable before August 13, 1985.

Repeals the ten percent penalty on distributions made to key employees of a top-heavy plan prior to age 59 1/2 by reason other than death or disability.

Changes the vesting requirements for top-heavy plans from six year graded vesting to 11 year graded vesting.

Repeals requirements which impose a lower benefit limitation on top-heavy plans in which 90 percent or more of the aggregate benefits are received by key employees.

Exempts from the limitation on estate tax exclusions amounts received from a qualified plan to the extent such amount is attributable to an irrevocable election made before January 1, 1983.