,,ii  #aai? ,,congress  #a/ ,session    
,s4 #cahi  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,novemb] #ah1 #bjbe,mr4
 ,%eehy 7= himself1 ,ms4 ,lummis1 & ,mr4
 ,ju/ice7 introduc$ ! foll[+ bill2 :i* 0
 read twice & ref]r$ to ! ,committee on 
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to exclude f gross
 income any retirem5t income receiv$ by 
individuals :o retir$ f s]vice z a law  
en=cem5t (fic] or memb] ( ! ,arm$ ,=ces 
& subsequ5tly s]ve z s*ool res\rce      
(fic]s4  #a4 ,%ort title ,?is ,act may  
be cit$ z ! ,/r5g!n+ ,res\rces = ,our   
,s*ools ,act or ! ,,sros ,act4  #b4     
,exclusion f gross income ( retirem5t   
income receiv$ by s*ool res\rce (fic]s  
7a7 ,9 g5]al ,"p ,,iii ( sub*apt] ,b (  
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf1 z am5d$ by section #gjdce7;a7 (  
,public ,law #aai-ba1 is am5d$ by ins]t+
 aft] section #aci,l ! foll[+ new       
section3  #aci,m4 ,retirem5t income     
receiv$ by s*ool res\rce (fic]s  7a7 ,9 
g5]al ,subject to subsection 7e71 9 !   

case ( an individual describ$ 9         
subsection 7b7 :o is employ$ z a s*ool  
res\rce (fic] dur+ a taxable ye>1 )     
respect to any p]iod 9 su* taxable ye> 9
 :i* su* individual is s employ$1 gross 
income %all n include any retirem5t     
income receiv$ by su* individual dur+   
su* p]iod4  7b7 ,requirem5ts ,an        
individual is describ$ 9 ?is subsection 
if su* individual-- 7#a7 has retir$ f   
employm5t z-- 7,a7 a memb] ( ! ,arm$    
,=ces ( ! ,unit$ ,/ates1 or  7,b7 a law 
en=cem5t (fic] 7z def9$ 9 section #bejc 
( title ,i ( ! ,omnibus ,crime ,control 
& ,safe ,/reets ,act ( #aifh 7#cd       
,u4,s4,c4 #ajecc771  7#b7 is employ$ z a
 s*ool res\rce (fic] aft] hav+          
successfully cle>$ any backgr\nd *eck   
requir$ = su* employm5t1 &  7#c7 is 9   
compliance ) all applicable requirem5ts 
( ! peace (fic] /&>ds & tra9+ ag5cy ( ! 
,/ate 9 :i* su* individual is employ$ z 
a s*ool res\rce (fic]4  7c7 ,retirem5t  
income ,= purposes ( ?is section1 ! t]m 
retirem5t income means any o!rwise      

includible income1 di/ribution1 or      
paym5t receiv$ by an individual f any   
p5sion1 annuity1 retirem5t income       
acc\nt1 def9$ contribution plan1 or     
def9$ b5efit plan :i* is associat$ )    
employm5t describ$ 9 subsection 7b77#a74
  7d7 ,o!r def9itions ,9 ?is section--  
7#a7 ,peace (fic] /&>ds & tra9+ ag5cy ,!
 t]m peace (fic] /&>ds & tra9+ ag5cy    
means an ag5cy ( a ,/ate ) ! /atutory   
au?ority "u ,/ate law to set /&>ds = !  
hir+1 tra9+1 e?ical conduct1 & ret5tion 
( ! law en=cem5t (fic]s ( ! ,/ate ?r\gh 
c]tification1 lic5s+1 or o!r simil>     
qualification process4  7#b7 ,s*ool     
res\rce (fic] ,! t]m s*ool res\rce (fic]
 has ! same mean+ giv5 su* t]m "u       
section #agji ( title ,i ( ! ,omnibus   
,crime ,control & ,safe ,/reets ,act (  
#aifh 7#cd ,u4,s4,c4 #ajchi74  7e7      
,lifetime exemption ,9 ! case ( an      
individual describ$ 9 subsection 7b7 :o 
has be5 employ$ z a s*ool res\rce (fic] 
= a p]iod ( n less ?an #aj ye>s1 9      
addition to any p]iod describ$ 9        

subsection 7a71 gross income %all n     
include any retirem5t income receiv$ by 
su* individual dur+ any p]iod aft] su*  
employm5t has end$4  7f7 ,regulations & 
guidance ,n lat] ?an #ahj days aft] !   
date ( enactm5t ( ?is section1 !        
,secret>y %all prescribe su* regulations
 or o!r guidance z may be necess>y to   
c>ry out ! purposes ( ?is section4  4   
7b7 ,in=mation report+  7#a7 ,9 g5]al   
,subp>t ,a ( "p ,,iii ( sub*apt] ,a (   
*apt] #fa ( ! ,int]nal ,rev5ue ,code (  
#aihf1 z am5d$ by section #gjdba7;d7 (  
,public ,law #aai-ba1 is am5d$ by ins]t+
 aft] section #fjci,l ! foll[+ new      
section3  #fjci,m4 ,in=mation ) respect 
to s*ool res\rce (fic]s ,! head ( any   
law en=cem5t ag5cy employ+ an individual
 describ$ 9 section #aci,m7b7 %all      
provide ! ,secret>y ) notice 79 su*     
mann] z ! ,secret>y may prescribe7      
reg>d+-- 7#a7 ! initial date t su*      
individual began employm5t z a s*ool    
res\rce (fic]1 &  7#b7 ! date on :i* !  
employm5t ( su* individual z a s*ool    

res\rce (fic] has end$4  4  7#b7        
,p5alties ,section #fgbd7;d77#a7 ( su*  
,code is am5d$ by /rik+ & at ! end (    
subp>agraph 7,c71 by /rik+ ! p]iod at ! 
end ( subp>agraph 7,d7 & ins]t+ 1 &1 &  
by ins]t+ aft] subp>agraph 7,d7 ! foll[+
 new subp>agraph3  7,e7 any notice      
requir$ to be fil$ "u section #fjci,m4  
4  7c7 ,cl]ical am5dm5ts  7#a7 ,! table 
( sections = "p ,,iii ( sub*apt] ,b (   
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf1 z am5d$ by section #gjdce7;b7 (  
,public ,law #aai-ba1 is am5d$ by ins]t+
 aft] ! item relat+ to section #aci,l ! 
foll[+ new item3  ,sec4 #aci,m4         
,retirem5t income receiv$ by s*ool      
res\rce (fic]s4  4  7#b7 ,! table (     
sections = subp>t ,a ( "p ,,iii (       
sub*apt] ,a ( *apt] #fa ( su* ,code1 z  
am5d$ by section #gjdba7;d7 ( ,public   
,law #aai-ba1 is am5d$ by ins]t+ aft] ! 
item relat+ to section #fjci,l ! foll[+ 
new item3  ,sec4 #fjci,m4 ,in=mation )  
respect to s*ool res\rce (fic]s4  4  7d7
 ,effective date ,! am5dm5ts made by ?is

 section %all apply to taxable ye>s     
beg9n+ aft] ! date ( enactm5t ( ?is     
,act4