Section 1 Clarification of special rule for certain governmental plans
by striking “the taxpayer” and inserting “an employee or to a spouse, dependent (as defined for purposes of subsection (b)), or child (as so defined) of an employee”, and
by striking “deceased plan participant's beneficiary” and inserting “deceased employee's beneficiary other than a surviving spouse, dependent (as so defined), or child (as so defined) of the employee”.
Application to political subdivisions of States— Paragraph (2) of section 105(j) of the Internal Revenue Code of 1986 is amended—
by inserting “or established by or on behalf of a State or political subdivision thereof” after “public retirement system”, and
by inserting “or 501(c)(9)” after “section 115” in subparagraph (B).
Effective date— The amendments made by this section shall apply to payments after the date of the enactment of this Act.