RULES FOR CERTAIN NEGOTIATED PLANS.

SEC. 2007. RULES FOR CERTAIN NEGOTIATED PLANS. (a) In General.—Section 122(a) (relating to certain reduced uniformed services retired pay) is amended to read as follows: “(a) General Rule.—In the case of a member or former member of the uniformed services of the United States, gross income does not include the amount of any reduction in his retired or retainer pay pursuant to the provisions of chapter 73 of title 10, United States Code.”. (b) Technical Amendments.— (1) Section 122(b)(2) is amended by striking out “section 1438” in subparagraph (B) and inserting in lieu thereof “section 1438 or 1452(d)”. (2) Section 72(o) is amended by inserting after “Plan” in the heading of such section “or Survivor Benefit Plan”. (3) Section 101(b)(2)(D) is amended by striking out “if the individual who made the election under such chapter” and inserting in lieu thereof “if the member or former member of the uniformed services by reason of whose death such annuity is payable”. (4) Section 2039(c) is amended by striking out “section 1438” in the last sentence and inserting in lieu thereof “section 1438 or 1452(d)”. (c) Effective Dates.—The amendments made by this section apply to taxable years ending on or after September 21, 1972. The amendments made by paragraphs (3) and (4) of subsection (b) apply with respect to individuals dying on or after such date.