To amend the Internal Revenue Code of 1986 with respect to the treatment of certain lump sum distributions under the pension offset requirements applicable to State unemployment compensation laws.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code to provide that pension offset requirements for State unemployment compensation laws do not apply to distributions or payments that are not includible in an individual's gross income by reason of being a direct trustee-to-trustee transfer or a rollover contribution.…