A bill to amend the Internal Revenue Code of 1954 to provide that employees may make certain contributions to provide for cost-of-living protection under a defined benefit plan, and for other purposes.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code to allow employees and employers to make contributions to a cost-of-living arrangement to supplement a defined benefit plan. Defines a qualified "cost-of-living arrangement" as an arrangement under a defined benefit plan which indexes a benefit provided under such plan or a separate plan subject to certain requirements. Requires that participation in such an arrangement must be elective. Provides that transfers to a cost-of-living arrangement shall not be taken into account for purposes of lump-sum distribution. Disallows an income tax deduction for employee contributions to a cost-of-living arrangement.…