Exempts 'qualified civil service separation distributions' from the application of section 72(t) of the Internal Revenue Code and prescribes alternative inclusion and repayment rules for such distributions.

Specifies that qualified civil service separation distributions are not to be treated as 'eligible rollover distributions' for purposes of section 401(a)(31).

Provides that qualified civil service separation distributions are not treated as eligible rollover distributions for purposes of section 402(f).

Provides that qualified civil service separation distributions are not to be treated as eligible rollover distributions for purposes of section 3405 (withholding rules).