To remove police officers employed by The Long Island Rail Road Company from coverage under the Employer's Liability Act, the Railway Labor Act, the Railroad Retirement Act, and the Railroad Unemployment Insurance Act, and for other purposes.

Summary: Excludes police officers employed by The Long Island Rail Road Company (LIRR) from coverage under the Employers' Liability Act, Railway Labor Act, Railroad Retirement Act of 1974, Railroad Unemployment Insurance Act, Railroad Retirement Tax Act, and Railroad Unemployment Repayment Tax provisions of the Internal Revenue Code. 
Sets forth requirements regarding the tax treatment of covered LIRR police officers (or their beneficiaries), including provisions relating to Federal taxation of benefits accrued by covered LIRR police officers under the New York State and Local Police and Fire Retirement System with respect to a controlling collective bargaining agreement and an additional plan.

SECTION 1. EXCLUSION FROM FEDERAL EMPLOYERS' LIABILITY ACT AND RAILWAY 
              LABOR ACT.

    LIRR police officers shall not be considered employees of a common 
carrier by railroad for purposes of the Act entitled ``An Act relating 
to the liability of common carriers by railroad to their employees in 
certain cases'', enacted April 22, 1908 (popularly known as the 
Employers' Liability Act) and shall not be considered employees of a 
carrier for purposes of the Railway Labor Act.

SEC. 2. EXCLUSION FROM RAILROAD RETIREMENT ACT OF 1974, RAILROAD 
              UNEMPLOYMENT INSURANCE ACT, AND RELATED TAXES.
    (a) Exclusion From Railroad Retirement Act of 1974 and Railroad 
Unemployment Insurance Act.--For purposes of the Railroad Retirement 
Act of 1974 and the Railroad Unemployment Insurance Act, a covered LIRR 
police officer shall not, as such, be considered an employee (as 
defined therein).
    (b) Exclusion From Railroad Retirement Tax Act.--For purposes of 
the Railroad Retirement Tax Act, a covered LIRR police officer shall 
not, as such, be considered an employee or employee representative (as 
defined therein).
    (c) Railroad Unemployment Repayment Tax.--For purposes of chapter 
23A of the Internal Revenue Code of 1986, remuneration paid by the LIRR 
or any employee organization to any covered LIRR police officer as such 
shall not be treated as rail wages (as defined therein).

SEC. 3. CLARIFICATION OF TAX TREATMENT.

    (a) In General.--
            (1) In general.--No amount shall be includible in the gross 
        income of any covered LIRR police officer (or any beneficiary 
        thereof) by reason of--
                    (A) any transfer of assets in furtherance of the 
                controlling agreement to the N.Y. System from any 
                pension plan maintained by the LIRR, or
                    (B) any payment by the LIRR to the N.Y. System 
                pursuant to such agreement,
        in connection with the cancellation of such officer's rights 
        under the Additional Plan.
            (2) Limitation.--Paragraph (1) shall not apply with respect 
        to a covered LIRR police officer to the extent that the 
        aggregate of the transfers and payments referred to in 
        paragraph (1) with respect to such officer exceeds the amount 
        deemed necessary under the N.Y. System to fund such officer's 
        accrued benefit under the N.Y. System attributable to service 
        performed while a participant in the Additional Plan.
    (b) Benefits Accruing Under N.Y. System.--For purposes of 
determining the Federal taxation of benefits accrued by a covered LIRR 
police officer under the N.Y. System by reason of the performance of 
services after ceasing to accrue benefits under the Additional Plan, 
the choice which such officer has of coverage under the N.Y. System 
rather than the Additional Plan shall not be treated as a cash or 
deferred election under a cash or deferred arrangement for purposes of 
section 401(k) of the Internal Revenue Code of 1986.
    (c) Controlling Agreement.--For purposes of this section, the term 
``controlling agreement'' means the collective bargaining agreement 
made June 30, 1989, by and between the LIRR and The Long Island Rail 
Road Company Police Benevolent Association, including the agreement 
made October 10, 1990, by and between such parties to further the 
implementation of Article XXXVI of such collective bargaining 
agreement.
    (d) Additional Plan.--For purposes of this section, the term 
``Additional Plan'' means The Long Island Rail Road Company Plan for 
Additional Pensions.

SEC. 4. DEFINITIONS.

    For purposes of this Act--
            (1) the term ``covered LIRR police officer'' means an LIRR 
        police officer who is accruing or entitled to benefits under 
        the N.Y. System, based on service as an LIRR police officer;
            (2) the term ``LIRR'' means The Long Island Rail Road 
        Company, a public benefit corporation of the State of New York;
            (3) the term ``LIRR police officer'' means--
                    (A) any person who on or after the effective date 
                of section 389 of the Retirement and Social Security 
                Law of the State of New York holds an appointment as a 
                police officer in the LIRR police department pursuant 
                to section 88 of the Railroad Law of the State of New 
                York; and
                    (B) any probationary police officer in that 
                department who is expected to hold such an appointment 
                after completing the requisite training,
        whose initial employment with that department was in the 
        position of such a probationary officer or as a patrolman, 
        policewoman, sergeant, lieutenant, or detective, or any 
        successor title to any of the foregoing positions; and
            (4) the term ``N.Y. System'' means the New York State and 
        local Police and Fire retirement system.

SEC. 5. EFFECTIVE DATE.

    This Act shall take effect on the first day of the first calendar 
month following receipt by the comptroller of the State of New York of 
the election by the LIRR, pursuant to subdivision b of section 331 of 
the Retirement and Social Security Law of the State of New York, to 
participate in the N.Y. System.