diff --git a/patchlevel.h b/patchlevel.h
--- a/patchlevel.h
+++ b/patchlevel.h
@@ -25,6 +25,6 @@
    regexp `^#define[ 	]*PATCHLEVEL', since that's what support/mkversion.sh
    looks for to find the patch level (for the sccs version string). */
 
-#define PATCHLEVEL 2
+#define PATCHLEVEL 3
 
 #endif /* _PATCHLEVEL_H_ */
diff --git a/subst.c b/subst.c
--- a/subst.c
+++ b/subst.c
@@ -6356,8 +6356,10 @@ command_substitute (string, quoted, flags)
 
 #if defined (JOB_CONTROL)
   old_pipeline_pgrp = pipeline_pgrp;
-  /* Don't reset the pipeline pgrp if we're already a subshell in a pipeline. */
-  if ((subshell_environment & SUBSHELL_PIPE) == 0)
+  /* Don't reset the pipeline pgrp if we're already a subshell in a pipeline or
+     we've already forked to run a disk command (and are expanding redirections,
+     for example). */
+  if ((subshell_environment & (SUBSHELL_FORK|SUBSHELL_PIPE)) == 0)
     pipeline_pgrp = shell_pgrp;
   cleanup_the_pipeline ();
 #endif /* JOB_CONTROL */