Page:United States Statutes at Large Volume 100 Part 3.djvu/1053

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2861

a contribution paid to such welfare benefit fund on the last day of such taxable year, and (B) the tax so attributable shall be treated as imposed on the fund for purposes of section 419(c)(4)(A)." (10) AMENDMENTS TO TAX ON UNRELATED BUSINESS INCOME.—

(A) Clause (i) of section 512(a)(3)(E) is amended by striking out "determined under section 419A(c)" and inserting in lieu thereof "determined under section 419A (without regard to subsection (f)(6) thereof)". (B) Subparagraph (E) of section 512(a)(3) is amended by striking out clause (ii) and by redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively. (C) Clause (ii) of section 512(a)(3)(E) (as redesignated by subparagraph (B)) is amended— (i) by striking out "a existing reserve" in subclause (I) and inserting in lieu thereof "an existing reserve", and (ii) by striking out subclause (II) and inserting in lieu thereof the following: "(II) For purposes of subclause (II), the term 'reserve for post-retirement medical or life insurance benefits' means the greater of the amount of assets set aside for purposes of post-retirement medical or life insurance benefits to be provided to covered employees as of the close of the last plan year ending before the date of the enactment of the Tax Reform Act of 1984 or on July 18, 1984,". (D) Clause (iii) of section 512(a)(3)(E) (as redesignated by subparagraph (B)) is amended by striking out "paragraph shall not" and inserting in lieu thereof "subparagraph shall not". (11) AMENDMENTS RELATED TO TAX ON CERTAIN FUNDED WELFARE BENEFIT PLANS.—Subsection (b) of section 4976 (defining

disqualified benefit) is amended to read as follows: '(b) DISQUALIFIED BENEFIT.—For purposes of subsection (a)— "(1) IN GENERAL.—The term 'disqualified benefit' means— "(A) any post-retirement medical benefit or life insurance benefit provided with respect to a key employee if a separate account is required to be established for such employee under section 419A(d) and such payment is not from such account, "(B) any post-retirement medical benefit or life insurance benefit provided with respect to an individual in whose favor discrimination is prohibited unless the plan meets the requirements of section 505(b) with respect to such benefit (whether or not such requirements apply to such plan), and "(C) any portion of a welfare benefit fund reverting to the benefit of the employer. "(2)

EXCEPTION FOR COLLECTIVE BARGAININJG PLANS.—Para-

graph (1)(B) shall not apply to any plan maintained pursuant to an agreement between employee representatives and 1 or more employers if the Secretary finds that such agreement is a collective bargaining agreement and that the benefits referred to in paragraph (1)(B) were the subject of good faith bargaining between such employee representatives and such employer or employers. "(3)

EXCEPTION FOR NONDEDUCTIBLE CONTRIBUTIONS.—Para-

graph (1)(C) shall not apply to any amount attributable to a

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