Page:United States Statutes at Large Volume 100 Part 3.djvu/1105

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2913

the time such bond or coupon was disposed of (and not previously reflected in basis)." (2) EFFECTIVE DATE.—The amendment made by paragraph (1) shall apply to any purchase or sale of any stripped tax-exempt obligation or stripped coupon from such an obligation after the date of the enactment of this Act. (t) DISPOSITION OF CERTAIN SUBSIDIARY.—If for a taxable year of an affiliated group filing a consolidated return ending on or before December 31, 1987, there is 1 disposition of stock of a subsidiary incorporated in Delaware on December 24, 1969, and whose principal place of business is in New Orleans, Louisiana (within the meaning of Treasury Regulation section 1.1502-19), the amount required to be included in income with respect to such disposition under Treasury Regulation section 1.1502-19(a) shall, notwithstanding such section, be included in income ratably over the 15-year period beginning with the taxable year in which the disposition occurs and ending with the 14th succeeding taxable year. (u) AMENDMENTS RELATED TO SINGLE EMPLOYER PENSION PLAN

AMENDMENTS ACT OF 1986.— (1) CLARIFICATION OF APPLICABILITY OF NOTICE REQUIREMENT FOR SIGNIFICANT REDUCTIONS IN BENEFIT ACCRUALS.—Section

206(h) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1054(h); 100 Stat. 243) is amended— (A) by striking out "single-employer plan" and inserting in lieu thereof "plan described in paragraph (2)"; (B) by redesignating paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C), respectively; (C) by striking out "paragraph (1), (2), or (3)" and inserting in lieu thereof "subparagraph (A), (B), or (C)"; (D) by inserting "(1)" after "(h)"; and (E) by adding at the end the following new paragraph: "(2) A plan is described in this paragraph if such plan is— "(A) a defined benefit plan, or "(B) an individual account plan which is subject to the funding standards of section 302." (2) TREATMENT OF SECTION 4049 TRUSTS ESTABLISHED PURSUANT TO SECTION 4042(i).—Section 4049(a) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1349(a); 100 Stat. 258) is amended by inserting "or 4042(i)" after "section 4041(c)(3)(B) (ii) or (iii)". (3) CORRECTION OF DEFINITION OF MULTIEMPLOYER PLAN FOR PURPOSES OF TITLE I.—Section 11016(c)(1) of the Single-Employer

Pension Plan Amendments Act of 1986 (100 Stat. 273) and the amendment made thereby are repealed. (4) EFFECTIVE DATE.— (A) GENERAL RULE.—Except as provided in subparagraph

(B), the preceding provisions of this subsection shall be effective as if such provisions were included in the enactment of the Single-Employer Pension Plan Amendments Act of 1986. (B) SPECIAL RULE.—Subparagraph (B) of section 206(h)(2) of the Employee Retirement Income Security Act of 1974 (as amended by paragraph (1)) shall apply only with respect to plan amendments adopted on or after the date of the enactment of this Act.

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