Page:United States Statutes at Large Volume 100 Part 3.djvu/692

 100 STAT. 2500

PUBLIC LAW 99-514—OCT. 22, 1986

"(C) A dependent care assistance program (within the meaning of section 129(d)). An election under this paragraph with respect to any plan shall apply with respect to all plans of the same type as such plan. "(3) PLANS OF THE SAME TYPE.—2 or more plans shall be treated as of the same type if such plans are described in the same subparagraph of paragraph (1) or (2). "(j) OTHER DEFINITIONS AND SPECIAL RULES.—For purposes of this section— "(1) HIGHLY COMPENSATED EMPLOYEE.—The term 'highly comv pensated employee' has the meaning given such term by section 414(q). "(2) HEALTH PLAN.—The term 'health plan' means any plan described in paragraph (1)(A) of subsection (i). "(3) TREATMENT OF FORMER EMPLOYEES.—Except to the extent provided in regulations, this section shall be applied separately to former employees under requirements similar to the requirements that apply to employees. "(4) GROUP-TERM LIFE INSURANCE PLANS.—

"(A) IN GENERAL.—Any group-term life insurance plan shall not be treated as 2 or more separate plans merely because the amount of life insurance under the plan on behalf of employees bears a uniform relationship to the compensation (within the meaning of section 414(s)) of such employees. "(B)

,

LIMITATION ON COMPENSATION.—For purposes

of

subparagraph (A), compensation in excess of the amount applicable under section 401(a)(17) shall not be taken into account. "(C) LIMITATION.—This paragraph shall not apply to any plan if such plan is combined with plans of other types pursuant to an election under subsection (g)(4). "(5)

SPECIAL RULE FOR EMPLOYEES WORKING LESS THAN 30

HOURS PER WEEK.—Any health plan shall not fail to meet the requirements of this section merely because the employer-provided benefit is proportionately reduced for employees who normally work less than 30 hours per week. The preceding sentence shall apply only where the average work week of employees who are not highly compensated employees is 30 hours or more. "(6) TREATMENT OF SELF-EMPLOYED INDIVIDUALS.—In the case of a statutory employee benefit plan described in subparagraph a^'l (A), (B), or (C) of subsection (i)(2)— "(A) TREATMENT AS EMPLOYEE, ETC.—The term 'employee' includes any self-employed individual (as defined in section 401(c)(1)), and the term 'compensation' includes such ti individual's earned income (as defined in section 401(c)(2)). "(B) EMPLOYER.—An individual who owns the entire in11 terest in an unincorporated trade or business shall be treated as his own employer. A partnership shall be treated as the employer of each partner who is treated as an employee under subparagraph (A). "(7) CERTAIN PLANS TREATED AS MEETING OTHER NONDISCRIMINATION REQUIREMENTS.—If an employer makes an elec-

I

tion under subsection (i)(2) to have this section apply to any plan 5;i; and such plan meets the requirements of this section, such plan shall be treated as meeting any other nondiscrimination

�