Page:United States Statutes at Large Volume 100 Part 3.djvu/693

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2501

requirement imposed on such plan (other than any requirement under section 120(c)(3), 127(b)(3), or 129(d)(4)). "(8) SPECIAL RULES FOR CERTAIN DISPOSITIONS OR ACQUISITIONS.—

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"(A) IN GENERAL.—If a person becomes, or ceases to be, a member of a group described in subsection (b), (c), (m), or (o) of section 414, then the requirements of this section shall be treated as having been met during the transition period with respect to any plan covering employees of such person or any other member of such group if— "(i) such requirements were met immediately before each such change, and "(ii) the coverage under such plan is not significantly changed during the transition period (other than by reason of the change in members of a group). "(B) TRANSITION PERIOD.—For purposes of subparagraph

(A), the term 'transition period' means the period— "(i) beginning on the date of the change in members of a group, and "(ii) ending on the last day of the 1st plan year beginning after the date of such change. "(9) COORDINATION WITH MEDICARE, ETC.—If a plan may be coordinated with health benefits provided under any Federal, State, or foreign law or under any other health plan covering the employee or family member of the employee, such plan shall not fail to meet the requirements of this section with respect to health benefits merely because the amount of such benefits provided to any employee or family member of any employee are coordinated in a manner which does not discriminate in favor of highly compensated employees. "(10) DiSABILITY BENEFITS.—

"(A) IN GENERAL.—If a plan may be coordinated with disability benefits provided under any Federal, State, or foreign law or under any other plan covering the employee, such plan shall not fail to meet the requirements of this section with respect to disability benefits merely because the amount of such benefits provided to an employee are coordinated in a manner which does not discriminate in favor of highly compensated employees. "(B) CERTAIN DISABILITY PLANS EXEMPT FROM NONDISCRIMINATION RULES.—Subsection (a) shall not apply to

any disability coverage other than disability coverage the benefits of which are excludable from gross income under section 1050t)) or (c). "(11) SEPARATE APPLICATION IN THE CASE OF OPTIONS.—Each

option or different benefit shall be treated as a separate plan, '(k) REQUIREMENT THAT PLAN B E IN WRITING, ETC.—

"(1) IN GENERAL.—Notwithstanding any provision of part III of this subchapter, gross income of an employee shall include an amount equal to such employee's employer-provided benefit for the taxable year under an employee benefit plan to which this subsection applies unless, except to the extent provided in regulations— "(A) such plan is in writing, "(B) the employees' rights under such plan are legally enforceable,

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