Page:United States Statutes at Large Volume 100 Part 3.djvu/700

 100 STAT. 2508

PUBLIC LAW 99-514—OCT. 22, 1986 by striking out the period at the end of subparagraph (B) and inserting in lieu thereof ", and", and by adding at the end thereof the following new subparagraph: "(C) sections 79, 89, 106, 117(d), 120, 125, 127, 129, 132, 2740"), and 505." (j) OTHER CONFORMING AMENDMENTS.—
 * *^F '^ >' (C) by striking out "and" at the end of subparagraph (A),

(1) The table of sections for part II of subchapter B of chapter 1 is amended by adding at the end thereof the following new item: "Sec. 89. Benefits provided under certain employee benefit plans."

(2) Subsection (a) of section 106 (relating to contributions by employer to accident and health plans) is amended to read as follows: "(a) IN GENERAL.—Gross income of an employee does not include employer-provided coverage under an accident or health plan." (3) Section 505(b) is amended by adding at the end thereof the following new paragraph: "(6) COMPENSATION.—For purposes of this subsection, the term 'compensation' has the meaning given such term by section 414(s)." (k) EFFECTIVE DATES.—

(1) IN GENERAL.—The amendments made by this section shall apply to years beginning after the later of — (A) December 31, 1987, or (B) the earlier of— ,, (i) the date which is 3 months after the date on which the Secretary of the Treasury or his delegate issues such regulations as are necessary to carry out the provisions of section 89 of the Internal Revenue Code of 1986 (as added by this section), or (ii) December 31, 1988. (2) SPECIAL RULE FOR COLLECTIVE BARGAINING PLAN.—In

the

case of a plan maintained pursuant to 1 or more collective bargaining agreements between employee representatives and 1 or more employers ratified before March 1, 1986, the amendments made by this section shall not apply to employees covered by such an agreement in years beginning before the earlier of^ (A) the date on which the last of such collective bargaining agreements terminates (determined without regard to any extension thereof after February 28, 1986), or (B) January 1, 1991. A plan shall not be required to take into account employees to which the preceding sentence applies for purposes of applying section 89 of the Internal Revenue Code of 1986 (as added by this section) to employees to which the preceding sentence does not apply for any year preceding the year described in the preceding sentence. (3) EXCEPTION FOR CERTAIN GROUP-TERM INSURANCE PLANS.—In

the case of a plan described in section 223(d)(2) of the Tax Reform Act of 1984, such plan shall be treated as meeting the requirements of section 89 of the Internal Revenue Code of 1986 (as added by this section) with respect to individuals described in section 223(d)(2) of such Act. An employer may elect to disregard such individuals in applying section 89 of such Code (as so added) to other employees of the employer.

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