Page:United States Statutes at Large Volume 102 Part 4.djvu/659

 PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3629

"(iii) OTHER PLANS PROVIDING COMPARABLE BENEFITS.—A plan not in the group of plans described in clause (i) shall be treated as part of such group with respect to an employee if— "(I) in the case of an employee who is not a highly compensated employee, such employee is eligible to participate in the plan in such group with the largest employer-provided benefit (without regard to clause (ii)), "(11) in the case of an employee who is not a highly compensated employee, the annual cost to such employee under such plan is not lower than the lowest cost permitted within such group, and "(III) the employer-provided benefit under such plan is less than the employer-provided benefit under the plan in such group with the largest such benefit (without regard to clause (ii)). "(iv) SEPARATE APPLICATION OF REQUIREMENTS.—If an

employer elects the application of paragraph (2)(A)(ii), the amount under clause (i) shall be allocated among plans covering spouses and dependents and plans covering employees in such manner as the employer specifies. "(v) CosT-OF-uviNG ADJUSTMENT.—In the case of testing years beginning after 1989, the $100 amount under clause (i) shall be increased by the percentage (if any) by which— "(I) the CPI for the calendar year preceding the year in which the testing year begins, exceeds "(II) the CPI for 1988. For purposes of this clause, the CPI for any calendar year shall be determined under section 1(f).". (7) OTHER COVERAGE.—

(A) Subparagraph (A) of section 89(g)(2) of the 1986 Code is amended— (i) by striking out "subsection (e)" each place it appears and inserting in lieu thereof "subsection (e) or (f)", and (ii) by adding at the end thereof the following new sentence: "The provisions of the preceding sentence shall not apply for purposes of applying subsection (f) unless the requirements of subsection (f) would be met if such subsection were applied without regard to the preceding sentence and on the basis of eligibility to participate rather than coverage." (B) Subparagraph (D) of section 89(g)(2) of the 1986 Code is amended by adding at the end thereof the following sentence: "The Secretary shall make such adjustments as are necessary in applying the rules of the preceding sentence to subsection (f).' (8) SWORN STATEMENTS.—Paragraph (2) of section 89(g) of the

1986 Code is amended— (A) by adding at the end thereof the following new subparagraph: "(E) SPECIAL RULE.—No employee who is not a highly compensated employee may be disregarded under subparagraph (A)(i) with respect to any health plan of the employer

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