Page:United States Statutes at Large Volume 102 Part 4.djvu/661

 PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3631

salary reduction shall or shall not be treated as an employer-provided benefit to prevent avoidance of the purposes of this section." (12) PART-TIME EMPLOYEES.—Paragraph (5) of section 89(j) of the 1986 Code is amended by striking out the last sentence thereof. (13) ACQUISITIONS AND DISPOSITIONS.—

(A) Clause (ii) of section 89(j)(8)(A) of the 1986 Code is amended to read as follows: "(ii) either— "(I) the coverage under such plan is not significantly changed during the transition period (other than by reason of the change in members in such group), or "(II) such plan meets such other requirements as the Secretary may prescribe by regulation.". (B) Subclause (II) of section 410(b)(6)(C)(i) of the 1986 Code is amended by inserting "or such plan meets such other requirements as the Secretary may prescribe by regulation" before the end period. (14) DEPENDENT CARE ASSISTANCE.—Subparagraph (B) of section 129(d)(7) of the 1986 Code (as redesignated and amended by section 11 IB of this Act) is amended— (A) by striking out "(within the meaning of section 414(q)(7))", and (B) by adding at the end thereof the following new sentence: "For purposes of this subparagraph, the term 'compensation' has the meaning given such term by section 414(q)(7), except that, under rules prescribed by the Secretary, an employer may elect to determine compensation on any other basis which does not discriminate in favor of highly compensated employees.". (15) REPORTING REQUIREMENTS.—

(A) Section 6039D(d) of the 1986 Code is amended— (i) by adding at the end thereof the following new paragraph: "(3) SPECIAL RULE FOR MULTIEMPLOYER PLANS.—In the case of a multiemployer plan, the plan shall be required to provide any information required by this section which the Secretary determines, on the basis of the agreement between the plan and employer, is held by the plan (and not the employer)", and (ii) by inserting "AND SPECIAL RULES" after "DEFINI• TiONs" in the heading thereof. (B) The amendments made by this paragraph shall apply 26 USC 6039D to years beginning after 1984. note. (b) MODIFICATION TO DEFINITIONS OF HIGHLY (DOMPENSATED AND COMPENSATION AND TO SEPARATE LINE OF BUSINESS RULES.— (1) DEFINITION OF HIGHLY COMPENSATED.—Subsection (q) of

section 414 of the 1986 Code is amended by adding at the end thereof the following new paragraph: "(12) SIMPLIFIED METHOD FOR DETERMINING HIGHLY COMPENSATED EMPLOYEES.—

"(A) IN GENERAL.—If an election by the employer under this paragraph applies to any year, in determining whether an employee is a highly compensated employee for such year—

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