Page:United States Statutes at Large Volume 103 Part 1.djvu/860

 103 STAT. 832 PUBLIC LAW 101-140—NOV. 8, 1989 pay as contributions for post-retirement group life insur- ance if— "(i) all contributions for such insurance must be made before retirement, and "(ii) such life insurance does not have a cash surren- der value at any time. For purposes of section 79, any life insurance described in the preceding sentence shall be treated as group-term life insurance." 26 USG 79 note. (c) EFFECTIVE DATE.—The amendments made by this section shall take effect as if included in section 1151 of the Tax Reform Act of 1986. SEC. 204. OTHER PROVISIONS RELATING TO NONTAXABLE BENEFITS. (a) DEPENDENT CARE ASSISTANCE. — (1) IN GENERAL. —Paragraph (1) of section 129(d) (as in effect on the day before the date of the enactment of the Tax Reform Act of 1986) is amended by adding at the end thereof the following new sentence: "If any plan would qualify as a depend- ent care assistance program but for a failure to meet the requirements of this subsection, then, notwithstanding such failure, such plan shall be treated as a dependent care assist- ance program in the case of employees who are not highly compensated employees." (2) EXCLUDED EMPLOYEES. — (A) Section 129(d) is amended by adding at the end thereof the following new paragraph: "(9) EXCLUDED EMPLOYEES. — For purposes of paragraphs (3) and (8), there shall be excluded from consideration— "(A) subject to rules similar to the rules of section 410(b)(4), employees who have not attained the age of 21 and completed 1 year of service (as defined in section 410(a)(8)), and "(B) employees not included in a dependent care assist- ance program who are included in a unit of employees covered by an agreement which the Secretary finds to be a collective bargaining gigreement between employee rep- resentatives and 1 or more employees, if there is evidence that dependent care benefits were the subject of good faith bargaining between such employee representatives and such employer or employers." (B) Section 129(d)(3) (as in effect on the day before the date of the enactment of the Tax Reform Act of 1986) is amended by striking the last sentence. (3) DELAY IN APPLICATION OF BENEFITS TEST. — (A) Paragraph (7) of section 129(d) (as in effect after the amendment made by paragraph (14) of section lOllB(a) of the Technical and Miscellaneous Revenue Act of 1988) is redesignated as paragraph (8). (B) Paragraph (1) of section 129(d) (as in effect on the day before the date of the enactment of the Tax Reform Act of 1986) is amended by striking "paragraphs (2) through (7)" and inserting "paragraphs (2) through (8)". (C) Section 129(e)(6) is amended by striking "(7)" and inserting "(8)".

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