Page:United States Statutes at Large Volume 103 Part 3.djvu/407

 PUBLIC LAW 101-239—DEC. 19, 1989 103 STAT. 2475 (A) group-term life insurance coverage in effect after December 31, 1989, and (B) remuneration paid before January 1, 1990, which the employer treated as compensation when paid. (2) EXCEPTION.—The amendment made by subsection (a) shall not apply with respect to payments by the employer (or a successor of such employer) for group-term life insurance for such employer's former employees who separated from employ- ment with the employer on or before December 31, 1989, to the extent that such payments are not for coverage for any such employee for any period for which such employee is employed by such employer (or a successor of such employer) after the date of such separation. (3) BENEFIT DETERMINATIONS TO TAKE INTO ACCOUNT REMU- NERATION ON WHICH TAX PAID. —The term "compensation" as defined in section 1(h) of the Railroad Retirement Act of 1974 includes any remuneration which is included in the term "com- pensation" as defined in section 3231(e)(l) of the Internal Reve- nue Code of 1986 by reason of the amendment made by subsec- tion (a). SEC. 10206. TREATMENT OF CERTAIN DEFERRED COMPENSATION AND SALARY REDUCTION ARRANGEMENTS UNDER RAILROAD RETIREMENT TAXES. (a) IN GENERAL. —The second sentence of section 3231(e)(l) of the Internal Revenue (Code of 1986 (defining compensation) is amended 26 USC 3231. by striking "or (iii)" and inserting "(iii) and by inserting before the period ", or (iv) any remuneration which would not (if chapter 21 applied to such remuneration) be treated as wages (as defined in section 3121(a)) by reason of section 3121(a)(5)". (b) TREATMENT OF CERTAIN DEFERRED COMPENSATION AND SALARY REDUCTION ARRANGEMENTS.— Subsection (e) of section 3231 of such Code is amended by adding at the end thereof the following new paragraph: " (9) TREATMENT OF CERTAIN DEFERRED COMPENSATION AND SALARY REDUCTION ARRANGEMENTS.— "(A) CERTAIN EMPLOYER CONTRIBUTIONS TREATED AS COM- PENSATION.— Nothing in any paragraph of this subsection (other than paragraph (2)) snail exclude from the term 'compensation' any amount described in subparagraph (A) or (B) of section 3121(v)(l). "(B) TREATMENT OF CERTAIN NONQUAUFIED DEFERRED COM- PENSATION.—The rules of section 3121(v)(2) which applv for purposes of chapter 21 shall also apply for purposes of this chapter.". (c) EFFECTIVE DATES.— 26 USC 3231 (1) SUBSECTION (a). —The amendment made by subsection (a) note, shall apply to remuneration paid after December 31, 1989. (2) SUBSECTION (b). —Except as otherwise provided in this subsection— (A) IN GENERAL.— The amendment made by subsection (b) shall apply to— \iV (i) remuneration paid after December 31, 1989, and (ii) remuneration paid before January 1, 1990, which the employer treated as compensation when paid. (B) BENEFIT DETERMINATIONS TO TAKE INTO ACCOUNT 5' REMUNERATION ON WHICH TAX PAID. —The term "compensa-.

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