Page:United States Statutes at Large Volume 108 Part 6.djvu/435

 PUBLIC LAW 103-465—DEC. 8, 1994 108 STAT. 5003 (b) EFFECTIVE DATE. —The amendment made by subsection (a) 26 USC 32 note, shall apply to taxable yesirs beginning after December 31, 1994. SEC. 723. INCOME OF PRISONERS DISREGARDED IN DETERMINING EARNED INCOME TAX CREDIT. (a) IN GENERAL.— Subparagraph (B) of section 32(c)(2) (defining 26 USC 32. earned income) is amended by striking "and" at the end of clause (ii), by striking the period at the end of clause (iii) and inserting ", and", and by adding at the end the following new clause: "(iv) no amount received for services provided by an individual while the individual is an inmate at a penal institution shall be taken into account." (b) EFFECTIVE DATE. —The amendment made by subsection (a) 26 USC 32 note, shall apply to taxable years beginning after December 31, 1993. Subtitle D—Provisions Relating To Retirement Benefits SEC. 731. TREATMENT OF EXCESS MINSION ASSETS USED FOR RETIREE HEALTH BENEFITS. (a) 5-YEAR EXTENSION.— Paragraph (5) of section 420(b) (defining qualified transfer) is amended by striking "1995" and inserting " 2000". (b) MINIMUM BENEFIT REQUIREMENTS.— Paragraph (3) of section 420(c) (relating to requirements of plans transferring assets) is amended to read as follows: "(3) MAINTENANCE OF BENEFIT REQUIREMENTS.— "(A) IN GENERAL.— The requirements of this paragraph are met if each group health plan or arrangement under which apphcable nealth benefits are provided provides that the apphcable health benefits provided by the employer during each taxable year during the benefit maintenance Eeriod are subsfeintially the same as the apphcable health enefits provided by the employer during the taxable year immediately preceding the taxable year of the qualified transfer. "(B) ELECTION TO APPLY SEPARATELY.— An employer may elect to have this paragraph applied separately with respect to individuals eligible for benefits under title XVIII of me Social Security Act at any time during the taxable year and with respect to individuals not so eligible. "(C) BENEFIT MAINTENANCE PERIOD.—For purposes of this paragraph, the term ^benefit maintenance period' means the period of 5 taxable years beginning with the taxable year in which the qualified transfer occ\u*s. If a taxable year is in 2 or more benefit maintenance periods, this paragraph shall be apphed by taking into account the highest level of benefits required to be provided under subparagraph (A) for such taxable year." (c) CONFORMING AMENDMENTS.— (1) Clause (ui) of section 42(Xb)(l)(C) is amended by striking "cost" and inserting "benefits". (2) Subparagraph (B) of section 420(e)(1) is amended to read as follows: "(B) REDUCTIONS FOR AMOUNTS PREVIOUSLY SET ASIDE.—The amount determined under subparagraph (A)

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