Page:United States Statutes at Large Volume 120.djvu/1040

 PUBLIC LAW 109–280—AUG. 17, 2006

120 STAT. 1009

set aside to pay for the collectively bargained retiree health liabilities. ‘‘(iii) KEY EMPLOYEES EXCLUDED.—If an employee is a key employee (within the meaning of section 416(I)(1)) with respect to any plan year ending in a taxable year, such employee shall not be taken into account in computing collectively bargained retiree health liabilities for such taxable year or in calculating collectively bargained employer cost under subsection (c)(3)(C). ‘‘(C) COLLECTIVELY BARGAINED HEALTH BENEFITS.—The term ‘collectively bargained health benefits’ means health benefits or coverage which are provided to— ‘‘(i) retired employees who, immediately before the collectively bargained transfer, are entitled to receive such benefits upon retirement and who are entitled to pension benefits under the plan, and their spouses and dependents, and ‘‘(ii) if specified by the provisions of the collective bargaining agreement governing the collectively bargained transfer, active employees who, following their retirement, are entitled to receive such benefits and who are entitled to pension benefits under the plan, and their spouses and dependents. ‘‘(D) COLLECTIVELY BARGAINED HEALTH PLAN.—The term ‘collectively bargained health plan’ means a group health plan or arrangement for retired employees and their spouses and dependents that is maintained pursuant to 1 or more collective bargaining agreements.’’. (b) EFFECTIVE DATE.—The amendments made by this section shall apply to transfers after the date of the enactment of this Act.

26 USC 420 note.

SEC. 842. TRANSFER OF EXCESS PENSION ASSETS TO MULTIEMPLOYER HEALTH PLAN.

(a) IN GENERAL.—Section 420 of the Internal Revenue Code of 1986 is amended— (1) by striking ‘‘(other than a multiemployer plan)’’ in subsection (a), and (2) by adding at the end of subsection (e) the following new paragraph: ‘‘(5) APPLICATION TO MULTIEMPLOYER PLANS.—In the case of a multiemployer plan, this section shall be applied to any such plan— ‘‘(A) by treating any reference in this section to an employer as a reference to all employers maintaining the plan (or, if appropriate, the plan sponsor), and ‘‘(B) in accordance with such modifications of this section (and the provisions of this title relating to this section) as the Secretary determines appropriate to reflect the fact the plan is not maintained by a single employer.’’. (b) EFFECTIVE DATE.—The amendment made by this section shall apply to transfers made in taxable years beginning after December 31, 2006.

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26 USC 420.

26 USC 420 note.

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