Page:United States Statutes at Large Volume 92 Part 3.djvu/224

 92 STAT. 2856

26 USC 911. 26 USC 861.

PUBLIC LAW 95-600—NOV. 6, 1978 between employee representatives and one or more employers which the Secretary finds to be a collective bargaining agreement, if accident and health benefits were the subject of good faith bargaining between such employee representatives and such employer or employers; and "(v) employees who are nonresident aliens and who receive no earned income (within the meaning of section 911(b)) from the employer which constitutes income from sources within the United States (within the meaning of section 861(a)(3)). "(4) NONDISCRIMINATORY BENEFITS.—A self-insured medical

reimbursement plan does not meet the requirements of subparagraph (B) of paragraph (2) unless all benefits provided for participants who are highly compensated individuals are provided for all other participants. "(5) HIGHLY COMPENSATED INDIVIDUAL DEFINED.—For purposes

26 USC 318.

of this subsection, the term 'highly compensated individual' means an individual who is— "(A) one of the 5 highest paid officers, "(B) a shareholder who owns (with the application of section 318) more than 10 percent in value of the stock of the employer, or "(C) among the highest paid 25 percent of all employees (other than employees described in paragraph (3)(B) who are not participants). "(6) SELF-INSURED MEDICAL REIMBURSEMENT PLAN.—The term 'self-insured medical reimbursement plan' means a plan of an employer to reimburse employees for expenses referred to in subsection (b) for which reimbursement is not provided under a policy of accident and health insurance. "(7) EXCESS REIMBURSEMENT OF HIGHLY COMPENSATED INDIVID-

UAL.—For purposes of this section, the excess reimbursement of a highly compensated individual which is attributable to a selfinsured medical reimbursement plan is— "(A) in the case of a benefit available to a highly compensated individual but not to a broad cross-section of employees, the amount reimbursed under the plan to the employee with respect to such benefit, and "(B) in the case of benefits (other than benefits described in subparagraph (A) paid to a highly compensated individual by a plan which fails to satisfy the requirements of paragraph (2), the total amount reimbursed to the highly compensated individual for the plan year multiplied by a fraction— "(i) the numerator of which is the total amount reimbursed to all participants who are highly compensated individuals under the plan for the plan year, and "(ii) the denominator of which is the total amount reimbursed to all employees under the plan for such plan year. In determining the fraction under subparagraph (B), there shall not be taken into account any reimbursement which is attributable to a benefit described in subparagraph (A). "(8) CERTAIN CONTROLLED GROUPS.—All employees who are

treated as employed by a single employer under subsection (b) or

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