Page:United States Statutes at Large Volume 98 Part 1.djvu/777

 PUBLIC LAW 98-369—JULY 18, 1984 tables as of the beginning of any calendar year (hereinafter in this subparagraph referred to as the 'year of change') is different from the prevailing commissioners' standard tables as of the beginning of the preceding calendar year, the issuer may use the prevailing commissioners' standard tables as of the beginning of the preceding calendar year with respect to any contract issued after the change and before the close of the 3-year period beginning on the first day of the year of change. (C) SPECIAL RULE FOR CONTRACTS FOR WHICH THERE ARE

NO COMMISSIONERS' STANDARD TABLES.—If there are no commissioners' standard tables applicable to any contract when it is issued, the mortality and morbidity tables used for purposes of paragraph (2)(C) shall be determined under regulations prescribed by the Secretary. it "(D) SPECIAL RULE FOR CONTRACTS ISSUED BEFORE 1948.— If— 10 iut: "(i) a contract was issued before 1948, and "(ii) there were no commissioners' standard tables > applicable to such contract when it was issued, the mortality and morbidity tables used in computing statutory reserves for such contracts shall be used for purposes -1 of paragraph (2)(C). "(E) SPECIAL RULE WHERE MORE THAN i TABLE OR OPTION

APPLICABLE.—If, with respect to any category of risks, there are 2 or more tables (or options under 1 or more tables) which meet the requirements of subparagraph (A) (or, where applicable, subparagraph (B) or (O), the table (and option thereunder) which generally yields the lowest reserves shall be used for purposes of paragraph (2)(C). "(e) SPECIAL RULES FOR COMPUTING RESERVES.— "(1) N E T SURRENDER VALUE.—For purposes

of this section— "(A) IN GENERAL.—The net surrender value of any contract shall be determined— "(i) with regard to any penalty or charge which would be imposed on surrender, but "(ii) without regard to any market value adjustment on surrender. "(B) SPECIAL RULE FOR PENSION PLAN CONTRACTS.—In the

case of a pension plan contract, the balance in the policyholder's fund shall be treated as the net surrender value of such contract. For purposes of the preceding sentence, such balance shall be determined with regard to any penalty or forfeiture which would be imposed on surrender but without regard to any market value adjustment. "(2) ISSUANCE DATE IN CASE OF GROUP CONTRACTS.—For purposes of this section, in the case of a group contract, the date on which such contract is issued shall be the date as of which the master plan is issued (or, with respect to a benefit guaranteed to a participant after such date, the date as of which such benefit is guaranteed). 'f^' "(3) SUPPLEMENTAL BENEFITS.— "(A) QUALIFIED SUPPLEMENTAL BENEFITS TREATED SEPA-

RATELY.—For purposes of this part, the amount of the life insurance reserve for any qualified supplemental benefit— "(i) shall be computed separately as though such benefit were under a separate contract, and

98 STAT. 729

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