Page:United States Statutes at Large Volume 98 Part 1.djvu/909

 PUBLIC LAW 98-369—JULY 18, 1984 clause (ii) of subparagraph into account.

(B) shall

98 STAT. 861 be

taken

"(iii) TREATMENT O F EXISTING RESERVES FOR POST-RETIREMENT MEDICAL OR LIFE INSURANCE BENEFITS.—

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"(I) Clause (i) shall not apply to any income attributable to a existing reserve for post-retirement medical or life insurance benefits. "(II) For purposes of subclause (I), the term 'existing reserve or post-retirement medical or life insurance benefit' means the amount of assets set (:? • ftS aside as of the close of the last plan year ending before the date of the enactment of the Tax Reform Act of 1984 for purposes of post-retirement medical Ante, p. 494. benefits or life insurance benefits to be provided to covered employees. "(Ill) All payments during plan years ending on or after the date of the enactment of the Tax Reform Act of 1984 of post-retirement medical benefits or life insurance benefits shall be charged against the reserve referred to in subclause (II). Except to the extent provided in regulations prescribed by the Secretary, all plans of an employer shall be treated as 1 plan for purposes of the preceding sentence, "(iv) TREATMENT OF TAX EXEMPT ORGANIZATIONS.—

This paragraph shall not apply to any organization if substantially all of the contributions to such organization are made by employers who were exempt from tax under this chapter throughout the 5-taxable year period ending with the taxable year in which the contributions are made." (c) TAX ON CERTAIN FUNDED WELFARE BENEFIT PLANS.—

(1) IN GENERAL.—Chapter 43 (relating to qualified pension, etc., plans) is amended by adding at the end thereof the following new section: "SEC. 4976. TAXES WITH RESPECT TO FUNDED WELFARE BENEFIT PLANS.

26 USC 4976.

"(a) GENERAL RULE.—If—

"(1) an employer maintains a welfare benefit fund, and "(2) there is a disqualified benefit provided during any taxable year, there is hereby imposed on such employer a tax equal to 100 percent of such disqualified benefit. "(b) DISQUALIFIED BENEFIT.—For purposes of subsection (a), the term 'disqualified benefit' means— "(1) any medical benefit or life insurance benefit provided with respect to a key employee other than from a separate account established for such owner under section 419A(d), and Ante, p. 856. "(2) any post-retirement medical or life insurance benefit unless the plan meets the requirements of section 505(b)(1) with Post, p. 864. respect to such benefit, and "(3) any portion of such fund reverting to the benefit of the employer. "(c) DEFINITIONS.—For purposes of this section, the terms used in this section shall have the same respective meanings as when used in subpart D of part I of subchapter D of chapter 1." Ante, p. 854.

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