Page:United States Statutes at Large Volume 104 Part 2.djvu/979

This page needs to be proofread.


PUBLIC LAW 101-508—NOV. 5, 1990 104 STAT. 1388-571 qualified current retiree health liabilities for such taxable year or in calculating applicable employer cost under subsection (c)(3)(B). "(2) EXCESS PENSION ASSETS. —The term 'excess pension gissets' means the excess (if any) of— "(A) the amount determined under section 412(c)(7)(A)(ii), over "(B) the greater of— "(i) the amount determined under section 412(c)(7)(A)(i), or "(ii) 125 percent of current liability (as defined in section 412(c)(7)(B)). The determination under this paragraph shall be made as of the most recent valuation date of the plan preceding the qualified transfer. "(3) HEALTH BENEFITS ACCOUNT. —The term "health benefits account" means an account established and maintained under section 401(h). "(4) COORDINATION WITH SECTION 412. —In the case of a qualified transfer to a health benefits account— "(A) any assets transferred in a plan year on or before the valuation date for such year (and any income allocable thereto) shall, for purposes of section 412, be treated as assets in the plan as of the valuation date for such year, and "(B) the plan shall be treated as having a net experience loss under section 412(b)(2)(B)(iv) in an amount equal to the amount of such transfer (reduced by any amounts transferred back to the pension plan under subsection (c)(l)(B)) and for which amortization charges begin for the first plan year after the plan year in which such transfer occurs, except that such section shall be applied to such amount by substituting '10 plan years' for '5 plan years'." Qoi) CONFORMING AMENDMENT.—Section 401(h) is amended by 26 USC 401. inserting ", and subject to the provisions of section 420" after "Secretary". (c) EFFECTIVE DATES.— 26 USC 420 note. (1) IN GENERAL.—The amendments made by this section shall apply to transfers in taxable years beginning after December 31, 1990. (2) WAIVER OF ESTIMATED TAX PENALTIES. — No addition to tax shall be made under section 6654 or section 6655 of the Internal Revenue Code of 1986 for the taxable year preceding the taxpayer's 1st taxable year beginning after December 31, 1990, with respect to any underpayment to the extent such underpayment was created or increased by reason of section 420(b)(4)(B) of such Code (as added by subsection (a)). SEC. 12012. APPLICATION OF ERISA TO TRANSFERS OF EXCESS PENSION ASSETS TO RETIREE HEALTH ACCOUNTS. (a) EXCLUSIVE BENEFIT REQUIREMENT.—Section 403(c)(l) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1103(c)(l)) is amended by inserting ", or under section 420 of the Internal Revenue Code of 1986 (as in effect on January 1, 1991)" after "insured plans)". (b) EXEMPTIONS FROM PROHIBITED TRANSACTIONS. — Section 4080?) of such Act (29 U.S.C. 11080?)) is amended by adding at the end thereof the following new paragraph: