120 STAT. 1008
‘‘(A) the limitation under subsection (d)(1)(C) shall not apply, and ‘‘(B) notwithstanding subsection (d)(2), an employer may contribute an amount to a health benefits account or welfare benefit fund (as defined in section 419(e)(1)) with respect to collectively bargained retiree health liabilities for which transferred assets are required to be used under subsection (c)(1)(B), and the deductibility of any such contribution shall be governed by the limits applicable to the deductibility of contributions to a welfare benefit fund under a collective bargaining agreement (as determined under section 419A(f)(5)(A)) without regard to whether such contributions are made to a health benefits account or welfare benefit fund and without regard to the provisions of section 404 or the other provisions of this section. The Secretary shall provide rules to ensure that the application of this paragraph does not result in a deduction being allowed more than once for the same contribution or for 2 or more contributions or expenditures relating to the same collectively bargained retiree health liabilities. ‘‘(5) TRANSFER PERIOD.—For purposes of this subsection, the term ‘transfer period’ means, with respect to any transfer, a period of consecutive taxable years (not less than 2) specified in the election under paragraph (1) which begins and ends during the 10-taxable-year period beginning with the taxable year of the transfer. ‘‘(6) TERMS RELATING TO COLLECTIVELY BARGAINED TRANSFERS.—For purposes of this subsection— ‘‘(A) COLLECTIVELY BARGAINED COST MAINTENANCE PERIOD.—The term ‘collectively bargained cost maintenance period’ means, with respect to each covered retiree and his covered spouse and dependents, the shorter of— ‘‘(i) the remaining lifetime of such covered retiree and his covered spouse and dependents, or ‘‘(ii) the period of coverage provided by the collectively bargained health plan (determined as of the date of the collectively bargained transfer) with respect to such covered retiree and his covered spouse and dependents. ‘‘(B) COLLECTIVELY BARGAINED RETIREE HEALTH LIABILITIES.— ‘‘(i) IN GENERAL.—The term ‘collectively bargained retiree health liabilities’ means the present value, as of the beginning of a taxable year and determined in accordance with the applicable collective bargaining agreement, of all collectively bargained health benefits (including administrative expenses) for such taxable year and all subsequent taxable years during the collectively bargained cost maintenance period. ‘‘(ii) REDUCTION FOR AMOUNTS PREVIOUSLY SET ASIDE.—The amount determined under clause (i) shall be reduced by the value (as of the close of the plan year preceding the year of the collectively bargained transfer) of the assets in all health benefits accounts or welfare benefit funds (as defined in section 419(e)(1))
Rules.
VerDate 14-DEC-2004
10:20 Jul 12, 2007
PUBLIC LAW 109–280—AUG. 17, 2006
Jkt 059194
PO 00001
Frm 01006
Fmt 6580
Sfmt 6581
E:\PUBLAW\PUBL001.109
APPS06
PsN: PUBL001
�
