PUBLIC LAW 98-369—JULY 18, 1984
98 STAT. 734
"(A) IN GENERAL.—If^
Ante, p. 726.
Post, p. 740.
"(i) the aggregate amount of statutory reserves, exceeds iO?-i "(ii) the aggregate amount of tax reserves, the amount of the surplus and capital shall be increased by ID the amount of such excess. "(B) DEFINITIONS.—For purposes of this paragraph— "(i) STATUTORY RESERVES.—The term 'statutory reserves' means the aggregate amount set forth in the annual statement with respect to items described in section 807(c). Such term shall not include any reserve -BUfJKt ^: attributable to a deferred and uncollected premium if the establishment of such reserve is not permitted under section 811(c). "(ii) TAX RESERVES.—The term 'tax reserves' means the aggregate of the items described in section 807(c) as determined for purposes of section 807. "(5) INCREASE BY AMOUNT OF CERTAIN OTHER RESERVES.—The
amount of the surplus and capital shall be increased by the sum of— "(A) the amount of any mandatory securities valuation reserve, "(B) the amount of any deficiency reserve, and "(C) the amount of any voluntary reserve or similar liability not described in subparagraph (A) or (B). "(6) ADJUSTMENT FOR NEXT YEAR'S POLICYHOLDER DIVIDENDS.—
The amount of the surplus and capital shall be increased by 50 percent of the amount of any provision for policyholder dividends (or other similar liability) payable in the following taxable year. (c) DIFFERENTIAL EARNINGS RATE.—
"(1) IN GENERAL.—For purposes of this section, the differential earnings rate for any taxable year is the excess of— "(A) the imputed earnings rate for the taxable year, over "(B) the average mutual earnings rate for the second calendar year preceding the calendar year in which the srf',? taxable year begins. "(2) TRANSITIONAL RULE.—The differential earnings rate— "(A) for any taxable year beginning in 1984, or "(B) for purposes of computing the amount of underpayment under section 6655 (including the application of section 6655(d)(3)) for any taxable year beginning in 1985, shall be equal to 7.8 percent. (d) IMPUTED EARNINGS RATE.—
•^B
"(1) IN GENERAL.—For purposes of this section, the imputed earnings rate for any taxable year is— "(A) 16.5 percent in the case of taxable years beginning in 1984, and "(B) in the case of taxable years beginning after 1984, an - amount which bears the same ratio to 16.5 percent as the current stock earnings rate for the taxable year bears to the base period stock earnings rate. "(2) CURRENT STOCK EARNINGS RATE.—For purposes of this subsection, the term 'current stock earnings rate' means, with respect to any taxable year, the average of the stock earnings rates determined under paragraph (4) for the 3 calendar years preceding the calendar year in which the taxable year begins.
�
