UIPL 17-90 Attachment II

 

103 STAT. 830                                 PUBLIC LAW 101-140-NOV. 8, 1989
 

                                             Public Law 101-140
                                  101st Congress
                                                                                             Joint Resolution

Nov. 8, 1989                                                  Increasing the statutory limit on the public debt.
[HJ. Res. 2801]
                                                   Resolved by the Senate and House of Representatives of the United
                                               States of America in Congess assembled, That subsection (b) of
                                               section 3101 of title 31, United States Code, is amended by striking
                                               out the dollar limitation contained in such subsection, and inserting
                                                in lieu thereof "$3,122,700,000,000".

                                      TITLE II-REPEAL OF SECTION 89
                                         NONDISCRIMINATION RULES

                                               SEC. 201. AMENDMENT OF 1986 CODE.

                                                   Whenever in this title an amendment or repeal is expressed in
                                                 terms of an amendment to, or repeal of, a section or other provision,
                                                 the reference shall be considered to be made to a section or other
                                                 provision of the Internal Revenue Code of 1986.

                                                SEC. 202. REPEAL OF SECTION 89.

                                                     (a) IN GENERAt..-Section 89 (relating to benefits provided under
                                                 certain discriminatory employee benefit plans) is hereby repealed.
                                                     (b) CLERICAL AMENDMENT.-The table of sections for part II of
                                                 subchapter B of chapter 1 is amended by striking the item relating
                                                  to section 89.
26 USC 89 note.                           (c) EFFECTIVE DATE.-The amendments made by this section shall
                                                  take effect as if included in section 1151 of the Reform Act of
                                                  1986.

                                                 SEC. 203. REINSTATEMENT OF PRE-1986 ACT NONDISCRIMINATION RULES.

                                                       (a) IN GENERAL.
26 USC 6652, 79,                                 (1) Each provision of law amended by subsection (b), (c), (d)(1),
105.120,127,                                   or (g) of section 1151 of the Tax Reform Act of 1986 is amended
129.125.117.                                    to read as if the amendments made by such subsection had not
132, 505.                                          been enacted.
                                                              (2) Each provision of law amended by paragraph (22), (27), or
                                                          (31) of section 1011B (a) of the Technical and Miscellaneous
26 USC 3121.                                    Revenue Act of 1988 is amended to read as if the amendments
3231,3306. 3401.                              made by such paragraph had not been enacted.
4976,305, 129, 117.120,127 ,               (3) Subparagraph (A) of section 125 (g)(3) (as in effect on the
132; 42 USC 409.                              day before the date of the enactment of the Tax Reform Act of
                                                            1986) is amended by striking "subparagraph (B) of section
                                                            410(b)(1)" and inserting "section 410 (b)(2)(A)(i)".
                                                               (4) Section 162 (1) (2) is amended by striking subparagraph (B)
                                                            and redesignating subparagraph (C) as subparagraph (B).
                                                                (5) Subparagraph (C) of section 401(a)(9) is amended
                                                                        (A) by striking "(as defined in section 89 (i )(4))", and
                                                                        (B) by adding at the end the following: "For purposes of
                                                                    this subparagraph, the term 'church plan' means a plan
                                                                    maintained by a church for church employees, and the term
                                                                    'church' means any church (as defined in section
                                                                     3121(w)(3)(A)) or qualified church-controlled organization
                                                                     (as defined in section 3121(w)(3)(B))."
                                                                 (6)(A)  Subparagraph (C) of section 414(n)(3) is amended by
                                                            striking "89,".
                                                                         (B)  Paragraph (1) of section 414(r) is amended by striking
                                                                     "sections 89 and " and inserting "section".
                                                                         (C)  Paragraph (2) of section 414(t) is amended by striking
                                                                     "89,".
26 USC 89 notes.                                     (7)  Sections 3021(c) and 6070 of the Technical and Miscellan-
                                                            eous Revenue Act of 1988 are hearby repealed.
                                                     (b)  Exceptions. --
                                                                (1)(A)  Paragraph (7) of section 79(d) (as in effect on the day
                                                            before the date of the enactment of the Tax Reform Act of 1986)
                                                             is amended to read as follows:
                                                                "(7)  EXEMPTION FOR CHURCH PLANS.--
                                                                        "(A)  IN GENERAL. -- This subsection shall not apply to a
                                                                   church plan maintained for church employees.
                                                                          (B)  DEFINITIONS.--  For purposes of subparagraph (A), the
                                                                    terms 'church plans' and 'church employee' have the same mean-
                                                                     ing given such terms by paragraphs (1) and (3)(B) of section
                                                                     414(e) respectively, except that --
                                                                                 "(i)  section 414(e) shall be applied by substituting
                                                                             'section 501(c)(3)' for 'section 501' each place it appears,
                                                                             and
                                                                                 "(ii) the term 'church employee' shall not include an
                                                                              employee of --
                                                                                         "(I)  an organization described in section
                                                                                    170(b)(1)(A)(ii) above the secondary school level
                                                                                    (other than a school for religious training),
                                                                                         "(II) an organization described in section
                                                                                    170(b)(1)(A)(iii), and
                                                                                         "(III)  an organization described in section
                                                                                    501(c)(3), the basis for exemption for which is
                                                                                    substantially similar to the basis for exemption of
                                                                                    an organization described in subclause (II)."
                                                                  (2)  Paragraph (2) of section 125(d) (as in effect on the day
                                                             before the date of the enactment of the Tax Reform Act of 1986)
                                                             is amended to read as follows:
                                                                "(2)  DEFERRED COMPENSATION PLANS EXCLUDED. --
                                                                         "(A)  IN GENERAL.--  The term 'cafeteria plan' does not
                                                                    include any plan which provides for deferred compensation.
                                                                         "(B)  EXCEPTION FOR CASH AND DEFERRED ARRANGE-
                                                                    MENTS. --  Subparagraph (A) shall not apply to a profit-shar-
                                                                    ing or stock bonus plan or rural cooperative plan (within
                                                                    the meaning of section 401(k)(7)) which includes a qualified
                                                                    cash or deferred arrangement (as defined in section
                                                                    401(k)(2)) to the extent of amounts which a covered em-
                                                                    ployee may elect to have the employer pay as contributions
                                                                    to a trust under such plan on behalf of the employee.
                                                                        "(C)  EXCEPTION FOR CERTAIN PLANS MAINTAINED BY EDU-
                                                                    CATIONAL INSTITUTIONS. --  Subparagraph (A) shall not apply
                                                                    to a plan maintained by an educational organization de-
                                                                    scribed in section 170(b)(1)(A)(ii) to the extent of amounts
                                                                    which a covered employee may elect to have the employer
                                                                    pay as contributions for post-retirement group life insur-
                                                                    ance if --
                                                                                 "(i) all contributions for such insurance must be
                                                                           made before retirement, and
                                                                                 "(ii) such life insurance does not have a cash surren-
                                                                           der value at any time.
                                                                            For purposes of section 79, any life insurance described in
                                                                            the preceding sentence shall be treated as group-term life
                                                                            insurance."
26 USC 79 note.                                    (c) EFFECTIVE DATE.-The amendments made by this section shall
                                                           take effect as if included in section 1151 of the Tax Reform Act of
                                                           1986.

                                                          SEC. 204. OTHER PROVISIONS RELATING TO NONTAXABLE BENEFITS.

                                                               (a) DEPENDENT CARE ASSISTANCE.-
                                                                        (1) IN GENERAL.-Paragraph (1) of section 129(d) (as in effect
                                                                   on the day before the date of the enactment of the Tax Reform
                                                                    Act of 1986) is amended by adding at the end thereof the
                                                                    following new sentence: "If any plan would qualify as a depend-
                                                                    ent care assistance program but for a failure to meet the
                                                                    requirements of this subsection, then, notwithstanding such
                                                                    failure, such plan shall be treated as a dependent care assist-
                                                                    ance program in the case of employees who are not highly
                                                                    compensated employees."
                                                                        (2) EXCLUDED EMPLOYEES.-
                                                                                (A) Section 129(d) is amended by adding at the end
                                                                            thereof the following new paragraph:
                                                                        "(9) EXCLUDED EMPLOYEES.-For purposes of paragraphs (3)
                                                                   and (8), there shall be excluded from consideration-
                                                                              "(A) subject to rules similar to the rules of section
                                                                         410(b)(4), employees who have not attained the age of 21
                                                                         and completed 1 year of service (as defined in-section
                                                                         410(a)(3)), and
                                                                              "(B) employees not included in a dependent care assist-
                                                                         ance program who are included in a unit of employees
                                                                         covered by an agreement which the Secretary finds to be a
                                                                         collective bargaining agreement between employee rep-
                                                                         resentatives and 1 or more employees, if there is evidence
                                                                         that dependent care benefits were the subject of good faith
                                                                         bargaining between such employee representatives and
                                                                         such employer or employers."
                                                                              (B) Section 129(d)(3) (as in effect on the day before the
                                                                         date of the enactment of the Tax Reform Act of 1986) is
                                                                         amended by striking the last sentence.
                                                                    (3) DELAY IN APPLICATION OF BENEFITS TEST.-
                                                                             (A) Paragraph (7) of section 129(d) (as in effect after the
                                                                      amendment made by paragraph (14) of section 1011B(a) of
                                                                      the Technical and Miscellaneous' Revenue Act of 1988) is
                                                                      redesignated as paragraph (8).
                                                                             (B) Paragraph (1) or section 129(d) (as in effect on the day
                                                                      before the date of the enactment of the Tax Reform Act of
                                                                      1986) is amended by striking "paragraphs (2) through (7)"
                                                                      and inserting "paragraphs (2) through (8)".
                                                                            (C) Section 129(e)(6) is amended by striking "(7)" and
                                                                      inserting "(8)".
26 USC 129 note.                                                (D)  Section 129(d)(8) (as redesignated by subparagraph
                                                                      (A)) shall apply to plan years beginning after December 31,
                                                                      1989.
26 USC 414 note.                             (b)  LINE OF BUSINESS TEST. --
                                                                (1)  APPLICATION OF LINE OF BUSINESS TEST FOR PERIOD
                                                           BEFORE GUIDELINES ISSUED. -- In the case of any plan year beginning
                                                            on or before the date the Secretary of Treasury or his delegate
                                                            issues guidelines and begins issuing determinations under sec-
                                                            tion 414(r)(2)(C) of the Internal Revenue Code of 1986, an em-
                                                            ployer shall be treated as operating separate lines of business if
                                                            the employer reasonably determines that it meets the require-
                                                            ments of section 414(r) (other than paragraph (2)(C) thereof) of
                                                            such Code.
                                                                (2)  DEPENDENT CARE -- Paragraph (1) of section 414(r) is
                                                           amended by striking "section 410(b)" and inserting "sections
                                                           129(d)(8) and 410(b)".
                                                      (c)  GROUP TERM LIFE INSURANCE. --  Paragraph (7) of section 505(b)
                                                  (relating to $200,000 compensation limit) is amended by adding at
                                                  the end thereof the following new sentence: "This paragraph shall
                                                  not apply in determining whether the requirements of section 79(d)
                                                  are met."
                                                      (d)  EFFECTIVE DATES. --
26 USC 129 note.                                   (1)  The amendements made by subsections (a)(1), (a)(2), and
                                                        (b)(2) shall apply to years beginning after December 31, 1988.
26 USC 129 note.                                   (2)  The amendments made by subsection (a)(3) shall apply to
                                                         plan years beginning after December 31, 1989.
26 USC 414 note.                                   (3)  the provisions of subsection (b)(1) shall apply to years
                                                         beginning after December 31, 1986.
26 USC 505 note.                                   (4)  The amendment made by subsection (c) shall take effect as
                                                         if included in the amendment made by section 1011B(a)(32) of
                                                         the Technical and Miscellaneous Revenue Act of 1988.