AMENDMENTS RELATING TO THE TAX REFORM ACT OF 1986.

SEC. 7891. AMENDMENTS RELATING TO THE TAX REFORM ACT OF 1986. (a) Amendments Related to Section 2.— (1) Titles I, III, and IV of ERISA (other than sections 3(37)(E), 301(a)(7), and 308, the last sentence of section 408(d), and sections 414(c), 4001(a)(3)(ii), and 4303) are each amended by striking “Internal Revenue Code of 1954” each place it appears and inserting “Internal Revenue Code of 1986”. (2) The last sentence of section 408(d) of ERISA (as amended by section 7894(e)(4)(A)(i)) is further amended— (A) by striking “section 408 of the Internal Revenue Code of 1954” and inserting “section 408 of the Internal Revenue Code of 1986”; and (B) by striking “section 408(c) of such Code” and inserting “section 408(c) of the Internal Revenue Code of 1986”. (b) Amendments Related to Section 1139.— (1) Paragraphs (2)(A) and (2)(B) of section 203(e) of ERISA are each amended by adjusting the margination thereof, and of each subdivision thereof, 2 ems to the left. (2) Subparagraph (B) of section 203(e)(2) of ERISA is amended by striking “Applicable interest rate.—”. (3) Paragraph (3)(A) of section 205(g) of ERISA is amended by adjusting the left-hand margination thereof, and of each subdivision thereof, 2 ems to the left. (c) Amendment Related to Section 1145.—Paragraph (3) of section 205(b) of ERISA (as added by section 1145(b) of the Reform Act) is amended by adjusting the left-hand margination thereof 2 ems to the left. (d) Amendments Related to Section 1895.— (1)(A)(i) Section 606 of ERISA is amended— (I) in paragraph (2), by inserting after “30 days” the following: “(or, in the case of a group health plan which is a multiemployer plan, such longer period of time as may be provided in the terms of the plan)”; and (II) in the first sentence following paragraph (4), by inserting after “14 days” the following: “(or, in the case of a group health plan which is a multiemployer plan, such longer period of time as may be provided in the terms of the plan)”. (ii) Section 606 of ERISA is amended— (I) by inserting “(a) In General.—” before “In accordance”; (II) by striking “For purposes of paragraph (4),” and inserting the following: “(c) Rules Relating to Notification of Qualified Beneficiaries by Plan Administrator.—For purposes of subsection (a)(4),”; and (III) by inserting after subsection (a)(4) (as so designated by the amendment made by subclause (I)) the following new subsection: 103 STAT. 2446 “(b) Alternative Means of Compliance with Requirement for Notification of Multiemployer Plans by Employers.—The requirements of subsection (a)(2) shall be considered satisfied in the case of a multiemployer plan in connection with a qualifying event described in paragraph (2) of section 603 if the plan provides that the determination of the occurrence of such qualifying event will be made by the plan administrator.”. (B)(i) Section 4980B(f)(6) of the 1986 Code (as added by the Technical and Miscellaneous Revenue Act of 1988) is amended— (I) in subparagraph (B), by inserting after “30 days” the following: “(or, in the case of a group health plan which is a multiemployer plan, such longer period of time as may be provided in the terms of the plan)”; and (II) in the first sentence following subparagraph (D), by inserting after “14 days” the following: “(or, in the case of a group health plan which is a multiemployer plan, such longer period of time as may be provided in the terms of the plan)”. (ii) Section 4980B(f)(6) of the 1986 Code (as added by the Technical and Miscellaneous Revenue Act of 1988) is amended by inserting, after and below subparagraph (D), the following new flush sentence: “The requirements of subparagraph (B) shall be considered satisfied in the case of a multiemployer plan in connection with a qualifying event described in paragraph (3)(B) if the plan provides that the determination of the occurrence of such qualifying event will be made by the plan administrator.”. (C) The amendments made by this paragraph shall apply with respect to plan years beginning on or after January 1, 1990. (2)(A) Section 4980B(f) of the 1986 Code (as added by the Technical and Miscellaneous Revenue Act of 1988) is amended by adding at the end the following new paragraph: “(8) Optional extension of required periods.— A group health plan shall not be treated as failing to meet the requirements of this subsection solely because the plan provides both— “(A) that the period of extended coverage referred to in paragraph (2)(B) commences with the date of the loss of coverage, and “(B) that the applicable notice period provided under paragraph (6)(B) commences with the date of the loss of coverage.”. (B)(i) Section 607 of ERISA is amended— (I) in the heading, by inserting “AND SPECIAL RULES” after “DEFINITIONS”; and (II) by adding at the end the following new paragraph: “(5) Optional extension of required periods.— A group health plan shall not be treated as failing to meet the requirements of this part solely because the plan provides both— “(A) that the period of extended coverage referred to in section 602(2) commences with the date of the loss of coverage, and “(B) that the applicable notice period provided under section 606(a)(2) commences with the date of the loss of coverage.”. 103 STAT. 2447 (ii) The item relating to section 607 in the table of contents in section 1 of ERISA is amended by inserting “and special rules” after “Definitions”. (C) The amendments made by this paragraph shall apply with respect to plan years beginning on or after January 1, 1990. (e) Amendments Related to Section 1898.—Section 205(h) of ERISA is amended— (1) in paragraph (1), by striking “the term” and inserting “The term”, and by striking “benefit,” and inserting “benefit.”, and (2) in paragraph (3), by striking “the term” and inserting “The term”. (f) Effective Date.—Except as otherwise provided in this section, any amendment made by this section shall take effect as if included in the provision of the Reform Act to which such amendment relates.