COVERAGE OF THE EMPLOYER COST OF GROUP-TERM LIFE INSURANCE.

SEC. 9003. COVERAGE OF THE EMPLOYER COST OF GROUP-TERM LIFE INSURANCE. (a) Coverage Under Old-Age, Survivors, and Disability Insurance Program.— (1) Social security act amendment.— Clause (3) of section 209(b) of the Social Security Act is amended by striking “death” and inserting “death, except that this subsection does not apply to a payment for group-term life insurance to the extent that such payment is includible in t he gross income of t he employee under the Internal Revenue Code of 1986”. (2) FICA amendment.— Subparagraph (C) of section 3121(a)(2) of the Internal Revenue Code of 1986 (relating to wages) is amended by striking “death” and inserting “death, except that this paragraph does not apply to a payment for group-term life insurance to the extent that such payment is includible in t he gross income of the employee”. (b) Effective Date.— The amendments made by subsection (a) shall apply with respect to group-term life insurance coverage in effect after December 31, 1987.