AMENDMENTS RELATED TO TITLE XVI OF 1997 ACT.

SEC. 6016. AMENDMENTS RELATED TO TITLE XVI OF 1997 ACT. (a) Amendments Related to Section 1601(d) of 1997 Act.— (1) Amendments related to section 1601(d)(1)— (A) Section 408(p)(2)(D)(i) of the 1986 Code is amended by striking “or (B)” in the last sentence. (B) Section 408(p) of the 1986 Code is amended by adding at the end the following new paragraph: “(10) Special rules for acquisitions, dispositions, and similar transactions.— “(A) In general.— An employer which fails to meet any applicable requirement by reason of an acquisition, disposition, or similar transaction shall not be treated as failing to meet such requirement during the transition period if— “(i) the employer satisfies requirements similar to the requirements of section 410(b)(6)(C)(i)(II); and “(ii) the qualified salary reduction arrangement maintained by the employer would satisfy the requirements of this subsection after the transaction if the employer which maintained the arrangement before the transaction had remained a separate employer. “(B) Applicable requirement.— For purposes of this paragraph, the term ‘applicable requirement’ means— “(i) the requirement under paragraph (2)(A)(i) that an employer be an eligible employer; “(ii) the requirement under paragraph (2)(D) that an arrangement be the only plan of an employer; and112 STAT. 822 “(iii) the participation requirements under paragraph (4). “(C) Transition period.— For purposes of this paragraph, the term ‘transition period’ means the period beginning on the date of any transaction described in subparagraph (A) and ending on the last day of the second calendar year following the calendar year in which such transaction occurs.”. (C) Section 408(p)(2) of the 1986 Code is amended— “(i) by striking “the preceding sentence shall apply only in accordance with rules similar to the rules of section 410(b)(6)(C)(i)” in the last sentence of subparagraph (C)(i)(II) and inserting “the preceding sentence shall not apply”; and “(ii) by striking clause (iii) of subparagraph (D). (2) Amendment to section 1601 (d)(4).— Section 1601(d)(4)(A) of the 1997 Act is amended— (A) by striking “Section 403(b)(11)” and inserting “Paragraphs (7)(A)(ii) and (11) of section 403(b)”; and (B) by striking “403(b)(1)” in clause (ii) and inserting “403(b)(10)”. (b) Amendment Related to Section 1601(f)(4) of 1997 Act.— Subsection (d) of section 6427 of the 1986 Code is amended— (1) by striking “Helicopters ” in the heading and inserting “Other Aircraft Uses”; and (2) by inserting “or a fixed-wing aircraft” after “helicopter”.