Page:United States Statutes at Large Volume 100 Part 3.djvu/269

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PUBLIC LAW 99-000—MMMM. DD, 1986

PUBLIC LAW 99-509—OCT. 21, 1986 i

100 STAT. 2077

of the covered employee, 36 months after the date of the death of the covered employee." (2) COVERAGE NOT LOST UPON ENTITLEMENT TO MEDICARE BENEFITS.—

"'

(A) IRC AMENDMENT.—Subclause (II) of section 162(k)(2)(B)(iv) of the Internal Revenue Code of 1986 (relating to reemployment or medicare eligibility) is amended by 26 USC 162. inserting "in the case of a qualified beneficiary other than a qualified beneficiary described in paragraph (7)(B)(iv)," before "entitled". (B) ERISA AMENDMENT.—Clause (ii) of section 602(2)(D) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1162(2)(D)) is amended by inserting "in the case of a qualified beneficiary other than a qualified beneficiary described in section 607(3)(C)," before "entitled". Infra.

(c) DEFINITION OF QUALIFIED BENEFICIARY MODIFIED IN REORGANIZATION CASES.—

(1) IRC AMENDMENT.—Section 162(k)(7)(B) of the Internal Revenue Code of 1986, as amended by section 1895(d)(7) of the Tax Reform Act of 1986 (relating to special rule for termination Post, p. 2095. and reduced employment in definition of qualified beneficiary), is amended by adding at the end the following new clause: '

"(iv) SPECIAL RULE FOR RETIREES AND WIDOWS.—In the

case of a qualifying event described in paragraph (3)(F), the term 'qualified beneficiary' includes a covered employee who had retired on or before the date of substantial elimination of coverage and any other individual who, on the day before such qualifying event, is a beneficiary under the plan— "(I) as the spouse of the covered employee, "(II) as the dependent child of the employee, or "(III) as the surviving spouse of the covered employee.". (2) ERISA AMENDMENT.—Section 607(3) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1167(3)) (relating to special rule for termination and reduced employment in definition of qualified beneficiary) is amended by adding at the end the following new subparagraph: "(C) SPECIAL RULE FOR RETIREES AND WIDOWS.—In the case of a qualifying event described in section 603(6), the term Ante, p. 2076. 'qualified beneficiary' includes a covered employee who had retired on or before the date of substantial elimination of coverage and any other individual who, on the day before such qualifying event, is a beneficiary under the plan— "(i) as the spouse of the covered employee, "(ii) as the dependent child of the employee, or m.Oil"(iii) as the surviving spouse of the covered employee.". (d) NOTICE.—

(1) IRC AMENDMENT.—Subparagraphs (B) and (D)(i) of section 162(k)(6) of the Internal Revenue Code of 1986 (relating to notice requirements) are amended by striking "or (D)" each place it Post, p. 2095. appears and inserting in lieu thereof "(D), or (F)". (2) ERISA AMENDMENT.—Paragraphs (2) and (4)(A) of section 606 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1166) (relating to notice requirements) are amended by