113 STAT. 1934 PUBLIC LAW 106-170—DEC. 17, 1999 amount of gain treated as ordinary income under subsection (a). Proper adjustments shall be made in the amount of any gain or loss subsequently realized for gain recognized and treated as ordinary income under this subsection. "(g) REGULATIONS.— The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section, including regulations— "(1) to permit taxpayers to mark to market constructive ownership transactions in lieu of applying this section, and "(2) to exclude certain forward contracts which do not convey substantially all of the economic return with respect to a financial asset.". (b) CLERICAL AMENDMENT.— The table of sections for part IV of subchapter P of chapter 1 of such Code is amended by adding at the end the following new item: "Sec. 1260. Gains from constructive ownership transactions.". 26 USC 1260 (c) EFFECTIVE DATE. —The amendments made by this section note. shall apply to transactions entered into after July 11, 1999. SEC. 535. TREATMENT OF EXCESS PENSION ASSETS USED FOR RETIREE HEALTH BENEFITS. (a) EXTENSION.— (1) IN GENERAL. —Paragraph (5) of section 420(b) of the 26 USC 420. Internal Revenue Code of 1986 (relating to expiration) is amended by striking "in any taxable year beginning after December 31, 2000" and inserting "made after December 31, 2005". (2) CONFORMING AMENDMENTS.— (A) Section 101(e)(3) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1021(e)(3)) is amended by striking "January 1, 1995" and inserting "the date of the enactment of the Tax Relief Extension Act of 1999". (B) Section 403(c)(1) of such Act (29 U.S.C. 1103(c)(1)) is amended by striking "January 1, 1995" and inserting "the date of the enactment of the Tax Relief Extension Act of 1999". (C) Paragraph (13) of section 408(b) of such Act (29 U.S.C. 1108(b)(13)) is amended— (i) by striking "in a taxable year beginning before January 1, 2001" and inserting "made before January 1, 2006"; and (ii) by striking "January 1, 1995" and inserting "the date of the enactment of the Tax Relief Extension Act of 1999", (b) APPLICATION OF MINIMUM COST REQUIREMENTS.— (1) IN GENERAL. —Paragraph (3) of section 420(c) of the Internal Revenue Code of 1986 is amended to read as follows: "(3) MINIMUM COST REQUIREMENTS.— "(A) IN GENERAL.— The requirements of this paragraph are met if each group health plan or arrangement under which applicable health benefits are provided provides that the applicable employer cost for each taxable year during the cost maintenance period shall not be less than the higher of the applicable employer costs for each of the
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