102 STAT. 3484
PUBLIC LAW 100-647—NOV. 10, 1988 able year with or within which the plan year following the plan year in which the excess benefits occurred ends." (2) Paragraph (4) of section 89(b) of the 1986 Code (defining nontaxable beneHts) is amended by adding at the end thereof the following new sentence: "Such term includes any groupterm life insurance the cost of which is includible in gross income under section 79." (3) Paragraph (1) of section 89(g) of the 1986 Code (relating to the a ^ r ^ a t i o n of comparable health plans) is amended by adding at the end thereof the following new subparagraph: "(C) EMPLOYEES COVERED BY MORE THAN i PLAN.—The
Secretary may provide that 2 or more plans providing benefits to the same participant shall be treated as 1 plan for purposes of applying suteections (d)(DCB), (d)(2), and (f)." (4) Subparagraph (B) of section 89(g)(2) of the 1986 Code (relating to sworn statements) is amended by adding at the end thereof the following new sentence: "No statement shall be required under clause (ii) with respect to any individual eligible for coverage at no cost under a health plan which provides core health benefits and with respect to whom the employee does not elect any core health coverage from the employer." (5) Subparagraph (D) of section 89(g)(2) of the 1986 Code is amended by striking out "under such plan" and inserting in lieu thereof "under such plans". (6) Section 89(g) of the 1986 Code is amended by striking out paragraph (6). (7) Subparagraph (A) of section 89(h)(l) of the 1986 Code (relating to excluded employees) is amended by inserting "(or 1st day of a period of less than 31 days specified by the plan)" after' Wnttf'. (8) Section 89(j) of the 1986 (Dode (relating to other definitions and special rules) is amended by adding at the end thereof the following new paragraph: "(12)
EMPLOYERS WITH ONLY HIGHLY COBIPENSATED EMPLOY-
EES.—The requirements of subsections (d) and (e) shall not apply to any statutory employee benefit plan for any year for which the only employees of the employer maintaining the plan are highly compensated employees." (9) Section 89(k) of the 1986 Code (relating to requirement that plan be in writing) is amended by adding at the end thereof the following new paragraph: "(5) Loss OF EXEMPTION FOR CERTAIN PLANS.—If a plan described in paragraph (2)(E) fails to meet the requirements of paragraph (1), the organization which is part of such plan shall not be exempt from tax under section 501(a)." (10) Section 6652(k)(2)(B) of the 1986 Code (relating to amount of additional tax) is amended by striking out "subsection (g)(3)" and inserting in lieu thereof "subsection (g)(3)(C)(i)". (IIXA) Subsection (a) of section 125 of the 1986 Code is amended to read as follows: "(a) GENERAL RULE.—Except as provided in subsection (b), no amount shall be included in the gross income of a participant in a cafeteria plan solely because, under the plan, the participant may choose among the benefits of the plan." (B) Paragraph <1) of section 12d(b) of the 1986 Code is amended -by striking out "A plan shall be treated as fiedling to meet t l ^
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