PUBLIC LAW 101-508—NOV. 5, 1990 104 STAT. 1388-569 treated as paid first out of the assets and income described in subparagraph (A). " (2) REQUIREMENTS RELATING TO PENSION BENEFITS ACCRUING BEFORE TRANSFER. — "(A) IN GENERAL.—The requirements of this paragraph are met if the plan provides that the accrued pension benefits of any participant or beneficiary under the plan become nonforfeitable in the same manner which would be required if the plan had terminated immediately before the qualified transfer (or in the case of a participant who separated during the 1-year period ending on the date of the transfer, immediately before such separation). "(B) SPECIAL RULE FOR 1990. —In the case of a qualified transfer described in subsection (b)(4), the requirements of this paragraph are met with respect to any participant who separated from service during the taxable year to which such transfer relates by recomputing such participant's benefits as if subparagraph (A) had applied immediately before such separation. "(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 2 taxable years immediately preceding the taxable year of the qualified transfer. "(B) APPLICABLE EMPLOYER COST.— For purposes of this paragraph, the term 'applicable employer cost means, with respect to any taxable year, the amount determined by dividing— (i) the qualified current retiree health liabilities of the employer for such taxable year determined— "(I) without regard to any reduction under subsection (e)(1)(B), and "(II) in the case of a taxable year in which there was no qualified transfer, in the same manner as if there had been such a transfer at the end of the taxable year, by "(ii) the number of individuals to whom coverage for applicable health benefits was provided during such taxable year. "(C) ELECTION TO COMPUTE COST SEPARATELY.— An employer may elect to have this paragraph applied separately with respect to individuals eligible for benefits under title XVIII of the Social Security Act at any time during the taxable year and with respect to individuals not so eligible. "(D) COST MAINTENANCE PERIOD. —For purposes of this paragraph, the term 'cost maintenance period' means the period of 5 taxable years beginning with the taxable year in which the qualified transfer occurs. If a taxable year is in 2 or more overlapping cost maintenance periods, this paragraph shall be applied by taking into account the highest applicable employer cost required to be provided under subparagraph (A) for such taxable year. '(d) LIMITATIONS ON EMPLOYER.—For purposes of this title—
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