‘‘(A) GENERAL RULE.—An employer may
elect the full-funding limitation under this para-
graph with respect to any defined benefit plan
of the employer in lieu of the full-funding limi-
tation determined under paragraph (7) if the
requirements of subparagraphs (C) and (D) are
met.
‘‘(B) ALTERNATIVE FULL-FUNDING LIMI-
TATION.—The full-funding limitation under this
paragraph is the full-funding limitation deter-
mined under paragraph (7) without regard to
subparagraph (A)(i)(I) thereof.
‘‘(C) REQUIREMENTS RELATING TO PLAN
ELIGIBILITY.—
‘‘(i) IN GENERAL.—The requirements
of this subparagraph are met with respect
to a defined benefit plan if—
‘‘(I) as of the 1st day of the elec-
tion period, the average accrued liabil-
ity of participants accruing benefits
under the plan for the 5 immediately
preceding plan years is at least 80
percent of the plan’s total accrued li-
ability,
‘‘(II) the plan is not a top-heavy
plan (as defined in section 416(g)) for
the 1st plan year of the election pe-
riod or either of the 2 preceding plan
years, and
‘‘(III) each defined benefit plan
of the employer (and each defined
benefit plan of each employer who is
a member of any controlled group
which includes such employer) meets
the requirements of subclauses (I) and
(II).
‘‘(ii) FAILURE TO CONTINUE TO MEET
REQUIREMENTS.—
‘‘(I) If any plan fails to meet the
requirement of clause (i)(I) for any
plan year during an election period,
the benefits of the election under this
paragraph shall be phased out under
regulations prescribed by the Sec-
retary.
‘‘(II) If any plan fails to meet
the requirement of clause (i)(II) for
any plan year during an election pe-
riod, such plan shall be treated as not
meeting the requirements of clause (i)
for the remainder of the election
period.
If there is a failure described in subclause
(I) or (II) with respect to any plan, such
plan (and each plan described in clause
(i)(III) with respect to such plan) shall be
treated as not meeting the requirements of
clause (i) for any of the 10 plan years be-
ginning after the election period.
‘‘(D) REQUIREMENTS RELATING TO ELEC-
TION.—
‘‘(i) IN GENERAL.—The requirements
of this subparagraph are met with respect
to an election if—
‘‘(I) FILING
DATE.—Notice of
such election is filed with the Sec-
retary (in such form and manner and
containing such information as the
Secretary may provide) by January 1
of any calendar year, and is effective
as of the 1st day of the election period
beginning on or after January 1 of
the following calendar year.
‘‘(II) CONSISTENT
ELECTION.—
Such an election is made for all de-
fined benefit plans maintained by the
employer or by any member of a con-
trolled group which includes the em-
ployer.
‘‘(ii) TRANSITION
PERIOD.—In the
case of any election period beginning on or
after July 1, 1994, and before January 1,
1995, the requirements of clause (i) shall
not apply and the requirements of this
subparagraph are met with respect to such
election period if—
‘‘(I) FILING
DATE.—Notice of
election is filed with the Secretary by
October 1, 1994.
‘‘(II) INFORMATION.—The notice
sets forth the name and tax identifica-
tion number of the plan sponsor, the
names and tax identification numbers
of the plans to which the election ap-
plies, the limitation under paragraph
(7) (determined with and without re-
gard to this paragraph), and a signed
certification by an officer of the em-
ployer stating that the requirements
of this paragraph have been met.
‘‘(iii) 
REVENUE
OFFSET
PROCE-
DURES.—The Secretary shall, by January
1, 1995, notify defined benefit plans that
have not made an election under this para-
graph for the transition period described in
clause (ii) of the adjustment required by
subparagraph (H). The revenue offset for
the transition period shall apply to plan
years beginning on or after July 1, 1994,
and before January 1, 1995.
‘‘(iv) EXCESS CONTRIBUTIONS MADE
BY NON-ELECTING PLANS.—To the extent
a defined benefit plan sponsor makes a
contribution to a defined benefit plan with
respect to the transition period described
in clause (ii) which exceeds the limitation
of paragraph (7), as adjusted by the Sec-
retary for the transition period, the spon-
sor shall offset the excess contribution
against allowable contributions to the plan
in subsequent quarters in the taxable year
of the sponsor. If no subsequent contribu-
tions may be made for the taxable year,
the trustee of the defined benefit plan shall
return the excess contribution to the spon-
sor in that taxable year or the following
taxable year. Notwithstanding any other
provision of this title, no deduction shall be
allowed for any contribution made in ex-
cess of the limitation of paragraph (7), as
adjusted by the Secretary for the transi-
tion period, and no penalty shall apply
with respect to contributions made in ex-
cess of such limitation to the extent such
excess contributions are either used to off-
set subsequent contributions, or returned
to the plan sponsor, as provided in this
clause.
‘‘(E) TERM OF ELECTION.—Any election
made under this paragraph shall apply for the
election period.
‘‘(F) OTHER
CONSEQUENCES
OF
ELEC-
TION.—
‘‘(i) NO FUNDING WAIVERS.—In the
case of a plan with respect to which an
election is made under this paragraph, no
waiver may be granted under subsection
(d) for any plan year beginning after the
date the election was made and ending at
the close of the election period with respect
thereto.
‘‘(ii) FAILURE TO MAKE SUCCESSIVE
ELECTIONS.—If an election is made under
this paragraph with respect to any plan
and such an election does not apply for
each successive plan year of such plan,
such plan shall be treated as not meeting
the requirements of subparagraph (C) for
the period of 10 plan years beginning after
the close of the last election period for
such plan.
‘‘(G) DEFINITIONS.—For purposes of this
paragraph—
‘‘(i) ELECTION
PERIOD.—The term
‘election period’ means the period of 5 con-
secutive plan years beginning with the 1st
plan year for which the election is made.
‘‘(ii) CONTROLLED GROUP.—The term
‘controlled group’ means all persons who
are treated as a single employer under sub-
section (b), (c), (m), or (o) of section 414.
‘‘(H) 
PROCEDURES
IF
ALTERNATIVE
FUNDING LIMITATION REDUCES NET FEDERAL
REVENUES.—
‘‘(i) IN GENERAL.—At least once with
respect to each fiscal year, the Secretary
shall estimate whether the application of
this paragraph will result in a net reduc-
tion in Federal revenues for such fiscal
year.
‘‘(ii) ADJUSTMENT OF FULL-FUNDING
LIMITATION IF REVENUE SHORTFALL.—If
the Secretary estimates that the applica-
tion of this paragraph will result in a more
than insubstantial net reduction in Federal
revenues for any fiscal year, the Sec-
retary—
‘‘(I) shall make the adjustment
described in clause (iii), and
‘‘(II) to the extent such adjust-
ment is not sufficient to reduce such
reduction to an insubstantial amount,
shall make the adjustment described
in clause (iv).
Such adjustments shall apply only to de-
fined benefit plans with respect to which
an election under this paragraph is not in
effect.
‘‘(iii) 
REDUCTION
IN
LIMITATION
BASED ON 150 PERCENT OF CURRENT LI-
ABILITY.—The adjustment described in
this clause is an adjustment which sub-
stitutes a percentage (not lower than 140
percent) for the percentage described in
paragraph (7)(A)(i)(I) determined by re-
ducing the percentage of current liability
taken into account with respect to partici-
pants who are not accruing benefits under
the plan.
‘‘(iv) 
REDUCTION
IN
LIMITATION
BASED ON ACCRUED LIABILITY.—The ad-
justment described in this clause is an ad-
justment which reduces the percentage of
accrued liability taken into account under
paragraph (7)(A)(i)(II). In no event may
the amount of accrued liability taken into
account under such paragraph after the
adjustment be less than 140 percent of
current liability.’’
(b) ALTERATION OF DISCRETIONARY REGULATORY
AUTHORITY.—Subparagraph (D) of section 412(c)(7) is
amended by striking ‘‘provide—’’ and all that follows
through ‘‘(iii) for’’ and inserting ‘‘provide for’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on January 1, 1995, except
that, in the case of an election under subparagraph (D)(ii)
of paragraph (8) of section 412(c) of the Internal Revenue
Code of 1986, as added by this section, such amendments
shall take effect on July 1, 1994.
SEC. 237. DISTRIBUTIONS UNDER RURAL COOPERATIVE
PLANS.
(a) DISTRIBUTIONS AFTER CERTAIN AGE.—Section
401(k)(7) is amended by adding at the end thereof the
following new subparagraph:
‘‘(C) SPECIAL
RULE
FOR
CERTAIN
DIS-
TRIBUTIONS.—A rural cooperative plan which
includes a qualified cash or deferred arrange-
ment shall not be treated as violating the re-
quirements of section 401(a) merely by reason
of a distribution to a participant after attain-
ment of age 591⁄2.’’
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply to distributions after the date of
the enactment of this Act.
‘‘(C) benefits described in subparagraph
(A) are not paid from a trust forming a part
of such governmental plan unless such trust is
maintained solely for the purpose of providing
such benefits.’’
(2) COORDINATION WITH SECTION 457.—Sub-
section (e) of section 457 is amended by adding at
the end thereof the following new paragraph:
‘‘(15) TREATMENT
OF
QUALIFIED
GOVERN-
MENTAL
EXCESS
BENEFIT
ARRANGEMENTS.—Sub-
sections (b)(2) and (c)(1) shall not apply to any
qualified governmental excess benefit arrangement
(as defined in section 415(m)(3)), and benefits pro-
vided under such an arrangement shall not be taken
into account in determining whether any other plan
is an eligible deferred compensation plan.’’
(3) CONFORMING AMENDMENT.—Paragraph (2)
of section 457(f) is amended by striking the word
‘‘and’’ at the end of subparagraph (C), by striking
the period after subparagraph (D) and inserting the
words ‘‘, and’’, and by inserting immediately there-
after the following new subparagraph:
‘‘(E) a qualified governmental excess bene-
fit arrangement described in section 415(m).’’
(d) EXEMPTION
FOR SURVIVOR
AND DISABILITY
BENEFITS.—Paragraph (2) of section 415(b) is amended
by adding at the end thereof the following new subpara-
graph:
‘‘(I) EXEMPTION FOR SURVIVOR AND DIS-
ABILITY BENEFITS PROVIDED UNDER GOVERN-
MENTAL
PLANS.—Subparagraph (B) of para-
graph (1), subparagraph (C) of this paragraph,
and paragraph (5) shall not apply to—
‘‘(i) income received from a govern-
mental plan (as defined in section 414(d))
as a pension, annuity, or similar allowance
as the result of the recipient becoming dis-
abled by reason of personal injuries or
sickness, or
‘‘(ii) amounts received from a govern-
mental plan by the beneficiaries, survivors,
or the estate of an employee as the result
of the death of the employee.’’
(e) REVOCATION
OF GRANDFATHER ELECTION.—
Subparagraph (C) of section 415(b)(10) is amended by
adding at the end thereof the following new sentence: ‘‘An
election made pursuant to the preceding sentence to have
the provisions of this paragraph applied to the plan may
be revoked not later than the last day of the 3rd plan year
beginning after the date of enactment with respect to all
plan years as to which such election has been applicable
and all subsequent plan years; provided that any amount
paid by the plan in a taxable year ending after revocation
of such election in respect of benefits attributable to a tax-
able year during which such election was in effect shall
be includible in income by the recipient in accordance with
the rules of this chapter in the taxable year in which such
amount is received (except that such amount shall be
treated as received for purposes of the limitations imposed
by this section in the earlier taxable year or years to which
such amount is attributable).’’
(f) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by
subsections (a), (b), (c), and (d) shall apply to tax-
able years beginning on or after the date of the en-
actment of this Act. The amendments made by sub-
section (e) shall apply with respect to election rev-
ocations adopted after the date of the enactment of
this Act.
(2) TREATMENT
FOR
YEARS
BEGINNING
BE-
FORE DATE OF ENACTMENT.—In the case of a gov-
ernmental plan (as defined in section 414(d) of the
Internal Revenue Code of 1986), such plan shall be
treated as satisfying the requirements of section 415
of such Code for all taxable years beginning before
the date of the enactment of this Act.
SEC. 239. UNIFORM RETIREMENT AGE.
(a) DISCRIMINATION TESTING.—Paragraph (5) of
section 401(a) (relating to special rules relating to non-
discrimination requirements) is amended by adding at the
end thereof the following new subparagraph:
‘‘(F) 
SOCIAL
SECURITY
RETIREMENT
AGE.—For purposes of testing for discrimina-
tion under paragraph (4)—
‘‘(i) the social security retirement age
(as defined in section 415(b)(8)) shall be
treated as a uniform retirement age, and
‘‘(ii) subsidized early retirement bene-
fits and joint and survivor annuities shall
not be treated as being unavailable to em-
ployees on the same terms merely because
such benefits or annuities are based in
whole or in part on an employee’s social
security retirement age (as so defined).’’
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply to years beginning after December
31, 1993.
SEC. 240. UNIFORM PENALTY PROVISIONS TO APPLY TO
CERTAIN 
PENSION 
REPORTING 
REQUIRE-
MENTS.
(a) IN GENERAL.—
(1) Paragraph (1) of section 6724(d) is amend-
ed by striking ‘‘and’’ at the end of subparagraph
(A), by striking the period at the end of subpara-
graph (B) and inserting ‘‘, and’’, and by inserting
after subparagraph (B) the following new subpara-
graph:
‘‘(C) any statement of the amount of pay-
ments to another person required to be made to
the Secretary under—
‘‘(i) section 408(i) (relating to reports
with respect to individual retirement ac-
counts or annuities), or
‘‘(ii) section 6047(d) (relating to re-
ports by employers, plan administrators,
etc.).’’
(2) Paragraph (2) of section 6724(d) is amend-
ed by striking ‘‘or’’ at the end of subparagraph (S),
by striking the period at the end of subparagraph
(T) and inserting a comma, and by inserting after
subparagraph 
(T) 
the 
following 
new
subparagraphs:
‘‘(U) section 408(i) (relating to reports
with respect to individual retirement plans) to
any person other than the Secretary with re-
spect to the amount of payments made to such
person, or
‘‘(V) section 6047(d) (relating to reports
by plan administrators) to any person other
than the Secretary with respect to the amount
of payments made to such person.’’
(b) MODIFICATION
OF REPORTABLE DESIGNATED
DISTRIBUTIONS.—
(1) SECTION 408.—Subsection (i) of section 408
(relating to individual retirement account reports) is
amended by inserting ‘‘aggregating $10 or more in
any calendar year’’ after ‘‘distributions’’.
(2) SECTION 6047.—Paragraph (1) of section
6047(d) (relating to reports by employers, plan ad-
ministrators, etc.) is amended by adding at the end
thereof the following new sentence: ‘‘No return or
report may be required under the preceding sentence
with respect to distributions to any person during
any year unless such distributions aggregate $10 or
more.’’
(c) QUALIFYING ROLLOVER DISTRIBUTIONS.—Sec-
tion 6652(i) is amended—
(1) by striking ‘‘the $10’’ and inserting
‘‘$100’’, and
(2) 
by 
striking 
‘‘$5,000’’ 
and 
inserting
‘‘$50,000’’.
(d) CONFORMING AMENDMENTS.—
(1) Paragraph (1) of section 6047(f) is amend-
ed to read as follows:
‘‘(1) For provisions relating to penalties for fail-
ures to file returns and reports required under this
section, see sections 6652(e), 6721, and 6722.’’
(2) Subsection (e) of section 6652 is amended
by adding at the end thereof the following new sen-
tence: ‘‘This subsection shall not apply to any return
or statement which is an information return de-
scribed in section 6724(d)(1)(C)(ii) or a payee state-
ment described in section 6724(d)(2)(U).’’
(3) Subsection (a) of section 6693 is amended
by adding at the end thereof the following new sen-
tence: ‘‘This subsection shall not apply to any report
which is an information return described in section
6724(d)(1)(C)(i) or a payee statement described in
section 6724(d)(2)(T).’’
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to returns, reports, and other
statements the due date for which (determined without re-
gard to extensions) is after December 31, 1993.
SEC. 241. CONTRIBUTIONS ON BEHALF OF DISABLED EM-
PLOYEES.
(a) ALL DISABLED PARTICIPANTS RECEIVING CON-
TRIBUTIONS.—Section 415(c)(3)(C) is amended by adding
at the end thereof the following: ‘‘If a defined contribution
plan provides for the continuation of contributions on be-
half of all participants described in clause (i) for a fixed
or determinable period, this subparagraph shall be applied
without regard to clauses (ii) and (iii).’’
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply to years beginning after December
31, 1993.
SEC. 242. SPECIAL RULES FOR PLANS COVERING PILOTS.
(a) GENERAL RULE.—
(1) Subparagraph (B) of section 410(b)(3) is
amended to read as follows:
‘‘(B) in the case of a plan established or
maintained by one or more employers to provide
contributions or benefits for air pilots employed
by one or more common carriers engaged in
interstate or foreign commerce or air pilots em-
ployed by carriers transporting mail for or
under contract with the United States Govern-
ment, all employees who are not air pilots.’’
(2) Paragraph (3) of section 410(b) is amended
by striking the last sentence and inserting the fol-
lowing new sentence: ‘‘Subparagraph (B) shall not
apply in the case of a plan which provides contribu-
tions or benefits for employees who are not air pilots
or for air pilots whose principal duties are not cus-
tomarily performed aboard aircraft in flight.’’
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall apply to years beginning after Decem-
ber 31, 1993.
SEC. 243. TREATMENT 
OF 
DEFERRED 
COMPENSATION
PLANS OF STATE AND LOCAL GOVERNMENTS
AND TAX-EXEMPT ORGANIZATIONS.
(a) SPECIAL RULES FOR PLAN DISTRIBUTIONS.—
Paragraph (9) of section 457(e) (relating to other defini-
tions and special rules) is amended to read as follows:
‘‘(9) BENEFITS NOT TREATED AS MADE AVAIL-
ABLE BY REASON OF CERTAIN ELECTIONS, ETC.—
‘‘(A) TOTAL AMOUNT PAYABLE IS $3,500
OR LESS.—The total amount payable to a par-
ticipant under the plan shall not be treated as
made available merely because the participant
may elect to receive such amount (or the plan
may distribute such amount without the partici-
pant’s consent) if—
‘‘(i) such amount does not exceed
$3,500, and
‘‘(ii) such amount may be distributed
only if—
‘‘(I) no amount has been deferred
under the plan with respect to such
participant during the 2-year period
ending on the date of the distribution,
and
‘‘(II) there has been no prior dis-
tribution under the plan to such par-
ticipant to which this subparagraph
applied.
A plan shall not be treated as failing to
meet the distribution requirements of sub-
section (d) by reason of a distribution to which
this subparagraph applies.
‘‘(B) ELECTION
TO
DEFER
COMMENCE-
MENT OF DISTRIBUTIONS.—The total amount
payable to a participant under the plan shall
not be treated as made available merely because
the participant may elect to defer commence-
ment of distributions under the plan if—
‘‘(i) such election is made after
amounts may be available under the plan
in accordance with subsection (d)(1)(A)
and before commencement of such dis-
tributions, and
‘‘(ii) the participant may make only 1
such election.’’
(b) COST-OF-LIVING ADJUSTMENT OF MAXIMUM DE-
FERRAL AMOUNT.—Subsection (e) of section 457 is
amended by adding at the end thereof the following new
paragraph:
‘‘(14) COST-OF-LIVING ADJUSTMENT OF MAXI-
MUM DEFERRAL AMOUNT.—The Secretary shall ad-
just the $7,500 amount specified in subsections
(b)(2) and (c)(1) at the same time and in the same
manner as under section 415(d), except that the
base year in applying such section for purposes of
this paragraph shall be 1993.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
the date of the enactment of this Act.
SEC. 244. TREATMENT OF EMPLOYER REVERSIONS RE-
QUIRED BY CONTRACT TO BE PAID TO THE
UNITED STATES.
(a) IN GENERAL.—Subparagraph (B) of section
4980(c)(2) (defining employer reversion) is amended by
striking ‘‘or’’ at the end of clause (i), by striking the pe-
riod at the end of clause (ii) and inserting ‘‘, or’’, and
by adding at the end thereof the following new clause:
‘‘(iii) any distribution to the employer
to the extent that the distribution is paid
within a reasonable period to the United
States in satisfaction of a Federal claim
for an equitable share of the plan’s surplus
assets, as determined pursuant to Federal
contracting regulations.’’
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to reversions on or after the date
of the enactment of this Act.
SEC. 245. CONTINUATION HEALTH COVERAGE FOR EM-
PLOYEES OF FAILED FINANCIAL INSTITU-
TIONS.
(a) ENFORCEMENT OF CONTINUATION OF HEALTH
PLAN REQUIREMENTS OF ACQUIRERS OF FAILED DEPOS-
ITORY INSTITUTIONS.—Subsection (f) of section 4980B
(relating to continuation of coverage requirements of
group health plans) is amended by adding at the end
thereof the following new paragraph:
‘‘(9) SPECIAL
RULES
FOR
ACQUIRERS
OF
FAILED DEPOSITORY INSTITUTIONS.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), any acquirer of a failed de-
pository institution—
‘‘(i) shall have the same obligation to
provide a group health plan meeting the
requirements of this subsection with re-
spect to qualified individuals of such insti-
tution as the failed depository institution
would have had but for its failure, and
‘‘(ii) shall be treated as the employer
of such qualified individuals for purposes
of this section.
‘‘(B) TAX NOT TO APPLY IF FDIC OR RTC
PROVIDE CONTINUATION COVERAGE.—No per-
son shall be subject to any liability under this
section by reason of being an acquirer of a
failed depository institution if the Federal De-
posit Insurance Corporation or the Resolution
Trust Corporation elects to relieve such
acquirer from its obligations under subpara-
graph (A). In any such case, the requirements
of subparagraph (A) shall apply to the Federal
Deposit Insurance Corporation or the Resolu-
tion Trust Corporation, as the case may be.
‘‘(C) ACQUIRER.—For purposes of this
paragraph, an entity is an acquirer of a failed
depository institution during any period if—
‘‘(i) such entity holds substantially all
of the assets or liabilities of such institu-
tion, and
‘‘(ii)(I) such entity is a bridge bank,
or
‘‘(II) such entity acquired such assets
or liabilities from the Federal Deposit In-
surance Corporation, the Resolution Trust
Corporation, or a bridge bank.
‘‘(D) FAILED DEPOSITORY INSTITUTION.—
For purposes of this section, the term ‘failed
depository institution’ means any depository in-
stitution (as defined in section 3(c) of the Fed-
eral Deposit Insurance Act) for which a receiver
or conservator has been appointed.
‘‘(E) QUALIFIED
INDIVIDUAL.—For pur-
poses of this section, the term ‘qualified individ-
ual’ means—
‘‘(i) any individual who was, on the
day before the date of the appointment of
the receiver or conservator, provided cov-
erage under a group health plan of the
failed depository institution by reason of
the performance of services for such insti-
tution, and
‘‘(ii) any individual who was, on such
day, a beneficiary under such plan as the
spouse or dependent child of the individual
described in clause (i).’’
(b) TREATMENT OF DEPOSITORY INSTITUTION FAIL-
URES AS QUALIFYING EVENTS FOR RETIREES OF SUCH
INSTITUTIONS.—
(1) IN GENERAL.—Subparagraph (B) of section
4980B(f)(3) is amended—
(A) by striking ‘‘The termination’’ and in-
serting ‘‘(i) The termination’’,
(B) by striking the period at the end and
inserting ‘‘, or’’, and
(C) by inserting after clause (i) the follow-
ing new clause:
‘‘(ii) the appointment of a receiver or con-
servator for a failed depository institution from
whose employment the covered employee retired
at any time.’’
(2) CONFORMING AMENDMENT.—Subclause (I)
of section 4980B(f)(2)(B)(i) is amended by striking
‘‘AND REDUCED HOURS’’ and inserting ‘‘, REDUCED
HOURS, AND
FAILURES
OF
DEPOSITORY
INSTITU-
TIONS’’.
(c) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
shall apply as if included in section 451 of the Fed-
eral Deposit Insurance Corporation Improvement
Act of 1991 as of the date of the enactment of such
Act.
(2) LIABILITY OF FDIC.—In the case of the
Federal Deposit Insurance Corporation or any
acquirer from such Corporation, the amendments
made by this section shall apply only to failed depos-
itory institutions for which the receiver or conserva-
tor is appointed after the date of the enactment of
this Act.
(3) SPECIAL RULE FOR COVERAGE UNDER FDIC
PLAN.—Effective as of the date of the enactment of
the Federal Deposit Insurance Corporation Improve-
ment Act of 1991, coverage under the health care
continuation plan maintained by the Federal Deposit
Insurance Corporation on June 25, 1992, and any
other substantially similar plan maintained by such
Corporation, shall be deemed to satisfy the obliga-
tions of the Federal Deposit Insurance Corporation
103
a credit recapture by reducing the amount of the ap-
propriate current year credit to the extent thereof,
and if such recapture exceeds the amount of such
current year credit, the partnership shall be liable to
pay such excess.
‘‘(3) DISPOSITIONS NOT TO TRIGGER RECAP-
TURE.—No credit recapture shall be required by rea-
son of any transfer of an interest in a large partner-
ship.
‘‘(4) CREDIT
RECAPTURE.—For purposes of
this subsection, the term ‘credit recapture’ means
any increase in tax under section 42(j) or 50(a).
‘‘(c) PARTNERSHIP NOT TERMINATED BY REASON
OF CHANGE IN OWNERSHIP.—Subparagraph (B) of sec-
tion 708(b)(1) shall not apply to a large partnership.
‘‘(d) PARTNERSHIP ENTITLED TO CERTAIN CRED-
ITS.—The following shall be allowed to a large partnership
and shall not be taken into account by the partners of
such partnership:
‘‘(1) The credit provided by section 34.
‘‘(2) Any credit or refund under section
852(b)(3)(D).
‘‘(e) TREATMENT OF REMIC RESIDUALS.—For pur-
poses of applying section 860E(e)(6) to any large partner-
ship—