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(2) Additional reserve for post-retirement
medical and life insurance benefits.--The account limit
for any taxable year may include a reserve funded over
the working lives of the covered employees and
actuarially determined on a level basis (using
assumptions that are reasonable in the aggregate) as
necessary for--
(A) post-retirement medical benefits to be
provided to covered employees (determined on the
basis of current medical costs), or
(B) post-retirement life insurance benefits
to be provided to covered employees.
* * * * * * *
(5) Special limitation where no actuarial
certification.--
(A) In general.--Unless there is an
actuarial certification of the account limit
determined under this subsection for any taxable
year, the account limit for such taxable year
shall not exceed the sum of the safe harbor limits
for such taxable year.
(B) Safe harbor limits.--
(i) Short-term disability benefits.--In
the case of short-term disability benefits,
the safe harbor limit for any taxable year is
17.5 percent of the qualified direct costs
(other than insurance premiums) for the
immediately preceding taxable year with
respect to such benefits.
(ii) Medical benefits.--In the case of
medical benefits, the safe harbor limit for
any taxable year is 35 percent of the
qualified direct costs (other than insurance
premiums) for the immediately preceding
taxable year with respect to medical
benefits.
* * * * * * *
(i) Regulations.--The Secretary shall
prescribe such regulations as may be
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