Retiree Health Benefits Preservation Act of 1989

Retiree Health Benefits Preservation Act of 1989 - Amends the Internal Revenue Code (IRC) to allow pension plans to provide long-term care benefits for retired employees and their families. Includes among these benefits the costs of medically necessary non-emergency diagnostic, preventive, therapeutic, rehabilitative, maintenance, or personal care services. Requires that a medical expense benefits account and a long-term care expense benefits account be established for each employee.

Permits the treatment of any pension plan as a profit-sharing plan if the employer contributes to accounts funding retiree medical and long-term care benefits.

Amends the IRC and the Employee Retirement Income Security Act of 1974 to allow the transfer of surplus pension plan assets without plan termination if: (1) the amount withdrawn does not exceed the excess of 125 percent of current plan liability; (2) notice is given to the Secretary of the Treasury and to plan participants; and (3) the amount is immediately transferred to an account for retiree medical benefits.