A bill to amend the Internal Revenue Code of 1986 to provide for the establishment of simplified health arrangements meeting the requirements of section 89, to modify the definition of part-time employee for purposes of section 89, and to simplify the application of section 89.
Section 89 Simplification Act - Amends Internal Revenue Code provisions relating to the new nondiscrimination requirements for coverage and benefits under certain statutory employee benefit plans to: (1) prescribe criteria for simplified health arrangements which, if offered by an employer, will be treated as meeting the nondiscrimination requirements of Internal Revenue Section 89; (2) increase from 17 1/2 hours to 25 hours per week (30 hours in 1989, 27 1/2 hours in 1990) the threshold number of work hours triggering requirements with respect to part-time employees; (3) apply noncompliance penalties (taxation of benefits) only with respect to highly compensated employees rather than with respect to all employees; (4) exempt the plans of entities with no highly compensated employees; and (5) revise rules relating to plan testing, aggregation of plans, and coverage valuation.
Introduced in Senate
Read twice and referred to the Committee on Finance.
checking server…
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line