Retiree Health Protection and Long-Term Care Insurance Act of 1991

Summary

Retiree Health Protection and Long-Term Care Insurance Act of 1991 - Amends the Internal Revenue Code to add provisions relating to voluntary retiree health plans. Permits an income tax deduction for employer contributions to a qualified retiree health care trust. Limits the deduction to the difference between plan assets and 110 percent of the plan's liability at the end of a plan year. Excludes from the gross income of an individual or spouse, except under specified conditions: (1) any employer contribution under a qualified voluntary retiree health plan; or (2) receipts of any post-retirement long-term health benefit under the plan. Applies a 20 percent penalty tax to benefits that exceed a specified maximum. Prescribes plan qualification criteria. Limits plan holdings of employer securities and employer real property. Describes conditions to be met by any qualified retiree health care trust that is part of a qualified voluntary retiree health plan. Identifies criteria applicable to tax-exempt voluntary retiree health accounts established exclusively for the benefit of an individual or spouse. Excludes account distributions from the gross income of an individual as long as they are used exclusively to pay post-retirement long-term health care benefits of the eligible beneficiary. Retains the tax-exempt status of the accounts themselves unless the beneficiary-taxpayer either engages in prohibited transactions or pledges the account as security. Imposes a 20 percent surtax when benefits exceed a specified level. Sets forth minimum account distribution requirements. Requires the account trustee to report to the Secretary of the Treasury and to the account's beneficiary concerning the account. Preempts all State laws relating to health plans for former employees and their spouses. Imposes a 50 percent excise tax, with limited exceptions, on an employer who maintains a qualified plan if any distribution that is not a post-retirement long-term health care benefit is made. Exempts qualified retiree health care trusts from taxation. Imposes penalty taxes in connection with prohibited transactions associated with an account and for failure to file required reports.

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Documents

2 official files

• Introduced in Senate (text)

  Introduced in Senate · EN

  ViewDownloadOpen at official source

• Introduced in Senate

  summary · EN · 14 January 1991

  Open at official source

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