98 STAT. 752

PUBLIC LAW 98-369—JULY 18, 1984

"(B) no more than 55 percent of the value of the total
assets of the account are assets described in section
851(b)(4)(A)(iX
"(3) SPECIAL RULE FOR VARIABLE LIFE INSURANCE CONTRACTS

INVESTING IN UNITED STATES OBLIGATIONS.—In the Case of 3.

segregated asset account with respect to variable life insurance
contracts, paragraph (1) shall not apply in the case of securities
issued by the United States Treasury which are owned by a
regulated investment company or by a trust all the beneficial
interests in which are held by 1 or more segregated asset
accounts of the company issuing the contract.

"(4) INDEPENDENT INVESTMENT ADVISORS PERMITTED.—Nothing
in this subsection shall be construed as prohibiting the use of
independent investment advisors.

26 USC 818. "SEC. 818. OTHER DEFINITIONS AND SPECIAL RULES.

"(a) PENSION PLAN CONTRACTS.—For purposes of this part, the
term 'pension plan contract' means any contract—

"(1) entered into with trusts which (as of the time the con-
tracts were entered into) were deemed to be trusts described in
section 401(a) and exempt from tax under section 501(a) (or
trusts exempt from tax under section 165 of the Internal Reve-
53 Stat. 67. nue Code of 1939 or the corresponding provisions of prior reve-

nue laws);

"(2) entered into under plans which (as of the time the
contracts were entered into) were deemed to be plans described
in section 403(a), or plans meeting the requirements of para-
graphs (3), (4), (5), and (6) of section 165(a) of the Internal
Revenue Code of 1939;

"(3) provided for employees of the life insurance company
under a plan which, for the taxable year, meets the require-
ments of paragraphs (3), (4), (5), (6), (7), (8), (11), (12), (13), (14),
(15), (16), (19), (20), and (22) of section 401(a);

"(4) purchased to provide retirement annuities for its employ-
ees by an organization which (as of the time the contracts were
purchased) was an organization described in section 501(c)(3)
which was exempt from tax under section 501(a) (or was an
organization exempt from tax under section 101(6) of the Inter-
53 Stat. 33. nal Revenue Code of 1939 or the corresponding provisions of

prior revenue laws), or purchased to provide retirement annu-
ities for employees described in section 403(b)(l)(A)(ii) by an
employer which is a State, a political subdivision of a State, or
an agency or instrumentality of any one or more of the
foregoing;

"(5) entered into with trusts which (at the time the contracts
were entered into) were individual retirement accounts de-
scribed in section 408(a) or under contracts entered into with
individual retirement annuities described in section 408(b); or
"(6) purchased by—

"(A) a governmental plan (within the meaning of section
414(d)), or

"(B) the Government of the United States, the govern-
ment of any State or political subdivision thereof, or by any
agency or instrumentality of the foregoing, for use in satis-
fying an obligation of such government, political subdivi-
sion, or agency or instrumentality to provide a benefit
under a plan described in subparagraph (A).