PUBLIC LAW 100-647—NOV. 10, 1988	102 STAT. 3631
salary reduction shall or shall not be treated as an
employer-provided benefit to prevent avoidance of the
purposes of this section."
 (12)	part-time employees.—Paragraph (5) of section 89(j) of
the 1986 Code is amended by striking out the last sentence
thereof.
 (13)	acquisitions and dispositions.—
(A)	Clause (ii) of section 89(j)(8)(A) of the 1986 Code is
amended to read as follows:
"(ii) either—
"(I) the coverage under such plan is not signifi-
cantly changed during the transition period (other
than by reason of the change in members in such
group), or
"(II) such plan meets such other requirements as
the Secretary may prescribe by regulation,".
(B)	Subclause (II) of section 410(b)(6)(C)(i) of the 1986 Code
is amended by inserting "or such plan meets such other
requirements as the Secretary may prescribe by regula-
tion" before the end period.
(14)	dependent care assistance.—Subparagraph (B) of sec-
tion 129(d)(7) of the 1986 Code (as redesignated and amended by
section 11 IB of this Act) is amended—
(A)	by striking out "(within the meaning of section
414(q)(7))", and
(B)	by adding at the end thereof the following new sen-
tence: "For purposes of this subparagraph, the term 'com-
pensation' has the meaning given such term by section
414(q)(7), except that, under rules prescribed by the Sec-
retary, an employer may elect to determine compensation
on any other basis which does not discriminate in favor of
highly compensated employees.".
(15)	reporting requirements.—
(A)	Section 6039D(d) of the 1986 Code is amended—
(i) by adding at the end thereof the following new
paragraph:
"(3) special rule for multiemployer plans.—In the case of
a multiemployer plan, the plan shall be required to provide any
information required by this section which the Secretary deter-
mines, on the basis of the agreement between the plan and
employer, is held by the plan (and not the employer)", and
(ii) by inserting "and special rules" after "defini-
tions" in the heading thereof.
(B)	The amendments made by this paragraph shall apply   26 USC 6039D
to years beginning after 1984.	note.
(b) modification to definitions of highly compensated and
compensation and to separate line of business rules.—
(1) definition of highly compensated.—Subsection (q) of
section 414 of the 1986 Code is amended by adding at the end
thereof the following new paragraph:
"(12) simplified method for determining highly com-
pensated EMPLOYEES.—
"(A) in general.—If an election by the employer under
this paragraph applies to any year, in determining whether
an employee is a highly compensated employee for such
year—