Title VII, SEC. 7401. POST-RETIREMENT MEDICAL AND LIFE INSURANCE RESERVES. (a) Minimum Period for Working Lives. Section 419A(c)(2) (relating to additional reserves for post-retirement medical and life insurance benefits) is amended by inserting ``(but not less than 10 years)'' after ``working lives of the covered employees''. (b) Separate Accounting. (1) Requirement. Section 419A(c)(2) is amended by adding at the end the following new flush sentence: ``Such reserve shall be maintained as a separate account.'' (2) Use of reserve for other purposes. Paragraph (1) of section 4976(b) (defining disqualified benefit) is amended by striking ``and'' at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting ``, and'', and by adding after subparagraph (C) the following new subparagraph: ``(D) any payment to which subparagraph (C) does not apply which is out of an account described in section 419A(c)(2) and which is not used to provide a post-retirement medical benefit or life insurance benefit.'' (c) Special Limitations. Section 419A(e) (relating to special limitations on reserves) is amended by adding at the end the following new paragraph: ``(3) Benefits must be excludable. Post-retirement medical benefits and life insurance benefits shall not be taken into account under subsection (c)(2) to the extent it may be reasonably anticipated that such benefits will be required to be included in gross income when provided.'' (d) Effective Dates. (1) In general. Except as provided in paragraph (2), the amendments made by this section shall apply to contributions paid or accrued after December 31, 1994, in taxable years ending after such date. (2) Separate accounting. The amendments made by subsection (b) shall apply to contributions paid or accrued after the date of the enactment of this Act, in taxable years ending after such date.