Title VII, SEC. 7402. HEALTH BENEFITS ACCOUNTS MAINTAINED BY PENSION PLANS. (a) Termination of Accounts. (1) In general. Section 401(h) (relating to medical, etc., benefits for retired employees and their spouses and dependents) is amended by adding at the end the following new paragraph: ``(2) Termination. ``(A) In general. In the case of a pension or annuity plan to which paragraph (1) applies ``(i) no contributions may be made to the separate account described in paragraph (1)(C) other than allowable contributions, and ``(ii) such plan may pay benefits described in paragraph (1) only from funds attributable to allowable contributions and earnings allocable to such contributions. ``(B) Allowable contribution. For purposes of subparagraph (A), the term `allowable contribution' means ``(i) any contribution made before January 1, 1995, ``(ii) in the case of a plan maintained pursuant to 1 or more collective bargaining agreements between employee representatives and 1 or more employees ratified on or before October 29, 1993, any contribution under such plan made before the earlier of ``(I) the date on which the last of such agreements terminates (determined without regard to any extension after October 29, 1993), or, if later, January 1, 1995, or ``(II) January 1, 1998, or ``(iii) any qualified transfer under section 420.'' (2) Conforming amendments. Section 401(h) is amended (A) by striking ``Under'' and inserting: ``(1) In general. Under'', (B) by redesignating paragraphs (1) through (6) as subparagraphs (A) through (F), respectively, (C) by striking ``paragraph (6)'' and inserting ``subparagraph (F)'', and (D) by striking ``paragraph (1)'' and inserting ``subparagraph (A)''. (b) Minimum Cost Requirements of Employer. Paragraph (3) of section 420(c) (relating to minimum cost requirements) is amended by adding at the end the following new subparagraph: ``(E) Adjustment for cost savings under health security act. To the extent provided by the Secretary, a plan shall not be treated as failing to meet the requirements of this section to the extent such failure is attributable to a reduction in qualified current retiree health liabilities by reason of the enactment of the Health Security Act.''