### Question
How is the term collectively bargained employer cost defined?


### Answer
The term **collectively bargained employer cost** is defined in *26 U.S.C. § 420* as the following:

> the average cost per covered individual of providing collectively bargained health benefits, collectively bargained life insurance benefits, or both, as the case may be, as determined in accordance with the applicable collective bargaining agreement

#### Citation:
  - *26 U.S.C. § 420*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter D-Deferred Compensation, Etc. > PART I-PENSION, PROFIT-SHARING, STOCK BONUS PLANS, ETC. > Subpart E-Treatment of Transfers to Retiree Health Accounts**

