This bill amends the Internal Revenue Code to exempt certain spun-off voluntary employees' beneficiary associations (VEBAs) from the limitation on the amount of funds that may be set aside for benefits without being subject to the tax on unrelated business income. The exemption applies if: the VEBA was originally established prior to the enactment of this bill by an employer to provide benefits for eligible employees, retirees, and their dependents and beneficiaries; the benefits are limited to post-retirement medical and life benefits; the employer has delegated (before the beginning of the tax year) all authority and responsibility for the VEBA to one or more independent persons who do not have an employment relationship with the members entitled to benefits from the VEBA; no member entitled to benefits from the VEBA is entitled to benefits from any other VEBA as a result of employment with the employer; and the employer has no obligation to make contributions to the VEBA and has not contributed during the 11-year period ending with the tax year.