26 USC 411 - Minimum vesting standards

1 So in original. Probably should be “similar account”.

with the amount of any early retirement benefit or retirement-type subsidy for the plan year in which the participant retires if, as of such time, the participant has met the age, years of service, and other requirements under the plan for entitlement to such benefit or subsidy.

Editorial Notes

References in Text

Section 4281 of the Employee Retirement Income Security Act of 1974, referred to in subsecs. (a)(3)(F)(i), (ii) and (d)(6)(A), is classified to section 1441 of Title 29, Labor.

Section 4203 of the Employee Retirement Income Security Act of 1974, referred to in subsec. (a)(4)(G)(i)(I), is classified to section 1383 of Title 29, Labor.

Section 4205(span)(2)(A)(i) of such Act, referred to in subsec. (a)(4)(G)(i)(II), is classified to section 1385(span)(2)(A)(i) of Title 29, Labor.

Section 4048 of such Act, referred to in subsec. (a)(4)(G)(ii), is classified to section 1348 of Title 29, Labor.

The Social Security Act, referred to in subsecs. (a)(9) and (span)(1)(G), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Title II of the Social Security Act is classified generally to subchapter II (§ 401 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.

Amendments

2022—Subsec. (a)(11)(A). Puspan. L. 117–328, § 304(a), substituted “$7,000” for “$5,000”.

Subsec. (span)(6). Puspan. L. 117–328, § 348(a), added par. (6).

2018—Subsec. (a)(3)(F)(i). Puspan. L. 115–141, § 401(span)(19), struck out “under section 418D or” before “under section 4281”.

Subsec. (a)(4)(A). Puspan. L. 115–141, § 401(a)(82), substituted semicolon for comma at end.

2014—Subsec. (f). Puspan. L. 113–235 added subsec. (f).

2008—Subsec. (a)(3)(C). Puspan. L. 110–458, § 101(d)(2)(D)(i), substituted “section 412(d)(2)” for “section 412(c)(2)”.

Subsec. (a)(3)(G). Puspan. L. 110–458, § 109(span)(2), substituted “permissible withdrawal” for “erroneous automatic contribution” in span and “a permissible withdrawal” for “an erroneous automatic contribution” in text.

Subsec. (a)(13)(A). Puspan. L. 110–458, § 107(span)(2), substituted “subparagraph (B)” for “paragraph (2)” in cl. (i) and “subparagraph (C)” for paragraph (3) in concluding provisions, added cl. (ii), and struck out former cl. (ii) which read as follows: “the requirements of subsection (c) or section 417(e) with respect to contributions other than employee contributions,”.

Subsec. (span)(5)(A)(iii). Puspan. L. 110–458, § 107(span)(1)(A), substituted “subparagraph” for “clause”.

Subsec. (span)(5)(B)(i)(II). Puspan. L. 110–458, § 107(span)(3), amended subcl. (II) generally. Prior to amendment, text read as follows: “An interest credit (or an equivalent amount) of less than zero shall in no event result in the account balance or similar amount being less than the aggregate amount of contributions credited to the account.”

Subsec. (span)(5)(C). Puspan. L. 110–458, § 107(span)(1)(B), inserted “otherwise” before “allowable”.

Subsec. (d)(6)(A). Puspan. L. 110–458, § 101(d)(2)(D)(ii), substituted “section 412(d)(2)” for “section 412(e)(2)”.

2006—Subsec. (a)(2). Puspan. L. 109–280, § 904(a)(1), reenacted span without change and amended text of par. (2) generally, substituting provisions relating to vesting requirements under defined benefit plans and defined contribution plans for provisions relating to 5-year vesting and 3 to 7 year vesting under all plans.

Subsec. (a)(3)(C). Puspan. L. 109–280, § 114(span)(1), substituted “412(c)(2)” for “412(c)(8)”.

Subsec. (a)(3)(G). Puspan. L. 109–280, § 902(d)(2)(A), (B), inserted “or erroneous automatic contribution” after “or contribution” in span and “an erroneous automatic contribution under section 414(w),” after “402(g)(2)(A),” in text.

Subsec. (a)(12). Puspan. L. 109–280, § 904(a)(2), struck out par. (12), which related to faster vesting for matching contributions by employers.

Subsec. (a)(13). Puspan. L. 109–280, § 701(span)(2), added par. (13).

Subsec. (span)(1)(F). Puspan. L. 109–280, § 114(span)(2), substituted “subparagraphs (B) and (C) of section 412(e)(3)” for “paragraphs (2) and (3) of section 412(i)” in cl. (ii) and “subparagraphs (D), (E), and (F) of section 412(e)(3)” for “paragraphs (4), (5), and (6) of section 412(i)” in concluding provisions.

Subsec. (span)(5). Puspan. L. 109–280, § 701(span)(1), added par. (5).

Subsec. (d)(6)(A). Puspan. L. 109–280, § 114(span)(3), substituted “412(e)(2)” for “412(c)(8)”.

2004—Subsec. (a)(12)(B). Puspan. L. 108–311 substituted “6 or more” for “6” in table.

2001—Subsec. (a)(2). Puspan. L. 107–16, § 633(a)(1), substituted “Except as provided in paragraph (12), a plan” for “A plan” in introductory provisions.

Subsec. (a)(11)(D). Puspan. L. 107–16, § 648(a)(1), added subpar. (D).

Subsec. (a)(12). Puspan. L. 107–16, § 633(a)(2), added par. (12).

Subsec. (d)(6)(B). Puspan. L. 107–16, § 645(span)(1), inserted after second sentence “The Secretary shall by regulations provide that this subparagraph shall not apply to any plan amendment which reduces or eliminates benefits or subsidies which create significant burdens or complexities for the plan and plan participants, unless such amendment adversely affects the rights of any participant in a more than de minimis manner.”

Subsec. (d)(6)(D), (E). Puspan. L. 107–16, § 645(a)(1), added subpars. (D) and (E).

1997—Subsec. (a)(7)(B)(i). Puspan. L. 105–34, § 1071(a)(2)(A), substituted “the dollar limit under section 411(a)(11)(A)” for “$3,500”.

Subsec. (a)(11)(A). Puspan. L. 105–34, § 1071(a)(1), substituted “$5,000” for “$3,500”.

1996—Subsec. (a)(2). Puspan. L. 104–188 substituted “subparagraph (A) or (B)” for “subparagraph (A), (B), or (C)” in introductory provisions and struck out subpar. (C) which read as follows: “Multiemployer plans.—A plan satisfies the requirements of this subparagraph if—

“(i) the plan is a multiemployer plan (within the meaning of section 414(f)), and

“(ii) under the plan—

“(I) an employee who is covered pursuant to a collective bargaining agreement described in section 414(f)(1)(B) and who has completed at least 10 years of service has a nonforfeitable right to 100 percent of the employee’s accrued benefit derived from employer contributions, and

“(II) the requirements of subparagraph (A) or (B) are met with respect to employees not described in subclause (I).”

1994—Subsec. (a)(11)(B). Puspan. L. 103–465 reenacted subpar. (B) span without change and amended text generally. Prior to amendment, text read as follows:

“(i) In general.—For purposes of subparagraph (A), the present value shall be calculated—

“(I) by using an interest rate no greater than the applicable interest rate if the vested accrued benefit (using such rate) is not in excess of $25,000, and

“(II) by using an interest rate no greater than 120 percent of the applicable interest rate if the vested accrued benefit exceeds $25,000 (as determined under subclause (I)).

In no event shall the present value determined under subclause (II) be less than $25,000.

“(ii) Applicable interest rate.—For purposes of clause (i), the term ‘applicable interest rate’ means the interest rate which would be used (as of the date of the distribution) by the Pension Benefit Guaranty Corporation for purposes of determining the present value of a lump sum distribution on plan termination.”

1992—Subsec. (d)(3). Puspan. L. 102–318 inserted at end “For purposes of this paragraph, in the case of the complete discontinuance of contributions under a profit-sharing or stock bonus plan, such plan shall be treated as having terminated on the day on which the plan administrator notifies the Secretary (in accordance with regulations) of the discontinuance.”

1989—Subsec. (a)(3)(G). Puspan. L. 101–239, § 7861(a)(5)(A), added subpar. (G).

Subsec. (a)(4)(A). Puspan. L. 101–239, § 7861(a)(6)(A), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “years of service before age 18, except that in the case of a plan which does not satisfy subparagraph (A) or (B) of paragraph (2), the plan may not disregard any such year of service during which the employee was a participant;”.

Subsec. (a)(7)(D). Puspan. L. 101–239, § 7881(m)(1)(D), added subpar. (D).

Subsec. (a)(8)(B). Puspan. L. 101–239, § 7871(span)(1), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “the latest of—

“(i) the time a plan participant attains age 65,

“(ii) in the case of a plan participant who commences participation in the plan within 5 years before attaining normal retirement age under the plan, the 5th anniversary of the time the plan participant commences participation in the plan, or

“(iii) in the case of a plan participant not described in clause (ii), the 10th anniversary of the time the plan participant commences participation in the plan.”

Subsec. (span)(2)(B). Puspan. L. 101–239, § 7871(a)(1), redesignated subpar. (C) as (B) and struck out former subpar. (B) which read as follows: “Disregard of subsidized portion of early retirement benefit.—A plan shall not be treated as failing to meet the requirements of subparagraph (A) solely because the subsidized portion of any early retirement benefit is disregarded in determining benefit accruals.”

Subsec. (span)(2)(C), (D). Puspan. L. 101–239, § 7871(a)(1), (2), redesignated subpar. (D) as (C) and substituted “this paragraph” for “this subparagraph”. Former subpar. (C) redesignated (B).

Subsec. (c)(2)(B). Puspan. L. 101–239, § 7881(m)(1)(B), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows:

“(i) In general.—In the case of a defined benefit plan providing an annual benefit in the form of a single life annuity (without ancillary benefits) commencing at normal retirement age, the accrued benefit derived from contributions made by an employee as of any applicable date is the annual benefit equal to the employee’s accumulated contributions multiplied by the appropriate conversion factor.

“(ii) Appropriate conversion factor.—For purposes of clause (i), the term ‘appropriate conversion factor’ means the factor necessary to convert an amount equal to the accumulated contributions to a single life annuity (without ancillary benefits) commencing at normal retirement age and shall be 10 percent for a normal retirement age of 65 years. For other normal retirement ages the conversion factor shall be determined in accordance with regulations prescribed by the Secretary.”

Subsec. (c)(2)(C)(iii). Puspan. L. 101–239, § 7881(m)(1)(A), amended cl. (iii) generally. Prior to amendment, cl. (iii) read as follows: “interest on the sum of the amounts determined under clauses (i) and (ii) compounded annually at the rate of 120 percent of the Federal mid-term rate (as in effect under section 1274 for the 1st month of a plan year) from the beginning of the first plan year to which subsection (a)(2) applies (by reason of the applicable effective date) to the date upon which the employee would attain normal retirement age.”

Subsec. (c)(2)(E). Puspan. L. 101–239, § 7881(m)(1)(C), struck out subpar. (E) which read as follows: “Limitation.—The accrued benefit derived from employee contributions shall not exceed the greater of—

“(i) the employee’s accrued benefit under the plan, or

“(ii) the accrued benefit derived from employee contributions determined as though the amounts calculated under clauses (ii) and (iii) of subparagraph (C) were zero.”

1988—Subsec. (a)(11)(A). Puspan. L. 100–647 substituted “nonforfeitable” for “vested”.

1987—Subsec. (c)(2)(C)(iii). Puspan. L. 100–203, § 9346(span)(1), substituted “120 percent of the Federal mid-term rate (as in effect under section 1274 for the 1st month of a plan year)” for “5 percent per anspan”.

Subsec. (c)(2)(D). Puspan. L. 100–203, § 9346(span)(2), struck out “, the rate of interest described in clause (iii) of subparagraph (C), or both” before “from time to time” in first sentence and struck out second sentence which read as follows: “The rate of interest described in clause (iii) of subparagraph (C), or both, from time to time as he may deem necessary. The rate of interest shall bear the relationship to 5 percent which the Secretary determines to be comparable to the relationship which the long-term money rates and investment yields for the last period of 10 calendar years ending at least 12 months before the beginning of the plan year bear to the long-term money rates and investment yields for the 10-calendar year period 1964 through 1973.”

1986—Subsec. (a). Puspan. L. 99–514, § 1898(d)(1)(A)(ii), inserted reference to par. (11) in introductory text.

Puspan. L. 99–509, § 9202(span)(3), substituted “subsection (span)(3), and also satisfies, in the case of a defined benefit plan, the requirements of subsection (span)(1) and, in the case of a defined contribution plan, the requirements of subsection (span)(2)” for “paragraph (2) of subsection (span), and in the case of a defined benefit plan, also satisfies the requirements of paragraph (1) of subsection (span)” in first sentence.

Subsec. (a)(2). Puspan. L. 99–514, § 1113(a), amended par. (2) generally, substituting provisions covering 5-year vesting, 3 to 7 year vesting, and multiemployer plans, for former provisions which had covered 10-year vesting, 5- to 15-year vesting, and the “rule of 45”.

Subsec. (a)(3)(D)(ii). Puspan. L. 99–514, § 1898(a)(4)(A)(i), substituted last sentence for former last sentence which read as follows: “In the case of a defined contribution plan, the plan provision required under this clause may provide that such repayment must be made before the participant has any one-year break in service commencing after the withdrawal.”

Subsec. (a)(7)(C). Puspan. L. 99–514, § 1898(a)(4)(A)(ii), substituted last sentence for former last sentence which read as follows: “In the case of a defined contribution plan, the plan provision required under this subparagraph may provide that such repayment must be made before the participant has 5 consecutive 1-year breaks in service commencing after such withdrawal.”

Subsec. (a)(8)(B). Puspan. L. 99–509, § 9203(span)(2), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “the latter of—

“(i) the time a plan participant attains age 65, or

“(ii) the 10th anniversary of the time a plan participant commenced participation in the plan.”

Subsec. (a)(10)(B). Puspan. L. 99–514, § 1113(d)(B), substituted “3 years” for “5 years”.

Subsec. (a)(11)(A). Puspan. L. 99–514, § 1898(d)(1)(A)(i), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “If the present value of any accrued benefit exceeds $3,500, such benefit shall not be treated as nonforfeitable if the plan provides that the present value of such benefit could be immediately distributed without the consent of the participant.”

Subsec. (a)(11)(B). Puspan. L. 99–514, § 1139(a), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “For purposes of subparagraph (A), the present value shall be calculated by using an interest rate not greater than the interest rate which would be used (as of the date of the distribution) by the Pension Benefit Guaranty Corporation for purposes of determining the present value of a lump sum distribution on plan termination.”

Subsec. (a)(11)(C). Puspan. L. 99–514, § 1898(d)(2)(A), added subpar. (C).

Subsec. (span)(1). Puspan. L. 99–509, § 9202(span)(1), substituted “Defined benefit plans” for “General rules” in span and added subpar. (H).

Subsec. (span)(2) to (4). Puspan. L. 99–509, § 9202(span)(2), added par. (2) and redesignated former pars. (2) and (3) as (3) and (4), respectively.

Subsec. (d)(1)(A), (B). Puspan. L. 99–514, § 1114(span)(10), substituted “highly compensated employees (within the meaning of section 414(q))” for “officers, shareholders, or highly compensated”.

Subsec. (d)(4). Puspan. L. 99–514, § 1113(span), repealed par. (4) which provided that a class year plan satisfied the requirements of subsec. (a)(2) if it provided that 100 percent of each employee’s right to or derived from the contributions of the employer on his behalf with respect to any plan year were nonforfeitable not later than the end of the 5th plan year following the plan year for which such contributions were made.

Puspan. L. 99–514, § 1898(a)(1)(A), substituted “Class-year” for “Class year” in span and amended par. (4) generally. Prior to amendment, par. (4) read as follows: “The requirements of subsection (a)(2) shall be deemed to be satisfied in the case of a class year plan if such plan provides that 100 percent of each employee’s right to or derived from the contributions of the employer on his behalf with respect to any plan year are nonforfeitable not later than the end of the 5th plan year following the plan year for which such contributions were made. For purposes of this section, the term ‘class year plan’ means a profit-sharing, stock bonus, or money purchase plan which provides for the separate nonforfeitability of employees’ rights to or derived from the contributions for each plan year.”

Subsec. (d)(6)(C). Puspan. L. 99–514, § 1898(f)(1)(A), added subpar. (C).

1984—Subsec. (a)(4)(A). Puspan. L. 98–397, § 202(span), substituted “18” for “22”.

Subsec. (a)(6)(C). Puspan. L. 98–397, § 202(c), substituted “5 consecutive 1-year breaks” for “1-year break”, in span, and in text substituted “5 consecutive 1-year breaks in service” for “any 1-year break in service” and “such 5-year period” for “such break” in two places.

Subsec. (a)(6)(D). Puspan. L. 98–397, § 202(d)(2), amended subpar. (D) generally.

Subsec. (a)(6)(E). Puspan. L. 98–397, § 202(e)(2), added subpar. (E).

Subsec. (a)(7)(B)(i). Puspan. L. 98–397, § 205(span), substituted “$3,500” for “$1,750”.

Subsec. (a)(7)(C). Puspan. L. 98–397, § 202(f), substituted “5 consecutive 1-year breaks in service” for “any one-year break in service”.

Subsec. (a)(11). Puspan. L. 98–397, § 205(a), added par. (11).

Subsec. (span)(3)(A). Puspan. L. 98–397, § 202(e)(3), inserted “, determined without regard to section 410(a)(5)(E)”.

Subsec. (d)(6). Puspan. L. 98–397, § 301(a)(1), designated existing provisions as subpar. (A) and added subpar. (B).

1980—Subsec. (a). Puspan. L. 96–364, § 206(1)–(4), in par. (3) added subpars. (E) and (F), and in par. (4) added subpar. (G).

Subsec. (d)(6). Puspan. L. 96–364, § 206(5), inserted reference to section 4281 of the Employee Retirement Income Security Act of 1974.

1976—Subsec. (a). Puspan. L. 94–455, §§ 1901(a)(62)(A)–(C), 1906(span)(13)(A), substituted “paragraph (8)” for “subsection (a)(8)” in provisions preceding par. (1), substituted references to Sept. 2, 1974, for references to the date of enactment of the Employee Retirement Income Security Act of 1974 in par. (3)(D)(iii), struck out “or his delegate” after “Secretary” in pars. (4)(C) and (7)(B), and substituted “(B)” for “(span)” in span of par. (7)(C).

Subsec. (span)(1)(D)(i). Puspan. L. 94–455, § 1901(a)(62)(D), substituted reference to Sept. 2, 1974, for reference to the date of enactment of the Employee Retirement Income Security Act of 1974.

Subsecs. (c)(2)(B)(ii), (D), (d)(2), (3). Puspan. L. 94–455, § 1906(span)(13)(A), struck out “or his delegate” after “Secretary”.

Subsec. (e)(1)(C). Puspan. L. 94–455, § 1901(a)(62)(D), substituted reference to Sept. 2, 1974, for reference to the date of enactment of the Employee Retirement Income Security Act of 1974.

Subsec. (e)(2). Puspan. L. 94–455, § 1901(a)(62)(E), substituted reference to Sept. 1, 1974, for reference to the date before the date of enactment of the Employee Retirement Income Security Act of 1974.

Statutory Notes and Related Subsidiaries

Effective Date of 2022 Amendment

Amendment by section 304(a) of Puspan. L. 117–328 applicable to distributions made after Dec. 31, 2023, see section 304(span) of Puspan. L. 117–328, set out as a note under section 401 of this title.

Puspan. L. 117–328, div. T, title III, § 348(c), Dec. 29, 2022, 136 Stat. 5385, provided that: “The amendments made by this section [amending this section and section 1054 of Title 29, Labor] shall apply with respect to plan years beginning after the date of enactment of this Act [Dec. 29, 2022].”

Effective Date of 2014 Amendment

Puspan. L. 113–235, div. P, § 2(c), Dec. 16, 2014, 128 Stat. 2829, provided that: “The amendments made by this section [amending this section and section 1054 of Title 29, Labor] shall apply to all periods before, on, and after the date of enactment of this Act [Dec. 16, 2014].”

Effective Date of 2008 Amendment

Amendment by Puspan. L. 110–458 effective as if included in the provisions of Puspan. L. 109–280 to which the amendment relates, except as otherwise provided, see section 112 of Puspan. L. 110–458, set out as a note under section 72 of this title.

Effective Date of 2006 Amendment

Amendment by section 114(span) of Puspan. L. 109–280 applicable to plan years beginning after 2007, see section 114(g)(1) of Puspan. L. 109–280, as added by Puspan. L. 110–458, set out as a note under section 401 of this title.

Puspan. L. 109–280, title VII, § 701(e), Aug. 17, 2006, 120 Stat. 991, as amended by Puspan. L. 110–458, title I, § 107(c)(2), Dec. 23, 2008, 122 Stat. 5107, provided that:

“(1)In general.—The amendments made by this section [amending this section and sections 623, 1053, and 1054 of Title 29, Labor] shall apply to periods beginning on or after June 29, 2005.

“(2)Present value of accrued benefit.—The amendments made by subsections (a)(2) and (span)(2) [amending this section and section 1053 of Title 29] shall apply to distributions made after the date of the enactment of this Act [Aug. 17, 2006].

“(3)Vesting and interest credit requirements.—In the case of a plan in existence on June 29, 2005, the requirements of clause (i) of section 411(span)(5)(B) of the Internal Revenue Code of 1986, clause (i) of section 204(span)(5)(B) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1054(span)(5)(B)], and clause (i) of section 4(i)(10)(B) of the Age Discrimination in Employment Act of 1967 [29 U.S.C. 623(i)(10)(B)] (as added by this Act) and the requirements of 203(f)(2) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1053(f)(2)] and section 411(a)(13)(B) of the Internal Revenue Code of 1986 (as so added) shall, for purposes of applying the amendments made by subsections (a) and (span) [amending this section and sections 1053 and 1054 of Title 29], apply to years beginning after December 31, 2007, unless the plan sponsor elects the application of such requirements for any period on or after June 29, 2005, and before the first year beginning after December 31, 2007.

“(4)Special rule for collectively bargained plans.—In the case of a plan maintained pursuant to 1 or more collective bargaining agreements between employee representatives and 1 or more employers ratified on or before the date of the enactment of this Act [Aug. 17, 2006], the requirements described in paragraph (3) shall, for purposes of applying the amendments made by subsections (a) and (span) [amending this section and sections 1053 and 1054 of Title 29], not apply to plan years beginning before the earlier of—

“(A) the later of—

“(i) the date on which the last of such collective bargaining agreements terminates (determined without regard to any extension thereof on or after such date of enactment), or

“(ii)January 1, 2008, or

“(B)January 1, 2010.

“(5)Conversions.—The requirements of clause (ii) of section 411(span)(5)(B) of the Internal Revenue Code of 1986, clause (ii) of section 204(span)(5)(B) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1054(span)(5)(B)], and clause (ii) of section 4(i)(10)(B) of the Age Discrimination in Employment Act of 1967 [29 U.S.C. 623(i)(10)(B)] (as added by this Act), shall apply to plan amendments adopted on or after, and taking effect on or after, June 29, 2005, except that the plan sponsor may elect to have such amendments apply to plan amendments adopted before, and taking effect on or after, such date.

“(6)Special rule for vesting requirements.—The requirements of section 203(f)(2) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1053(f)(2)] and section 411(a)(13)(B) of the Internal Revenue Code of 1986 (as added by this Act)—

“(A) shall not apply to a participant who does not have an hour of service after the effective date of such requirements (as otherwise determined under this subsection); and

“(B) in the case of a plan other than a plan described in paragraph (3) or (4), shall apply to plan years ending on or after June 29, 2005.”

[Puspan. L. 110–458, § 107(c)(2)(B)(i), which directed insertion of “the earlier of” after “before” in introductory provisions of section 701(e)(4) of Puspan. L. 109–280, set out above, was executed by making the insertion after the second instance of “before” to reflect the probable intent of Congress.]

Amendment by section 902(d)(2)(A), (B) of Puspan. L. 109–280 applicable to plan years beginning after Dec. 31, 2007, see section 902(g) of Puspan. L. 109–280, set out as a note under section 401 of this title.

Puspan. L. 109–280, title IX, § 904(c), Aug. 17, 2006, 120 Stat. 1050, provided that:

“(1)In general.—Except as provided in paragraphs (2) and (4), the amendments made by this section [amending this section and section 1053 of Title 29, Labor] shall apply to contributions for plan years beginning after December 31, 2006.

“(2)Collective bargaining agreements.—In the case of a plan maintained pursuant to one or more collective bargaining agreements between employee representatives and one or more employers ratified before the date of the enactment of this Act [Aug. 17, 2006], the amendments made by this section shall not apply to contributions on behalf of employees covered by any such agreement for plan years beginning before the earlier of—

“(A) the later of—

“(i) the date on which the last of such collective bargaining agreements terminates (determined without regard to any extension thereof on or after such date of the enactment); or

“(ii)January 1, 2007; or

“(B)January 1, 2009.

“(3)Service required.—With respect to any plan, the amendments made by this section shall not apply to any employee before the date that such employee has 1 hour of service under such plan in any plan year to which the amendments made by this section apply.

“(4)Special rule for stock ownership plans.—Notwithstanding paragraph (1) or (2), in the case of an employee stock ownership plan (as defined in section 4975(e)(7) of the Internal Revenue Code of 1986) which had outstanding on September 26, 2005, a loan incurred for the purpose of acquiring qualifying employer securities (as defined in section 4975(e)(8) of such Code), the amendments made by this section shall not apply to any plan year beginning before the earlier of—

“(A) the date on which the loan is fully repaid, or

“(B) the date on which the loan was, as of September 26, 2005, scheduled to be fully repaid.”

Effective Date of 2001 Amendment

Puspan. L. 107–16, title VI, § 633(c), June 7, 2001, 115 Stat. 116, provided that:

“(1)In general.—Except as provided in paragraph (2), the amendments made by this section [amending this section and section 1053 of Title 29, Labor] shall apply to contributions for plan years beginning after December 31, 2001.

“(2)Collective bargaining agreements.—In the case of a plan maintained pursuant to one or more collective bargaining agreements between employee representatives and one or more employers ratified by the date of the enactment of this Act [June 7, 2001], the amendments made by this section shall not apply to contributions on behalf of employees covered by any such agreement for plan years beginning before the earlier of—

“(A) the later of—

“(i) the date on which the last of such collective bargaining agreements terminates (determined without regard to any extension thereof on or after such date of the enactment); or

“(ii)January 1, 2002; or

“(B)January 1, 2006.

Puspan. L. 107–16, title VI, § 645(a)(3), June 7, 2001, 115 Stat. 125, provided that: “The amendments made by this subsection [amending this section and section 1054 of Title 29, Labor] shall apply to years beginning after December 31, 2001.”

Puspan. L. 107–16, title VI, § 648(c), June 7, 2001, 115 Stat. 128, provided that: “The amendments made by this section [amending this section, section 457 of this title, and section 1053 of Title 29, Labor] shall apply to distributions after December 31, 2001.”

Effective Date of 1997 Amendment

Puspan. L. 105–34, title X, § 1071(c), Aug. 5, 1997, 111 Stat. 948, provided that: “The amendments made by this section [amending this section, sections 417 and 457 of this title, and sections 1053 to 1055 of Title 29, Labor] shall apply to plan years beginning after the date of the enactment of this Act [Aug. 5, 1997].”

Effective Date of 1996 Amendment

Puspan. L. 104–188, title I, § 1442(c), Aug. 20, 1996, 110 Stat. 1808, provided that:

“The amendments made by this section [amending this section and section 1053 of Title 29, Labor] shall apply to plan years beginning on or after the earlier of—

“(1) the later of—

“(A)January 1, 1997, or

“(B) the date on which the last of the collective bargaining agreements pursuant to which the plan is maintained terminates (determined without regard to any extension thereof after the date of the enactment of this Act [Aug. 20, 1996]), or

“(2)January 1, 1999.

Such amendments shall not apply to any individual who does not have more than 1 hour of service under the plan on or after the 1st day of the 1st plan year to which such amendments apply.”

Effective Date of 1994 Amendment

Puspan. L. 103–465, title VII, § 767(d), Dec. 8, 1994, 108 Stat. 5040, as amended by Puspan. L. 104–188, title I, § 1449(a), Aug. 20, 1996, 110 Stat. 1813; Puspan. L. 105–34, title XVI, § 1604(span)(3), Aug. 5, 1997, 111 Stat. 1097, provided that:

“(1)In general.—The amendments made by this section [amending this section, sections 415 and 417 of this title, and sections 1053 and 1055 of Title 29, Labor] shall apply to plan years and limitation years beginning after December 31, 1994; except that an employer may elect to treat the amendments made by this section as being effective on or after the date of the enactment of this Act [Dec. 8, 1994].

“(2)No reduction in accrued benefits.—A participant’s accrued benefit shall not be considered to be reduced in violation of section 411(d)(6) of the Internal Revenue Code of 1986 or section 204(g) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1054(g)] merely because (A) the benefit is determined in accordance with section 417(e)(3)(A) of such Code, as amended by this Act, or section 205(g)(3) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1055(g)(3)], as amended by this Act, or (B) the plan applies section 415(span)(2)(E) of such Code, as amended by this Act.

“(3)Section 415.—

“(A)Exception.—A plan that was adopted and in effect before December 8, 1994, shall not be required to apply the amendments made by subsection (span) [amending section 415 of this title] with respect to benefits accrued before the earlier of—

“(i) the later of the date a plan amendment applying the amendments made by subsection (span) is adopted or made effective, or

“(ii) the first day of the first limitation year beginning after December 31, 1999.

Determinations under section 415(span)(2)(E) of the Internal Revenue Code of 1986 before such earlier date shall be made with respect to such benefits on the basis of such section as in effect on December 7, 1994, and the provisions of the plan as in effect on December 7, 1994, but only if such provisions of the plan meet the requirements of such section (as so in effect).

“(B)Timing of plan amendment.—A plan that operates in accordance with the amendments made by subsection (span) shall not be treated as failing to satisfy section 401(a) of the Internal Revenue Code of 1986 or as not being operated in accordance with the provisions of the plan until such date as the Secretary of the Treasury provides merely because the plan has not been amended to include the amendments made by subsection (span).”

Effective Date of 1992 Amendment

Amendment by Puspan. L. 102–318 applicable to distributions after Dec. 31, 1992, see section 521(e) of Puspan. L. 102–318, set out as a note under section 402 of this title.

Effective Date of 1989 Amendment

Amendment by section 7861(a)(5)(A), (6)(A) of Puspan. L. 101–239 effective as if included in the provision of the Tax Reform Act of 1986, Puspan. L. 99–514, to which such amendment relates, see section 7863 of Puspan. L. 101–239, set out as a note under section 106 of this title.

Puspan. L. 101–239, title VII, § 7871(a)(4), Dec. 19, 1989, 103 Stat. 2435, provided that: “The amendments made by this subsection [amending this section and section 1054 of Title 29, Labor] shall take effect as if included in the amendments made by section 9202 of the Omnibus Budget Reconciliation Act of 1986 [Puspan. L. 99–509].”

Puspan. L. 101–239, title VII, § 7871(span)(3), Dec. 19, 1989, 103 Stat. 2435, provided that: “The amendments made by this subsection [amending this section and section 1002 of Title 29, Labor] shall take effect as if included in the amendments made by section 9203 of the Omnibus Budget Reconciliation Act of 1986 [Puspan. L. 99–509].”

Amendment by section 7881(m)(1) of Puspan. L. 101–239 effective, except as otherwise provided, as if included in the provision of the Pension Protection Act, Puspan. L. 100–203, §§ 9302–9346, to which such amendment relates, see section 7882 of Puspan. L. 101–239, set out as a note under section 401 of this title.

Effective Date of 1988 Amendment

Amendment by Puspan. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Puspan. L. 99–514, to which such amendment relates, see section 1019(a) of Puspan. L. 100–647, set out as a note under section 1 of this title.

Effective Date of 1987 Amendment

Amendment by Puspan. L. 100–203 applicable to plan years beginning after Dec. 31, 1987, with plan amendments not required to be made before first plan year beginning on or after Jan. 1, 1989, if certain conditions are met, see section 9346(c) of Puspan. L. 100–203, set out as a note under section 1054 of Title 29, Labor.

Effective Date of 1986 Amendment

Puspan. L. 99–514, title XI, § 1113(f), formerly § 1113(e), Oct. 22, 1986, 100 Stat. 2447, as redesignated and amended by Puspan. L. 101–239, title VII, § 7861(a)(3), (4), Dec. 19, 1989, 103 Stat. 2430, provided that:

“(1)In general.—Except as provided in paragraph (2), the amendments made by this section [amending this section and section 410 of this title and sections 1052 to 1054 of Title 29, Labor] shall apply to plan years beginning after December 31, 1988.

“(2)Special rule for collective bargaining agreements.—In the case of a plan maintained pursuant to 1 or more collective bargaining agreements between employee representatives and 1 or more employers ratified before March 1, 1986, the amendments made by this section shall not apply to employees covered by any such agreement in plan years beginning before the earlier of—

“(A) the later of—

“(i)January 1, 1989, or

“(ii) the date on which the last of such collective bargaining agreements terminates (determined without regard to any extension thereof after February 28, 1986), or

“(B)January 1, 1991.

“(3)Participation required.—The amendments made by this section shall not apply to any employee who does not have 1 hour of service in any plan year to which the amendments made by this section apply.

“(4)Repeal of class year vesting.—If a plan amendment repealing class year vesting is adopted after October 22, 1986, such amendment shall not apply to any employee for the 1st plan year to which the amendments made by subsections (span) and (e)(2) [amending this section and section 1053 of Title 29] apply (and any subsequent plan year) if—

“(A) such plan amendment would reduce the nonforfeitable right of such employee for such year, and

“(B) such employee has at least 1 hour of service before the adoption of such plan amendment and after the beginning of such 1st plan year.

This paragraph shall not apply to an employee who has 5 consecutive 1-year breaks in service (as defined in section 411(a)(6)(A) of the Internal Revenue Code of 1986) which include the 1st day of the 1st plan year to which the amendments made by subsection (span) and (e)(2) apply. A plan shall not be treated as failing to meet the requirements of section 401(a)(26) of such Code by reason of complying with the provisions of this paragraph.”

Amendment by section 1114(span)(10) of Puspan. L. 99–514 applicable to years beginning after Dec. 31, 1988, see section 1114(c)(3) of Puspan. L. 99–514, set out as a note under section 414 of this title.

Puspan. L. 99–514, title XI, § 1139(d), Oct. 22, 1986, 100 Stat. 2488, as amended by Puspan. L. 100–647, title I, § 1011A(k), Nov. 10, 1988, 102 Stat. 3483, provided that:

“(1)In general.—The amendments made by this section [amending this section and section 417 of this title and sections 1053 and 1055 of Title 29, Labor] shall apply to distributions in plan years beginning after December 31, 1984, except that such amendments shall not apply to any distributions in plan years beginning after December 31, 1984, and before January 1, 1987, if such distributions were made in accordance with the requirements of the regulations issued under the Retirement Equity Act of 1984 [Puspan. L. 98–397, see Short Title of 1984 Amendment note set out under section 1001 of Title 29].

“(2)Reduction in accrued benefits.—

“(A)In general.—If a plan—

“(i) adopts a plan amendment before the close of the first plan year beginning on or after January 1, 1989, which provides for the calculation of the present value of the accrued benefits in the manner provided by the amendments made by this section, and

“(ii) the plan reduces the accrued benefits for any plan year to which such plan amendment applies in accordance with such plan amendment,

such reduction shall not be treated as a violation of section 411(d)(6) of the Internal Revenue Code of 1986 or section 204(g) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1054(g)).

“(B)Special rule.—In the case of a plan maintained by a corporation incorporated on April 11, 1934, which is headquartered in Tarrant County, Texas—

“(i) such plan may be amended to remove the option of an employee to receive a lump sum distribution (within the meaning of section 402(e)(5) of such Code) if such amendment—

“(I) is adopted within 1 year of the date of the enactment of this Act [Oct. 22, 1986], and

“(II) is not effective until 2 years after the employees are notified of such amendment, and

“(ii) the present value of any vested accrued benefit of such plan determined during the 3-year period beginning on the date of the enactment of this Act shall be determined under the applicable interest rate (within the meaning of section 411(a)(11)(B)(ii) of such Code), except that if such value (as so determined) exceeds $50,000, then the value of any excess over $50,000 shall be determined by using the interest rate specified in the plan as of August 16, 1986.”

Puspan. L. 99–514, title XVIII, § 1898(a)(1)(C), Oct. 22, 1986, 100 Stat. 2942, provided that: “The amendments made by this paragraph [amending this section and section 1053 of Title 29, Labor] shall apply to contributions made for plan years beginning after the date of the enactment of this Act [Oct. 22, 1986]; except that, in the case of a plan described in section 302(span) of the Retirement Equity Act of 1984 [section 302(span) of Puspan. L. 98–397, set out as a note under section 1001 of Title 29], such amendments shall not apply to any plan year to which the amendments made by such Act [see Short Title of 1984 Amendment note set out under section 1001 of Title 29] do not apply by reason of such section 302(span).”

Amendment by section 1898(a)(4)(A), (d)(1)(A), (2)(A), (f)(1)(A) of Puspan. L. 99–514 effective as if included in the provision of the Retirement Equity Act of 1984, Puspan. L. 98–397, to which such amendment relates, except as otherwise provided, see section 1898(j) of Puspan. L. 99–514, set out as a note under section 401 of this title.

Amendment by section 9202(span) of Puspan. L. 99–509 applicable only with respect to plan years beginning on or after Jan. 1, 1988, and only to employees who have 1 hour of service in any plan year to which amendment applies, with special rule for collectively bargained plans, and amendment by section 9203(span)(2) of Puspan. L. 99–509 applicable only with respect to plan years beginning on or after Jan. 1, 1988, and only with respect to service performed on or after such date, see section 9204(a), (span) of Puspan. L. 99–509, set out as an Effective and Termination Dates of 1986 Amendments note under section 623 of Title 29, Labor.

Effective Date of 1984 Amendment

Amendment by Puspan. L. 98–397 applicable to plan years beginning after Dec. 31, 1984, except as otherwise provided, see sections 302 and 303 of Puspan. L. 98–397, set out as a note under section 1001 of Title 29, Labor.

Effective Date of 1980 Amendment

Amendment by Puspan. L. 96–364 effective Sept. 26, 1980, see section 210(a) of Puspan. L. 96–364, set out as an Effective Date note under section 194A of this title.

Effective Date of 1976 Amendment

Amendment by section 1901(a)(62) of Puspan. L. 94–455 effective for taxable years beginning after Dec. 31, 1976, see section 1901(d) of Puspan. L. 94–455, set out as a note under section 2 of this title.

Effective Date

Section applicable, except as otherwise provided in section 1017(c) through (i) of Puspan. L. 93–406, for plan years beginning after Sept. 2, 1974, and, in the case of plans in existence on Jan. 1, 1974, for plan years beginning after Dec. 31, 1975, see section 1017 of Puspan. L. 93–406, set out as an Effective Date; Transitional Rules note under section 410 of this title.

Regulations

Puspan. L. 109–280, title VII, § 702, Aug. 17, 2006, 120 Stat. 992, provided that: “The Secretary of the Treasury or his delegate shall, not later than 12 months after the date of the enactment of this Act [Aug. 17, 2006], prescribe regulations for the application of the amendments made by, and the provisions of, this title [amending this section and sections 623, 1053, and 1054 of Title 29, Labor, and enacting provisions set out as notes under this section] in cases where the conversion of a plan to an applicable defined benefit plan is made with respect to a group of employees who become employees by reason of a merger, acquisition, or similar transaction.”

Puspan. L. 109–280, title XI, § 1102(span), Aug. 17, 2006, 120 Stat. 1056, provided that:

“(1)In general.—The Secretary of the Treasury shall modify the regulations under section 411(a)(11) of the Internal Revenue Code of 1986 and under section 205 of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1055] to provide that the description of a participant’s right, if any, to defer receipt of a distribution shall also describe the consequences of failing to defer such receipt.

“(2)Effective date.—

“(A)In general.—The modifications required by paragraph (1) shall apply to years beginning after December 31, 2006.

“(B)Reasonable notice.—A plan shall not be treated as failing to meet the requirements of section 411(a)(11) of such Code or section 205 of such Act with respect to any description of consequences described in paragraph (1) made within 90 days after the Secretary of the Treasury issues the modifications required by paragraph (1) if the plan administrator makes a reasonable attempt to comply with such requirements.”

Puspan. L. 107–16, title VI, § 645(span)(3), June 7, 2001, 115 Stat. 126, provided that: “Not later than December 31, 2003, the Secretary of the Treasury is directed to issue regulations under section 411(d)(6) of the Internal Revenue Code of 1986 and section 204(g) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1054(g)], including the regulations required by the amendment made by this subsection [amending this section and section 1054 of Title 29, Labor]. Such regulations shall apply to plan years beginning after December 31, 2003, or such earlier date as is specified by the Secretary of the Treasury.”

Secretary of the Treasury or his delegate to issue before Fespan. 1, 1988, final regulations to carry out amendments made by sections 1113 and 1114 of Puspan. L. 99–514, see section 1141 of Puspan. L. 99–514, set out as a note under section 401 of this title.

Secretary of Labor, Secretary of the Treasury, and Equal Employment Opportunity Commission shall each issue before Fespan. 1, 1988, final regulations to carry out amendments made by sections 9202 and 9203 of Puspan. L. 99–509, see section 9204 of Puspan. L. 99–509, set out as a note under section 623 of Title 29, Labor.

Savings Provision

For provisions that nothing in amendment by Puspan. L. 115–141 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Mar. 23, 2018, for purposes of determining liability for tax for periods ending after Mar. 23, 2018, see section 401(e) of Puspan. L. 115–141, set out as a note under section 23 of this title.

Construction of 2006 Amendment

Puspan. L. 109–280, title VII, § 701(d), Aug. 17, 2006, 120 Stat. 991, as amended by Puspan. L. 110–458, title I, § 107(c)(1), Dec. 23, 2008, 122 Stat. 5107, provided that:

“Nothing in the amendments made by this section [amending this section and sections 623, 1053, and 1054 of Title 29, Labor] shall be construed to create an inference with respect to—

“(1) the treatment of applicable defined benefit plans or conversions to applicable defined benefit plans under sections 204(span)(1)(H) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1054(span)(1)(H)], 4(i)(1) of the Age Discrimination in Employment Act of 1967 [29 U.S.C. 623(i)(1)], and 411(span)(1)(H) of the Internal Revenue Code of 1986, as in effect before such amendments, or

“(2) the determination of whether an applicable defined benefit plan fails to meet the requirements of sections 203(a)(2), 204(c), or 205(g) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1053(a)(2), 1054(c), 1055(g)] or sections 411(a)(2), 411(c), or 417(e) of such Code, as in effect before such amendments, solely because the present value of the accrued benefit (or any portion thereof) of any participant is, under the terms of the plan, equal to the amount expressed as the balance in a hypothetical account or as an accumulated percentage of the participant’s final average compensation.

For purposes of this subsection, the term ‘applicable defined benefit plan’ has the meaning given such term by section 203(f)(3) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1053(f)(3)] and section 411(a)(13)(C) of such Code, as in effect after such amendments.”

Temporary Rule Preventing Partial Plan Termination

Puspan. L. 116–260, div. EE, title II, § 209, Dec. 27, 2020, 134 Stat. 3066, provided that: “A plan shall not be treated as having a partial termination (within the meaning of 411(d)(3) of the Internal Revenue Code of 1986) during any plan year which includes the period beginning on March 13, 2020, and ending on March 31, 2021, if the number of active participants covered by the plan on March 31, 2021 is at least 80 percent of the number of active participants covered by the plan on March 13, 2020.”

Applicability of Amendments by Subtitles A and B of Title I of Puspan. L. 109–280

For special rules on applicability of amendments by subtitles A (§§ 101–108) and B (§§ 111–116) of title I of Puspan. L. 109–280 to certain eligible cooperative plans, PBGC settlement plans, and eligible government contractor plans, see sections 104, 105, and 106 of Puspan. L. 109–280, set out as notes under section 401 of this title.

Provisions Relating to Plan Amendments

Puspan. L. 109–280, title XI, § 1107, Aug. 17, 2006, 120 Stat. 1063, provided that:

“(a)In General.—If this section applies to any pension plan or contract amendment—

“(1) such pension plan or contract shall be treated as being operated in accordance with the terms of the plan during the period described in subsection (span)(2)(A), and

“(2) except as provided by the Secretary of the Treasury, such pension plan shall not fail to meet the requirements of section 411(d)(6) of the Internal Revenue Code of 1986 and section 204(g) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1054(g)] by reason of such amendment.

“(span)Amendments to Which Section Applies.—

“(1)In general.—This section shall apply to any amendment to any pension plan or annuity contract which is made—

“(A) pursuant to any amendment made by this Act [see Tables for classification] or pursuant to any regulation issued by the Secretary of the Treasury or the Secretary of Labor under this Act, and

“(B) on or before the last day of the first plan year beginning on or after January 1, 2009.

In the case of a governmental plan (as defined in section 414(d) of the Internal Revenue Code of 1986), this paragraph shall be applied by substituting ‘2011’ for ‘2009’.

“(2)Conditions.—This section shall not apply to any amendment unless—

“(A) during the period—

“(i) beginning on the date the legislative or regulatory amendment described in paragraph (1)(A) takes effect (or in the case of a plan or contract amendment not required by such legislative or regulatory amendment, the effective date specified by the plan), and

“(ii) ending on the date described in paragraph (1)(B) (or, if earlier, the date the plan or contract amendment is adopted), the plan or contract is operated as if such plan or contract amendment were in effect; and

“(B) such plan or contract amendment applies retroactively for such period.”

Puspan. L. 108–218, title I, § 101(c), Apr. 10, 2004, 118 Stat. 598, as amended by Puspan. L. 109–280, title III, § 301(c), Aug. 17, 2006, 120 Stat. 920; Puspan. L. 110–458, title I, § 103(a), Dec. 23, 2008, 122 Stat. 5103, provided that:

“(1)In general.—If this subsection applies to any plan or annuity contract amendment—

“(A) such plan or contract shall be treated as being operated in accordance with the terms of the plan or contract during the period described in paragraph (2)(B)(i), and

“(B) except as provided by the Secretary of the Treasury, such plan shall not fail to meet the requirements of section 411(d)(6) of the Internal Revenue Code of 1986 and section 204(g) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1054(g)] by reason of such amendment.

“(2)Amendments to which section applies.—

“(A)In general.—This subsection shall apply to any amendment to any plan or annuity contract which is made—

“(i) pursuant to any amendment made by this section [amending sections 404, 412, and 415 of this title and sections 1082 and 1306 of Title 29, Labor], and

“(ii) on or before the last day of the first plan year beginning on or after January 1, 2009.

“(B)Conditions.—This subsection shall not apply to any plan or annuity contract amendment unless—

“(i) during the period beginning on the date the amendment described in subparagraph (A)(i) takes effect and ending on the date described in subparagraph (A)(ii) (or, if earlier, the date the plan or contract amendment is adopted), the plan or contract is operated as if such plan or contract amendment were in effect; and

“(ii) such plan or contract amendment applies retroactively for such period.”

Puspan. L. 105–34, title XV, § 1541, Aug. 5, 1997, 111 Stat. 1085, provided that:

“(a)In General.—If this section applies to any plan or contract amendment—

“(1) such plan or contract shall be treated as being operated in accordance with the terms of the plan during the period described in subsection (span)(2)(A), and

“(2) such plan shall not fail to meet the requirements of section 411(d)(6) of the Internal Revenue Code of 1986 or section 204(g) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1054(g)] by reason of such amendment.

“(span)Amendments to Which Section Applies.—

“(1)In general.—This section shall apply to any amendment to any plan or annuity contract which is made—

“(A) pursuant to any amendment made by this title [enacting sections 9811 and 9812 of this title, amending sections 101, 401 to 404, 408, 409, 410, 412, 414, 415, 512, 664, 674, 2055, 2056, 4947, 4972, 4975, 4978, 4979A, 4980D, 9801, 9802, and 9831 of this title, sections 1021, 1022, 1024, 1026 to 1028, 1056, 1082, 1107, 1108, and 1132 of Title 29, Labor, and section 1320span–14 of Title 42, The Public Health and Welfare, renumbering sections 9804 to 9806 of this title as sections 9831 to 9833, respectively, of this title, and amending provisions set out as a note under section 412 of this title] or subtitle H of title X [§§ 1071–1075, amending this section, sections 72, 132, 417, 457, 691, 2013, 2053, 4975, and 6018 of this title, and sections 1053 to 1055 of Title 29 and repealing section 4980A of this title], and

“(B) before the first day of the first plan year beginning on or after January 1, 1999.

In the case of a governmental plan (as defined in section 414(d) of the Internal Revenue Code of 1986), this paragraph shall be applied by substituting ‘2001’ for ‘1999’.

“(2)Conditions.—This section shall not apply to any amendment unless—

“(A) during the period—

“(i) beginning on the date the legislative amendment described in paragraph (1)(A) takes effect (or in the case of a plan or contract amendment not required by such legislative amendment, the effective date specified by the plan), and

“(ii) ending on the date described in paragraph (1)(B) (or, if earlier, the date the plan or contract amendment is adopted),

the plan or contract is operated as if such plan or contract amendment were in effect, and

“(B) such plan or contract amendment applies retroactively for such period.”

Transitional Rule: Certain Plan Amendments Adopted or Effective On or Before August 20, 1996

Puspan. L. 104–188, title I, § 1449(d), Aug. 20, 1996, 110 Stat. 1814, provided that:

“In the case of a plan that was adopted and in effect before December 8, 1994, if—

“(1) a plan amendment was adopted or made effective on or before the date of the enactment of this Act [Aug. 20, 1996] applying the amendments made by section 767 of the Uruguay Round Agreements Act [Puspan. L. 103–465, see Effective Date of 1994 Amendment note set out above], and

“(2) within 1 year after the date of the enactment of this Act [Aug. 20, 1996], a plan amendment is adopted which repeals the amendment referred to in paragraph (1),

the amendment referred to in paragraph (1) shall not be taken into account in applying section 767(d)(3)(A) of the Uruguay Round Agreements Act, as amended by subsection (a).”

Plan Amendments Reflecting Amendments by Section 7881(m) of Puspan. L. 101–239 Not Treated as Reducing Accrued Benefits

For provisions directing that if during the period beginning Dec. 22, 1987, and ending June 21, 1988, a plan was amended to reflect the amendments by section 9346 of Puspan. L. 100–203 and such plan is amended to reflect the amendments by section 7881(m) of Puspan. L. 101–239, any plan amendments made to reflect the amendments by section 7881(m) of Puspan. L. 101–239 shall not be treated as reducing accrued benefits for purposes of subsection (d)(6) of this section or section 1054(g) of Title 29, Labor, see section 7881(m)(3) of Puspan. L. 101–239, set out as a note under section 1054 of Title 29.

Plan Amendments Not Required Until January 1, 1998

For provisions directing that if any amendments made by subtitle D [§§ 1401–1465] of title I of Puspan. L. 104–188 require an amendment to any plan or annuity contract, such amendment shall not be required to be made before the first day of the first plan year beginning on or after Jan. 1, 1998, see section 1465 of Puspan. L. 104–188, set out as a note under section 401 of this title.

Plan Amendments Not Required Until January 1, 1994

For provisions directing that if any amendments made by subtitle B [§§ 521–523] of title V of Puspan. L. 102–318 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1994, see section 523 of Puspan. L. 102–318, set out as a note under section 401 of this title.

Plan Amendments Not Required Until January 1, 1989

For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Puspan. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Puspan. L. 99–514, as amended, set out as a note under section 401 of this title.

For provisions directing that if any amendments made by sections 9202(span) and 9203(span)(2) of Puspan. L. 99–509 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 9204 of Puspan. L. 99–509, set out as a note under section 623 of Title 29, Labor.

Alternate Methods of Satisfying Requirements for Vesting and Accrued Benefits

Puspan. L. 93–406, title II, § 1012(c), Sept. 2, 1974, 88 Stat. 913, as amended by Puspan. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

“In the case of any plan maintained on January 1, 1974, if, not later than 2 years after the date of the enactment of this Act [Sept. 2, 1974], the plan administrator petitions the Secretary of Labor, the Secretary of Labor may prescribe an alternate method which shall be treated as satisfying the requirements of subsection (a)(2) of section 411 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], or of subsection (span)(1) (other than subparagraph (D) thereof) of such section 411, or of both such provisions for a period of not more than 4 years. The Secretary may prescribe such alternate method only when he finds that—

“(1) the application of such requirements would increase the costs of the plan to such an extent that there would result a substantial risk to the voluntary continuation of the plan or a substantial curtailment of benefit levels or the levels of employees’ compensation,

“(2) the application of such requirements or discontinuance of the plan would be adverse to the interests of plan participants in the aggregate, and

“(3) a waiver or extension of time granted under [former] section 412(d) or (e) would be inadequate.

In the case of any plan with respect to which an alternate method has been prescribed under the preceding provisions of this subsection for a period of not more than 4 years, if, not later than 1 year before the expiration of such period, the plan administrator petitions the Secretary of Labor for an extension of such alternate method, and the Secretary makes the findings required by the preceding sentence, such alternate method may be extended for not more than 3 years.”