Page:United States Statutes at Large Volume 100 Part 3.djvu/1137

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2945

"In the case of an individual who separated from service before the date of such individual's death, subparagraph (A)(ii)(I) shall not apply." (B) AMENDMENT OP ERISA.—Paragraph (1) of section 205(e) of the Employee Retirement Income Security Act of 1974 (defining qualified preretirement survivor annuity) is amended by adding at the end thereof the following new sentence: "In the case of an individual who separated from service before the date of such individual's death, subparagraph (A)(ii)(I) shall not apply." (2) CLARIFICATION OF TRANSFEREE PLAN RULES.— (A) AMENDMENTS OF INTERNAL REVENUE CODE.—

(i) Subclause (III) of section 401(a)(ll)(B)(iii) (relating to plans to which requirements of joint and survivor annuity and preretirement survivor annuity apply) is amended by striking out "indirect transferee' and inserting in lieu thereof "indirect transferee (in a transfer after December 31, 1984)". (ii) Subparagraph (B) of section 401(a)(ll) is amended by adding at the end thereof the following new sentence: "Clause (iii)(III) shall apply only with respect to the transferred assets (and income therefrom) if the plan separately accounts for such assets and any income therefrom.' (B) AMENDMENTS OF ERISA.—

(i) Clause (iii) of section 205(b)(1)(C) of the Employee Retirement Income Security Act of 1974 is amended by striking out "a transferee" and inserting in lieu thereof "a direct or indirect transferee (in a transfer after December 31, 1984)". (ii) Paragraph (1) of section 205(b) of such Act is amended by adding at the end thereof the following new sentence: "Clause (iii) of subparagraph (C) shall apply only with respect to the transferred assets (and income therefrom) if the plan separately accounts for such assets and any income therefrom." (3) CLARIFICATION OF COORDINATION BETWEEN QUALIFIED JOINT AND SURVIVOR ANNUITY AND QUALIFIED PRETIREMENT SURVIVOR ANNUITY.— (A) AMENDMENT OF INTERNAL REVENUE CODE.—Clause (i)

of section 401(a)(llXA) is amended by striking out "who retires under the plan" and inserting in lieu thereof "who does not die before the annuity starting date". (B) AMENDMENT OF ERISA.—Paragraph (1) of section 205(a) of the Employee Retirement Income Security Act of 1974 is amended by striking out "who retires under the plan" and inserting in lieu thereof "who does not die before the annuity starting date". (4) REQUIREMENT OF SPOUSAL CONSENT FOR USING PLAN ASSETS AS SECURITY FOR LOANS.— (A) AMENDMENTS OF INTERNAL REVENUE CODE.—

(i) Subparagraph (B) of section 417(a)(l) is amended by striking out pargigraphs (2) and (3)" and inserting in lieu thereof "paragraphs (2), (3), and (4)". (ii) Subsection (a) of section 417 is amended by redesignating paragraphs (4) and (5) as paragraphs (5)

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