Page:United States Statutes at Large Volume 100 Part 3.djvu/1139

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2947

tribution required by reason of a failure to comply with the terms of such loan. (iii) For purposes of this subparagraph, any loan which is revised, extended, renewed, or renegotiated after August 18, 1985, shall be treated as made after August 18, 1985. (5) CLARIFICATION OF NOTICE REQUIREMENT FOR INDIVIDUALS WHO BECOME PARTICIPANTS AFTER AGE 35, ETC.— (A) AMENDMENT OF INTERNAL REVENUE CODE.—Subpara-

graph (B) of section 417(a)(3) (relating to plan to provide written explanations) is amended to read as follows: "(B) EXPLANATION OF QUALIFIED PRETIREMENT SURVIVOR ANNUITY.—

"(i) IN GENERAL.—Each plan shall provide to each participant, within the applicable period with respect to such participant (and consistent with such regulations as the Secretary may prescribe), a written explanation with respect to the qualified preretirement survivor annuity comparable to that required under subparagraph (A). "(ii) APPLICABLE PERIOD.—For purposes of clause (i),

the term 'applicable period' means, with respect to a participant, whichever of the following periods ends last: "(I) The period beginning with the first day of the plan year in which the participant attains age 32 and ending with the close of the plan year preceding the plan year in which the participant attains age 35. "(II) A reasonable period after the individual becomes a participant. "(Ill) A reasonable period ending after paragraph (5) ceases to apply to the participant. "(IV) A reasonable period ending after section 401(a)(ll) applies to the participant. "(V) A reasonable period after separation from service in case of a participant who separates before attaining age 3 5. ' (B) AMENDMENT OF ERISA.—Subparagraph (B) of section 205(c)(3) of the Employee Retirement Income Security Act of 1974 is amended to read as follows: "(B)(i) Each plan shall provide to each participant, within the applicable period with respect to such participant (and consistent with such regulations as the Secretary may prescribe), a written explanation with respect to the qualified preretirement survivor annuity comparable to that required under subparagraph (A). "(ii) For purposes of clause (i), the term 'applicable period' means, with respect to a participant, whichever of the following periods ends last: "(I) The period beginning with the first day of the plan year in which the participant attains age 32 and ending with the close of the plan year preceding the plan year in which the participant attains age 35. "(II) A reasonable period after the individual becomes a participant. "(Ill) A reasonable period ending after paragraph (5) ceases to apply to the participant.

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