Page:United States Statutes at Large Volume 100 Part 3.djvu/1140

 100 STAT. 2948

PUBLIC LAW 9 9 - 5 1 4 - O C T. 22, 1986

"(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 35." (6) SPOUSAL CONSENT FOR CHANGES IN DESIGNATIONS.— (A) AMENDMENT OF INTERNAL REVENUE CODE.—Subpara-

graph (A) of section 417(a)(2) (relating to requirement that spouse consent to election) is amended to read as follows: "(A)(i) the spouse of the participant consents in writing to such election, (ii) such election designates a beneficiary (or a form of benefits) which may not be changed without ''c spousal consent (or the consent of the spouse expressly permits designations by the participant without any requirement of further consent by the spouse), and (iii) the spouse's consent acknowledges the effect of such election and is witnessed by a plan representative or a notary public, or". (B) AMENDMENT OF ERISA.—Subparagraph (A) of section 205(c)(2) of the Employee Retirement Income Security Act of 1974 is amended to read as follows: "(A)(i) the spouse of the participant consents in writing to such election, (ii) such election designates a beneficiary (or a form of benefits) which may not be changed without spousal consent (or the consent of the spouse expressly permits designations by the participant without any requirement of further consent by the spouse), and (iii) the spouse's consent acknowledges the effect of such election and is witnessed by a plan representative or a notary public, or". (C) EFFECTIVE DATE.—The amendments made by this paragraph shall apply to plan years beginning after the date of the enactment of this Act. (7) CLARIFICATION OF NONFORFEITABLE ACCRUED BENEFIT.— (A) AMENDMENT OF INTERNAL REVENUE CODE.—Subclause

(I) of section 401(a)(ll)(B)(iii) is amended by striking out "the participant's nonforfeitable accrued benefit" and inserting in lieu thereof "the participant's nonforfeitable accrued benefit (reduced by any security interest held by the plan by reason of a loan outstanding to such participant)". (B) AMENDMENT OF ERISA.—Subparagraph (C) of section 205(b)(1) of the Employee Retirement Income Security Act of 1974 is amended by striking out "the participant's nonforfeitable accrued benefit" and inserting in lieu thereof "the participant's nonforfeitable accrued benefit (reduced by any security interest held by the plan by reason of a loan outstanding to such participant)". (8) CLARIFICATION OF DEFINITION OF VESTED PARTICIPANT.— c; i (A) AMENDMENT OF INTERNAL REVENUE CODE.—Paragraph

f n aI

(1) of section 417(f) (defining vested participant) is amended by striking out "the accrued benefit derived from employer contributions" and inserting in lieu thereof "such participant's accrued benefit". (B) AMENDMENT OF ERISA.—Paragraph (1) of section 205(h) of the Employee Retirement Income Security Act of 1974 is amended by striking out "the accrued benefit derived from employer contributions" and inserting in lieu thereof "such participant's accrued benefit".

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