Page:United States Statutes at Large Volume 100 Part 3.djvu/614

 100 STAT. 2422 tjci

PUBLIC LAW 99-514—OCT. 22, 1986 » '>

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"(II) as a member of the Armed Forces of the United States." (3) TREATMENT OF AIRLINE PILOTS.—Subsection O> of section t) I;' 415 (relating to limitation for defined benefit plans) is amended by adding at the end thereof the following new paragraph: "(9) SPECIAL RULE FOR COMMERCIAL AIRLINE PILOTS.—

"(A) IN GENERAL.—Except as provided in subparagraph Ift, f (B), in the case of any participant who is a commercial airline pilot— XAT "(i) the r u l e of paragraph (2)(F)(i)(II) shall apply, and = "(ii) if, as of the time of the participant's retirement, regulations prescribed by the Federal Aviation Administration require an individual to separate from •^&ir> b-service as a commercial airline pilot after attaining any age occurring on or after age 60 and before the social security retirement age, paragraph (2)(C) (after ¥Ji'>y V application of clause (i)) shall be applied by substituting such age for the social security retirement age. "(B) INDIVIDUALS WHO SEPARATE FROM SERVICE BEFORE AGE

60.—If a participant described in subparagraph (A) separates from service before age 60, the rules of paragraph (2)(F) shall apply." (4) SPECIAL ELECTIONS FOR SECTION 403(b) CONTRACTS.—Subparagraphs (A), (B), and (C) of section 415(c)(4) are each amended by inserting "a health and welfare service agency," after "a home health service agency,". (c) CONTRIBUTIONS TO COST-OF-LIVING DEFINED BENEFIT PLANS.—

ARRANGEMENTS

UNDER

(1) IN GENERAL.—Section 415(k) (relating to special rules for limitations on benefits and contributions under qualified plans) is amended by adding at the end thereof the following new paragraph: -35!

"(2) CONTRIBUTIONS TO PROVIDE COST-OF-LIVING PROTECTION UNDER D E F I N E D BENEFIT PLANS.—

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"(A) IN GENERAL.—In the case of a defined benefit plan which maintains a qualified cost-of-living arrangement— "(i) any contribution made directly by an employee under such arrangement— "(I) shall not be treated as an annual addition for purposes of subsection (c), but ••-• ',c r. ' "(II) shall be so treated for purposes of subsection . (e), and "(ii) any benefit under such arrangement which is \-c!f; • '., allocable to an employer contribution which was transferred from a defined contribution plan and to which the requirements of subsection (c) were applied shall, ^, for purposes of subsection (b), be treated as a benefit %M JaB*^! derived from an employee contribution (and subsections (c) and (e) shall not again apply to such contribu.jjf: tion by reason of such transfer). "(B) QUALIFIED COST-OF-UVING ARRANGEMENT DEFINED.—

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For purposes of this paragraph, the term 'qualified cost-ofliving arrangement' means an arrangement under a defined benefit plan which— "(i) provides a cost-of-living adjustment to a benefit .t'i provided under such plan or a separate plan subject to the requirements of section 412, and

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