Page:United States Statutes at Large Volume 100 Part 3.djvu/630

 100 STAT. 2438

PUBLIC LAW 99-514—OCT. 22, 1986

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"(ii) LIMITATION.—The integration level for any year may not exceed the contribution and benefit base in i.'"-.'..;^>jc -. effect under section 230 of the Social Security Act for such year. . ' frr

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"(iii) LEVEL TO APPLY TO ALL PARTICIPANTS.—A plan's

integration level shall apply with respect to all participants in the plan. "(iv) MULTIPLE INTEGRATION LEVEUS.—Under rules prescribed by the Secretary, a defined benefit plan may specify multiple integration levels. "(B) COMPENSATION.—The term 'compensation' has the meaning given such term by section 414(s). "(C) AVERAGE ANNUAL COMPENSATION.—The term 'average annual compensation' means the greater of— "(i) the participant's final average compensation (determined without regard to subparagraph (D)(ii)), or "(ii) the participant's highest average annual compensation for any other period of at least 3 consecutive years. "(D) F I N A L AVERAGE COMPENSATION.—

"(i) IN GENERAL.—The term 'final average compensa(s? r •. tion' means the participant's average annual compensation for— "(I) the 3-consecutive year period ending with the current year, or "(II) if shorter, the participant's full period of .•JO i !V'.,; service. "(ii) LIMITATION.—A participant's final average compensation shall be determined by not taking into ac.'-'•;:-. -r count in any year compensation in excess of the con'^ii^ji -' tribution and benefit base in effect under section 230 of the Social Security Act for such year. ^

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"(E) COVERED COMPENSATION.—

"(i) IN GENERAL.—The term 'covered compensation' means, with respect to an employee, the average of the contribution and benefit bases in effect under section 230 of the Social Security Act for each year in the 35year period ending with the year in which the employee attains age 65. "(ii) COMPUTATION FOR ANY YEAR.—For purposes of

clause (i), the determination for any year preceding the year in which the employee attains age 65 shall be made by sissuming that there is no increase in the bases described in clause (i) after the determination year and before the employee attains age 65. "(F) REGULATIONS.—The Secretary shall prescribe such regulations as are necessary or appropriate to carry out the purposes of this subsection, including— " B9r' i "(i) in the case of a defined benefit plan which provides for unreduced benefits commencing before the social security retirement age (as defined in section - ' 415(b)(8)), rules providing for the reduction of the maximum excess allowance and the maximum offset allowance, and "(ii) in the case of an employee covered by 2 or more --f"'''^ ' plans of the employer which fail to meet the requirements of subsection (a)(4) (without regard to this

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