Page:United States Statutes at Large Volume 100 Part 3.djvu/632

 100 STAT. 2440

PUBLIC LAW 99-514—OCT. 22, 1986

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"(I) which ends during the 5-year period ending with the year in which the participant separated from service for the employer, and "(II) for which the participant's total compensation from the employer was highest. 2 OR MORE PLANS TREATED AS SINGLE PLAN.—For

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purposes of determining whether 2 or more plans of an employer satisfy the requirements of paragraph (4) when considered as a single plan— "(i) CONTRIBUTIONS.—If the amount of contributions i on behalf of the employees allowed as a deduction under section 404 for the taxable year with respect to such plans, taken together, bears a uniform relation(.,.;..1 • ship to the compensation (within the meaning of section 414(s)) of such employees, the plans shall not be I *i '*)^ considered discriminatory merely because the rights of employees to, or derived from, the employer contribuc. •rrt'^T 4 tions under the separate plans do not become nonforfeitable at the same rate. "(ii) BENEFITS.—If the employees' rights to benefits under the separate plans do not become nonforfeitable i at the same rate, but the levels of benefits provided by the separate plans satisfy the requirements of regula., tions prescribed by the Secretary to take account of the 4., differences in such rates, the plans shall not be considered discriminatory merely because of the difference in such rates." 1 (c) EFFECTIVE DATE.— T ^ (1) SUBSECTION (a).—The amendments made by subsection (a)

shall apply to benefits attributable to plan years beginning after December 31, 1988. (2) SUBSECTION (b).—The amendments made by subsection (b) shall apply to years beginning after December 31, 1988. (3) SPECIAL RULE FOR COLLECTIVE BARGAINING AGREEMENTS.—

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In the case of a plan maintained pursuant to 1 or more collective bargaining agreements between employee representatives and 1 or more employers ratified before March 1, 1986, the . amendments made by this section shall not apply to benefits pursuant to, and individuals covered by, any such agreement in plan years beginning before the earlier of— (A) the later of— (i) January 1, 1989, or (ii) the date on which the last of such collective bargaining agreements terminates (determined without regard to any extension thereof after February 28, 1986), or (B) January 1, 1991. SEC. 1112. MINIMUM COVERAGE REQUIREMENTS FOR QUALIFIED PLANS.

(a) IN GENERAL.—Subsection (b) of section 410 (relating to eligibility requirements) is amended to read as follows: "(b) MINIMUM COVERAGE REQUIREMENTS.—

"(1) IN GENERAL.—A trust shall not constitute a qualified trust under section 401(a) unless such trust is designated by the employer as part of a plan which meets 1 of the following requirements:

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