Page:United States Statutes at Large Volume 100 Part 3.djvu/638

 100 STAT. 2446 ^ ^ ^n.ir>. K

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PUBLIC LAW 99-514—OCT. 22, 1986 (A) IN GENERAL.

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(i) a plan is in existence on August 16, 1986, (ii) such plan would fail to meet the requirements of section 401(a)(26) of the Internal Revenue Code of 1986 (as added by subsection (b)) if such section were in effect for the plan year including August 16, 1986, and (iii) there is no transfer of assets to or liabilities from a plan or merger or spinoff or merger involving such plan after August 16, 1986, then no tax shall be imposed under section 4980 of such Code on any employer reversion by reason of the termination or merger of such plan before the 1st year to which the amendment made by subsection 0^) applies. (B) DETERMINATION OF AMOUNT OF REVERSION.—For purposes of the Internal Revenue Code of 1986, in determining the present value of the accrued benefit of any highly compensated employee (within the meaning of section 414(q) of such Code) on the termination or merger of any plan to which subparagraph (A) applies, the plan shall use the highest interest rate which may be used for calculating present value under section 41 l(a)(ll)(B) of such Code. (C) SPECIAL RULE FOR PLANS WHICH MAY NOT TERMINATE.—

To the extent provided in regulations prescribed by the Secretary of the Treasury or his delegate, if a plan is ^ _ prohibited from terminating under title IV of the Employee ' Retirement Income Security Act of 1974 before the 1st year to which the amendment made by subsection (b) applies, subparagraph (A) shall be applied by substituting "the 1st year in which the plan is able to terminate" for "the 1st r. ^. year to which the amendment made by subsection (b) applies. SEC. 1113. MINIMUM VESTING STANDARDS. (a) IN GENERAL.—Paragraph (2) of section 411(a) (relating to minimum vesting standards) is amended to read as follows: "(2) EMPLOYER CONTRIBUTIONS.—A plan satisfies the requirej^^g ments of this paragraph if it satisfies the requirements of subparagraph (A), (B), or (C). "(A) 5-YEAR VESTING.—A plan satisfies the requirements rr.,,.. j^ of this subparagraph if an employee who has completed at least 5 years of service has a nonforfeitable right to 100 «.., percent of the employee's accrued benefit derived from employer contributions. "(B) 3 TO 7 YEAR VESTING.—A plan Satisfies the requirements of this subparagraph if an employee has a nonforfeitable right to a percentage of the employee's accrued benefit derived from employer contributions determined under the s;7V«following table: "Years of service: 3

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4 5 ,...;, 6 7 or more "(C) MULTIEMPLOYER PLANS.—A

ments of this subparagraph if—

The nonforfeitable percentage is: 20

40 60 80 100.

plan satisfies the require-

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