Page:United States Statutes at Large Volume 100 Part 3.djvu/640

 100 STAT. 2448

PUBLIC LAW 99-514—OCT. 22, 1986

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"(11) the requirements of subparagraph (A) or (B) are met with respect to employees not described in subclause (I)."

(2) REPEAL OP CLASS YEAR VESTING.—Subsection (c) of section

203 of such Act is amended by striking out paragraph (3). (3) MINIMUM PARTICIPATION STANDARDS.—Section 202(B)(i) of

such Act is amended by striking out "3 years" each place it appears and inserting in lieu thereof "2 years". (4) CONFORMING AMENDMENTS.— (A) MINIMUM VESTING STANDARDS.—Section 203(c)(1)(B) of

such Act is amended by striking out "5 years" and inserting in lieu thereof "3 years". (B) BENEFIT ACCRUAL REQUIREMENTS.—Subsection (i) of

section 204 of such Act (29 U.S.C. 1054(i)) is amended to read as follows: "(i) CROSS REFERENCE.— "For special rules relating to plan provisions adopted to preclude discrimination, see section 203(c)(2).". (e) EFFECTIVE DATES.—

(1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this section shall apply to plan years ? beginning after December 31, 1988. (2) SPECIAL RULE FOR COLLECTIVE BARGAINING AGREEMENTS.—

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 employees Ji covered by any such agreement in plan years beginning before ic the earlier of— •-'••• c:---.-- -^ -:^(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. B (3) PARTICIPATION REQUIRED.—The amendments made by this section shall not apply to any employee who does not have 1 «•' hour of service in any plan year to which the amendments made by this section apply. SEC. 1114. DEFINITION OF HIGHLY COMPENSATED EMPLOYEE.

(a) GENERAL RULE.—Section 414 is amended by adding at the end thereof the following new subsection: "(q) HIGHLY COMPENSATED EMPLOYEE.—

"(1) IN GENERAL.—The term 'highly compensated employee' K means any employee who, during the year or the preceding year— if; "(A) was at any time a 5-percent owner, "(B) received compensation from the employer in excess of $75,000, ., < t "(C) received compensation from the employer in excess of $50,000 and was in the top-paid group of employees for such year, or » "(D) was at any time an officer and received compensa> - ,•-- tion greater than 150 percent of the amount in effect under H section 415(c)(l)(A) for such year.

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