Page:United States Statutes at Large Volume 100 Part 3.djvu/644

 100 STAT. 2452

PUBLIC LAW 99-514—OCT. 22, 1986

"highly compensated employees (within the meaning of section 414(q))". (15)(A) Section 4975(d)(1)(B) is amended by striking out f; it "highly compensated employees, officers, or shareholders" and inserting in lieu thereof "highly compensated employees (within the meaning of section 414(q))". (B) Section 408(b)(1)(B) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1108(b)(1)) is amended by striking out "highly compensated employees, officers, or shareholders" and inserting in lieu thereof "highly compensated employees i (within the meaning of section 414(q) of the Internal Revenue Code of 1986)". (16) Paragraph (5) of section 5O50t)) is amended to read as ,.;. follows: "(5) HIGHLY COMPENSATED INDIVIDUAL.—For purposes of this subsection, the determination as to whether an individual is a .jj.^ highly compensated individual shall be made under rules similar to the rules for determining whether an individual is a highly compensated employee (within the meaning of section 414(q))." (c) EFFECTIVE DATE.—

(1) IN GENERAL.—Except as provided in this subsection, the .J, amendment made by this section shall apply to years beginning •" after December 31, 1986. (2) CONFORMING AMENDMENTS TO EMPLOYEE BENEFIT PROVI-

SIONS.—The amendments made by paragraphs (2), (3), (4), (5), and (16) of subsection (b) shall apply to years beginning after December 31, 1987. (3) CONFORMING AMENDMENTS TO PENSION PROVISIONS.—The

amendments made by paragraphs (7), (8), (9), (10), (11), (12), and (15) of subsection (b) shall apply to years beginning after December 31, 1988. (4)

^'

.

SPECIAL RULE FOR DETERMINING HIGHLY COMPENSATED

EMPLOYEES.—For purposes of sections 401(k) and 401(m) of the Internal Revenue Code of 1986, in the case of an employer incorporated on December 15, 1924, if more than 50 percent of its employees in the top-paid group (within the meaning of section 414(q)(4) of such Code) earn less than $25,000 (indexed at the same time and in the same manner as under section 415(d) of such Code), then the highly compensated employees shall include employees described in section 414(q)(l)(C) of such Code determined without regard to the level of compensation of such employees.

SEC. 1115. SEPARATE LINES OF BUSINESS; COMPENSATION.

>

(a) IN GENERAL.—Section 414 is amended by adding at the end thereof the following new subsections: "(r) SPECIAL RULES FOR SEPARATE LINE OF BUSINESS.—

(1) IN GENERAL.—For purposes of sections 89 and 410(b), an employer shall be treated as operating separate lines of business during any year if the employer for bona fide business reasons operates separate lines of business. i"" "(2) LINE OF BUSINESS MUST HAVE 50 EMPLOYEES, ETC.—A line of business shall not be treated as separate under paragraph (1) unless— 1' "(A) such line of business has at least 50 employees who Im are not excluded under subsection (q)(8).

�