Page:United States Statutes at Large Volume 100 Part 3.djvu/683

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2491

amended by redesignating subparagraph (D) as subparagraph (E) and by inserting after subparagraph (C) the following new subparagraph: "(E) EXCEPTION FOR PLANS DESCRIBED IN SECTION 404(C).—This

paragraph shall not apply to a plan which the Secretary has determined is a plan described in section 404(c) (or a continuation thereof) in which participation is substantially limited to individuals who, before January 1, 1976, ceased employment covered by the plan." (b) AMENDMENTS TO THE EMPLOYEE RETIREMENT INCOME SECURITY

ACT OF 1974.—Section 205(b) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1082(b)) is amended by adding at the end thereof the following new paragraph: "(3) This section shall not apply to a plan which the Secretary of the Treasury or his delegate has determined is a plan de' scribed in section 404(c) of the Internal Revenue Code of 1986 (or a continuation thereof) in which participation is substantially limited to individuals who, before January 1, 1976, ceased employment covered by the plan." (c) AMENDMENTS TO RETIREMENT EQUITY ACT.—Section 303 of the

Retirement Equity Act of 1984 is amended by adding at the end thereof the following new subsection: "(f) The amendments made by section 301 of this Act shall not apply to the termination of a defined benefit plan if such termination— "(1) is pursuant to a resolution directing the termination of such plan which was adopted by the Board of Directors of a corporation on July 24, 1984, and "(2) occurred on November 30, 1984." (d) EFFECTIVE DATE.—The amendments made by this section shall apply as if included in the amendments made by the Retirement Equity Act of 1984. SEC. 1146. TREATMENT OF LEASED EMPLOYEES. (a) MODIFICATIONS OF LEASED EMPLOYEE PROVISIONS.— 5 (1) GENERAL RULE.—Paragraph (5) of section 414(n) (relating

to safe harbor exemption) is amended to read as follows: i(

"(5) SAFE HARBOR.—

"(A) IN GENERAL.—In the case of requirements described in subparagraphs (A) and (B) of paragraph (3), this subsection shall not apply to any leased employee with respect to services performed for a recipient if— i "(i) such employee is covered by a plan which is maintained by the leasing organization and meets the requirements of subparagraph (B), and ,., "(ii) leased employees (determined without regard to this paragraph) do not constitute more than 20 percent of the recipient's nonhighly compensated work force. "(B) PLAN REQUIREMENTS.—A plan meets the require^ ments of this subparagraph if— "(i) such plan is a money purchase pension plan with a nonintegrated employer contribution rate for each .^„ participant of at least 10 percent of compensation, "(ii) such plan provides for full and immediate vesting, and "(iii) each employee of the leasing organization (other than employees who perform substantially all of their

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