Page:United States Statutes at Large Volume 100 Part 3.djvu/711

 PUBLIC LAW 99-514—OCT. 22, 1986 ^ f

100 STAT. 2519

trust under this section unless such plan meets the requirements of subparagraphs (B) and (C). "(B) DIVERSIFICATION OF INVESTMENTS.—

"(i) IN GENERAL.—A plan meets the requirements of -,.. this subparagraph if each qualified participant in the plan may elect within 90 days after the close of each plan year in the qualified election period to direct the i; plan as to the investment of at least 25 percent of the participant's account in the plan (to the extent such portion exceeds the amount to which a prior election under this subparagraph applies). In the case of the % ,^ election year in which the participant can make his last election, the preceding sentence shall be applied by substituting '50 percent' for '25 percent'. "(ii) METHOD OF MEETING REQUIREMENTS.—A plan shall be treated as meeting the requirements of clause (i) i f "(I) the portion of the participant's account covered by the election under clause (i) is distributed within 90 days after the period during which the
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election may be made, or "(II) the plan offers at least 3 investment options ,.. (not inconsistent with regulations prescribed by the Secretary) to each participant making an election under clause (i). . p "(iii) QUALIFIED PARTICIPANT.—For purposes of this subparagraph, the term 'qualified participant' means any employee who has completed at least 10 years of participation under the plan and has attained age 55. "(iv) QUALIFIED ELECTION PERIOD.—For purposes of this subparagraph, the term 'qualified election period' means the 5-plan-year period beginning with the plan year after the plan year in which the participant attains age 55 (or, if later, beginning with the plan year after the 1st plan year in which the individual 1st became a qualified participant). ,ir«: "^^^ U^^ ^^ INDEPENDENT APPRAISER.—A plan meets the requirements of this subparagraph if all valuations of employer securities which are not readily tradable on an established securities market with respect to activities carried on by the plan are by an independent appraiser. For purposes of the preceding sentence, the term 'independent appraiser' means any appraiser meeting requirements similar to the requirements of the regulations prescribed under b section 170(a)(l)." o (2) EFFECTIVE DATE.—The amendment made by this subsection shall apply to stock acquired after December 31, 1986. SEC. 1176. SPECIAL ESOP REQUIREMENTS.

(a) IN GENERAL.—Section 401(a)(22) (relating to qualified pension, profit sharing and stock bonus plans) is amended by inserting at the end thereof the following new sentence: "The requirements of subsection (e) of section 409 shall not apply to any employees of an employer who are participants in any defined contribution plan established and maintained by such employer if the stock of such employer is not publicly traded and the trade or business of such

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