Page:United States Statutes at Large Volume 101 Part 2.djvu/1168

 101 STAT. 1330-374

Contracts. Contracts.

PUBLIC LAW 100-203—DEC. 22, 1987

"(2) Until January 1, 1993, a plan shall not be treated as violating subsection (a) solely by holding stock which fails to satisfy the requirements of paragraph (1) if such stock— "(A) has been so held since December 17, 1987, or "(B) was acquired after December 17, 1987, pursuant to a legally binding contract in effect on December 17, 1987, and has been so held at all times after the acquisition. "(3) After December 17, 1987, no plan may acquire stock which does not satisfy the requirements of paragraph (1) unless the acquisition is made pursuant to a legally binding contract in effect on such date.". SEC. 9346. INTEREST RATE ON ACCUMULATED CONTRIBUTIONS.

26 USC 411.

29 USC 1054 note.

(a) AMENDMENTS TO ERISA.—Section 204(c)(2) of ERISA (29 U.S.C. 1054(c)(2)) is amended— (1) in subparagraph (C)(iii), by striking "5 percent per annum" and inserting "120 percent of the Federal mid-term rate (as in effect under section 1274 of the Internal Revenue Code of 1986 for the 1st month of a plan year)"; and >!;; (2) in subparagraph (D)— (A) in the first sentence, by striking ", the rate of interest described in clause (iii) of subparagraph (C), or both,"; and (B) by striking the second sentence. (b) AMENDMENTS TO 1986 CODE.—Section 411(c)(2) of the 1986 Code (relating to accrued benefit derived from employee contributions) is amended— (1) in subparagraph (C)(iii), by striking "5 percent per annum" and inserting "120 percent of the Federal mid-term rate (as in effect under section 1274 for the 1st month of a plan year)"; and (2) in subparagraph (D)— (A) in the first sentence, by striking ", the rate of interest described in clause (iii) of subparagraph (C), or both,"; and (B) by striking the second sentence. (c) EFFECTIVE D A T E. —

(1) IN GENERAL.—The amendments made by this section shall apply to plan years beginning after December 31, 1987. (2)

PLAN

AMENDMENTS NOT REQUIRED UNTIL J A N U A R Y

i,

1989.—If any amendment m a d e by t h i s section requires a n amendment to any plan, such plan amendment shall not be required to be m a d e before the first plan year beginning on or after January 1, 1989, if— (A) during the period after such amendments m a d e by this section t a k e effect and before such first plan year, the plan is operated in accordance with the requirements of ,, such amendments or in accordance w i than amendment prescribed by the Secretary of the Treasury and adopted by the plan, and rv (B) such plan amendment applies retroactively to the period after such amendments t a k e effect and such first plan year. A plan shall not be t r e a t e d as failing to provide definitely d e term i n a b l e benefits or contributions, or to be operated in accordance with the provisions of the plan, merely because it operates in accordance with this subsection.

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