Page:United States Statutes at Large Volume 102 Part 4.djvu/494

 102 STAT. 3464

26 USC 401 note.

PUBLIC LAW 100-647—NOV. 10, 1988 (B) Clause (ii) of section 40iaX3XA) of the 1986 Code is amended by inserting ''attributable to employer contributions" after "benefits". (2) Section 4010X5X0 of the 1986 Code (defining average annual compensation) is amended to read as follows: "(O AVERAGE ANNUAL COMPENSATION.—The term 'average annual compensation' means the participant's highest average annual compensation for— "(i) any period of at least 3 consecutive years, or "(ii) if shorter, the participant's full period of service. (3) Section 4biaX5XE) of the 1986 Code (defining covered compensation) is amended— (A) by striking out "age 65" each place it appears and inserting in lieu thereof "the social security retirement age", and (B) by adding at the end thereof the following new clause: "(iii) SOCIAL SECURITT RETIREMENT AGE.—For purposes of this subparagraph, the term 'social security retirement age' has the meaning given such term by section 415(b)(8)." (4) Section 1111(c)(3) of the Reform Act is amended by striking out "benefits pursuant to, and individuals covered by, any such agreement in", (h) AMENDMENTS RELATED TO SECTION 1112 OF THE REFORM ACT.—

(1) Section 410(b)(4)(B) of the 1986 Code (relating to exclusion of employees not meeting age and service requirements) is amended— (A) by striking out "do not meet" and inserting in lieu thereof "not meeting", and (B) by striking out "and". (2) Section 410(b)(6) of the 1986 Code (relating to definitions and special rules) is amended by redesignating subparagraph (F) as subparagraph (G) and by adding after subparagraph (E) the following new subparagraph: "CF) EMPLOYERS WTTH ONLY HIGHLY COMPENSATED EMPLOY-

EES.—^A plan maintained by an employer which has no employees other than highly compensated employees for any year shall be treated as meetuig the requirements of t h ^ subsection for such year." (3) Section 401(a)(26) of the 1986 Code (relating to additional participation requirements) is amended by redesignating subparagraph (F) as subparagraph (H) and by adding after subparagraph (E) the following new subparagraphs: "CF) SPECIAL RULE FOR CERTAIN DISPOSITIONS OR ACQUISI-

TIONS.—Rules similar to the rules of section 410(b)(6)(C) shall am)ly for purposes of this paragraph. "(G) SEPARATE LINES OF BUSINESS.—At the election of the employer and with the consent of the Secretary, this paragraph may be applied separately with respect to each separate line of business of ^ e employer. For purposes of this paragraph, the term 'separate line of business' has the meaning given such term by section 414(r) (without r^ard to paragraph (7) thereof)." (4) Section 402(b)(2) of the 1986 Code (relating to failure to meet requirements of section 410(b)) is amended by striking out

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