Page:United States Statutes at Large Volume 102 Part 4.djvu/726

 102 STAT. 3696

PUBLIC LAW 100-647—NOV. 10, 1988 3121(w)(3)(A), including a qualified church-controlled organization (as defined in section 3121(w)(3)(B))." (b)

26 USC 89 note.

CAFETERIA PLANS MAINTAINED BY EDUCATIONAL INSTITU-

TIONS.—Section 125(c)(2)(C) of the 1986 Code is amended by adding at the end thereof the following new sentence: "In applying section 89 to a plan described in this subparagraph, contributions under the plan shall be tested as of the time the contributions were made." (c) EFFECTIVE DATE.—The amendments made by this section shall take effect as if included in the amendments made by section 1151 of the Reform Act. SEC. 6052. MODIFICATIONS OF DISCRIMINATION RULES APPLICABLE TO CERTAIN ANNUITY CONTRACTS. (a) EXCLUDED EMPLOYEES.—

(1) IN GENERAL.—The last sentence of section 4O30t)X12XA) of the 1986 Code is amended to read as follows: "Subject to the conditions applicable under section 410(b)(4), there may be excluded for purposes of this subparagraph employees who are students performing services described in section 3121(b)(10) and employees who normally work less than 20 hours per week." 26 USC 403 note. (2) EFFECTIVE DATE.—The amendment made by paragraph (1) shall take effect as if included in the amendment made by section 1120(b) of the Reform Act. 26 USC 403 note. (b) SAMPUNG.—In the case of plan years beginning in 1989, 1990, or 1991, determinations as to whether a plan meets the requirements of section 4030t)X12) of the 1986 Code may be made on the basis of a statistically valid random sample. The preceding sentence shall apply only if— (1) the sampling is conducted by an independent person in a manner not inconsistent with regulations prescribed by the Secretary, and (2) the statistical method and sample size result in a 95 percent probability that the results will have a margin of error not greater than 3 percent. SEC. 6053. REQUIRED DISTRIBUTION BEGINNING DATE FOR GOVERNMENTAL AND CHURCH PLANS.

(a) IN GENERAL.—Section 401(a)(9)(C) of the 1986 Code is amended by adding at the end thereof the following new sentence: "In the case of a governmental plan or church plan (as defined in section 89(i)(4)), the required beginning date shall be the later of the date determined under the preceding sentence or April 1 of the calendar year following the calendar year in which the employee retires." 26 USC 401 note. (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall take effect as if included in the amendments made by section 1121 of the Reform Act. SEC. 6054. SECTION 415 LIMITATION FOR STATE AND LOCAL PLANS.

(a) MODIFIED LIMITATIONS.—Section 415(b) of the 1986 Code is amended by adding at the end thereof the following new paragraph: "(10) SPECIAL RULE FOR STATE AND LOCAL GOVERNMENT PLANS.— "(A) LIMITATION TO EQUAL ACCRUED BENEFIT.—In the case

of a plan maintained for its employees by any State or political subdivision thereof, or by any agency or instrumentality of the foregoing, the limitation with respect to a qualified participant under this subsection shall

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