Page:United States Statutes at Large Volume 102 Part 4.djvu/731

 PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3701

pay, or death benefit plan shall be treated as a plan not providing for the deferral of compensation." (b) TREATMENT OF NONELECTIVE DEFERRED COMPENSATION OF NONEMPLOYEES.—

(1) Subsection (e) of section 457 of the 1986 Code (as amended by section 1107 of the Reform Act) is amended by adding at the end thereof the following new paragraph: "(12) EXCEPTION FOR NONELECTIVE DEFERRED COMPENSATION OF NONEMPLOYEES.—

"(A) IN GENERAL.—This section shall not apply to nonelective deferred compensation attributable to services not performed as an employee. "(B) NONELECTIVE DEFERRED COMPENSATION.—For purposes of subparagraph (A), deferred compensation shall be treated as nonelective only if all individuals (other than those who have not satisfied any applicable initial service requirement) with the same relationship to the payor are covered under the same plan with no individual variations or options under the plan." (2) Subsection (d) of section 457 of the 1986 Code (as in effect on the day before the date of the enactment of the Reform Act) is amended by adding at the end thereof the following new paragraph: "(11) EXCEPTION FOR NONELECTIVE DEFERRED COMPENSATION OF NONEMPLOYEES.—

"(A) IN GENERAL.—This section shall not apply to nonelective deferred compensation attributable to services not performed as an employee. "(B) NONELECTIVE DEFERRED COMPENSATION.—For purposes of subpar£^aph (a), deferred compensation shall be treated as nonelective only if all individuals (other than those who have not satisfied any applicable initial service requirement) with the same relationship to the payor are covered under the same plan with no individual variations or options under the plan." (c) SECTION NOT TO APPLY TO CHURCH PLANS.—Section 457(e) of the 1986 Code (as amended by section 1107 of the Reform Act) is amended by adding at the end thereof the following new paragraph: "(13) EXCEPTION FOR CHURCH PLANS.—The term 'eligible deferred compensation plan' shall not include a plan maintained by a church for church employees. For purposes of this paragraph, the term 'church' has the meaning given such term by section 3121(w)(3)(A), including a qualified church-controlled organization (as defined in section 3121(w)(3)(B))." (d) EFFECTIVE DATE.— 26 USC 457 note. (1) IN GENERAL.—The amendments made by this section shall apply to taxable years beginning after December 31, 1987. (2) EXCEPTION FOR CERTAIN COLLECTIVELY BARGAINED PLANS.—

(A) IN GENERAL.—Section 457 of the 1986 Code (as in effect before and after the amendments made by section 1107 of the Reform Act) shall not apply to nonelective deferred compensation provided under a plan in existence on December 31, 1987, and maintained pursuant to a collective bargaining agreement. (B) NONELECTIVE PLAN.—For purposes of this paragraph, a nonelective plan is a plan which covers a broad group of employees and under which the covered employees earn

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