Page:United States Statutes at Large Volume 115 Part 1.djvu/146

 115 STAT. 124 PUBLIC LAW 107-16^JUNE 7, 2001 decreased by amendment) is amended by adding at the end the following: "(D) PLAN TRANSFERS.— "(i) IN GENERAL.— A defined contribution plan (in this subparagraph referred to as the 'transferee plan') shall not be treated as failing to meet the requirements of this subsection merely because the transferee plan does not provide some or all of the forms of distribution previously available under another defined contribution plan (in this subparagraph referred to as the 'transferor plan') to the extent that— "(I) the forms of distribution previously available under the transferor plan applied to the account of a participant or beneficiary under the transferor plan that was transferred from the transferor plan to the transferee plan pursuant to a direct transfer rather than pursuant to a distribution from the transferor plan, "(II) the terms of both the transferor plan and the transferee plan authorize the transfer described in subclause (I), "(III) the transfer described in subclause (I) was made pursuant to a voluntary election by the participant or beneficiary whose account was transferred to the transferee plan, "(IV) the election described in subclause (III) was made after the participant or beneficiary received a notice describing the consequences of making the election, and "(V) the transferee plan allows the participant or beneficiary described in subclause (III) to receive any distribution to which the participant or beneficiary is entitled under the transferee plan in the form of a single sum distribution. " (ii) SPECIAL RULE FOR MERGERS, ETC.— Clause (i) shall apply to plan mergers and other transactions having the effect of a direct transfer, including consolidations of benefits attributable to different employers within a multiple employer plan. " (E) ELIMINATION OF FORM OF DISTRIBUTION.— Except to the extent provided in regulations, a defined contribution plan shall not be treated as failing to meet the requirements of this section merely because of the elimination of a form of distribution previously available thereunder. This subparagraph shall not apply to the elimination of a form of distribution with respect to any participant unless— "(i) a single sum payment is available to such participant at the same time or times as the form of distribution being eliminated, and "(ii) such single sum payment is based on the same or greater portion of the participant's account as the form of distribution being eliminated.". (2) AMENDMENT OF ERISA.—Section 204(g) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1054(g)) is amended by adding at the end the following:

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