Page:United States Statutes at Large Volume 115 Part 1.djvu/147

 PUBLIC LAW 107-16-JUNE 7, 2001 115 STAT. 125 "(4)(A) 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 clause (i); "(iii) the transfer described in clause (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 clause (iii) was made sifter 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 clause (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. "(B) Subparagraph (A) 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. "(5) Except to the extent provided in regulations promulgated by the Secretary of the Treasury, a defined contribution plan shall not be treated as failing to meet the requirements of this subsection merely because of the elimination of a form of distribution previously available thereunder. This paragraph shall not apply to the elimination of a form of distribution with respect to any participant unless— "(A) a single sum payment is available to such participant at the same time or times as the form of distribution being eliminated; and "(B) such single sum payment is based on the same or greater portion of the participant's account as the form of distribution being eliminated.". (3) EFFECTIVE DATE.—The amendments made by this sub- Applicabliity. section shall apply to years beginning after December 31, 2001. 26 USC 411 note. (b) REGULATIONS. — (1) AMENDMENT OF INTERNAL REVENUE CODE. —Paragraph (6)(B) of section 411(d) (relating to accrued benefit not to be decreased by amendment) is amended by inserting after the second sentence the following: "The Secretary shall by regulations provide that this subparagraph shall not apply to any plan amendment which reduces or eliminates benefits or subsidies which create significant burdens or complexities for the plan and plan participants, unless such amendment adversely affects the rights of any participant in a more than de minimis manner.". (2) AMENDMENT OF ERISA.— Section 204(g)(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C.

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