Page:United States Statutes at Large Volume 115 Part 1.djvu/148

 115 STAT. 126 PUBLIC LAW 107-16-JUNE 7, 2001 Deadline. 26 USC 411 note. Effective date. Applicability. 26 USC 401 note. 1054(g)(2)) is amended by inserting after the second sentence the following: "The Secretary of the Treasury shall by regulations provide that this paragraph 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.". (3) SECRETARY DIRECTED.— Not later than December 31, 2003, the Secretary of the Treasury is directed to issue regulations under section 411(d)(6) of the Internal Revenue Code of 1986 and section 204(g) of the Employee Retirement Income Security Act of 1974, including the regulations required by the amendment made by this subsection. Such regulations shall apply to plan years beginning after December 31, 2003, or such earlier date as is specified by the Secretary of the Treasury. SEC. 646. RATIONALIZATION OF RESTRICTIONS ON DISTRIBUTIONS. (a) MODIFICATION OF SAME DESK EXCEPTION.— (1) SECTION 40i(k). — (A) Section 401(k)(2)(B)(i)(I) (relating to qualified cash or deferred arrangements) is amended by striking "separation from service" and inserting "severance from employ- ment". (B) Subparagraph (A) of section 401(k)(10) (relating to distributions upon termination of plan or disposition of assets or subsidiary) is amended to read as follows: "(A) IN GENERAL. —An event described in this subparagraph is the termination of the plan without establishment or maintenance of another defined contribution plan (other than an employee stock ownership plan as defined in section 4975(e)(7)). ". (C) Section 40l(k)( 10) is amended— (i) in subparagraph (B)— (I) by striking "An event" in clause (i) and inserting "A termination"; and (II) by striking "the event" in clause (i) and inserting "the termination"; (ii) by striking subparagraph (C); and (iii) by striking "OR DISPOSITION OF ASSETS OR SUB- SIDIARY" in the heading. (2) SECTION 403(b). — (A) Paragraphs (7)(A)(ii) and (11)(A) of section 403(b) are each amended by striking "separates from service" and inserting "has a severance from employment". (B) The heading for paragraph (11) of section 403(b) is amended by striking "SEPARATION FROM SERVICE" and inserting "SEVERANCE FROM EMPLOYMENT". (3) SECTION 457.— Clause (ii) of section 457(d)(1)(A) is amended by striking "is separated from service" and inserting "has a severance from employment". (b) EFFECTIVE DATE.—The amendments made by this section shall apply to distributions after December 31, 2001.

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