Page:United States Statutes at Large Volume 120.djvu/1015

 120 STAT. 984

26 USC 411.

VerDate 14-DEC-2004

10:20 Jul 12, 2007

PUBLIC LAW 109–280—AUG. 17, 2006

retirement benefit’ and ‘retirement-type subsidy’ have the meaning given such terms in subsection (g)(2)(A). ‘‘(G) BENEFIT ACCRUED TO DATE.—For purposes of this paragraph, any reference to the accrued benefit shall be a reference to such benefit accrued to date.’’. (2) DETERMINATIONS OF ACCRUED BENEFIT AS BALANCE OF BENEFIT ACCOUNT OR EQUIVALENT AMOUNTS.—Section 203 of such Act (29 U.S.C. 1053) is amended by adding at the end the following new subsection: ‘‘(f) SPECIAL RULES FOR PLANS COMPUTING ACCRUED BENEFITS BY REFERENCE TO HYPOTHETICAL ACCOUNT BALANCE OR EQUIVALENT AMOUNTS.— ‘‘(1) IN GENERAL.—An applicable defined benefit plan shall not be treated as failing to meet— ‘‘(A) subject to paragraph (2), the requirements of subsection (a)(2), or ‘‘(B) the requirements of section 204(c) or section 205(g) with respect to contributions other than employee contributions, solely because the present value of the accrued benefit (or any portion thereof) of any participant is, under the terms of the plan, equal to the amount expressed as the balance in the hypothetical account described in paragraph (3) or as an accumulated percentage of the participant’s final average compensation. ‘‘(2) 3-YEAR VESTING.—In the case of an applicable defined benefit plan, such plan shall be treated as meeting the requirements of subsection (a)(2) only if an employee who has completed at least 3 years of service has a nonforfeitable right to 100 percent of the employee’s accrued benefit derived from employer contributions. ‘‘(3) APPLICABLE DEFINED BENEFIT PLAN AND RELATED RULES.—For purposes of this subsection— ‘‘(A) IN GENERAL.—The term ‘applicable defined benefit plan’ means a defined benefit plan under which the accrued benefit (or any portion thereof) is calculated as the balance of a hypothetical account maintained for the participant or as an accumulated percentage of the participant’s final average compensation. ‘‘(B) REGULATIONS TO INCLUDE SIMILAR PLANS.—The Secretary of the Treasury shall issue regulations which include in the definition of an applicable defined benefit plan any defined benefit plan (or any portion of such a plan) which has an effect similar to an applicable defined benefit plan.’’. (b) AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986.— (1) RULES RELATING TO REDUCTION IN RATE OF BENEFIT ACCRUAL.—Subsection (b) of section 411 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: ‘‘(5) SPECIAL RULES RELATING TO AGE.— ‘‘(A) COMPARISON TO SIMILARLY SITUATED YOUNGER INDIVIDUAL.— ‘‘(i) IN GENERAL.—A plan shall not be treated as failing to meet the requirements of paragraph (1)(H)(i) if a participant’s accrued benefit, as determined as of any date under the terms of the plan, would be

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