Page:United States Statutes at Large Volume 88 Part 1.djvu/897

 88 STAT. ]

PUBLIC LAW 93-406-SEPT. 2, 1974 MINIMUM

PARTICIPATION

853

STANDARDS

SEC. 202. (a)(1)(A) No pension plan may require, as a condition of participation in the plan, that an employee complete a period of service with the employer or employers maintaining the plan extending beyond the later of the following dates— (i) the date on which the employee attains the age of 25; or >. /.,,.

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(11) the date on which he completes 1 year ot service. (B)(i) I n the case of any plan which provides that after not more than 3 years of service each participant has a right to 100 percent of his accrued benefit under the plan which is nonforfeitable at the time such benefit accrues, clause (ii) of subparagraph (A) shall be applied by substituting "3 years of service" for "1 year of service". (ii) I n the case of any plan maintained exclusively for employees of an educational institution (as defined in section 170(b)(1)(A) (ii) of the Internal Revenue Code of 1954) by an employer which is exempt from tax under section 501(a) of such Code, which provides that each participant having at least 1 year of service has a right to 100 percent of his accrued benefit under the plan which is nonforfeitable at the time such benefit accrues, clause (i) of subparagraph (A) shall be applied by substituting "30" for "25". This clause shall not apply to any plan to which clause (i) applies. (2) No pension plan may exclude from participation (on the basis of age) employees who have attained a specified age, unless— (A) the plan is a— (i) defined benefit plan, or (ii) target benefit plan (as defined under regulations prescribed by the Secretary of the Treasury), and (B) such employees begin employment with the employer after they have attained a specified age which is not more than 5 years before the normal retirement age under the plan. (3)(A) For purposes of this section, the term "year of service" means a 12-month period during which the employee has not less than 1,000 hours of service. For purposes of this paragraph, computation of any 12-month period shall be made with reference to the date on which the employee's employment commenced, except that, in accordance with regulations prescribed by the Secretary, such computation may be made by reference to the first day of a plan year in the case of an employee who does not complete 1,000 hours of service during the 12-month period beginning on the date his employment commenced. (B) I n the case of any seasonal industry where the customary period of employment is less than 1,000 hours during a calendar year, the term "year of service" shall be such period as may be determined under regulations prescribed by the Secretary. (C) For purposes of this section, the term "hour of service" means a time of service determined under regulations prescribed by the Secretary. (D) For purposes of this section, in the case of any maritime industry, 125 days of service shall be treated as 1,000 hours of service. The Secretary may prescribe regulations to carry out the purposes of this subparagraph. (4) A plan shall be treated as not meeting the requirements of paragraph (1) unless it provides that any employee who has satisfied the minimum age and service requirements specified in such paragraph, and who is otherwise entitled to participate in the plan, commences participation in the plan no later than the earlier of— (A) the first day of the first plan year beginning after the date on which such employee satisfied such requirements, or (B) the date 6 months after the date on which he satisfied such requirements,

38-194 O - 76 - 57 Pt. 1

29 USC 1052.

Age and service requirements,.

26 USC 170. ^^ "^<^ ^°^-

. "year of serv-

"Hour of serv'''^•" R<^g"i^tions.

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