Page:United States Statutes at Large Volume 88 Part 1.djvu/944

 900

PUBLIC LAW 93-406-SEPT. 2, 1974 "(B)

"(b)

45 USC 181.

STAT.

EMPLOYEES UNDER 3-YEAR loo PERCENT VESTING.—

I n the case of any employee who has any 1-year break in serv{QQ (as defined m section 4 1 1 (a)(6)(A)) under a plan to which the service requirements of clause (i) of paragraph (1) (B) apply, if such employee has not satisfied such requirements, service before such break shall not be required to be taken into account. " (C) 1-YEAR BREAK IN SERVICE.—In Computing an employee's period of service for purposes of subsection (a)(1) in the case of any participant who has any 1-year break in service (as defined in section 4 1 1 (a)(6)(A)), service before such break shall not be required to be taken into account under the plan until he has completed a year of service (as defined in paragraph (3)) after his return. " (D) NoNVESTED PARTICIPANTS.^—In the case of a participant who does not have any nonforfeitable right to an accrued benefit derived from employer contributions, years of service with the employer or employers maintaining the plan before a break in service shall not be required to be taken into account in computing the period of service for purposes of subsection (a)(1) if the number of consecutive 1-year breaks in service equals or exceeds the aggregate number of such years of service before such break. Such aggregate number of years of service before such break shall be deemed not to include any years of service not required to be taken into account under this subparagraph by reason of any prior break in service.

Post, p. 901.

26 USC 401.

[88

ELIGIBILITY.—

" (1) IN GENERAL,—A trust shall not constitute a qualified trust under section 401(a) unless the trust, or two or more trusts, or the trust or trusts and annuity plan or plans are designated by the employer as constituting parts of a plan intended to qualify under section 401(a) which benefits either— " (A) 70 percent or more of all employees, or 80 percent or more of all the employees who are eligible to benefit under the plan if 70 percent or more of all the employees are eligible to benefit under the plan, excluding in each case employees who have not satisfied the minimum age and service requirements, if any, prescribed by the plan as a condition of participation, or " (B) such employees as qualify under a classification set up by the employer and found by the Secretary or his delegate not to be discriminatory in favor of employees who are officers, shareholders, or highly compensated. " (2) EXCLUSION OF CERTAIN EMPLOYEES.—For purposes of paragraph (1), there shall be excluded from consideration— " (A) employees not included in the plan who are included in a unit of employees covered by an agreement which the Secretary of Labor finds to be a collective bargaining agreement between employee representatives and one or more employers, if there is evidence that retirement benefits were the subject of good faith bargaining between such employee representatives and such employer or employers, " (B) in the case of a trust established or maintained pursuant to an agreement which the Secretary of Labor finds to be a collective bargaining agreement between air pilots represented in accordance with title II of the Railway Labor ^Q^^ a^j^jj Qj^g QY jjiore employers, all employees not covered by such agreement, and

�