Page:United States Statutes at Large Volume 88 Part 1.djvu/945

 88 STAT. ]

PUBLIC LAW 93-406-SEPT. 2, 1974

901

" (C) employees who are nonresident aliens and who receive no earned income (within the meaning of section 911(b)) from the employer which constitutes income from sources within the United States (within the meaning of section 861(a)(3)). Subparagraph (B) shall not apply in the case of a plan which provides contributions or benefits for employees whose principal duties are not customarily performed aboard aircraft in flight. "(c) APPLICATION PLANS.—

OF

PARTICIPATION

STANDARDS

TO

26 USC 911.

26 USC 861.

CERTAIN

"(1) The provisions of this section (other than paragraph (2) of this subsection) shall not apply to— " (A) a governmental plan (within the meaning of section 414(d)),

Post. p. 925.

" (B) a church plan (within the meaning of section 414(e)) with respect to which the election provided by subsection (d) of this section has not been made, " (C) a plan which has not at any time after the date of the enactment of the Employee Retirement Income Security Act of 1974 provided for employer contributions, and " (D) a plan established and maintained by a society, order, or association described in-section 501(c)(8) or (9) if no part of the contributions to or under such plan are made by employers of participants in such plan. "(2) A plan described in paragraph (1) shall be treated as meeting the requirements of this section, for purposes of section 401 (a), if such plan meets the requirements of section 401(a)(3) as in effect on the day before the date of the enactment of this section.

26use5oi.

^6 USC 4oi.

" (d) ELECTION BY CHURCH TO HAVE PARTICIPATION, VESTING, FUNDING, ETC., PROVISIONS A P P L Y. —

" (1) IN GENERAL.—If the church or convention or association of churches which maintains any church plan makes an election under this subsection (in such form and manner as the Secretary or his delegate may by regulations prescribe), then the provisions of this title relating to participation, vesting, funding, etc. (as in effect from time to time) shall apply to such church plan as if such provisions did not contain an exclusion for church plans. " (2) ELECTION IRREVOCABLE.—An election under this subsection with respect to any church plan shall be binding with respect to such plan, and, once made, shall be irrevocable." SEC. 1012. MINIMUM VESTING STANDARDS.

(a) IN GENERAL.—Subpart B of part I of subchapter D of chapter 1 is amended by adding after section 410 the following new section: "SEC. 411. MINIMUM VESTING STANDARDS.

" (a) GENERAL RULE. — A trust shall not constitute a qualified trust under section 401(a) unless the plan of which such trust is a part provides that an employee's right to his normal retirement benefit is nonforfeitable upon the attainment of normal retirement age (as defined in subsection (a)(8)) and in addition satisfies the requirements of paragraphs (1) and (2) of this subsection and the requirements of paragraph (2) of subsection (b), and in the case of a defined benefit plan, also satisfies the requirements of paragraph (1) of subsection (b). "(1) EMPLOYEE CONTRIBUTIONS.—A plan satisfies the requirements of this paragraph if an employee's rights in his accrued benefit derived from his own contributions are nonforfeitable.

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1

26 USC 4ii.

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