Page:United States Statutes at Large Volume 88 Part 1.djvu/972

 92»'

PUBLIC LAW 93-406-SEPT. 2, 1974

[88 STAT.

more employee organizations, the association, committee, joint board, of trustees, or other similar group of representatives of the parties who maintained the plan, or " (C) in any case to which subparagraph (A) or (B) does not apply, such other person as the Secretary or his delegate may by regulation, prescribe. " (h) TAX TREATMENT OF CERTAIN CONTRIBUTIONS.—

26 USC 4 0 1. 26 USC 4 0 3, 405.

"(1) IN GENERAL.—Effective with respect to taxable years beginning after December 31, 1973, for purposes of this title, any amount contributed— " (A) to an employees' trust described in section 401(a), or " (B) under a plan described in section 403(a) or 405(a), shall not be treated as having been made by the employer if it is designated as an employee contribution. " (2) DESIGNATION BY UNITS OF GOVERNMENT.—For purposes

Ante, p. 898. ^"'^' "• ^*Post, p. 979.

Post,

p. 971.

of paragraph (1), in the case of any plan established by the government of any State or political subdivision thereof, or by any agency or instrumentality of any of the foregoing, where the contributions of employing units are designated as employee contributions but where any employing unit picks up the contributions, the contributions so picked up shall be treated as employer contributions, "(i) DEFINED CONTRIBUTION P L A N. — For purposes of this part, the term 'defined contribution plan' means a plan which provides for an individual account for each participant and for benefits based solely on the amount contributed to the participant's account, and any income, expenses, gains and losses, and any forfeitures of accounts of other participants which may be allocated to such participant's account. "(j) DEFINED BENEFIT P L A N. — For purposes of this part, the term 'defined benefit plan' means any plan which is not a defined contribution plan. "(k) CERTAIN PLANS.—A defined benefit plan which provides a benefit derived from employer contributions which is based partly on the balance of the separate account of a participant shall— u^]^^ ^^j. purposes of section 410 (relating to minimum participation standards), be treated as a defined contribution plan, " (2) for purposes of sections 411(a)(7)(A) (relating to minimum vesting standards) and 415 (relating to limitations on benefits and contributions under qualified plans), be treated as consisting of a defined contribution plan to the extent benefits are based on the separate account of a participant and as a defined benefit plan with respect to the remaining portion of benefits under the plan, and " (3) for purposes of section 4975 (relating to tax on prohibited transactions), be treated as a defined benefit plan. "(1) MERGERS AND CONSOLIDATIONS OF PLANS OR TRANSFERS OF PLAN ASSETS.—A trust which forms a part of a plan shall not con-

Ante,

p. 829.

stitute a qualified trust under section 401 and a plan shall be treated as not described in section 403(a) or 405 unless in the case of any merger or consolidation of the plan with, or in the case of any transfer of assets or liabilities of such plan to, any other trust plan after the date of t] e enactment of the Employee Ketirement Income Security Act of 1974, each participant in the plan would (if the plan then terminated) receive a benefit immediately after the merger, consolidation, or transfer which is equal to or greater than the benefit he would have been entitled to receive immediately before the merger, consolidation, or transfer (if the plan had then terminated). This paragraph

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