Page:United States Statutes at Large Volume 90 Part 1.djvu/288

 90 STAT. 238

PUBLIC LAW 94-236—MAR. 19, 1976

Public Law 94-236 94th Congress An Act Mar. 19, 1976 [H.R. 11700]

New York. Public employee retirement systems.

26 USC 401. 26 USC 503.

Relating to the application of certain provisions of the Internal Revenue Code of 1954 to specified transactions by certain public employee retirement systems created by the State of New Yorli or any of its political subdivisions.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) any pension plan or trust which, on December 5, 1975, was a party to the amended and restated agreement of November 26, 1975, set forth on pages S21308, S21309, and S21310 of the Congressional Record published on such date, and any trust forming a part of such a plan, shall not be considered to fail to satisfy the requirements of section 401(a) of the Internal Revenue Code of 1954, and shall not be considered to have engaged in a prohibited transaction described in section 503(b) of such Code, merely because such plan or trust does any or all of the following: (1)(A) enters into such agreement or agrees to an amendment of such agreement; (B) forebears from any act prohibited by such agreement; (C) acquires or holds any obligation the acquisition or holding of which is provided for by such agreement; (D) makes any election provided for by such agreement; (E) executes a waiver of any requirement of such agreement; (F) after the expiration of such agreement, holds any obligation acquired or held pursuant to such agreement; or (G) performs any other act provided for by such agreement; (2) on or after August 20, 1975, and before January 1, 1979, considers, for purposes of determining investments to be made by the plan or trust, the extent to which such investments will— (A) maintain the ability of the city of New York— (i) to make future contributions to the plan or trust, and (ii) to satisfy its future obligations to pay pension and retirement benefits to members and beneficiaries of such plan or trust, and (B) protect the sources of funds to provide retirement benefits for members and beneficiaries of the plan or trust; or (3) after December 31, 1978, considers, for purposes of determining whether to retain investments held on December 31, 1978, the factors enumerated in paragraph (2). For purposes of paragraph (1), the acquisition or holding of any obligation of the Municipal Assistance Corporation for the city of New York on or after August 20, 1975, and before November 26, 1975, shall be considered an acquisition or holding provided for by such agreement. (b) In the case of— (1) any amendment to the agreement described in subsection (a) which relates to the application of the factors set forth in subsection (a) to the requirements of section 401(a) or 503(b) of the Internal Revenue Code of 1954 and which is adopted after December 5, 1975, and

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