Page:United States Statutes at Large Volume 92 Part 2.djvu/385

 PUBLIC LAW 95-497—OCT. 21, 1978

92 STAT. 1665

Public Law 95-497 95th Congress An Act 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 York or any of its political subdivisions.

Oct. 21. 1978 [H.R. 12051]

Be it enacted by the Senate and House of Representatives of the Taxes. United States of America in Congress assembled,

New York public SECTION 1. QUALIFIED STATUS OF PARTICIPATING PENSION PLANS. employees. (a) GENERAL RULE.—A participating pension plan shall not be Retirement considered to fail to satisfy the requirements of section 401(a) of the systems. Internal Revenue Code of 1954, and shall not be considered to have 26 USC 41. engaged in a prohibited transaction described in section 503(b) of 26 USC 503.

such Code, merely because— (1) during the period beginning on July 1, 1978, and ending on June 30, 1982, the plan acquires city indebtedness which meets the applicable requirements of section 2, or (2) the plan continues to hold any city indebtedness acquired— 90 Stat. 238. (A) pursuant to this Act or Public Law 94-236, or (B) before November 26, 1976. (b) ACQUISITION OF INDEBTEDNESS PURSUANT TO AGREEMENT.—The

acquisition of city indebtedness by a participating pension plan under an agreement for the acquisition of city indebtedness meets the applicable requirements of section 2 if— (1) the agreement is not disapproved by the Secretary under subsection (c), and (2) the plan certifies to the Secretary (and furnishes to the Secretary and to the appropriate committees of the Congress such supporting information and documentation as the Secretary shall require) that the acquisition— (A) is made under the agreement, and (B) meets the applicable requirements of section 2 (determined without regard to the provisions of subsections (b), (c),and (f) of section 2). (c) SIXTY-DAY PERIOD FOR DISAPPROVAL.—

(1) IN GENERAL.—Before entering into an agreement described in subsection (b), and before acquiring any city indebtedness not covered by such an agreement, the participating pension plan shall notify the Secretary of the proposed agreement or acquisition. If the Secretary determines (not later than 60 days after the date of such submission or such shorter period as the Secretary may establish) that such agreement or acquisition does not meet any requirement of section 2, the Secretary shall disapprove such agreement or acquisition (as the case may be). For purposes of this subsection, an amendment, or a waiver of any provision, of such an agreement shall be treated as a new agreement. (2) NOTIFICATION.—The Secretary shall, not later than the 10th day after the close of the period applicable under paragraph (1), notify the appropriate committees of the Congress of the determinations he has made with respect to the submission and the reasons on which such determinations were based.

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