Page:United States Statutes at Large Volume 94 Part 1.djvu/1357

 PUBLIC LAW 96-364—SEPT. 26, 1980

94 STAT. 1307

"(ii) any period set by a court of competent jurisdiction after a final determination that the plan fails to meet such requirements, or, if the court does not specify such period, any reasonable period determined by the Secretary on the basis of all the facts and circumstances, but in any event not less than 270 days after the determination has become final; or "(iii) any additional period which the Secretary determines is reasonable or necessary for the correction of the default, whichever has the latest ending date.", (c) The amendments made by this section shall be effective as of Effective date. January 1, 1974. 26 USC 4i4 note. SEC. 408. DEDUCTIBILITY OF PAYMENTS TO PLAN BY A CORPORATION 26 USC 404 note. OPERATING PUBLIC TRANSPORTATION SYSTEM ACQUIRED BY A STATE. (a) For purposes of subsection (g) of section 404 of the Internal Revenue Code of 1954 (relating to certain employer liability payments considered as contributions), as amended by section 205 of this Act, any payment made to a plan covering employees of a corporation operating a public transportation system shall be treated as a payment described in paragraph (1) of such subsection if— (1) such payment is made to fund accrued benefits under the plan in conjunction with an acquisition by a State (or agency or instrumentality thereof) of the stock or assets of such corporation, and (2) such acquisition is pursuant to a State public transportation law enacted after June 30, 1979, and before January 1, 1980, (b) The provisions of this section shall apply to payments made afterJune29, 1980. SEC. 409. TREATMENT OF CERTAIN SEVERANCE PAY ARRANGEMENTS AND SUPPLEMENTAL RETIREMENT INCOME PAYMENTS AS WELFARE PLANS. Paragraph (2) of section 3 is amended— 29 USC 1002. (1) by striking out "The" and inserting in lieu thereof "(A) Except as provided in subparagraph (B), the", (2) by striking out "(A)" and inserting in lieu thereof "(i)", (3) by striking out "(B)" and inserting in lieu thereof "(ii)", and (4) by adding at the end thereof the following new subparagraph: "(B) The Secretary may by regulation prescribe rules consistent with the standards and purposes of this Act providing one or more exempt categories under which— "(i) severance pay arrangements, and "(ii) supplemental retirement income payments, under which the pension benefits of retirees or their beneficiaries are supplemented to take into account some portion or all of the increases in the cost of living (as determined by the Secretary of Labor) since retirement, shall, for purposes of this title, be treated as welfare plans rather than pension plans. In the case of any arrangement or payment a principal effect of which is the evasion of the standards or purposes of this Act applicable to pension plans, such arrangement or payment shall be treated as a pension plan.".

79-194

O—81—pt. 1

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