Page:United States Statutes at Large Volume 96 Part 1.djvu/548

 96 STAT. 506

PUBLIC LAW 97-248—SEPT. 3, 1982 (A) by inserting (B) by inserting

striking out "$75,000" in subparagraph (A) and in lieu thereof "$90,000", and striking out "$25,000" in subparagraph (B) and in lieu thereof "$30,000".

(c) L O W E R L I M I T S W H E R E INDIVIDUAL I S COVERED BY BOTH D E F I N E D B E N E F I T P L A N AND D E F I N E D CONTRIBUTION P L A N. — (1) S U M OF DEFINED BENEFIT PLAN FRACTION AND DEFINED CONTRIBUTION PLAN FRACTION CANNOT EXCEED 1.25 FOR DOLLAR

LIMITS AND 1.4 FOR PERCENTAGE L I M I T S. — Paragraph (1) of section

26 USC 415.

415(e) (relating to limitation in case of defined benefit plan and defined contribution plan for s a m e employee) is amended by striking out "1.4" and inserting in lieu thereof "1.0". (2) D E F I N E D BENEFIT AND CONTRIBUTION PLAN FRACTIONS.— (A) D E F I N E D BENEFIT PLAN F R ACTION. — Subparagraph (B)

of section 415(e)(2) (defining defined benefit plan fraction) is amended to read as follows: "(B) the d e n o m i n a to r of which is the lesser of— "(i) the product of 1.25, multiplied by the dollar limitation in effect under subsection (b)(1)(A) for such year, or "(ii) the product of— "(I) 1.4, multiplied by "(II) the a m o u n t which may be t a k e n into account under subsection (b)(1)(B) with respect to such individual under the plan for such year." (B)

DEFINED

CONTRIBUTION

PLAN

FRACTION.—Subpara-

g r a p h (B) of section 415(e)(3) (defining defined contribution plan fraction) is amended to read as follows: "(B) the d e n o m i n a to r of which is the s u m of the lesser of the following a m o u n t s determined for such year and for each prior year of service with the employer: "(i) the product of 1.25, multiplied by the dollar limitation in effect under subsection (c)(1)(A) for such year (determined without regard to subsection (c)(6)), or "(ii) the product of— "(I) 1.4, multiplied by— "(II) the a m o u n t which may be t a k e n into account under subsection (c)(1)(B) (or subsection (c) (7) or (8), if applicable) with respect to such individual under such plan for such year." (d) T R A N S I T I O N RULES FOR D E F I N E D CONTRIBUTION F R ACTION. —

Section 415(e) is amended by adding at the end thereof the following new paragraph: "(6) SPECIAL TRANSITION RULE FOR DEFINED CONTRIBUTION FRACTION FOR YEARS E N D I N G AFTER DECEMBER 31, 1982. —

"(A) IN GENERAL.—At the election of the plan administrator, in applying paragraph (3) with respect to any year ending after December 31, 1982, the a m o u n t t a k e n into account under paragraph (3)(B) with respect to each particip a national years ending before January 1, 1983, shall be a n a m o u n t equal to the product of— "(i) the a m o u n t determined under paragraph (3)(B) (as in effect for the year ending in 1982) for the year ending in 1982, multiplied by "(ii) the transition fraction. "(B) TRANSITION FRACTION.—The term 'transition fraction' means a fraction—

�