Page:United States Statutes at Large Volume 96 Part 1.djvu/574

 96 STAT. 532

PUBLIC LAW 97-248—SEPT. 3, 1982 SF:C. 252. DKFERRKD COMPENSATION PLANS FOR STATE JUDGES.

26 USC 457 note.

Subsection (c) of section 131 of the Revenue Act of 1978 is amended by adding a t the e n d thereof the following new paragraph: "(3) DEFERRED COMPENSATION PLANS FOR STATE J U D G E S. —

"(A) IN GENERAL.—The amendments m a d e by this section shall not apply to any qualified State judicial plan. "(B) Q U A L I F I E D STATE JUDICIAL P L A N. — For purposes of

subparagraph (A), the term 'qualified State judicial plan' means any retirement plan of a State for the exclusive benefit of judges or the i r beneficiaries if— "(i) such plan has been continuously in existence since December 31, 1978, "(ii) under such plan, all judges eligible to benefit under the plan— "(I) a r e required to participate, and "(II) a r e required to contribute the s a m e fixed percentage of the i r basic or regular r a t e of compensation as judge, "(iii) under such plan, no j u d g e has a n option as to contributions or benefits the exercise of which would affect the a m o u n t of includible compensation, "(iv) the retirement payments of a judge under the plan a r e a percentage of the compensation of judges of that State holding similar positions, and "(v) the plan during any year does not pay benefits with respect to any part i c i p a n t which exceed the limitations of section 415(b) of the I n t e r n a l Revenue Code of 1954." SEC.

26 USC 415.

2.^1.

PROFIT-SHARING DISABLED.

PLAN

CONTRIBUTIONS

ON BEHALF OF

(a) IN GENERAL. — Paragraph (3) of section 415(c) (defining participant's compensation) is amended to read as follows: "(3)

PARTICIPANT'S

COMPENSATION.—For

purposes

of

para-

g r a p h (D— "(A) IN GENERAL.—The term ' part i c i p a n t ' s compensation' means the compensation of the part i c i p a n t from the employer for the year. "(B) SPECIAL RULE FOR SELF-EMPLOYED INDIVIDUALS.—In

the case of a n employee within the m e a n i n g of section 401(c)(1), subparagraph (A) shall be applied by s u b s t i t u t i n g 'the participant's e a r n e d income (within the m e a n i n g of section 401(c)(2) b u t determined without regard to any exclusion under section 911)' for 'compensation of the participant from the employer'. "(C) SPECIAL RULES FOR PERMANENT AND TOTAL DISABIL-

ITY.—In the case of a participant— "(i) who is p e r m a n e n t l y and totally disabled (as defined in section 105(d)(4)), "(ii) who is not a n officer, owner, or highly compensated, and "(iii) with respect to whom the employer elects, a t such time and in such m a n n e r as the Secretary may prescribe, to have this subparagraph apply, the term ' part i c i p a n t ' s compensation' means the compensation the part i c i p a n t would have received for the year if the part i c i p a n t was paid a t the r a t e of compensation paid

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