Page:United States Statutes at Large Volume 98 Part 2.djvu/266

 98 STAT. 1426

PUBLIC LAW 98-397—AUG. 23, 1984

Public Law 98-397 98th Congress An Act Aug. 23, 1984 [H.R. 4280]

Retirement Equity Act of 1984. 29 USC 1001

note.

To amend the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code of 1954 to improve the delivery of retirement benefits and provide for greater equity under private pension plans for workers and their spouses and dependents by taking into account changes in work patterns, the status of marriage as an economic partnership, and the substantial contribution to that partnership of spouses who work both in and outside the home, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, ' SECTION 1. SHORT TITLE.

This Act may be cited as the "Retirement Equity Act of 1984".

TITLE I — AMENDMENTS TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974 SEC. 101. AMENDMENT OF ERISA.

29 USC 1001 note.

Except as otherwise expressly provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Employee Retirement Income Security Act of 1974. SEC. 102. MODIFICATIONS OF MINIMUM PARTICIPATION AND VESTING STANDARDS. (a) AGE LIMITATION FOR MINIMUM PARTICIPATION STANDARDS LOWERED FROM AGE 25 TO AGE 21.—

(1) IN GENERAL.—Clause (i) of section 202(a)(l)(A) (29 U.S.C. 1052(a)(l)(A)(i)) is amended by striking out "25" and inserting in lieu thereof "21". (2) SPECIAL RULE FOR CERTAIN PLANS.—Clause (ii) of section

202(a)(l)(B) (29 U.S.C. 1052(a)(l)(B)(ii)) is amended by striking out " '30' for '25' " and inserting in lieu thereof " '26' for '21' ' \ (b) YEARS OF SERVICE AFTER AGE 18 (INSTEAD OF AGE 22) TAKEN INTO ACCOUNT FOR DETERMINING NONFORFEITABLE PERCENTAGE.—

Subparagraph (A) of section 203(b)(l) (29 U.S.C. 1053(b)(l)(A)) is amended by striking out "22" and inserting in lieu thereof "18". (c) BREAK IN SERVICE FOR VESTING UNDER INDIVIDUAL ACCOUNT

PLANS.—Subparagraph (C) of section 203(b)(3) (29 U.S.C. 1053(b)(3)(C)) is amended— (1) by striking out "any 1-year break in service" and inserting in lieu thereof "5 consecutive 1-year breaks in service", and (2) by striking out "such break" each place it appears and inserting in lieu thereof "such 5-year period". (d) RULE OF PARITY FOR NONVESTED PARTICIPANTS TO B E APPLIED ONLY IF BREAK IN SERVICE EXCEEDS 5 YEARS.—

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