Page:United States Statutes at Large Volume 98 Part 2.djvu/277

 PUBLIC LAW 98-397—AUG. 23, 1984

98 STAT. 1437

(b) YEARS OF SERVICE AFTER AGE 18 (INSTEAD OF AGE 22.) TAKEN INTO ACCOUNT FOR DETERMINING NONFORFEITABLE PERCENTAGE.—

Subparagraph (A) of section 411(a)(4) (relating to service included in determination of nonforfeitable percentage) is amended by striking out "22" and inserting in lieu thereof "18.

26 USC 4ii.

(c) BREAK IN SERVICE FOR VESTING UNDER DEFINED CONTRIBUTION

PLANS, ETC.—Subparagraph (C) of section 411(a)(6) (relating to 1year break in service under defined contribution plan) is amended— (1) by striking out "I-YEAR BREAK IN SERVICE" in the subpara-

graph heading and inserting in lieu thereof "5 CONSECUTIVE iYEAR BREAKS I N SERVICE",

(2) by striking out "any 1-year break in service" and inserting in lieu thereof "5 consecutive 1-year breaks in service", and (3) 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.— (1) MINIMUM PARTICIPATION STANDARDS.—Subparagraph (D) of

section 410(a)(5) (relating to breaks in service) is amended to read as follows:

26 USC 410.

"(D) NONVESTED PARTICIPANTS.—

"(i) IN GENERAL.—For purposes of paragraph (1), in the case of a nonvested participant, years of service with the employer or employers maintaining the plan before any period of consecutive 1-year breaks in service shall not be required to be taken into account in computing the period of service if the number of consecutive 1-year breaks in service within such period equals or exceeds the greater of— "(I) 5, or "(II) the aggregate number of years of service before such period, "(ii) YEARS OF SERVICE NOT TAKEN INTO ACCOUNT.—If

any years of service are not required to be taken into account by reason of a period of breaks in service to which clause (i) applies, such years of service shall not be taken into account in applying clause (i) to a subsequent period of breaks in service. "(iii) NONVESTED PARTICIPANT DEFINED.—For purposes of clause (i), the term 'nonvested participant' means a participant who does not have any nonforfeitable right under the plan to an accrued benefit derived from employer contributions.". (2) MINIMUM VESTING STANDARDS.—Subparagraph (D) of sec-

tion 411(a)(6) (relating to breaks in service) is amended to read as follows: "(D) NONVESTED PARTICIPANTS.—

"(i) IN GENERAL.—For purposes of paragraph (4), in the case of a nonvested participant, years of service with the employer or employers maintaining the plan before any period of consecutive 1-year breaks in service shall not be required to be taken into account if the number of consecutive 1-year breaks in service within such period equals or exceeds the greater of— "(I) 5, or "(II) the aggregate number of years of service before such period.

26 USC 4ii.

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