26 U.S.C. § 410 | Minimum participation standards

(a)

Participation

(1)

Minimum age and service conditions

(A)

General rule

A trust shall not constitute a qualified trust under section 401(a) if the plan of which it is a part requires, as a condition of participation in the plan, that an employee complete a period of service with the employer or employers maintaining the plan extending beyond the later of the following dates—

(i)

the date on which the employee attains the age of 21; or

(ii)

the date on which he completes 1 year of service.

(B)

Special rules for certain plans

(i)

In the case of any plan which provides that after not more than 2 years of service each participant has a right to 100 percent of his accrued benefit under the plan which is nonforfeitable (within the meaning of section 411) at the time such benefit accrues, clause (ii) of subparagraph (A) shall be applied by substituting “2 years of service” for “1 year of service”.

(ii)

In the case of any plan maintained exclusively for employees of an educational institution (as defined in section 170(b)(1)(A)(ii)) by an employer which is exempt from tax under section 501(a) which provides that each participant having at least 1 year of service has a right to 100 percent of his accrued benefit under the plan which is nonforfeitable (within the meaning of section 411) at the time such benefit accrues, clause (i) of subparagraph (A) shall be applied by substituting “26” for “21”. This clause shall not apply to any plan to which clause (i) applies.

(2)

Maximum age conditions

A trust shall not constitute a qualified trust under section 401(a) if the plan of which it is a part excludes from participation (on the basis of age) employees who have attained a specified age.

(3)

Definition of year of service

(A)

General rule

For purposes of this subsection, the term “year of service” means a 12-month period during which the employee has not less than 1,000 hours of service. For purposes of this paragraph, computation of any 12-month period shall be made with reference to the date on which the employee’s employment commenced, except that, under regulations prescribed by the Secretary of Labor, such computation may be made by reference to the first day of a plan year in the case of an employee who does not complete 1,000 hours of service during the 12-month period beginning on the date his employment commenced.

(B)

Seasonal industries

In the case of any seasonal industry where the customary period of employment is less than 1,000 hours during a calendar year, the term “year of service” shall be such period as may be determined under regulations prescribed by the Secretary of Labor.

(C)

Hours of service

For purposes of this subsection, the term “hour of service” means a time of service determined under regulations prescribed by the Secretary of Labor.

(D)

Maritime industries

For purposes of this subsection, in the case of any maritime industry, 125 days of service shall be treated as 1,000 hours of service. The Secretary of Labor may prescribe regulations to carry out this subparagraph.

(4)

Time of participation

A plan shall be treated as not meeting the requirements of paragraph (1) unless it provides that any employee who has satisfied the minimum age and service requirements specified in such paragraph, and who is otherwise entitled to participate in the plan, commences participation in the plan no later than the earlier of—

(A)

the first day of the first plan year beginning after the date on which such employee satisfied such requirements, or

(B)

the date 6 months after the date on which he satisfied such requirements,

unless such employee was separated from the service before the date referred to in subparagraph (A) or (B), whichever is applicable.

(5)

Breaks in service

(A)

General rule

Except as otherwise provided in subparagraphs (B), (C), and (D), all years of service with the employer or employers maintaining the plan shall be taken into account in computing the period of service for purposes of paragraph (1).

(B)

Employees under 2-year 100 percent vesting

In the case of any employee who has any 1-year break in service (as defined in section 411(a)(6)(A)) under a plan to which the service requirements of clause (i) of paragraph (1)(B) apply, if such employee has not satisfied such requirements, service before such break shall not be required to be taken into account.

(C)

1-year break in service

In computing an employee’s period of service for purposes of paragraph (1) in the case of any participant who has any 1-year break in service (as defined in section 411(a)(6)(A)), service before such break shall not be required to be taken into account under the plan until he has completed a year of service (as defined in paragraph (3)) after his return.

(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.

(E)

Special rule for maternity or paternity absences

(i)

General rule

In the case of each individual who is absent from work for any period—

(I)

by reason of the pregnancy of the individual,

(II)

by reason of the birth of a child of the individual,

(III)

by reason of the placement of a child with the individual in connection with the adoption of such child by such individual, or

(IV)

for purposes of caring for such child for a period beginning immediately following such birth or placement,

the plan shall treat as hours of service, solely for purposes of determining under this paragraph whether a 1-year break in service (as defined in section 411(a)(6)(A)) has occurred, the hours described in clause (ii).

(ii)

Hours treated as hours of service

The hours described in this clause are—

(I)

the hours of service which otherwise would normally have been credited to such individual but for such absence, or

(II)

in any case in which the plan is unable to determine the hours described in subclause (I), 8 hours of service per day of such absence,

except that the total number of hours treated as hours of service under this clause by reason of any such pregnancy or placement shall not exceed 501 hours.

(iii)

Year to which hours are credited

The hours described in clause (ii) shall be treated as hours of service as provided in this subparagraph—

(I)

only in the year in which the absence from work begins, if a participant would be prevented from incurring a 1-year break in service in such year solely because the period of absence is treated as hours of service as provided in clause (i); or

(II)

in any other case, in the immediately following year.

(iv)

Year defined

For purposes of this subparagraph, the term “year” means the period used in computations pursuant to paragraph (3).

(v)

Information required to be filed

A plan shall not fail to satisfy the requirements of this subparagraph solely because it provides that no credit will be given pursuant to this subparagraph unless the individual furnishes to the plan administrator such timely information as the plan may reasonably require to establish—

(I)

that the absence from work is for reasons referred to in clause (i), and

(II)

the number of days for which there was such an absence.

(b)

Minimum coverage requirements

(1)

In general

A trust shall not constitute a qualified trust under section 401(a) unless such trust is designated by the employer as part of a plan which meets 1 of the following requirements:

(A)

The plan benefits at least 70 percent of employees who are not highly compensated employees.

(B)

The plan benefits—

(i)

a percentage of employees who are not highly compensated employees which is at least 70 percent of

(ii)

the percentage of highly compensated employees benefiting under the plan.

(C)

The plan meets the requirements of paragraph (2).

(2)

Average benefit percentage test

(A)

In general

A plan shall be treated as meeting the requirements of this paragraph if—

(i)

the plan benefits such employees as qualify under a classification set up by the employer and found by the Secretary not to be discriminatory in favor of highly compensated employees, and

(ii)

the average benefit percentage for employees who are not highly compensated employees is at least 70 percent of the average benefit percentage for highly compensated employees.

(B)

Average benefit percentage

For purposes of this paragraph, the term “average benefit percentage” means, with respect to any group, the average of the benefit percentages calculated separately with respect to each employee in such group (whether or not a participant in any plan).

(C)

Benefit percentage

For purposes of this paragraph—

(i)

In general

The term “benefit percentage” means the employer-provided contribution or benefit of an employee under all qualified plans maintained by the employer, expressed as a percentage of such employee’s compensation (within the meaning of section 414(s)).

(ii)

Period for computing percentage

At the election of an employer, the benefit percentage for any plan year shall be computed on the basis of contributions or benefits for—

(I)

such plan year, or

(II)

any consecutive plan year period (not greater than 3 years) which ends with such plan year and which is specified in such election.

An election under this clause, once made, may be revoked or modified only with the consent of the Secretary.

(D)

Employees taken into account

For purposes of determining who is an employee for purposes of determining the average benefit percentage under subparagraph (B)—

(i)

except as provided in clause (ii), paragraph (4)(A) shall not apply, or

(ii)

if the employer elects, paragraph (4)(A) shall be applied by using the lowest age and service requirements of all qualified plans maintained by the employer.

(E)

Qualified plan

For purposes of this paragraph, the term “qualified plan” means any plan which (without regard to this subsection) meets the requirements of section 401(a).

(3)

Exclusion of certain employees

For purposes of this subsection, there shall be excluded from consideration—

(A)

employees who are included in a unit of employees covered by an agreement which the Secretary of Labor finds to be a collective bargaining agreement between employee representatives and one or more employers, if there is evidence that retirement benefits were the subject of good faith bargaining between such employee representatives and such employer or employers,

(B)

in the case of a trust established or maintained pursuant to an agreement which the Secretary of Labor finds to be a collective bargaining agreement between air pilots represented in accordance with title II of the Railway Labor Act and one or more employers, all employees not covered by such agreement, and

(C)

employees who are nonresident aliens and who receive no earned income (within the meaning of section 911(d)(2)) from the employer which constitutes income from sources within the United States (within the meaning of section 861(a)(3)).

Subparagraph (A) shall not apply with respect to coverage of employees under a plan pursuant to an agreement under such subparagraph. For purposes of subparagraph (B), management pilots who are not represented in accordance with title II of the Railway Labor Act shall be treated as covered by a collective bargaining agreement described in such subparagraph if the management pilots manage the flight operations of air pilots who are so represented and the management pilots are, pursuant to the terms of the agreement, included in the group of employees benefitting under the trust described in such subparagraph. Subparagraph (B) shall not apply in the case of a plan which provides contributions or benefits for employees whose principal duties are not customarily performed aboard an aircraft in flight (other than management pilots described in the preceding sentence).

(4)

Exclusion of employees not meeting age and service requirements

(A)

In general

If a plan—

(i)

prescribes minimum age and service requirements as a condition of participation, and

(ii)

excludes all employees not meeting such requirements from participation,

then such employees shall be excluded from consideration for purposes of this subsection.

(B)

Requirements may be met separately with respect to excluded group

If employees not meeting the minimum age or service requirements of subsection (a)(1) (without regard to subparagraph (B) thereof) are covered under a plan of the employer which meets the requirements of paragraph (1) separately with respect to such employees, such employees may be excluded from consideration in determining whether any plan of the employer meets the requirements of paragraph (1).

(C)

Requirements not treated as being met before entry date

An employee shall not be treated as meeting the age and service requirements described in this paragraph until the first date on which, under the plan, any employee with the same age and service would be eligible to commence participation in the plan.

(5)

Line of business exception

(A)

In general

If, under section 414(r), an employer is treated as operating separate lines of business for a year, the employer may apply the requirements of this subsection for such year separately with respect to employees in each separate line of business.

(B)

Plan must be nondiscriminatory

Subparagraph (A) shall not apply with respect to any plan maintained by an employer unless such plan benefits such employees as qualify under a classification set up by the employer and found by the Secretary not to be discriminatory in favor of highly compensated employees.

(6)

Definitions and special rules

For purposes of this subsection—

(A)

Highly compensated employee

The term “highly compensated employee” has the meaning given such term by section 414(q).

(B)

Aggregation rules

An employer may elect to designate—

(i)

2 or more trusts,

(ii)

1 or more trusts and 1 or more annuity plans, or

(iii)

2 or more annuity plans,

as part of 1 plan intended to qualify under section 401(a) to determine whether the requirements of this subsection are met with respect to such trusts or annuity plans. If an employer elects to treat any trusts or annuity plans as 1 plan under this subparagraph, such trusts or annuity plans shall be treated as 1 plan for purposes of section 401(a)(4).

(C)

Special rules for certain dispositions or acquisitions

(i)

In general

If a person becomes, or ceases to be, a member of a group described in subsection (b), (c), (m), or (o) of section 414, then the requirements of this subsection shall be treated as having been met during the transition period with respect to any plan covering employees of such person or any other member of such group if—

(I)

such requirements were met immediately before each such change, and

(II)

the coverage under such plan is not significantly changed during the transition period (other than by reason of the change in members of a group) or such plan meets such other requirements as the Secretary may prescribe by regulation.

(ii)

Transition period

For purposes of clause (i), the term “transition period” means the period—

(I)

beginning on the date of the change in members of a group, and

(II)

ending on the last day of the 1st plan year beginning after the date of such change.

(D)

Special rule for certain employee stock ownership plans

A trust which is part of a tax credit employee stock ownership plan which is the only plan of an employer intended to qualify under section 401(a) shall not be treated as not a qualified trust under section 401(a) solely because it fails to meet the requirements of this subsection if—

(i)

such plan benefits 50 percent or more of all the employees who are eligible under a nondiscriminatory classification under the plan, and

(ii)

the sum of the amounts allocated to each participant’s account for the year does not exceed 2 percent of the compensation of that participant for the year.

(E)

Eligibility to contribute

In the case of contributions which are subject to section 401(k) or 401(m), employees who are eligible to contribute (or elect to have contributions made on their behalf) shall be treated as benefiting under the plan (other than for purposes of paragraph (2)(A)(ii)).

(F)

Employers with only highly compensated employees

A plan maintained by an employer which has no employees other than highly compensated employees for any year shall be treated as meeting the requirements of this subsection for such year.

(G)

Regulations

The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this subsection.

(c)

Application of participation standards to certain plans

(1)

The provisions of this section (other than paragraph (2) of this subsection) shall not apply to—

(A)

a governmental plan (within the meaning of section 414(d)),

(B)

a church plan (within the meaning of section 414(e)) with respect to which the election provided by subsection (d) of this section has not been made,

(C)

September 2, 1974 a plan which has not at any time after , provided for employer contributions, and

(D)

a plan established and maintained by a society, order, or association described in section 501(c)(8) or (9) if no part of the contributions to or under such plan are made by employers of participants in such plan.

(2)

September 1, 1974 A plan described in paragraph (1) shall be treated as meeting the requirements of this section for purposes of section 401(a), except that in the case of a plan described in subparagraph (B), (C), or (D) of paragraph (1), this paragraph shall apply only if such plan meets the requirements of section 401(a)(3) (as in effect on ).

(d)

Election by church to have participation, vesting, funding, etc., provisions apply

(1)

In general

If the church or convention or association of churches which maintains any church plan makes an election under this subsection (in such form and manner as the Secretary may by regulations prescribe), then the provisions of this title relating to participation, vesting, funding, etc. (as in effect from time to time) shall apply to such church plan as if such provisions did not contain an exclusion for church plans.

(2)

Election irrevocable

An election under this subsection with respect to any church plan shall be binding with respect to such plan, and, once made, shall be irrevocable.

Pub. L. 93–406, title II, § 1011Sept. 2, 197488 Stat. 898 Pub. L. 94–455, title XIXOct. 4, 197690 Stat. 1774 Pub. L. 96–605, title II, § 225(a)Dec. 28, 198094 Stat. 3529 Pub. L. 97–34, title I, § 111(b)(4)Aug. 13, 198195 Stat. 194 Pub. L. 98–397, title II, § 202(a)Aug. 23, 198498 Stat. 1436–1438 Pub. L. 99–509, title IX, § 9203(a)(2)Oct. 21, 1986100 Stat. 1979 Pub. L. 99–514, title XIOct. 22, 1986100 Stat. 2440 Pub. L. 100–647, title I, § 1011(h)(1)Nov. 10, 1988102 Stat. 3464 Pub. L. 101–239, title VII, § 7841(d)(6)Dec. 19, 1989103 Stat. 2428 Pub. L. 105–34, title XV, § 1505(a)(3)Aug. 5, 1997111 Stat. 1063 Pub. L. 109–280, title IV, § 402(h)(1)Aug. 17, 2006120 Stat. 927(Added , , ; amended , §§ 1901(a)(61), 1906(b)(13)(A), , , 1834; , , ; , , ; , (d)(1), (e)(1), , ; , , ; , §§ 1112(a), 1113(c), (d)(A), , , 2447; , (2), (11), title III, § 3021(a)(13)(B), , , 3467, 3631; , , ; , , ; , , .)

Editorial Notes

References in Text

act May 20, 1926, ch. 347 44 Stat. 577 act Apr. 10, 1936, ch. 166 49 Stat. 1189 section 151 of Title 45The Railway Labor Act, referred to in subsec. (b)(3), is , . Title II of the Railway Labor Act was added by , , and is classified generally to subchapter II (§ 181 et seq.) of Title 45, Railroads. For complete classification of this Act to the Code, see and Tables.

Amendments

Pub. L. 109–2802006—Subsec. (b)(3). , in concluding provisions, substituted “For purposes of subparagraph (B), management pilots who are not represented in accordance with title II of the Railway Labor Act shall be treated as covered by a collective bargaining agreement described in such subparagraph if the management pilots manage the flight operations of air pilots who are so represented and the management pilots are, pursuant to the terms of the agreement, included in the group of employees benefitting under the trust described in such subparagraph. Subparagraph (B) shall not apply in the case of a plan which provides contributions or benefits for employees whose principal duties are not customarily performed aboard an aircraft in flight (other than management pilots described in the preceding sentence).” for “Subparagraph (B) shall not apply in the case of a plan which provides contributions or benefits for employees whose principal duties are not customarily performed aboard aircraft in flight.”

Pub. L. 105–34September 1, 19741997—Subsec. (c)(2). amended par. (2) generally. Prior to amendment, par. (2) read as follows: “A plan described in paragraph (1) shall be treated as meeting the requirements of this section, for purposes of section 401(a), if such plan meets the requirements of section 401(a)(3) as in effect on .”

Pub. L. 101–2391989—Subsec. (a)(2). struck out comma before period at end.

Pub. L. 100–647, § 1011(h)(1)1988—Subsec. (b)(4)(B). , substituted “not meeting” for “do not meet” and struck out “and” before “are covered”.

Pub. L. 100–647, § 1011(h)(11)Subsec. (b)(4)(C). , added subpar. (C).

Pub. L. 100–647, § 3021(a)(13)(B)Subsec. (b)(6)(C)(i)(II). , inserted “or such plan meets such other requirements as the Secretary may prescribe by regulation” after “of a group)”.

Pub. L. 100–647, § 1011(h)(2)Subsec. (b)(6)(F), (G). , added subpar. (F) and redesignated former subpar. (F) as (G).

Pub. L. 99–509Subsec. (a)(2). substituted a period for “unless—

“(A) the plan is a—

“(i) defined benefit plan, or

“(ii) target benefit plan (as defined under regulations prescribed by the Secretary), and

“(B) such employees begin employment with the employer after they have attained a specified age which is not more than 5 years before the normal retirement age under the plan.”

Pub. L. 99–514, § 1113(d)(A)Subsec. (a)(5)(B). , substituted “2-year” for “3-year” in heading.

Pub. L. 99–514, § 1112(a)Subsec. (b). , substituted “Minimum coverage requirements” for “Eligibility” as subsec. (b) heading and amended subsec. generally, revising and restating as pars. (1) to (6) provisions formerly contained in pars. (1) to (3).

Pub. L. 98–397, § 202(a)(1)1984—Subsec. (a)(1)(A)(i). , substituted “21” for “25”.

Pub. L. 98–397, § 202(a)(2)Subsec. (a)(1)(B)(ii). , substituted “ ‘26’ for ‘21’ ” for “ ‘30’ for ‘25’ ”.

Pub. L. 98–397, § 202(d)(1)Subsec. (a)(5)(D). , amended subpar. (D) generally.

Pub. L. 98–397, § 202(e)(1)Subsec. (a)(5)(E). , added subpar. (E).

Pub. L. 97–341981—Subsec. (b)(3)(C). substituted “section 911(d)(2)” for “section 911(b)”.

Pub. L. 96–6051980—Subsec. (b)(2), (3). added par. (2), redesignated former par. (2) as (3) and substituted “paragraphs (1) and (2)” for “paragraph (1)”.

Pub. L. 94–455, § 1906(b)(13)(A)1976—Subsec. (a)(2)(A)(ii). , struck out “or his delegate” after “Secretary”.

Pub. L. 94–455, § 1901(a)(61)(A)Subsec. (a)(5)(C), (D). , substituted “purposes of paragraph (1)” for “purposes of subsection (a)(1)”.

Pub. L. 94–455, § 1906(b)(13)(A)Subsec. (b)(1)(B). , struck out “or his delegate” after “Secretary”.

Pub. L. 94–455, § 1901(a)(61)(B)September 2, 1974Subsec. (c)(1)(C). , substituted “,” for “the date of the enactment of the Employee Retirement Income Security Act of 1974”.

Pub. L. 94–455, § 1901(a)(61)(C)September 1, 1974Subsec. (c)(2). , substituted “” for “the day before the date of the enactment of this section”.

Pub. L. 94–455, § 1906(b)(13)(A)Subsec. (d)(1). , struck out “or his delegate” after “Secretary”.

Statutory Notes and Related Subsidiaries

Effective Date of 2006 Amendment

Pub. L. 109–280Aug. 17, 2006section 402(h)(2) of Pub. L. 109–280 section 430 of this titleAmendment by applicable to years beginning before, on, or after , see , set out as a Special Funding Rules for Certain Plans Maintained by Commercial Airlines note under .

Effective Date of 1997 Amendment

Pub. L. 105–34Aug. 5, 1997Aug. 5, 1997section 1505(d) of Pub. L. 105–34 section 401 of this titleAmendment by applicable to taxable years beginning on or after , with certain governmental plans treated as satisfying requirements for all taxable years beginning before , see , set out as a note under .

Effective Date of 1988 Amendment

Pub. L. 100–647 Pub. L. 99–514 section 1019(a) of Pub. L. 100–647 section 1 of this titleAmendment by section 1011(h)(1), (2), (11) of effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, , to which such amendment relates, see , set out as a note under .

section 3021(a)(13)(B) of Pub. L. 100–647 section 1151 of Pub. L. 99–514 section 3021(d)(1) of Pub. L. 100–647 section 129 of this titleAmendment by effective as if included in the amendments by , see , set out as a note under .

Effective Date of 1986 Amendments

section 1112(a) of Pub. L. 99–514Dec. 31, 1988Mar. 1, 1986section 1112(e) of Pub. L. 99–514 section 401 of this titleAmendment by applicable to plan years beginning after , with special rule regarding collective bargaining agreements ratified before , and with provision for waiver of excise tax on reversions, see , set out as a note under .

Pub. L. 99–514Dec. 31, 1988Mar. 1, 1986section 1113(f) of Pub. L. 99–514 section 411 of this titleAmendment by section 1113(c), (d)(A) of applicable to plan years beginning after , with special rule for plans maintained pursuant to collective bargaining agreements ratified before , and not applicable to employees who do not have 1 hour of service in any plan year to which the amendment applies, see , as amended, set out as a note under .

Pub. L. 99–509January 1, 1988section 9204(b) of Pub. L. 99–509 section 623 of Title 29Amendment by applicable only with respect to plan years beginning on or after , and only with respect to service performed on or after such date, see , set out as an Effective and Termination Dates of 1986 Amendments note under , Labor.

Effective Date of 1984 Amendment

Pub. L. 98–397Dec. 31, 1984Pub. L. 98–397 section 1001 of Title 29Amendment by applicable to plan years beginning after , except as otherwise provided, see sections 302 and 303 of , set out as a note under , Labor.

Effective Date of 1981 Amendment

Pub. L. 97–34Dec. 31, 1981section 115 of Pub. L. 97–34 section 911 of this titleAmendment by applicable with respect to taxable years beginning after , see , set out as a note under .

Effective Date of 1980 Amendment

Pub. L. 96–605December 31, 1980section 225(c) of Pub. L. 96–605 section 401 of this titleAmendment by applicable with respect to plan years beginning after , see , set out as a note under .

Effective Date of 1976 Amendment

section 1901(a)(61) of Pub. L. 94–455Dec. 31, 1976section 1901(d) of Pub. L. 94–455 section 2 of this titleAmendment by effective for taxable years beginning after , see , set out as a note under .

Effective Date; Transitional Rules

Pub. L. 93–406, title II, § 1017Sept. 2, 197488 Stat. 932 Pub. L. 94–12, title IV, § 402Mar. 29, 197589 Stat. 47 Pub. L. 99–514, § 2Oct. 22, 1986100 Stat. 2095

“(a)

General Rule .—

Pub. L. 93–406Sept. 2, 1974Except as otherwise provided in this section, the amendments made by this part [part 1 (§§ 1011–1017) of subtitle A of title II of , enacting this section and sections 411, 412, 413, 414, and 4971 of this title, amending sections 275, 401, 404, 406, 407, 805, 6161, 6201, 6204, 6211, 6212, 6213, 6214, 6344, 6501, 6503, 6512, 6601, 6653, 6659 [now 6662], 6676, 6677, 6679, 6682, 6688, 6861, 6862, and 7422 of this title and enacting provisions set out as notes under this section and sections 411 and 412 of this title] shall apply for plan years beginning after the date of the enactment of this Act [].

“(b)

Existing Plans .—

January 1, 1974December 31, 1975Except as otherwise provided in subsections (c) through (i), in the case of a plan in existence on , the amendments made by this part shall apply for plan years beginning after .

“(c)

Existing Plans Under Collective Bargaining Agreements.—

“(1)

Application of vesting rules to certain plan provisions.—

“(A)

Waiver of application .—

January 1, 1974In the case of a plan maintained on , pursuant to one or more agreements which the Secretary of Labor finds to be collective bargaining agreements between employee representatives and one or more employers, during the special temporary waiver period the plan shall not be treated as not meeting the requirements of section 411(b)(1) or (2) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] solely by reason of a supplementary or special plan provision (within the meaning of subparagraph (D)).

“(B)

Special temporary waiver period .—

December 31, 1975For purposes of this paragraph, the term ‘special temporary waiver period’ means plan years beginning after , and before the earlier of—

“(i)

Sept. 2, 1974 the date on which the last of the collective bargaining agreements relating to the plan terminates (determined without regard to any extension thereof agreed to after the date of the enactment of this Act []), or

“(ii)

January 1, 1981 .

section 1001 of Title 29 For purposes of clause (i), any plan amendment made pursuant to a collective bargaining agreement relating to the plan which amends the plan solely to conform to any requirement contained in this Act [see Short Title note set out under , Labor] shall not be treated as a termination of such collective bargaining agreement.

“(C)

Determination by secretary of labor required .—

Sept. 2, 1974Subparagraph (A) shall not apply unless the Secretary of Labor determines that the participation and vesting rules in effect on the date of the enactment of this Act [] are not less favorable to the employees, in the aggregate than the rules provided under sections 410 and 411 of the Internal Revenue Code of 1986.

“(D)

Supplementary or special plan provisions .—

For purposes of this paragraph, the term ‘supplementary or special plan provision’ means any plan provision which—

“(i)

provides supplementary benefits, not in excess of one-third of the basic benefit, in the form of an annuity for the life of the participant, or

“(ii)

provides that, under a contractual agreement based on medical evidence as to the effects of working in an adverse environment for an extended period of time, a participant having 25 years of service is to be treated as having 30 years of service.

“(2)

Application of funding rules.—

“(A)

In general .—

January 1, 1974In the case of a plan maintained on , pursuant to one or more agreements which the Secretary of Labor finds to be collective bargaining agreements between employee representatives and one or more employers, section 412 of the Internal Revenue Code of 1986, and other amendments made by this part to the extent such amendments relate to such section 412, shall not apply during the special temporary waiver period (as defined in paragraph (1)(B)).

“(B)

Waiver of underfunding .—

January 1, 1974Pub. L. 93–406 section 411 of this titleIn the case of a plan maintained on , pursuant to one or more agreements which the Secretary of Labor finds to be collective bargaining agreements between employee representatives and one or more employers, if by reason of subparagraph (A) the requirements of section 401(a)(7) of the Internal Revenue Code of 1986 apply without regard to the amendment of such section 401(a)(7) by section 1016(a)(2)(C) of this Act [], the plan shall not be treated as not meeting such requirements solely by reason of the application of the amendments made by sections 1011 and 1012 of this Act [enacting this section and ] or related amendments made by this part.

“(C)

Labor organization conventions .—

December 31, 1975In the case of a plan maintained by a labor organization, which is exempt from tax under section 501(c)(5) of the Internal Revenue Code of 1986 exclusively for the benefit of its employees and their beneficiaries, section 412 of such Code and other amendments made by this part to the extent such amendments relate to such section 412, shall be applied by substituting for the term ‘’ in subsection (b), the earlier of—

“(i)

Sept. 2, 1974 the date on which the second convention of such labor organization held after the date of the enactment of this Act [] ends, or

“(ii)

December 31, 1980 ,

December 31, 1975 but in no event shall a date earlier than the later of , or the date determined under subparagraph (A) or (B) be substituted.

“(d)

Existing Plans May Elect New Provisions .—

January 1, 1974Sept. 2, 1974In the case of a plan in existence on , the provisions of the Internal Revenue Code of 1986 relating to participation, vesting, funding, and form of benefit (as in effect from time to time) shall apply in the case of the plan year (which begins after the date of the enactment of this Act [] but before the applicable effective date determined under subsection (b) or (c)) selected by the plan administrator and to all subsequent plan years, if the plan administrator elects (in such manner and at such time as the Secretary of the Treasury or his delegate shall by regulations prescribe) to have such provisions so apply. Any election made under this subsection, once made, shall be irrevocable.

“(e)

Certain Definitions and Special Rules .—

Pub. L. 93–406Sept. 2, 1974Section 414 of the Internal Revenue Code of 1986 (other than subsections (b) and (c) of such section 414), as added by section 1015(a) of this Act [], shall take effect on the date of the enactment of this Act [].

“(f)

Transitional Rules With Respect to Breaks in Service.—

“(1)

Participation .—

January 1, 1974In the case of a plan to which section 410 of the Internal Revenue Code of 1986 [this section] applies, if any plan amendment with respect to breaks in service (which amendment is made or becomes effective after , and before the date on which such section 410 first becomes effective with respect to such plan) provides that any employee’s participation in the plan would commence at any date later than the later of—

“(A)

the date on which his participation would commence under the break in service rules of section 410(a)(5) of such Code, or

“(B)

January 1, 1974 the date on which his participation would commence under the plan as in effect on ,

such plan shall not constitute a plan described in section 403(a) or 405(a) of such Code and a trust forming a part of such plan shall not constitute a qualified trust under section 401(a) of such Code.

“(2)

Vesting .—

January 1, 1974In the case of a plan to which section 411 of the Internal Revenue Code of 1986 applies, if any plan amendment with respect to breaks in service (which amendment is made or becomes effective after , and before the date on which such section 411 first becomes effective with respect to such plan) provides that the nonforfeitable benefit derived from employer contributions to which any employee would be entitled is less than the lesser of the nonforfeitable benefit derived from employer contributions to which he would be entitled under—

“(A)

the break in service rules of section 411(a)(6) of such Code, or

“(B)

January 1, 1974 the plan as in effect on ,

January 1, 1974 such plan shall not constitute a plan described in section 403(a) or 405(a) of such Code and a trust forming a part of such plan shall not constitute a qualified trust under section 401(a) of such Code. Subparagraph (B) shall not apply if the break in service rules under the plan would have been in violation of any law or rule of law in effect on .

“(g)

Year Delay for Certain Provisions 3-.—

Sept. 2, 1974Subparagraphs (B) and (C) of section 404(a)(1) shall apply only in the case of plan years beginning on or after 3 years after the date of the enactment of this Act [].

“(h)

(1)

December 31, 1953 Except as provided in paragraph (2), section 413 of the Internal Revenue Code of 1986 shall apply to plan years beginning after .

“(2)

(A)

For plan years beginning before the applicable effective date of section 410 of such Code, the provisions of paragraphs (1) and (8) of subsection (b) of such section 413 shall be applied by substituting ‘401(a)(3)’ for ‘410’.

“(B)

For plan years beginning before the applicable effective date of section 411 of such Code, the provisions of subsection (b)(2) of such section 413 shall be applied by substituting ‘401(a)(7)’ for ‘411(d)(3)’.

“(C)

(i)

The provisions of subsection (b)(4) of such section 413 shall not apply to plan years beginning before the applicable effective date of section 411 of such Code.

“(ii)

The provisions of subsection (b)(5) (other than the second sentence thereof) of such section 413 shall not apply to plan years beginning before the applicable effective date of section 412 of such Code.

“(i)

Contributions to H.RPlans . 10 .—

January 1, 1974section 404(a)(6) of this titleDecember 31, 1974Notwithstanding subsections (b) and (c)(2), in the case of a plan in existence on , the amendment made by section 1013(c)(2) of this Act [amending ] shall apply, with respect to a plan which provides contributions or benefits for employees some or all of whom are employees within the meaning of section 401(c)(1) of the Internal Revenue Code of 1986, for plan years beginning after , but only if the employer (within the meaning of section 401(c)(4) of such Code) elects in such manner and at such time as the Secretary of the Treasury or his delegate shall by regulations prescribe, to have such amendment so apply. Any election made under this subsection, once made, shall be irrevocable.”

, , , as amended by , , ; , , , provided that:

Regulations

Feb. 1, 1988Pub. L. 99–514 section 1141 of Pub. L. 99–514 section 401 of this titleSecretary of the Treasury or his delegate to issue before , final regulations to carry out amendments made by sections 1112 and 1113 of , see , set out as a note under .

Feb. 1, 1988section 9203 of Pub. L. 99–509 section 9204 of Pub. L. 99–509 section 623 of Title 29Secretary of Labor, Secretary of the Treasury, and Equal Employment Opportunity Commission shall each issue before , final regulations to carry out amendments made by , see , set out as a note under , Labor.

Deemed Election

Pub. L. 113–97, title I, § 103(c)Apr. 7, 2014128 Stat. 1120

29 U.S.C. 1003(b)(2)“For purposes of the Internal Revenue Code of 1986, sections 4(b)(2) and 4021(b)(3) of the Employee Retirement Income Security Act of 1974 [, 1321(b)(3)], and all other purposes, a plan shall be deemed to have made an irrevocable election under section 410(d) of the Internal Revenue Code of 1986 if—

“(1)

January 1, 2014 the plan was established before ;

“(2)

the plan falls within the definition of a CSEC plan;

“(3)

29 U.S.C. 1060(f)(3)(A) the plan sponsor does not make an election under section 210(f)(3)(A) of the Employee Retirement Income Security Act of 1974 [] and section 414(y)(3)(A) of the Internal Revenue Code of 1986, as added by this Act; and

“(4)

December 31, 2013 the plan, plan sponsor, administrator, or fiduciary remits one or more premium payments for the plan to the Pension Benefit Guaranty Corporation for a plan year beginning after .”

, , , provided that:

Plan Amendments Not Required Until January 1, 1989

Pub. L. 99–514Jan. 1, 1989section 1140 of Pub. L. 99–514 section 401 of this titleFor provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after , see , as amended, set out as a note under .

section 9203(a)(2) of Pub. L. 99–509Jan. 1, 1989section 9204 of Pub. L. 99–509 section 623 of Title 29For provisions directing that if any amendments made by require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after , see , set out as a note under , Labor.