100 STAT. 2426
PUBLIC LAW 99-514—OCT. 22, 1986
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spect to such individual shall be equal to such current accrued benefit. (B) CURRENT ACCRUED BENEFIT DEFINED.—
(i) IN GENERAL.—For purposes of this paragraph, the ' term "current accrued benefit" means the individual's accrued benefit (at the close of the last year to which the amendments made by this section do not apply) when expressed as an annual benefit (within the meaning of section 415(b)(2) of such Code). (ii) SPECIAL RULE.—For purposes of determining the amount of any individual's current accrued benefit— (I) no change in the terms and conditions of the ^.,,,•.fi plan after May 5, 1986, and '* '" (II) no cost-of-living adjustment occurring after May 5, 1986, shall be taken into account. For purposes of subclause (I), any change in the terms and conditions of the plan |j0, pursuant to a collective bargaining agreement ratified before May 6, 1986, shall be treated as a change made SIS; before May 6, 1986. (4) TRANSITION RULE W H E R E THE S U M O F DEFINED CONTRIBUTION AND DEFINED BENEFIT PLAN FRACTIONS EXCEEDS 1.0.—In the
case of a plan which satisfied the requirements of section 415 of the Internal Revenue Code of 1986 for its last year beginning before January 1, 1987, the Secretary of the Treasury or his delegate shall prescribe regulations under which an amount is subtracted from the numerator of the defined contribution plan fraction (not exceeding such numerator) so that the sum of the defined benefit plan fraction and the defined contribution plan fraction computed under section 415(e)(1) of such Code does not exceed 1.0 for such year. (5) EFFECTIVE DATE FOR SUBSECTION (d).—
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(A) IN GENERAL.—Except as provided in subparagraph (B), the amendment made by subsection (d) shall apply to benefits accruing in years beginning after December 31, 1988. (B) COLLECTIVE BARGAINING AGREEMENTS.—In the case of a plan described in paragraph (2), the amendments made by subsection (d) shall apply to benefits accruing in years beginning on or after the earlier of— (i) the later of— (I) the date determined under paragraph (2)(A), or (II) January 1, 1989, or (ii) January 1, 1991. (6) SPECIAL RULE FOR AMENDMENT MADE BY SUBSECTION
(e).—
The amendment made by subsection (e) shall not require the recomputation, for purposes of section 415(e) of the Internal Revenue Code of 1986, of the annual addition for any year beginning before 1987. SEC. 1107. MODIFICATIONS OF SECTION 457. (a) GENERAL RULE.—Section 457 (relating to deferred compensa-
tion plans with respect to service for State and local governments) is amended to read as follows:
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