Page:United States Statutes at Large Volume 101 Part 2.djvu/1167

This page needs to be proofread.
101 STAT. 1330-373
101 STAT. 1330-373
PUBLIC LAW 100-000—MMMM. DD, 1987

PUBLIC LAW 100-203—DEC. 22, 1987

101 STAT. 1330-373

SEC. 9344. CLARIFICATION REGARDING THE IMPOSITION OF AN ANNUAL SANCTION FOR PROHIBITED TRANSACTIONS WHICH ARE CONTINUING IN NATURE.

Section 502(i) of ERISA (29 U.S.C. 1132(i)) is amended by striking the second sentence and inserting the following: "The amount of Regulations. such penalty may not exceed 5 percent of the amount involved in each such transaction (as defined in section 4975(f)(4) of the Internal Revenue Code of 1986) for each year or part thereof during which

in,<;

the prohibited transaction continues, except that, if the transaction is not corrected (in such manner as the Secretary shall prescribe ^°^ in regulations which shall be consistent with section 4975(f)(5) of such Code) within 90 days after notice from the Secretary (or such longer period as the Secretary may permit), such penalty may be in an amount not more than 100 percent of the amount involved.". SEC. 9345. ADDITIONAL LIMITATIONS ON INVESTMENT BY AN INDIVIDUAL ACCOUNT PLAN FORMING PART OF A FLOOR-OFFSET ARRANGEMENT AND ON INVESTMENT BY AN INDIVIDUAL ACCOUNT PLAN IN EMPLOYER STOCK. (a) TREATMENT OF INDIVIDUAL ACCOUNT PORTIONS OF FLOOROFFSET ARRANGEMENTS.—

" !

(1) IN GENERAL.—Section 407(d)(3) of ERISA (29 U.S.C. 1107(d)(3)) is amended by adding at the end the following new subparagraph: "(C) The term 'eligible individual account plan' does not include any individual account plan the benefits of which are taken into account in determining the benefits payable to a participant under any defined benefit plan."

ai^nil* 2

(2) TREATMENT OF FLOOR-OFFSET ARRANGEMENT AS SINGLE

PLAN.—Section 407(d) of ERISA (29 U.S.C. 1107(d)) is amended by adding at the end the following new paragraph: "(9) For purposes of this section, an arrangement which consists of a defined benefit plan and an individual account plan shall be treated as 1 plan if the benefits of such arrangement are taken into ^^^ „, es account in determining the benefits payable under such defined benefit plan." (3) EFFECTIVE DATE.—The amendments made by this subsec- 29 USC 1107 tion shall apply with respect to arrangements established after "o*®December 17, 1987. Ob) RESTRICTIONS ON TREATMENT OF STOCK AS QUALIFYING EMPLOYER SECURITY.—Section 407 of ERISA (29 U.S.C. 1107) is

amended— (1) in subsection (d)(5), by adding at the end the following new sentence: "After December 17, 1987, in the case of a plan other than an eligible individual account plan, stock shall be considered a qualifying employer security only if such stock satisfies the requirements of subsection (f)(1)."; and (2) by adding at the end the following new subsection: "(f)(1) Stock satisfies the requirements of this subsection if— "(A) no more than 25 percent of the aggregate amount of stock of the same class issued and outstanding at the time of acquisition is held by the plan, and "(B) at least 50 percent of the aggregate amount referred to in subparagraph (A) is held by persons independent of the issuer. •03 Copy read "presribe".