104 STAT. 1388-564 PUBLIC LAW 101-508—NOV. 5, 1990 could receive as an employer reversion without regard to this subsection, and "(ii) take effect immediately on the termination date. "(B) PRO RATA INCREASE. —For purposes of subparagraph (A), a pro rata increase is an increase in the present value of the accrued benefit of each qualified participant in an amount which bears the same ratio to the aggregate amount determined under subparagraph (A)(i) as— "(i) the present value of such participant's accrued benefit (determined without regard to this subsection), bears to "(ii) the aggregate present value of accrued benefits of the terminated plan (as so determined). Notwithstanding the preceding sentence, the aggregate increases in the present value of the accrued benefits of qualified participants who are not active participants shall not exceed 40 percent of the aggregate amount determined under subparagraph (A)(i) by substituting 'equal to' for 'not less than'. "(4) COORDINATION WITH OTHER PROVISIONS. — "(A) LIMITATIONS. — A benefit may not be increased under paragraph (2)(B)(ii) or (3)(A), and an amount may not be allocated to a participant under paragraph (2)(C), if such increase or allocation would result in a failure to meet any requirement under section 401(a)(4) or 415. "(B) TREATMENT AS EMPLOYER CONTRIBUTIONS. — Any increase in benefits under paragraph (2)(B)(ii) or (3)(A), or any allocation of any amount (or income allocable thereto) to any account under paragraph (2)(C), shall be treated as an annual benefit or annual addition for purposes of section 415. "(C) 10-YEAR PARTICIPATION REQUIREMENT.— ExCept aS provided by the Secretary, section 415(b)(5)(D) shall not apply to any increase in benefits by reason of this subsection to the extent that the application of this subparagraph does not discriminate in favor of highly compensated employees (as defined in section 414(q)). "(5) DEFINITIONS AND SPECIAL RULES. —For purposes of this subsection— "(A) QUALIFIED PARTICIPANT. — The term 'qualified participant' means an individual who— "(i) is an active participant, "(ii) is a participant or beneficiary in pay status as of the termination date, "(iii) is a participant not described in clause (i) or . (ii)- "(I) who has a nonforfeitable right to an accrued benefit under the terminated plan as of the termination date, and "(II) whose service, which was creditable under the terminated plan, terminated during the period beginning 3 years before the termination date and ending with the date on which the final distribution of assets occurs, or "(iv) is a beneficiary of a participant described in clause (iii)(II) and has a nonforfeitable right to an
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