PUBLIC LAW 105-34—AUG. 5, 1997 111 STAT. 1073 "(ii) which such participant has not received under such governmental plan, and "(iii) which such participant may receive only by making a voluntary additional contribution, in an amount determined under such governmental plan, which does not exceed the amount necessary to fund the benefit attributable to such service credit. "(B) LIMITATION ON NONQUALIFIED SERVICE CREDIT.— A plan shall fail to meet the requirements of this section if— "(i) more than 5 years of permissive service credit attributable to nonqualified service are taken into account for purposes of this subsection, or "(ii) any permissive service credit attributable to nonqualified service is taken into account under this subsection before the employee has at least 5 years of participation under the plan. "(C) NONQUALIFIED SERVICE.— For purposes of subparagraph (B), the term 'nonqualified service' mesms service for which permissive service credit is allowed other than— "(i) service (including parental, medical, sabbatical, and similar leave) as an employee of the Government of the United States, any State or political subdivision thereof, or any agency or instrumentality of any of the foregoing (other than military service or service for credit which was obtained as a result of a repay- ment described in subsection (k)(3)), "(ii) service (including parental, medical, sabbatical, and similar leave) as an employee (other than as an employee described in clause (i)) of an educational organization described in section 170(b)(l)(A)(ii) which is a public, private, or sectarian school which provides elementary or secondary education (through grade 12), as determined under State law, "(iii) service as an employee of an association of employees who are described in clause (i), or "(iv) military service (other than qualified military service under section 414(u)) recognized by such governmental plan. In the case of service described in clauses (i), (ii), or (iii), such service will be nonqualified service if recognition of such service would cause a participant to receive a retirement benefit for the same service under more than one plan.". (b) SPECIAL RULE FOR REPAYMENT OF CASHOUTS.— Section 415(k) (relating to special rules) is amended by adding at the end the following new paragraph: "(3) REPAYMENTS OF CASHOUTS UNDER GOVERNMENTAL PLANS.— In the case of any repayment of contributions (including interest thereon) to the governmental plan with respect to an amount previously refunded upon a forfeiture of service credit under the plan or under another governmental plan maintained by a State or local government employer within the same State, any such repayment shall not be taken into account for purposes of this section.". (c) EFFECTIVE DATES.— 26 USC 4i5 note.
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