120 STAT. 1048
PUBLIC LAW 109–280—AUG. 17, 2006 ‘‘(A) IN GENERAL.—The term ‘applicable individual account plan’ means an individual account plan which includes a qualified cash or deferred arrangement. ‘‘(B) QUALIFIED CASH OR DEFERRED ARRANGEMENT.— The term ‘qualified cash or deferred arrangement’ has the meaning given such term by section 401(k)(2) of the Internal Revenue Code of 1986.’’. (2) CONFORMING CHANGES.— (A) The heading for section 210 of such Act is amended to read as follows:
29 USC 1060.
‘‘SEC. 210. MULTIPLE EMPLOYER PLANS AND OTHER SPECIAL RULES.’’.
(B) The table of contents in section 1 of such Act is amended by striking the item relating to section 210 and inserting the following new item: ‘‘Sec. 210. Multiple employer plans and other special rules.’’. 26 USC 414 note.
(c) EFFECTIVE DATE.—The amendments made by this section shall apply to plan years beginning after December 31, 2009. SEC. 904. FASTER VESTING OF EMPLOYER NONELECTIVE CONTRIBUTIONS.
(a) AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986.— (1) IN GENERAL.—Paragraph (2) of section 411(a) of the Internal Revenue Code of 1986 (relating to employer contributions) is amended to read as follows: ‘‘(2) EMPLOYER CONTRIBUTIONS.— ‘‘(A) DEFINED BENEFIT PLANS.— ‘‘(i) IN GENERAL.—In the case of a defined benefit plan, a plan satisfies the requirements of this paragraph if it satisfies the requirements of clause (ii) or (iii). ‘‘(ii) 5-YEAR VESTING.—A plan satisfies the requirements of this clause if an employee who has completed at least 5 years of service has a nonforfeitable right to 100 percent of the employee’s accrued benefit derived from employer contributions. ‘‘(iii) 3 TO 7 YEAR VESTING.—A plan satisfies the requirements of this clause if an employee has a nonforfeitable right to a percentage of the employee’s accrued benefit derived from employer contributions determined under the following table:
26 USC 411.
‘‘Years of service: 3 4 5 6 7
The nonforfeitable percentage is: .............................................................................................. 20 .............................................................................................. 40 .............................................................................................. 60 .............................................................................................. 80 or more ................................................................................ 100.
‘‘(B) DEFINED CONTRIBUTION PLANS.— ‘‘(i) IN GENERAL.—In the case of a defined contribution plan, a plan satisfies the requirements of this paragraph if it satisfies the requirements of clause (ii) or (iii). ‘‘(ii) 3-YEAR VESTING.—A plan satisfies the requirements of this clause if an employee who has completed at least 3 years of service has a nonforfeitable right
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