PUBLIC LAW 109–280—AUG. 17, 2006
120 STAT. 1049
to 100 percent of the employee’s accrued benefit derived from employer contributions. ‘‘(iii) 2 TO 6 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: ‘‘Years of service: 2 3 4 5 6
The nonforfeitable percentage is: .............................................................................................. 20 .............................................................................................. 40 .............................................................................................. 60 .............................................................................................. 80 or more ................................................................................ 100.’’.
(2) CONFORMING AMENDMENT.—Section 411(a) of such Code (relating to general rule for minimum vesting standards) is amended by striking paragraph (12). (b) AMENDMENTS TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974.— (1) IN GENERAL.—Paragraph (2) of section 203(a) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1053(a)(2)) is amended to read as follows: ‘‘(2)(A)(i) 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) 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) 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: ‘‘Years of service: 3 4 5 6 7
The nonforfeitable percentage is: .............................................................................................. 20 .............................................................................................. 40 .............................................................................................. 60 .............................................................................................. 80 or more ................................................................................ 100.
‘‘(B)(i) In the case of an individual account plan, a plan satisfies the requirements of this paragraph if it satisfies the requirements of clause (ii) or (iii). ‘‘(ii) A plan satisfies the requirements of this clause if an employee who has completed at least 3 years of service has a nonforfeitable right to 100 percent of the employee’s accrued benefit derived from employer contributions. ‘‘(iii) 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: ‘‘Years of service:
The nonforfeitable percentage is: 2 .............................................................................................. 20 3 .............................................................................................. 40 4 .............................................................................................. 60
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