912
PUBLIC LAW 9 3 - 4 0 6 - S E P T. 2, 1974
[88 STAT.
" (B) the r e h a v e been, o r the r e is reason to believe the r e will be, a n accrual of benefits o r for f e i t u r e s t e n d i n g to discrimin a t e i n favor of employees who a r e officers, s h a r e h o l d e r s, o r h i g h l y compensated. "(2)
Post, p. 9 3 8.
(a)
shall
not
a p p l y to benefits which may not be provided for designated employees i n the event of e a r l y termination of the p l a n under provisions of the p l a n a d o p t e d pursuant to r e g u l a t i o n s prescribed by the Secretary or h i s delega;te to p r e c l u d e the d i s c r i m i n a t i o n p r o h i b i t e d by section 401(a)(4). "(3)
Post, p. 914.
P R O H I B I T E D DISCRIMINATION.—Subsection
TERMINATION OR PARTIAL TERMINATION; DISCONTINUANCE
OF C O N T R I B U T I O N S. — Notwithstanding the provisions of subsection ' a), a t r u s t shall not c o n s t i t u t e a qualified t r u s t under section 401 ^a) unless the p l a n of which s u c h t r u s t is a part p r o v i d e s that — " (A) upon its termination or partial termination, or " (B) i n the case of a p l a n to which section 412 does not a p p l y, upon complete discontinuance of c o n t r i b u t i o n s under the plan, the r i g h t s of all affected employees to benefits accrued to the date of such termination, partial termination, o r discontinuance, to the e x t e n t f u n d e d as of such date, o r the a m o u n t s credited to the employees' accounts, a r e nonforfeitable. T h i s paragraph shall h o t a p p l y to benefits o r c o n t r i b u t i o n s which, under provisions of the p l a n a d o p t e d pursuant to r e g u l a t i o n s prescribed by the Secretary o r h i s delegate to p r e c l u d e the d i s c r i m i n a t i o n p r o h i b i t e d by sect i o n 4 0 1 (a)(4), may not b e used for designated employees in the event of e a r l y termination of the p l a n. "(4)
CLASS
YEAR
PLANS.—The
requirements
of
subsection
(a)(2) shall be deemed to b e satisfied i n the case of a class year p l a n if such p l a n p r o v i d e s that 100 p e r c e n t of each employee's r i g h t to or d e r i v e d from the c o n t r i b u t i o n s of the e m p l o y e r on h i s behalf w i t h respect to any p l a n year a r e n o n for f e i t a b l e not l a t e r than the e n d of the 5th p l a n year following the p l a n year for which such c o n t r i b u t i o n s were m a d e. For purposes of t h i s section, the term 'class year p l a n ' means a profit-sharing, stock bonus, o r money purchase p l a n which p r o v i d e s for the s e p a r a t e nonforfeita b i l i t y of employees' r i g h t s to o r derived from the c o n t r i b u t i o n s for each p l a n year. "(5)
T R E A T M E N T OF VOLUNTARY EMPLOYEE C O N T R I B U T I O N S. — I n
the case of a defined benefit p l a n which permits voluntary employee c o n t r i b u t i o n s, the p o r t i o n of a n employee's accrued benefit d e r i v e d from such c o n t r i b u t i o n s shall b e t r e a t e d a s a n accrued benefit derived from employee c o n t r i b u t i o n s under a p l a n other than a defined benefit p l a n. " (6)
ACCRUED B E N E F I T NOT TO BE DECREASED BY AMENDMENT. — A
p l a n s h a l l be t r e a t e d as not s a t i s f y i n g the requirements of t h i s section if the accrued benefit of a part i c i p a n t is deci-eased by a n amendment of the p l a n, other than a n amendment described i n section 4 1 2 (c)(8). "(e)
Post. p. 925. Ante, p. 898.
APPLICATION OF V E S T I N G STANDARDS TO CERTAIN P L A N S. —
" (1) The provisions of t h i s section ( other than paragraph (2)) shall not a p p l y to — " (A) a government a l p l a n ( w i t h i n the m e a n i n g of section 414(d)), " (B) a c h u r c h p l a n ( w i t h i n the m e a n i n g of section 4 1 4 (e)) ^ ^ ^ j ^ rcspcct to which the election provided by section 4 1 0 (d) has not been m a d e.
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