88 STAT. ]
PUBLIC LAW 93-406-SEPT. 2, 1974
937
" (i) the annuity starting date did not occur before the effective date of this paragraph, and "(ii) the participant was an active participant in the plan on or after such effective date." (2) CERTAIN ADDITIONAL REQUIREMENTS APPLY ONLY TO PLANS TO WHICH V E S T I N G REQUIREMENTS APPLY. S e c t i o U 4 0 1 (a) ( r e l a t i n g
26 USC 401.
to requirements for qualification) is amended by adding at the end thereof the following new sentence: "Paragraphs (11), (12), (13), (14), (15), and (19) shall apply only in the case of a plan to which section 411 (relating to minimum vesting standards) ^"^^' P- '*^^applies without regard to subsection (e)(2) of such section." (b) REQUIREMENTS I N CASE or MERGERS AND CONSOLIDATIONS or 26 USC 401 PLANS OR TRANSFERS or PLAN ASSETS.—Effective with respect to plan "°'^'
years beginning after December 31, 1975, section 401(a) is amended by inserting after paragraph (11) the following new paragraph: "(12) A trust shall not constitute a qualified trust under this section unless the plan of which such trust is a part provides that in the case of any merger or consolidation with, or transfer of assets or liabilities to, any other plan after the date of the enactment of the Employee Retirement Income Security Act of 1974, each participant in the plan would (if the plan then terminated) receive a benefit immediately after the merger, consolidation, or transfer which is equal to or greater than the benefit he would have been entitled to receive immediately before the merger, consolidation, or transfer (if the plan had then terminated). This paragraph shall apply in the case of a multiemployer plan only to the extent determined by the Pension Benefit Guaranty Corporation."
^"te, p. 935.
^"'e, p. 829.
(c) RETIREMENT BENEFITS MAY NOT B E ASSIGNED OR ALIENATED.—
Section 401(a) is amended by inserting after paragraph (12) the fol- ^^pralowing new paragraph: "(13) A trust shall not constitute a qualified trust under this section unless the plan of which such trust is a part provides that benefits provided under the plan may not be assigned or alienated. For purposes of the preceding sentence, there shall not be taken into account any voluntary and revocable assignment of not to exceed 10 percent of any benefit payment made by any participant who is receiving benefits under the plan unless the assignment or alienation is made for purposes of defraying plan administration costs. For purposes of this paragraph a loan made to a participant or beneficiary shall not be treated as an assignment or alienation if such loan is secured by the participant's accrued nonforfeitable benefit and is exempt from the tax imposed by section 4975 (relat- P"® P- 97I. ing to tax on prohibited transactions) by reason of section 4975 (d)(1). This paragraph shall take effect on January 1, 1976 and shall not apply to assignments which were irrevocable on the date of the enactment of the Employee Retirement Income Security Act of 1974." (d) REQUIREMENT T H A T PAYMENT OF BENEFITS BEGIN NOT LATER T H A N W H E N THE PARTICIPANT ATTAINS AGE 65 OR H A S COMPLETED 10 YEARS OF PARTICIPATION.—Section 401(a) is amended by inserting
after paragraph (13) the following new paragraph: Supra. "(14) A trust shall not constitute a qualified trust under this section unless the plan of which such trust is a part provides that, unless the participant otherwise elects, the payment of benefits under the plan to the participant will begin not later than the 60th day after the latest of the close of the plan year in which—
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