938
PUBLIC LAW 93-406-SEPT. 2, 1974
[88 STAT.
" (A) the date on which the participant attains the earlier of age 65 or the normal retirement age specified under the plan, " (B) occurs the 10th anniversary of the year in which the participant commenced participation in the plan, or " (C) the participant terminates his service with the employer. In the case of a plan which provides for the payment of an early retirement benefit, a trust forming a part of such plan shall not constitute a qualified trust under this section unless a participant who satisfied the service requirements for such early retirement benefit, but separated from the service (with any nonforfeitable right to an accrued benefit) before satisfying the age requirement for such earlj^ retirement benefit, is entitled upon satisfaction of such age requirement to receive a benefit not less than the benefit to which he would be entitled at the normal retirement age, actuarially, reduced under regulations prescribed by the Secretary or his delegate." (e) REQUIREMENT T H A T P L A N BENEFITS A R E NOT DECREASED BY CERTAIN SOCIAL SECURITY INCREASES.—Section 401(a) is amended by
Ante, p. 937.
42 USC 401.
inserting after paragraph (14) the following new paragraph: "(15) a trust shall not constitute a qualified trust under this section unless under the plan of which such trust is a part— " (A) in the case of a participant or beneficiary who is receiving benefits under such plan, or " (B) in the case of a participant who is separated from the service and who has nonforfeitable rights to benefits, such benefits are not decreased by reason of any increase in the benefit levels payable under title II of the Social Security Act or any increase in the wage base under such title II, if such increase takes place after the date of the enactment of the Employee Retirement Income Security Act of 1974 or (if later) the earlier of the date of first receipt of such benefits or the date of such separation, as the case may be." (f) REQUIREMENT OF NONFORFEITABILITY I N CASE OF CERTAIN
' ^osf, p. 953.
Ante, p. 901.
WITHDRAWALS.—Section 401(a) is amended by inserting after paragraph (18) the following new paragraph: "(19) A trust shall not constitute a qualified trust under this section if under the plan of which such trust is a part any part of a participant's accrued benefit derived from employer contributions (whether or not otherwise nonforfeitable), is forfeitable solely because of withdrawal by such participant of any amount attributable to the benefit derived from contributions made by such participant. The preceding sentence shall not apply to the accrued benefit of any participant unless, at the time of such withdrawal, such participant has a nonforfeitable right to at least 50 percent of such accrued benefit (as determined under section 411). The first sentence of this paragraph shall not apply to the extent that an accrued benefit is permitted to be forfeited in accordance y^\t\i section 411(a)(3)(D) (iii) (relating to proportional forfeitures of benefits accrued before enactment of the Employee Retirement Income Security Act of 1974, in the event of withdrawal of certain mandatory contributions)." SEC. 1022. MISCELLANEOUS PROVISIONS. (a) REQUIREMENT T H A T PLAN NOT B E DISCRIMINATORY.—Section
26 USC 401.
401(a)(4) (disqualifying discriminatory plans) is amended to read as follows:
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