100 STAT. 2436
PUBLIC LAW 99-514-OCT. 22, 1986
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"(1) IN GENERAL.—The requirements of this subsection are met with respect to a plan if— "(A) in the case of a defined contribution plan, the t t>, - requirements of paragraph (2) are met, and "(B) in the case of a defined benefit plan, the requirements of paragraph (3) are met. "(2) DEFINED CONTRIBUTION PLAN.—
"(A) IN GENERAL.—A defined contribution plan meets the requirements of this paragraph if the excess contribution percentage does not exceed the base contribution percentage by more than the lesser of— "(i) the base contribution percentage, or ' • ' ' '
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"(ii) the greater of— "(I) 5.7 percentage points, or "(II) the percentage equal to the portion of the ' ' rate of tax under section 3111(a) (in effect as of the ' beginning of the year) which is attributable to oldage insurance. "(B) CONTRIBUTION PERCENTAGES.—For purposes of this paragraph— "(i) EXCESS CONTRIBUTION PERCENTAGE.—The term •i ' ' ' •' 'excess contribution percentage' means the percentage '- ' of compensation which is contributed under the plan with respect to that portion of each participant's com- .<; s pensation in excess of the integration level. "(ii) BASE CONTRIBUTION PERCENTAGE.—The term 'base contribution percentage' means the percentage of compensation contributed under the plan with respect to that portion of each participant's compensation not in excess of the integration level. "(3) DEFINED BENEFIT PLAN.—A defined benefit plan meets the requirements of this paragraph if— "(A) EXCESS PLANS.—
"(i) IN GENERAL.—In the case of a plan other than an offset plan— "(I) the excess benefit percentage does not exceed the base benefit percentage by more than the ' *^ maximum excess allowance, "(II) any optional form of benefit, preretirement benefit, actuarial factor, or other benefit or feature '• provided with respect to compensation in excess of the integration level is provided with respect to compensation not in excess of such level, and V-^^ i'^^ "(III) benefits are based on average annual •' " - ' compensation. "(ii) BENEFIT PERCENTAGES.—For purposes of this ii.'.rt'i ':•• subparagraph, the excess and base benefit percentages shall be computed in the same manner as the excess and base contribution percentages under paragraph •(2)(B), except that such determination shall be made on ^ the basis of benefits rather than contributions. "• "(B) OFFSET PLANS.—In the case of an offset plan, the plan provides that— "(i) a participant's accrued benefit attributable to employer contributions (within the meaning of section 411(c)(l)) may not be reduced (by reason of the offset) by 8f« 4?i more than the maximum offset allowance, and
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