PUBLIC LAW 99-514—OCT. 22, 1986
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100 STAT. 2489
(I) is adopted within 1 year of the date of the enactment of this Act, and (II) is not effective until 2 years after the employees are notified of such amendment, and (ii) the present value of any vested accrued benefit of such plan determined during the 3-year period beginning on the date of the enactment of this Act shall be determined under the applicable interest rate (within the meaning of section 411(a)(ll)(B)(ii) of such Code), except that if such value (as so determined) exceeds $50,()00, then the value of any excess over $50,000 shall be determined by using the interest rate specified in the plan as of August 16, 1986.
SEC. 1140. PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989.
(a) IN GENERAL.—If any amendment made by this subtitle or subtitle C requires an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after January 1, 1989, if— (1) during the period after such amendment takes effect and before such first plan year, the plan is operated in accordance with the requirements of such amendment or in accordance with an amendment prescribed by the Secretary and adopted by the plan, and (2) such plan amendment applies retroactively to the period after such amendment takes effect and such first plan year. A pension plan shall not be treated as failing to provide definitely determinable benefits or contributions, or to be operated in accordance with the provisions of the plan, merely because it operates in accordance with this provision. Ob) MODEL AMENDMENT.— (1) SECRETARY TO PRESCRIBE AMENDMENT.—The Secretary of
the Treasury or his delegate shall prescribe an amendment or amendments which allow a plan to meet the requirements of any amendment made by this subtitle or subtitle C— (A) which requires an amendment to such plan, and ' (B) is effective before the first plan year beginning after December 31, 1988. (2) ADOPTION BY PLAN.—If a plan adopts the amendment or amendments prescribed under paragraph (1) and operates in accordance with such amendment or amendments, such plan shall not be treated as failing to provide definitely determinable benefits or contributions or to be operated in accordance with the provisions of the plan. (c) SPECIAL RULE FOR COLLECTIVELY BARGAINED PLANS.—In
the
case of a plan maintained pursuant to 1 or more collective bargaining agreements between employee representatives and 1 or more employers ratified before March 1, 1986, subsection (a) shall be applied by substituting for the first plan year beginning on or after January 1, 1989, the first plan year beginning after the earlier of— (1) the later of— (A) January 1, 1989, or (B) the date on which the last of such collective bargaining agreements terminate (determined without regard to any extension thereof after February 28, 1986), or (2) January 1, 1991.
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