108 STAT. 5038 PUBLIC LAW 103-465—DEC. 8, 1994 (1) DETERMINATION OF PRESENT VALUE FOR PURPOSES OF RESTRICTIONS ON MANDATORY DISTRIBUTIONS.— Subparagraph (B) of section 411(a)(ll) is amended to read as follows: "(B) DETERMINATION OF PRESENT VALUE.—For purposes of subparagraph (A), the present value shall be calculated in accordance with section 417(6)(3)." (2) DETERMINATION OF PRESENT VALUE FOR PURPOSES OF 26 USC 417. RESTRICTIONS ON CASH-OUTS. —Paragraph (3) of section 417(e) is amended to read as follows: " (3) DETERMINATION OF PRESENT VALUE.— " (A) IN GENERAL. — "(i) PRESENT VALUE.—Except as provided in subparagraph (B), for purposes of paragraphs (1) and (2), the present value shall not be less than the present vsJue calculated by using the applicable mortahty table and the applicable interest rate. " (ii) DEFINITIONS.— For piuposes of clause (i)— "(I) APPLICABLE MORTALITY TABLE.— The term 'applicable mortaUty table' means the table prescribed by the Secretary. Such table shall be based on the prevailing commissioners' standard table (described in section 807(d)(5)(A)) used to determine reserves for group annuity contracts issued on the date as of which present value is being determined (without regard to any other subparagraph of section 807(d)(5)). "(II) APPLICABLE INTEREST RATE.— The term 'applicable interest rate' means the annual rate of interest on 30-year Treasury securities for the month before the date of distribution or such other time as the Secretary may by regulations prescribe. "(B) EXCEPTION.— In the case of a distribution from a plan that was adopted and in effect before the date of the enactment of the Retirement Protection Act of 1994, the present value of any distribution made before the ear- Uer of— "(i) the later of the date a plan amendment apply- ing subparagraph (A) is adopted or made effective, or "(ii) the first day of the first plan year beginning after December 31, 1999, shall be calculated, for purposes of paragraphs (1) and (2), using the interest rate aetermined under the regulations of the Pension Benefit Gusiranty Corporation for determining the present value of a lump simi distribution on plan termination that were in effect on September 1, 1993, and using the provisions of the plan as in effect on the day beiore such date of enactment; but only if such provisions of the plan met the requirements of section 417(e)(3) as in effect on the day before such date of enactment." (b) AMENDMENTS TO INTERNAL REVENUE CODE OF 1986 RELAT- ING TO MAXIMUM BENEFITS. — Subparagraph (E) of section 415(b)(2) is amended— (1) by redesignating clauses (ii) and (iii) as clauses (iii) and (iv), respectively,
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