PUBLIC LAW 103-465—DEC. 8, 1994 108 STAT. 5039 (2) by striking clause (i) and inserting the following new clauses: "(i) Except as provided in clause (ii), for purposes of adjusting any benefit or limitation under subparagraph (B) or (C), the interest rate assumption shall not be less than the greater of 5 percent or the rate specified in the plan. "(ii) For purposes of adjusting the benefit or limitation of any form of benefit subject to section 417(e)(3), the applicable interest rate (as defined in section 417(e)(3)) shall be substituted for '5 percent* in clause (i).", and (3) by adding at the end the following new clause: "(v) For pu]-poses of adjusting any benefit or limitation under subparagraph (B), (C), or (D), the mortsdity table used shall be the table prescribed by the Secretary. Such table shall be based on the prevailing commissioners' standsird table (described in section 807(d)(5)(A)) used to determine reserves for group annuity contracts issued on the date the adjustment is being made (without regard to any other subp£u^- graph of section 807(d)(5)).' ' (c) AMENDMENTS TO EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974.— (1) DETERMINATION OF PRESENT VALUE FOR PURPOSES OF RESTRICTIONS ON MANDATORY DISTRIBUTIONS.—Section 203(e)(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1053(e)(2)) is amended to read as follows: "(2) For purposes of paragraph (1), the present value shall be calculated in accordance with section 205(g)(3). (2) DETERMINATION OF PRESENT VALUE FOR PURPOSES OF RESTRICTIONS ON CASH-OUTS. —Section 205(g)(3) of such Act (29 U.S.C. 1055(g)(3)) 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 value calculated by using the applicable mortality table and the applicable interest rate. "(ii) DEFINITIONS.— For purposes of clause (i)— "(I) APPLICABLE MORTALITY TABLE.—The term 'applicable mortality table' means the table prescribed by the Secretary of the Treasury. Such table shall be based on the prevailing commissioners' standard table (described in section 807(d)(5)(A) of the Internal Revenue Code of 1986) 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) of such Code). "(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 of the Treasury may by regulations prescribe.
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