Page:United States Statutes at Large Volume 110 Part 3.djvu/90

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110 STAT. 1820 PUBLIC LAW 104-188—AUG. 20, 1996 (1) Subsection (a)(5) of section 3121, as amended by section 1421, is amended by striking "(or)" at the end of subparagraph (G), by inserting "or" at the end of subparagraph (H), and by adding at the end the following new subparagraph: "(I) under a plan described in section 457(e)(ll)(A)(ii) and maintained by an eligible employer (as defined in section 457(e)(1)). ". 42 USC 409. (2) Section 209(a)(4) of the Social Security Act is amended by inserting "; or (K) under a plan described in section 457(e)(ll)(A)(ii) of the Internal Revenue Code of 1986 and maintained by an eligible employer (as defined in section 457(e)(1) of such Code)" before the semicolon at the end thereof, (c) EFFECTIVE DATE. — 26 USC 457 note. (1) SUBSECTION (a). —The amendment made by subsection (a) shall apply to accruals of length of service awards after December 31, 1996. 26 USC 3121 (2) SUBSECTION (b).—The amendments made by subsection note. (b) shall apply to remuneration paid after December 31, 1996. SEC. 1459. ALTERNATIVE NONDISCRIMINATION RULES FOR CERTAIN PLANS THAT PROVIDE FOR EARLY PARTICIPATION. (a) CASH OR DEFERRED ARRANGEMENTS. —Paragraph (3) of section 401(k) (relating to application of participation and discrimination standards), as amended by section 1433(d)(1) of this Act, is amended by adding at the end the following new subparagraph: " (F) SPECIAL RULE FOR EARLY PARTICIPATION. — If an employer elects to apply section 410(b)(4)(B) in determining whether a cash or deferred arrangement meets the requirements of subparagraph (A)(i), the employer may, in determining whether the arrangement meets the requirements of subparagraph (A)(ii), exclude from consideration all eligible employees (other than highly compensated employ- ees) who have not met the minimum age and service requirements of section 410(a)(1)(A).". (b) MATCHING CONTRIBUTIONS. —Paragraph (5) of section 401(m) (relating to employees taken into consideration) is amended by adding at the end the following new subparagraph: " (C) SPECIAL RULE FOR EARLY PARTICIPATION. — If an employer elects to apply section 410(b)(4)(B) in determining whether a plan meets the requirements of section 410(b), the employer may, in determining whether the plan meets the requirements of paragraph (2), exclude from consideration all eligible employees (other than highly compensated employees) who have not met the minimum age and service requirements of section 410(a)(1)(A).". 26 USC 401 note. (c) EFFECTIVE DATE. —The amendments made by this section shall apply to plan years beginning after December 31, 1998. SEC. 1460. CLARIFICATION OF APPLICATION OF ERISA TO INSURANCE COMPANY GENERAL ACCOUNTS. (a) IN GENERAL.—Section 401 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1101) is amended by adding at the end the following new subsection: Proposed "(c)(1)(A) Not later than June 30, 1997, the Secretary shall regulations. issue proposed regulations to provide guidance for the purpose of determining, in cases where an insurer issues 1 or more policies to or for the benefit of an employee benefit plan (and such policies are supported by assets of such insurer's general account), which