88 STAT. ]
PUBLIC LAW 93-406-SEPT. 2, 1974
981
survivor annuity (as defined in section 401(a) (11)(H) (iii)) shall not be taken into account.
^"'^' P* ^^S.
"(C)
ADJUSTMENT TO $75,000 LIMIT WHERE BENEFIT BEGINS BEFORE AGE 5 5.—If the retirement income benefit under
the plan begins before age 55, the determination as to whether the $75,000 limitation set forth in paragraph (1)(A) has been satisfied shall be made, in accordance with regulations prescribed by the Secretary or his delegate, by adjusting such benefit so that it is equivalent to such a benefit beginning at age 55. "(3)
AVERAGE
COMPENSATION
FOR
HIGH
3
YEARS.—For
purposes of paragraph (1), a participant's high 3 years shall be the period of consecutive calendar years (not more than 3) during which the participant both was an active participant in the plan and had the greatest aggregate compensation from the employer. I n the case of an employee within the meaning of section 401 (c)(1), the preceding sentence shall be applied by substituting for 'compensation from the employer' the following: 'the participant's earned income (within the meaning of section 401(c)(2) but determined without regard to any exclusion under section 911)'. "(4)
26 USC 4oi.
26 USC 911. TOTAL ANNUAL BENEFITS NOT I N EXCESS OF $IO,OOO.—Not-
withstanding the preceding provisions of this subsection, the benefits payable with respect to a participant under any defined benefit plan shall be deemed not to exceed the limitation of this subsection if— " (A) the retirement benefits payable with respect to such participant under such plan and under all other defined benefit plans of the employer do not exceed $10,000 for the plan year, or for any prior plan year, and " (B) the employer has not at any time maintained a defined contribution plan in which the participant participated. "(5)
REDUCTION FOR SERVICE LESS THAN
lo YEARS.—In
the
case of an employee who has less than 10 years of service with the employer, the limitation referred to in paragraph (1), and the limitation referred to in paragraph (4), shall be the limitation determined under such paragraph (without regard to this paragraph), multiplied by a fraction, the numerator of which is the number of years (or part thereof) of service with the employer and the denominator of which is 10. ' (6)
COMPUTATION
OF BENEFITS
AND
CONTRIBUTIONS.—The
computation of— " (A) benefits under a defined contribution plan, for purposes of section 401(a)(4), " (B) contributions made on behalf of a participant in a defined benefit plan, for purposes of section 401(a)(4), and " (C) contributions and benefits provided for a participant in a plan described in section 414(k), for purposes of this section shall not be made on a basis inconsistent with regulations prescribed by the Secretary or his delegate. "(c)
LIMITATION FOR DEFINED CONTRIBUTION PLANS.—
"(1) IN GENERAL.—Contributions and other additions with respect to a participant exceed the limitation of this subsection if. when expressed as an annual addition (within the meaning of
38-194 O - 76 - 65 Pt. 1
^"^^' p- ^38.
Ante, p. 925.
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