898
PUBLIC LAW 93-406-SEPT. 2, 1974
[88 STAT.
TITLE II—AMENDMENTS TO THE INTERNAL REVENUE CODE RELATING TO RETIREMENT PLANS SEC. 1001. AMENDMENT OF INTERNAL REVENUE CODE OF 1954.
26 USC 1 et seq.
Except as otherwise expressly provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1954.
Subtitle A—Participation, Vesting, Funding, Administration, Etc. PART 1—PARTICIPATION, VESTING, AND FUNDING SEC. 1011. MINIMUM PARTICIPATION STANDARDS.
Part I of subchapter D of chapter 1 (relating to pension, profitsharing, stock bonus, plans, etc.) is amended by adding at the end thereof the following: "Subpart B—Special Rules "Sec. "Sec. "Sec. "Sec. "Sec. "Sec. 26 USC 410.
410. Minimum participation standards. 411. Minimum vesting standards. 412. Minimum funding standards. 413. Collectively bargained plans. 414. Definitions and special rules. 415. Limitations on benefits and contributions under qualified plans.
"SEC. 410. MINIMUM PARTICIPATION STANDARDS. "(a)
PARTICIPATION.— " (1) MINIMUM AGE AND SERVICE CONDITIONS.— " (A) GENERAL RULE.—A trust shall not constitute
a qualified trust under section 401(a) if the plan of which it is a part requires, as a condition of participation in the plan, that an employee complete a period of service with the employer or employers maintaining the plan extending beyond the later of the following dates— " (i) the date on which the employee attains the age of 25; or " (ii) the date on which he completes 1 year of service. "(B)
Post, p. 901.
^^ ^^^ '^°26 USC 501.
Post, p. 901.
SPECIAL RULES FOR CERTAIN PLANS.—
"(i) I n the case of any plan which provides that after not more than 3 years of service each participant has a right to 100 percent of his accrued benefit under the plan which is nonforfeitable (within the meaning of section ^^^y^ ^^ YiQ time such benefit accrues, clause (ii) of subparagraph (A) shall be applied by substituting '3 years of service' for '1 year of service'. "(ii) I n the case of any plan maintained exclusively for employees of an educational institution (as defined in section 170(b)(1)(A) (ii)) by an employer which is exempt from tax under section 501(a) which provides that each participant having at least 1 year of service has a right to 100 percent of his accrued benefit under the plan which is nonforfeitable (within the meaning of section 411) at the time such benefit accrues, clause (i) of
�
