88 STAT. ]
PUBLIC LAW 93-406-SEPT. 2, 1974
plan satisfies the requirements of this paragraph if such plan— " (i) is funded exclusively by the purchase of insurance contracts, and "(ii) satisfies the requirements of paragraphs (2) and (3) of section 412(i) (relating to certain insurance contract plans), but only if an employee's accrued benefit as of any applicable date is not less than the cash surrender value his insurance contracts would have on such applicable date if the requirements of paragraphs (4), (5), and (6) of section 412(i) were satisfied. "(G)
POS^, p. 914.
ACCRUED BENEFIT MAY NOT DECREASE ON ACCOUNT OF
INCREASING AGE O SERVICE.—Notwithstanding the preceding R subparagraphs, a defined benefit plan shall be treated as not satisfying the requirements of this paragraph if the participant's accrued benefit is reduced on account of any increase in his age or service. The preceding sentence shall not apply to benefits under the plan commencing before entitlement to benefits payable under title II of the Social Security Act which benefits under the plan— " (i) do not exceed such social security benefits, and "(ii) terminate when such social security benefits commence. "(2)
909
42 USC 401.
SEPARATE ACCOUNTING REQUIRED I N CERTAIN CASES.—^A
plan satisfies the requirements of this paragraph if— " (A) in the case of a defined benefit plan, the plan requires separate accounting for the portion of each employee's accrued benefit derived from any voluntary employee contributions permitted under the plan; and " (B) in the case of any plan which is not a defined benefit plan, the plan requires separate accounting for each employee's accrued benefit. "(3)
YEAR OF PARTICIPATION.—
" (A) DEFINITION.—For purposes of determining an employee's accrued benefit, the term 'year of participation' means a period of service (beginning at the earliest date on which the employee is a participant in the plan and which is included in a period of service required to be taken into account under section 410(a)(5)) as determined under regulations prescribed by the Secretary of Labor which provide for the calculation of such period on any reasonable and consistent basis. " (B) LESS THAN FULL TIME SERVICE.—For purposes of this paragraph, except as provided in subparagraph (C), in the case of any employee whose customary employment is less than full time, the calculation of such employee's service on any basis which provides less than a ratable portion of the accrued benefit to which he would be entitled under the plan if his customary employment were full time shall not be treated as made on a reasonable and consistent basis. "(C)
LESS THAN 1,000 HOURS OF SERVICE DURING YEAR.—For
purposes of this paragraph, in the case of any employee whose service is less than 1,000 hours during any calendar year, plan year or other 12-consecutive month period designated by the plan (and not prohibited under regulations prescribed by the Secretary of Labor) the calculation of his period of service shall not be treated as not made on a reasonable and consistent basis solely because such service is not taken into account.
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