100 STAT. 2492
PUBLIC LAW 99-514—OCT. 22, 1986 •^. jf '^'^'^
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services for the leasing organization) immediately participates in such plan. Clause (iii) shall not apply to any individual whose compensation from the leasing organization in each plan year during the 4-year period ending with the plan year is less than $1,000. "(C) DEFINITIONS.—For purposes of this paragraph— "(i) HIGHLY COMPENSATED EMPLOYEE.—The term 'highly compensated employee' has the meaning given such term by section 414(q). "(ii)
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NONHIGHLY COMPENSATED WORK FORCE.—The
term 'nonhighly compensated work force' means the aggregate number of individuals (other than highly compensated employees)— "(I) who are employees of the recipient (without regard to this subsection) and have performed services for the recipient (or for the recipient and related persons) on a substantially full-time basis for a period of at least 1 year, or "(II) who are leased employees with respect to the recipient (determined without regard to this paragraph), "(iii) COMPENSATION.—The term 'compensation' has the same meaning as when used in section 415; except that such term shall include— "(I) any employer contribution under a qualified cash or deferred arrangement to the extent not included in gross income under section 402(a)(8) or 402(h)(1)(B), '. 1 "(II) any amount which the employee would have received in cash but for an election under a cafeteria plan (within the meaning of section 125), and "(III) any amount contributed to an annuity contract described in section 4030t>) pursuant to a salary reduction agreement (within the meaning of section 3121(a)(5)(D))."
(2) CLARIFICATION OF YEARS OF SERVICE.—Paragraph (4) of
section 414(n) is amended to read as follows: "(4) TIME WHEN FIRST CONSIDERED AS EMPLOYEE.—
"(A) IN GENERAL.—In the case of any leased employee, paragraph (1) shall apply only for purposes of determining whether the requirements listed in paragraph (3) are met '• for periods after the close of the period referred to in paragraph (2)(B). "(B) YEARS OF SERVICE.—In the case of a person who is an employee of the recipient (whether by reason of this subsection or otherwise), for purposes of the requirements listed in paragraph (3), years of service for the recipient shall be determined by taking into account any period for which such employee would have been a leased employee but for the requirements of paragraph (2)(B)." (3) CONFORMING AMENDMENT.—Paragraph (6) of section 414(n) is amended to read as follows: "(6) OTHER RULES.—For purposes of this subsection— ^ "(A) RELATED PERSONS.—The term 'related persons' has " ^ the same meaning as when used ii. section 103(b)(6)(C).
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