PUBLIC LAW 100-647—NOV. 10, 1988
102 STAT. 3461
(4) Section 414(o) of the 1986 Code is amended by inserting "or any requirement under section 457" after "(n)(3)". (5)(A) Paragraph (6) of section 818(a) of the 1986 Code (defining pension plan contracts) is amended— (i) by striking out "State" in subparagraph (A), (ii) by inserting "or any organization (other than a governmental imit) exempt from tax under this subtitle," > after "forgoing," in subparagraph (B), (iii) by striking out "or" before "agency" in subparagraph (B), and (iv) by inserting ", or organization" after "instrumentality" the second place it appears in subparagraph (B). (B) The amendments made by this paragraph shall apply to 26 USC 818 note. contracts issued after December 31, 1986. (6) Section 1107(c)(3) of the Reform Act is amended— 26 USC 457 note. (A) by striking out "eligible" each place it appears, and (B) by inserting at the end of subparagraph (B) the following new sentence: "This subparagraph shall only apply to individuals who were covered under the plan and agreement on August 16, 1986." (7) Paragraph (5) of section 1107(c) of the Reform Act is amended— (A) by striking out "to employees on August 1, 1986, o f, (B) by striking out "a deferred compensation plan" in subparagraph (A) and inserting in lieu thereof "to employees on August 16, 1986,", (C) by inserting "maintaining a deferred compensation plan" aiter "Alabama" in subparagraph (A), and . (D) by striking out "a deferred compensation plan" in subparagraph (B) and inserting in lieu thereof "to individuals eligible to participate on August 16, 1986, in a deferred compensation plan". (8) Section 3121(v)(3)(A) of the 1986 Code is amended by striking out "457(e)(l)" and inserting in lieu thereof "457(£X1)". (9) Effective for years beginning after December 31, 1988, paragraph (9) of section 457(e) of the 1986 (Dode is amended by inserting "after separation from service and" before "within 60 days". (10) Subclause (1) of section 457(d)(2)(B)(i) of the 1986 Code is amended to read as follows: "(I) the amounts payable with respect to the participant will be paid at times specified by the Secretary which are not later than the time determined under section 401(a)(9)(G) (relating to incidental death benefits),", (f) AMENDMENTS RELATED TO SECTION 1108 OF THE REFORM ACT.— Retirement. (1) Subparagraph (A) of section 408(k)(6) of the 1986 Code (relating to salary reduction arrangements under simplified employee pensions) is amended to read as follows: .
"(A) A R R A N G E B I E N T S WHICH QUALIFY.—
"(i) IN GENERAL.—A simplified employee pension shall not fail to meet the requirements of this subsection for a year merely because, under the terms of the pension, an employee may elect to have the employer make payments—
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