PUBLIC LAW 103-465—DEC. 8, 1994 108 STAT. 5005 "(2) METHOD. —The regulations prescribed under paragraph (1) shall provide for— "(A) an at^ustment with respect to any calendar year based on the increase in the applicable index for the calendar quarter ending September 30 of the preceding calendar year over such index for the base period, and "(B) adjustment procedures which are similar to the procedures used to adjust benefit amounts under section 215(i)(2)(A) of the Social Security Act. "(3) BASE PERIOD. —For purposes of paragraph (2)— " (A) $90,000 AMOUNT. —The base period taken into account for purposes of paragraph (1)(A) is the calendar quarter beginning October 1, 1986. "(B) SEPARATIONS AFTER DECEMBER 3I, 1994.—The base period taken into account for purposes of paragraph (1)(B) with respect to Individuals separating fix)m service with the employer after December 31, 1994, is the calendar quarter beginning July 1 of the calendar year preceding the calendar year in which such separation occurs. "(C) SEPARATIONS BEFORE JANUARY 1, 1995.—The base period taken into account for purposes of paragraph (1)(B) with respect to individuals separating from service with the employer before January 1, 1995, is the calendar quarter beginning October 1 of the calendar year preceding the calendar year' in which such sepsu'ation occurs. "(D) $30,000 AMOUNT.— The base period taken into account for purposes of paragraph (1)(C) is the calendar quarter beginning October 1, 1993. "(4) ROUNDING.— Any increase under subparagraph (A) or (C) of paragraph (1) wMch is not a midtiple of $5,000 shall be rounded to the next lowest multiple of $5,000." (2) CONFORMING AMENDMENT.— Section 415(c)(1)(A) is 26 USC 415. amended by striking "(or, if greater, V4 of the doUfu* limitation in effect under subsection (b)(1)(A))". (c) CosT-OF-LiviNG ADJUSTMENT FOR MAXIMUM SALARY DEFER- RAL.—Section 402(g)(5) is amended by inserting before the period "; except that any increase under tiiis paragraph which is not a mtdtiple of $500 shall be rounded to the next lowest multiple of $500". (d) CosT-oF-LiviNG ADJUSTMENT FOR ELIGIBILITY FOR SIM- PUFIED EMPLOYEE PENSIONS.—Section 408(k)(8) is amended by inserting before the period "; except that any increase in the $300 amount which is not a multiple of $50 shall be rounded to the next lowest multiple of $50". (e) EFFECTIVE DATES.— 26 USC 401 note. (1) IN GENERAL.— Except as provided in paragraph (2), the amendments made by this section shall apply to years beginning after December 31, 1994. (2) ROUNDING NOT TX) RESULT IN DECREASES.—The amendments made by this section providing for the rounding of indexed amounts shall not apply to any year to the extent the rounding would require the indexed amount to be reduced below the amount in effect for years beginning in 1994.
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