PUBLIC LAW 97-248—SEPT. 3, 1982
96 STAT. 507
"(i) the n u m e r a to r of which is the lesser of— "(I) $51,875, or "(II) 1.4, multiplied by 25 percent of the compensation of the participant for the year ending in 1981, and "(ii) the denominator of which is the lesser of— "(I) $41,500, or "(II) 25 percent of the compensation of the participant for the year ending in 1981." (e) ACTUARIAL ADJUSTMENTS. — (1) ACTUARIAL ADJUSTMENTS FOR EARLY RETIREMENT MADE BY
REFERENCE TO AGE 62 (INSTEAD OF 55).—Subparagraph ( O of section 415(b)(2) (relating to adjustments w h e r e benefit begins before age 55) is amended by striking o u t " 5 5 " each place it appears and inserting in lieu thereof "62".
26 USC 415.
(2) $75,000 FLOOR ON ACTUARIAL ADJUSTMENT WHERE BENEFIT
BEGINS BEFORE 62.—Subparagraph (C) of section 415(b)(2) is amended by adding a t the end thereof the following new sentence: "The reduction under this subparagraph shall not reduce the limitation of paragraph (1)(A) below— "(i) if the benefit begins a t or after age 55, $75,000, or "(ii) if the benefit begins before age 55, the a m o u n t which is the equivalent of the $75,000 limitation for age 55." (3) ACTUARIAL ADJUSTMENTS WHERE BENEFIT BEGINS AFTER AGE
65.—Paragraph (2) of section 415(b) is amended by adding a t the end thereof the following new subparagraph: "(D) ADJUSTMENT TO $90,OOO LIMITATION WHERE BENEFIT
BEGINS AFTER AGE 65.—If the retirement income benefit under the plan begins after age 65, the determination as to w h e the r the $90,000 limitation set forth in paragraph (1)(A) has been satisfied shall be made, in accordance with regulations prescribed by the Secretary, by adjusting such benefit so that it is equivalent to such a benefit beginning a t age 65." (4) LIMITATIONS ON ACTUARIAL ADJUSTMENTS UNDER SECTION
4 1 5 (b)(2). — Paragraph (2) of section 415(b) is amended by adding a t the end thereof the following new subparagraph: "(E) LIMITATION ON CERTAIN ASSUMPTIONS.—
"(i) For purposes of adjusting any benefit under subparagraph (B) or (C), the interest r a t e assumption shall not be less than the g r e a t e r of 5 percent or the r a t e specified in the plan. "(ii) For purposes of adjusting any benefit under subparagraph (D), the interest r a t e assumption shall not be g r e a t e r than the lesser of 5 percent or the r a t e specified in the plan. "(iii) For purposes of adjusting any benefit under subparagraph (B), (C), or (D), no adjustments under subsection (d)(1) shall be t a k e n into account before the year for which such adjustment first takes effect." (f) LIMITATIONS ON DEDUCTIBILITY OF CONTRIBUTIONS.—Section 404
(relating to contributions of a n employer to a n employee's trust, etc.) is amended by adding a t the end thereof the following new subsection: "(j) SPECIAL RULES R E L A T I N G TO APPLICATION W I T H SECTION 415.—
95 Stat. 293
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