96 STAT. 518
PUBLIC LAW 97-248—SEPT. 3, 1982 employee (and the account of such employee) shall not be t a k e n into account. "(C)
DETERMINATION
DATE.—The
term
'determination
date ' means, with respect to any plan year— "(i) the last day of the preceding plan year, or "(ii) in the case of the first plan year of any plan, the last day of such plan year. "(D) YEARS.—To the extent provided in regulations, this section shall be applied on the basis of any year specified in such regulations in lieu of plan years. "(h) ADJUSTMENTS IN SECTION 415 LIMITS FOR TO P - H E A V Y P L A N S. —
Ante, p. 506.
"(1) IN GENERAL.—In the case of any top-heavy plan, paragraph s (2)(B) and (3)(B) of section 415(e) shall be applied by substituting '1.0' for '1.25'. "(2) EXCEPTION W H E R E BENEFITS FOR KEY EMPLOYEES DO NOT EXCEED 9 0 PERCENT OF TOTAL BENEFITS AND ADDITIONAL CONTRI-
BUTIONS ARE MADE FOR NON-KEY EMPLOYEES.—Paragraph (1) shall not apply with respect to any top-heavy plan if the requirements of subparagraph s (A) and (B) of this paragraph a r e met with respect to such plan. "(A) MINIMUM BENEFIT REQUIREMENTS.—
"(i) IN GENERAL.—The requirements of this subparagraph a r e m e t with respect to any top-heavy plan if such plan (and any plan required to be included in a n aggregation group with such plan) meets the requirements of subsection (c) as modified by clause (ii). "(ii) MODIFICATIONS.—For purposes of clause (i)— "(I) paragraph (1)(B) of subsection (c) shall be applied by substituting '3 percent' for '2 percent', and by increasing (but not by more than 10 percentage points) 20 percent by 1 percentage point for each year for which such plan was t a k e n into account under this subsection, and "(II) paragraph (2)(A) shall be applied by substituting '4 percent' for '3 percent'. "(B) B E N E F I T S FOR KEY EMPLOYEES CANNOT EXCEED 90 PERCENT OF TOTAL BENEFITS.—A p l a n m e e t s the r e q u i r e -
m e n t s of this subparagraph if such plan would not be a topheavy plan if '90 percent' were substituted for '60 percent' each place it appears in paragraph s (1)(A) and (2)(B) of subsection (g). "(3) TRANSITION RULE.—If, b u t for this paragraph, paragraph (1) would begin to apply with respect to any top-heavy plan, the application of paragraph (1) shall be suspended with respect to any individual so long as the r e a r e no— "(A) employer contributions, forfeitures, or voluntary nondeductible contributions allocated to such individual, or "(B) accruals for such individual under the defined benefit plan. "(4) COORDINATION WITH TRANSITIONAL RULE UNDER SECTION
415.—In the case of any top-heavy plan to which paragraph (1) applies, section 415(e)(6)(B)(i) shall be applied by substituting '$41,500' for '$51,875'. "(i) DEFINITIONS.—For purposes of this section— "(1) K E Y EMPLOYEE.—
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