Page 399 TITLE 29—LABOR § 1056

Dec. 31, 1984, except that such amendments shall not

apply to any distributions in plan years beginning after

Dec. 31, 1984, and before Jan. 1, 1987, if such distributions were made in accordance with the requirements

of the regulations issued under the Retirement Equity

Act of 1984, Pub. L. 98–397, with additional provisions

relating to reductions in accrued benefits, see section

1139(d) of Pub. L. 99–514, set out as a note under section

411 of Title 26, Internal Revenue Code.

Amendment by section 1145(b) of Pub. L. 99–514 applicable as if included in the amendments made by the Retirement Equity Act of 1984, Pub. L. 98–397, see section

1145(d) of Pub. L. 99–514, set out as a note under section

401 of Title 26.

Amendment by section 1898(b)(4)(B) of Pub. L. 99–514

applicable with respect to loans made after Aug. 18,

1985, see section 1898(b)(4)(C) of Pub. L. 99–514, set out

as a note under section 417 of Title 26.

Amendment by section 1898(b)(6)(B) of Pub. L. 99–514

applicable to plan years beginning after Oct. 22, 1986,

see section 1898(b)(6)(C) of Pub. L. 99–514, set out as a

note under section 417 of Title 26.

Amendment by section 1898(b)(8)(B) of Pub. L. 99–514

applicable to distributions after Oct. 22, 1986, see section 1898(b)(8)(C) of Pub. L. 99–514, as added, set out as

a note under section 417 of Title 26.

Amendment by section 1898(b)(1)(B), (2)(B), (3)(B),

(5)(B), (7)(B), (9)(B), (10)(B), (11)(B), (12)(B), (13)(B),

(14)(B) of Pub. L. 99–514 effective as if included in the

provision of the Retirement Equity Act of 1984, Pub. L.

98–397, to which such amendment relates, except as

otherwise provided, see section 1898(j) of Pub. L. 99–514,

set out as a note under section 401 of Title 26.

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by Pub. L. 98–397 applicable to plan years

beginning after Dec. 31, 1984, except as otherwise provided, see sections 302 and 303 of Pub. L. 98–397, set out

as a note under section 1001 of this title.

Nothing in amendment by Pub. L. 98–397 to prevent

any distribution required by reason of failure to comply with terms of loan made on or before Aug. 18, 1985,

and secured by portion of participant’s accrued benefit,

see section 1898(b)(4)(C)(ii) of Pub. L. 99–514, set out as

an Effective Date of 1986 Amendment note under section 417 of Title 26, Internal Revenue Code.

PLAN AMENDMENTS NOT REQUIRED UNTIL

JANUARY 1, 1998

For provisions directing that if any amendments

made by subtitle D [§§1401–1465] of title I of Pub. L.

104–188 require an amendment to any plan or annuity

contract, such amendment shall not be required to be

made before the first day of the first plan year beginning on or after Jan. 1, 1998, see section 1465 of Pub. L.

104–188, set out as a note under section 401 of Title 26,

Internal Revenue Code.

PLAN AMENDMENTS NOT REQUIRED UNTIL

JANUARY 1, 1989

For provisions directing that if any amendments

made by subtitle A or subtitle C of title XI [§§1101–1147

and 1171–1177] or title XVIII [§§1800–1899A] of Pub. L.

99–514 require an amendment to any plan, such plan

amendment shall not be required to be made before the

first plan year beginning on or after Jan. 1, 1989, see

section 1140 of Pub. L. 99–514, as amended, set out as a

note under section 401 of Title 26, Internal Revenue

Code.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1053, 1054, 1056,

1061, 1322, 1350 of this title; title 28 section 3010.

§ 1056. Form and payment of benefits

(a) Commencement date for payment of benefits

Each pension plan shall provide that unless

the participant otherwise elects, the payment of

benefits under the plan to the participant shall

begin not later than the 60th day after the latest

of the close of the plan year in which—

(1) occurs the date on which the participant

attains the earlier of age 65 or the normal retirement age specified under the plan,

(2) occurs the 10th anniversary of the year in

which the participant commenced participation in the plan, or

(3) the participant terminates his service

with the employer.

In the case of a plan which provides for the payment of an early retirement benefit, such plan

shall provide that a participant who satisfied

the service requirements for such early retirement benefit, but separate from the service

(with any nonforfeitable right to an accrued

benefit) before satisfying the age requirement

for such early retirement benefit, is entitled

upon satisfaction of such age requirement to receive a benefit not less than the benefit to which

he would be entitled at the normal retirement

age, actuarially reduced under regulations prescribed by the Secretary of the Treasury.

(b) Decrease in plan benefits by reason of increases in benefit levels under Social Security Act or Railroad Retirement Act of 1937

If—

(1) a participant or beneficiary is receiving

benefits under a pension plan, or

(2) a participant is separated from the service and has non-forfeitable rights to benefits,

a plan may not decrease benefits of such a participant by reason of any increase in the benefit

levels payable under title II of the Social Security Act [42 U.S.C. 401 et seq.] or the Railroad

Retirement Act of 1937 [45 U.S.C. 231 et seq.] or

any increase in the wage base under such title

II, if such increase takes place after September

2, 1974, or (if later) the earlier of the date of first

entitlement of such benefits or the date of such

separation.

(c) Forfeiture of accrued benefits derived from

employer contributions

No pension plan may provide that any part of

a participant’s accrued benefit derived from employer contributions (whether or not otherwise

nonforfeitable) is forfeitable solely because of

withdrawal by such participant of any amount

attributable to the benefit derived from contributions made by such participant. The preceding sentence shall not apply (1) to the accrued benefit of any participant unless, at the

time of such withdrawal, such participant has a

nonforfeitable right to at least 50 percent of

such accrued benefit, or (2) to the extent that an

accrued benefit is permitted to be forfeited in

accordance with section 1053(a)(3)(D)(iii) of this

title.

(d) Assignment or alienation of plan benefits

(1) Each pension plan shall provide that benefits provided under the plan may not be assigned

or alienated.

(2) For the purposes of paragraph (1) of this

subsection, there shall not be taken into account any voluntary and revocable assignment

of not to exceed 10 percent of any benefit payment, or of any irrevocable assignment or alien-
§ 1056 TITLE 29—LABOR Page 400

ation of benefits executed before September 2,

1974. The preceding sentence shall not apply to

any assignment or alienation made for the purposes of defraying plan administration costs.

For purposes of this paragraph a loan made to a

participant or beneficiary shall not be treated as

an assignment or alienation if such loan is secured by the participant’s accrued non-forfeitable benefit and is exempt from the tax imposed

by section 4975 of title 26 (relating to tax on prohibited transactions) by reason of section

4975(d)(1) of title 26.

(3)(A) Paragraph (1) shall apply to the creation, assignment, or recognition of a right to

any benefit payable with respect to a participant pursuant to a domestic relations order, except that paragraph (1) shall not apply if the

order is determined to be a qualified domestic

relations order. Each pension plan shall provide

for the payment of benefits in accordance with

the applicable requirements of any qualified domestic relations order.

(B) For purposes of this paragraph—

(i) the term ‘‘qualified domestic relations

order’’ means a domestic relations order—

(I) which creates or recognizes the existence of an alternate payee’s right to, or assigns to an alternate payee the right to, receive all or a portion of the benefits payable

with respect to a participant under a plan,

and

(II) with respect to which the requirements of subparagraphs (C) and (D) are met,

and

(ii) the term ‘‘domestic relations order’’

means any judgment, decree, or order (including approval of a property settlement agreement) which—

(I) relates to the provision of child support, alimony payments, or marital property

rights to a spouse, former spouse, child, or

other dependent of a participant, and

(II) is made pursuant to a State domestic

relations law (including a community property law).

(C) A domestic relations order meets the requirements of this subparagraph only if such

order clearly specifies—

(i) the name and the last known mailing address (if any) of the participant and the name

and mailing address of each alternate payee

covered by the order,

(ii) the amount or percentage of the participant’s benefits to be paid by the plan to each

such alternate payee, or the manner in which

such amount or percentage is to be determined,

(iii) the number of payments or period to

which such order applies, and

(iv) each plan to which such order applies.

(D) A domestic relations order meets the requirements of this subparagraph only if such

order—

(i) does not require a plan to provide any

type or form of benefit, or any option, not

otherwise provided under the plan,

(ii) does not require the plan to provide increased benefits (determined on the basis of

actuarial value), and

(iii) does not require the payment of benefits

to an alternate payee which are required to be

paid to another alternate payee under another

order previously determined to be a qualified

domestic relations order.

(E)(i) A domestic relations order shall not be

treated as failing to meet the requirements of

clause (i) of subparagraph (D) solely because

such order requires that payment of benefits be

made to an alternate payee—

(I) in the case of any payment before a participant has separated from service, on or

after the date on which the participant attains

(or would have attained) the earliest retirement age,

(II) as if the participant had retired on the

date on which such payment is to begin under

such order (but taking into account only the

present value of benefits actually accrued and

not taking into account the present value of

any employer subsidy for early retirement),

and

(III) in any form in which such benefits may

be paid under the plan to the participant

(other than in the form of a joint and survivor

annuity with respect to the alternate payee

and his or her subsequent spouse).

For purposes of subclause (II), the interest rate

assumption used in determining the present

value shall be the interest rate specified in the

plan or, if no rate is specified, 5 percent.

(ii) For purposes of this subparagraph, the

term ‘‘earliest retirement age’’ means the earlier of—

(I) the date on which the participant is entitled to a distribution under the plan, or

(II) the later of the date of the participant

attains age 50 or the earliest date on which the

participant could begin receiving benefits

under the plan if the participant separated

from service.

(F) To the extent provided in any qualified domestic relations order—

(i) the former spouse of a participant shall

be treated as a surviving spouse of such participant for purposes of section 1055 of this

title (and any spouse of the participant shall

not be treated as a spouse of the participant

for such purposes), and

(ii) if married for at least 1 year, the surviving former spouse shall be treated as meeting

the requirements of section 1055(f) of this title.

(G)(i) In the case of any domestic relations

order received by a plan—

(I) the plan administrator shall promptly notify the participant and each alternate payee

of the receipt of such order and the plan’s procedures for determining the qualified status of

domestic relations orders, and

(II) within a reasonable period after receipt

of such order, the plan administrator shall determine whether such order is a qualified domestic relations order and notify the participant and each alternate payee of such determination.

(ii) Each plan shall establish reasonable procedures to determine the qualified status of domestic relations orders and to administer distributions under such qualified orders. Such procedures—

(I) shall be in writing,
Page 401 TITLE 29—LABOR § 1056

(II) shall provide for the notification of each

person specified in a domestic relations order

as entitled to payment of benefits under the

plan (at the address included in the domestic

relations order) of such procedures promptly

upon receipt by the plan of the domestic relations order, and

(III) shall permit an alternate payee to designate a representative for receipt of copies of

notices that are sent to the alternate payee

with respect to a domestic relations order.

(H)(i) During any period in which the issue of

whether a domestic relations order is a qualified

domestic relations order is being determined (by

the plan administrator, by a court of competent

jurisdiction, or otherwise), the plan administrator shall separately account for the amounts

(hereinafter in this subparagraph referred to as

the ‘‘segregated amounts’’) which would have

been payable to the alternate payee during such

period if the order had been determined to be a

qualified domestic relations order.

(ii) If within the 18-month period described in

clause (v) the order (or modification thereof) is

determined to be a qualified domestic relations

order, the plan administrator shall pay the segregated amounts (including any interest thereon) to the person or persons entitled thereto.

(iii) If within the 18-month period described in

clause (v)—

(I) it is determined that the order is not a

qualified domestic relations order, or

(II) the issue as to whether such order is a

qualified domestic relations order is not resolved,

then the plan administrator shall pay the segregated amounts (including any interest thereon) to the person or persons who would have

been entitled to such amounts if there had been

no order.

(iv) Any determination that an order is a

qualified domestic relations order which is made

after the close of the 18-month period described

in clause (v) shall be applied prospectively only.

(v) For purposes of this subparagraph, the 18-

month period described in this clause is the 18-

month period beginning with the date on which

the first payment would be required to be made

under the domestic relations order.

(I) If a plan fiduciary acts in accordance with

part 4 of this subtitle in—

(i) treating a domestic relations order as

being (or not being) a qualified domestic relations order, or

(ii) taking action under subparagraph (H),

then the plan’s obligation to the participant and

each alternate payee shall be discharged to the

extent of any payment made pursuant to such

Act.

(J) A person who is an alternate payee under

a qualified domestic relations order shall be considered for purposes of any provision of this

chapter a beneficiary under the plan. Nothing in

the preceding sentence shall permit a requirement under section 1301 of this title of the payment of more than 1 premium with respect to a

participant for any period.

(K) The term ‘‘alternate payee’’ means any

spouse, former spouse, child, or other dependent

of a participant who is recognized by a domestic

relations order as having a right to receive all,

or a portion of, the benefits payable under a

plan with respect to such participant.

(L) This paragraph shall not apply to any plan

to which paragraph (1) does not apply.

(M) Payment of benefits by a pension plan in

accordance with the applicable requirements of

a qualified domestic relations order shall not be

treated as garnishment for purposes of section

1673(a) of title 15.

(N) In prescribing regulations under this paragraph, the Secretary shall consult with the Secretary of the Treasury.

(4) Paragraph (1) shall not apply to any offset

of a participant’s benefits provided under an employee pension benefit plan against an amount

that the participant is ordered or required to

pay to the plan if—

(A) the order or requirement to pay arises—

(i) under a judgment of conviction for a

crime involving such plan,

(ii) under a civil judgment (including a

consent order or decree) entered by a court

in an action brought in connection with a

violation (or alleged violation) of part 4 of

this subtitle, or

(iii) pursuant to a settlement agreement

between the Secretary and the participant,

or a settlement agreement between the Pension Benefit Guaranty Corporation and the

participant, in connection with a violation

(or alleged violation) of part 4 of this subtitle by a fiduciary or any other person,

(B) the judgment, order, decree, or settlement agreement expressly provides for the offset of all or part of the amount ordered or required to be paid to the plan against the participant’s benefits provided under the plan,

and

(C) in a case in which the survivor annuity

requirements of section 1055 of this title apply

with respect to distributions from the plan to

the participant, if the participant has a spouse

at the time at which the offset is to be made—

(i) either—

(I) such spouse has consented in writing

to such offset and such consent is witnessed by a notary public or representative

of the plan (or it is established to the satisfaction of a plan representative that

such consent may not be obtained by reason of circumstances described in section

1055(c)(2)(B) of this title), or

(II) an election to waive the right of the

spouse to a qualified joint and survivor annuity or a qualified preretirement survivor

annuity is in effect in accordance with the

requirements of section 1055(c) of this

title,

(ii) such spouse is ordered or required in

such judgment, order, decree, or settlement

to pay an amount to the plan in connection

with a violation of part 4 of this subtitle, or

(iii) in such judgment, order, decree, or

settlement, such spouse retains the right to

receive the survivor annuity under a qualified joint and survivor annuity provided pursuant to section 1055(a)(1) of this title and

under a qualified preretirement survivor annuity provided pursuant to section 1055(a)(2)
§ 1056 TITLE 29—LABOR Page 402

of this title, determined in accordance with

paragraph (5).

A plan shall not be treated as failing to meet

the requirements of section 1055 of this title

solely by reason of an offset under this paragraph.

(5)(A) The survivor annuity described in paragraph (4)(C)(iii) shall be determined as if—

(i) the participant terminated employment

on the date of the offset,

(ii) there was no offset,

(iii) the plan permitted commencement of

benefits only on or after normal retirement

age,

(iv) the plan provided only the minimum-required qualified joint and survivor annuity,

and

(v) the amount of the qualified preretirement survivor annuity under the plan is equal

to the amount of the survivor annuity payable

under the minimum-required qualified joint

and survivor annuity.

(B) For purposes of this paragraph, the term

‘‘minimum-required qualified joint and survivor

annuity’’ means the qualified joint and survivor

annuity which is the actuarial equivalent of the

participant’s accrued benefit (within the meaning of section 1002(23) of this title) and under

which the survivor annuity is 50 percent of the

amount of the annuity which is payable during

the joint lives of the participant and the spouse.

(e) Limitation on distributions other than life annuities paid by plan

(1) In general

Notwithstanding any other provision of this

part, the fiduciary of a pension plan that is

subject to the additional funding requirements

of section 1082(d) of this title shall not permit

a prohibited payment to be made from a plan

during a period in which such plan has a liquidity shortfall (as defined in section

1082(e)(5) of this title).

(2) Prohibited payment

For purposes of paragraph (1), the term ‘‘prohibited payment’’ means—

(A) any payment, in excess of the monthly

amount paid under a single life annuity

(plus any social security supplements described in the last sentence of section

1054(b)(1)(G) of this title), to a participant or

beneficiary whose annuity starting date (as

defined in section 1055(h)(2) of this title),

that occurs during the period referred to in

paragraph (1),

(B) any payment for the purchase of an irrevocable commitment from an insurer to

pay benefits, and

(C) any other payment specified by the

Secretary of the Treasury by regulations.

(3) Period of shortfall

For purposes of this subsection, a plan has a

liquidity shortfall during the period that there

is an underpayment of an installment under

section 1082(e) of this title by reason of paragraph (5)(A) thereof.

(4) Coordination with other provisions

Compliance with this subsection shall not

constitute a violation of any other provision

of this chapter.

(f) Missing participants in terminated plans

In the case of a plan covered by subchapter III

of this chapter, the plan shall provide that, upon

termination of the plan, benefits of missing participants shall be treated in accordance with

section 1350 of this title.

(Pub. L. 93–406, title I, §206, Sept. 2, 1974, 88 Stat.

864; Pub. L. 98–397, title I, §104(a), Aug. 23, 1984,

98 Stat. 1433; Pub. L. 99–514, title XVIII,

§1898(c)(2)(B), (4)(B), (5), (6)(B), (7)(B), Oct. 22,

1986, 100 Stat. 2952–2954; Pub. L. 101–239, title VII,

§§7891(a)(1), 7894(c)(8), (9)(A), Dec. 19, 1989, 103

Stat. 2445, 2449; Pub. L. 103–465, title VII,

§§761(a)(9)(B)(i), 776(c)(2), Dec. 8, 1994, 108 Stat.

5033, 5048; Pub. L. 105–34, title XV, §1502(a), Aug.

5, 1997, 111 Stat. 1058.)

REFERENCES IN TEXT

The Social Security Act, referred to in subsec. (b), is

act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Title

II of the Social Security Act is classified generally to

subchapter II (§401 et seq.) of chapter 7 of Title 42, The

Public Health and Welfare. For complete classification

of this Act to the Code, see section 1305 of Title 42 and

Tables.

The Railroad Retirement Act of 1937, referred to in

subsec. (b), is act Aug. 29, 1935, ch. 812, 49 Stat. 867, as

amended generally by act June 24, 1937, ch. 382, part I,

50 Stat. 307, and which was classified principally to subchapter III (§228a et seq.) of chapter 9 of Title 45, Railroads. The Railroad Retirement Act of 1937 was amended generally and redesignated the Railroad Retirement

Act of 1974 by Pub. L. 93–445, title I, Oct. 16, 1974, 88

Stat. 1305. The Railroad Retirement Act of 1974 is classified generally to subchapter IV (§231 et seq.) of chapter 9 of Title 45. For complete classification of these

acts to the Code, see Tables.

This chapter, referred to in subsec. (e)(4), was in the

original ‘‘this Act’’, meaning Pub. L. 93–406, known as

the Employee Retirement Income Security Act of 1974.

Titles I, III, and IV of such Act are classified principally to this chapter. For complete classification of

this Act to the Code, see Short Title note set out under

section 1001 of this title and Tables.

AMENDMENTS

1997—Subsec. (d)(4), (5). Pub. L. 105–34 added pars. (4)

and (5).

1994—Subsec. (e). Pub. L. 103–465, §761(a)(9)(B)(i),

added subsec. (e).

Subsec. (f). Pub. L. 103–465, §776(c)(2), added subsec.

(f).

1989—Subsec. (a)(1). Pub. L. 101–239, §7894(c)(8), inserted ‘‘occurs’’ before ‘‘the date’’.

Subsec. (d)(2). Pub. L. 101–239, §7891(a)(1), substituted

‘‘Internal Revenue Code of 1986’’ for ‘‘Internal Revenue

Code of 1954’’, which for purposes of codification was

translated as ‘‘title 26’’ thus requiring no change in

text.

Subsec. (d)(3)(I). Pub. L. 101–239, §7894(c)(9)(A), substituted ‘‘such Act’’ for ‘‘such act’’.

1986—Subsec. (d)(3)(E)(i). Pub. L. 99–514,

§1898(c)(7)(B)(iii), substituted ‘‘A’’ for ‘‘In the case of

any payment before a participant has separated from

service, a’’ in introductory provisions and inserted ‘‘in

the case of any payment before a participant has separated from service,’’ in subcl. (I).

Subsec. (d)(3)(E)(ii). Pub. L. 99–514, §1898(c)(7)(B)(iv),

amended cl. (ii) generally. Prior to amendment, cl. (ii)

read as follows: ‘‘For purposes of this subparagraph, the

term ‘earliest retirement age’ has the meaning given

such term by section 1055(h)(3) of this section, except

that in the case of any individual account plan, the earliest retirement age shall be the date which is 10 years

before the normal retirement age.’’

Subsec. (d)(3)(F)(i). Pub. L. 99–514, §1898(c)(6)(B), inserted ‘‘(and any spouse of the participant shall not be
Page 403 TITLE 29—LABOR § 1057

treated as a spouse of the participant for such purposes)’’.

Subsec. (d)(3)(F)(ii). Pub. L. 99–514, §1898(c)(7)(B)(i),

inserted ‘‘surviving’’ before ‘‘former spouse’’.

Subsec. (d)(3)(G)(i)(I). Pub. L. 99–514, §1898(c)(7)(B)(ii),

substituted ‘‘each’’ for ‘‘any other’’.

Subsec. (d)(3)(H)(i). Pub. L. 99–514, §1898(c)(2)(B)(i),

substituted ‘‘shall separately account for the amounts

(hereinafter in this subparagraph referred to as the

‘segregated amounts’)’’ for ‘‘shall segregate in a separate account in the plan or in an escrow account the

amounts’’.

Subsec. (d)(3)(H)(ii), (iii). Pub. L. 99–514,

§1898(c)(2)(B)(ii), (iii), substituted ‘‘the 18-month period

described in clause (v)’’ for ‘‘18 months’’ and ‘‘including

any interest’’ for ‘‘plus any interest’’.

Subsec. (d)(3)(H)(iv). Pub. L. 99–514, §1898(c)(2)(B)(iv),

inserted ‘‘described in clause (v)’’.

Subsec. (d)(3)(H)(v). Pub. L. 99–514, §1898(c)(2)(B)(v),

added cl. (v).

Subsec. (d)(3)(L). Pub. L. 99–514, §1898(c)(4)(B), added

subpar. (L) and redesignated former subpar. (L) as (N).

Subsec. (d)(3)(M). Pub. L. 99–514, §1898(c)(5), added

subpar. (M).

Subsec. (d)(3)(N). Pub. L. 99–514, §1898(c)(4)(B), redesignated subpar. (L) as (N).

1984—Subsec. (d)(3). Pub. L. 98–397 added par. (3).

EFFECTIVE DATE OF 1997 AMENDMENT

Amendment by Pub. L. 105–34 applicable to judgments, orders, and decrees issued, and settlement

agreements entered into, on or after Aug. 5, 1997, see

section 1502(c) of Pub. L. 105–34, set out as a note under

section 401 of Title 26, Internal Revenue Code.

EFFECTIVE DATE OF 1994 AMENDMENT

Section 761(b) of Pub. L. 103–465 provided that:

‘‘(1) IN GENERAL.—Except as provided in paragraph (2),

the amendments made by this section [amending this

section and sections 1082, 1132, and 1301 of this title]

shall apply to plan years beginning after December 31,

1994.

‘‘(2) CONTRIBUTING SPONSOR.—The amendment made

by subsection (a)(11) [amending section 1301 of this

title] shall be effective as if included in the Pension

Protection Act [Pub. L. 100–203, title IX, subtitle D,

part II, §§9302–9346].’’

Section 776(e) of Pub. L. 103–465 provided that: ‘‘The

provisions of this section [enacting section 1350 of this

title and amending this section and sections 1303, 1305,

and 1341 of this title and section 401 of Title 26, Internal

Revenue Code] shall be effective with respect to distributions that occur in plan years commencing after

final regulations implementing these provisions are

prescribed by the Pension Benefit Guaranty Corporation.’’ [Final implementing regulations were issued

Nov. 22, 1995, effective for distributions in plan years

beginning on or after Jan. 1, 1996. See 60 F.R. 61740.]

EFFECTIVE DATE OF 1989 AMENDMENT

Amendment by section 7891(a)(1) of Pub. L. 101–239 effective, except as otherwise provided, as if included in

the provision of the Tax Reform Act of 1986, Pub. L.

99–514, to which such amendment relates, see section

7891(f) of Pub. L. 101–239, set out as a note under section

1002 of this title.

Amendment by section 7894(c)(8) of Pub. L. 101–239 effective, except as otherwise provided, as if originally

included in the provision of the Employee Retirement

Income Security Act of 1974, Pub. L. 93–406, to which

such amendment relates, see section 7894(i) of Pub. L.

101–239, set out as a note under section 1002 of this title.

Section 7894(c)(9)(B) of Pub. L. 101–239 provided that:

‘‘The amendment made by subparagraph (A) [amending

this section] shall take effect as if included in section

104 of the Retirement Equity Act of 1984 [Pub. L.

98–397].’’

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by Pub. L. 99–514 effective as if included

in the provision of the Retirement Equity Act of 1984,

Pub. L. 98–397, to which such amendment relates, except as otherwise provided, see section 1898(j) of Pub. L.

99–514, set out as a note under section 401 of Title 26, Internal Revenue Code.

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by Pub. L. 98–397 effective Jan. 1, 1985,

except as otherwise provided, see section 303(d) of Pub.

L. 98–397, set out as a note under section 1001 of this

title.

PLAN AMENDMENTS NOT REQUIRED UNTIL

JANUARY 1, 1989

For provisions directing that if any amendments

made by subtitle A or subtitle C of title XI [§§1101–1147

and 1171–1177] or title XVIII [§§1800–1899A] of Pub. L.

99–514 require an amendment to any plan, such plan

amendment shall not be required to be made before the

first plan year beginning on or after Jan. 1, 1989, see

section 1140 of Pub. L. 99–514, as amended, set out as a

note under section 401 of Title 26, Internal Revenue

Code.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 623, 1021, 1053,

1054, 1061, 1132, 1144, 1301, 1322, 1344 of this title.

§ 1057. Temporary variances from certain vesting

requirements

In the case of any plan maintained on January

1, 1974, if not later than 2 years after September

2, 1974, the administrator petitions the Secretary, the Secretary may prescribe an alternate method which shall be treated as satisfying

the requirements of section 1053(a)(2) or

1054(b)(1) (other than subparagraph (D) thereof)

of this title or both for a period of not more

than 4 years. The Secretary may prescribe such

alternate method only when he finds that—

(1) the application of such requirements

would increase the costs of the plan to such an

extent that there would result a substantial

risk to the voluntary continuation of the plan

or a substantial curtailment of benefit levels

or the levels of employees’ compensation.

(2) the application of such requirements or

discontinuance of the plan would be adverse to

the interests of plan participants in the aggregate, and

(3) a waiver or extension of time granted

under section 1083 or 1084 of this title would be

inadequate.

In the case of any plan with respect to which an

alternate method has been prescribed under the

preceding provisions of this subsection for a period of not more than 4 years, if, not later than

1 year before the expiration of such period, the

administrator petitions the Secretary for an extension of such alternate method, and the Secretary makes the findings required by the preceding sentence, such alternate method may be

extended for not more than 3 years.

(Pub. L. 93–406, title I, §207, Sept. 2, 1974, 88 Stat.

865.)

REGULATIONS

Secretary authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this subchapter call for the promulgation of regulations, see

section 1031 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1143 of this title.