Page 393 TITLE 29—LABOR § 1055

EFFECTIVE DATE OF 1987 AMENDMENT

Section 9346(c) of Pub. L. 100–203 provided that:

‘‘(1) IN GENERAL.—The amendments made by this section [amending this section and section 411 of Title 26,

Internal Revenue Code] shall apply to plan years beginning after December 31, 1987.

‘‘(2) PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY

1, 1989.—If any amendment made by this section requires

an amendment to any plan, such plan amendment shall

not be required to be made before the first plan year beginning on or after January 1, 1989, if—

‘‘(A) during the period after such amendments made

by this section take effect and before such first plan

year, the plan is operated in accordance with the requirements of such amendments or in accordance

with an amendment prescribed by the Secretary of

the Treasury and adopted by the plan, and

‘‘(B) such plan amendment applies retroactively to

the period after such amendments take effect and

such first plan year.

A plan shall not be treated as failing to provide definitely determinable benefits or contributions, or to be

operated in accordance with the provisions of the plan,

merely because it operates in accordance with this subsection.’’

EFFECTIVE DATE OF 1986 AMENDMENTS

Amendment by section 1113(e)(4)(B) of Pub. L. 99–514

applicable to plan years beginning after Dec. 31, 1988,

with special rule for plans maintained pursuant to collective bargaining agreements ratified before Mar. 1,

1986, and not applicable to employees who do not have

1 hour of service in any plan year to which the amendment applies, see section 1113(f) of Pub. L. 99–514, as

amended, set out as a note under section 411 of Title 26,

Internal Revenue Code.

Section 1879(u)(5), formerly section 1879(u)(4), of Pub.

L. 99–514, as redesignated and amended by Pub. L.

101–239, title VII, §7862(b)(1)(A), (B), Dec. 19, 1989, 103

Stat. 2432, provided that:

‘‘(A) GENERAL RULE.—Except as provided in subparagraph (B), the preceding provisions of this subsection

[amending this section and sections 1002 and 1349 of this

title] shall be effective as if such provisions were included in the enactment of the Single-Employer Pension Plan Amendments Act of 1986 [Pub. L. 99–272, title

XI].

‘‘(B) SPECIAL RULE.—Subparagraph (B) of section

204(h)(2) of the Employee Retirement Income Security

Act of 1974 (as amended by paragraph (1)) [29 U.S.C.

1054(h)(2)(B)] shall apply only with respect to plan

amendments adopted on or after the date of the enactment of this Act [Oct. 22, 1986].’’

Amendment by section 1898(a)(4)(B)(ii), (f)(1)(B), (2) 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 this title.

Amendment by Pub. L. 99–509 applicable only with respect to plan years beginning on or after Jan. 1, 1988,

and only to employees who have 1 hour of service in

any plan year to which amendment applies, with special rule for collectively bargained plans, see section

9204 of Pub. L. 99–509, set out as an Effective and Termination Dates of 1986 Amendments note under section

623 of this title.

Section 11006(b) of Pub. L. 99–272 provided that: ‘‘The

amendments made by subsection (a) [amending this

section] shall apply with respect to plan amendments

adopted on or after January 1, 1986, except that, in the

case of plan amendments adopted on or after January

1, 1986, and on or before the date of the enactment of

this Act [Apr. 7, 1986], the requirements of section

204(h) of the Employee Retirement Income Security

Act of 1974 [subsec. (h) of this section] (as added by this

section) shall be treated as met if the written notice required under such section 204(h) is provided before 60

days after the date of the enactment of this Act.’’

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by sections 102(e)(3), (f), and 105(b) of

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.

Amendment by section 301(a)(2) of Pub. L. 98–397 not

applicable to the termination of a certain defined benefit plan, see section 303(f) of Pub. L. 98–397.

REGULATIONS

Secretary of Labor, Secretary of the Treasury, and

Equal Employment Opportunity Commission each to

issue before Feb. 1, 1988, final regulations to carry out

amendments made by Pub. L. 99–509, see section 9204 of

Pub. L. 99–509, set out as an Effective and Termination

Dates of 1986 Amendment note under section 623 of this

title.

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.

PLAN AMENDMENTS REFLECTING AMENDMENTS BY SECTION 7881(m) OF PUB. L. 101–239 NOT TREATED AS

REDUCING ACCRUED BENEFIT

Section 7881(m)(3) of Pub. L. 101–239 provided

that:‘‘If—

‘‘(A) during the period beginning December 22, 1987,

and ending June 21, 1988, a plan was amended to reflect the amendments made by section 9346 of the

Pension Protection Act [Pub. L. 100–203, amending

this section and section 411 of Title 26, Internal Revenue Code], and

‘‘(B) such plan is amended to reflect the amendments made by this subsection [amending this section, section 1002 of this title, and section 411 of Title

26],

any plan amendment described in subparagraph (B)

shall not be treated as reducing accrued benefits for

purposes of section 411(d)(6) of the Internal Revenue

Code of 1986 [section 411(d)(6) of Title 26] or section

204(g) of ERISA [subsec. (g) of this section].’’

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.

For provisions directing that if any amendments

made by Pub. L. 99–509 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 9204 of Pub. L. 99–509, set out as

an Effective and Termination Dates of 1986 Amendment

note under section 623 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1002, 1053, 1056,

1057, 1060, 1061, 1322, 1425, 1426, 1441 of this title.

§ 1055. Requirement of joint and survivor annuity and preretirement survivor annuity

(a) Required contents for applicable plans

Each pension plan to which this section applies shall provide that—

(1) in the case of a vested participant who

does not die before the annuity starting date,

the accrued benefit payable to such participant shall be provided in the form of a qualified joint and survivor annuity, and
§ 1055 TITLE 29—LABOR Page 394

1So in original. Probably should be ‘‘clauses’’.

2So in original. There are two pars. designated (4) and no par.

(3).

(2) in the case of a vested participant who

dies before the annuity starting date and who

has a surviving spouse, a qualified preretirement survivor annuity shall be provided to the

surviving spouse of such participant.

(b) Applicable plans

(1) This section shall apply to—

(A) any defined benefit plan,

(B) any individual account plan which is

subject to the funding standards of section

1082 of this title, and

(C) any participant under any other individual account plan unless—

(i) such plan provides that the participant’s nonforfeitable accrued benefit (reduced by any security interest held by the

plan by reason of a loan outstanding to such

participant) is payable in full, on the death

of the participant, to the participant’s surviving spouse (or, if there is no surviving

spouse or the surviving spouse consents in

the manner required under subsection (c)(2)

of this section, to a designated beneficiary),

(ii) such participant does not elect the

payment of benefits in the form of a life annuity, and

(iii) with respect to such participant, such

plan is not a direct or indirect transferee (in

a transfer after December 31, 1984) of a plan

which is described in subparagraph (A) or (B)

or to which this clause applied with respect

to the participant.

Clause (iii) of subparagraph (C) shall apply only

with respect to the transferred assets (and income therefrom) if the plan separately accounts

for such assets and any income therefrom.

(2)(A) In the case of—

(i) a tax credit employee stock ownership

plan (as defined in section 409(a) of title 26), or

(ii) an employee stock ownership plan (as defined in section 4975(e)(7) of title 26),

subsection (a) of this section shall not apply to

that portion of the employee’s accrued benefit

to which the requirements of section 409(h) of

title 26 apply.

(B) Subparagraph (A) shall not apply with respect to any participant unless the requirements

of clause 1 (i), (ii), and (iii) of paragraph (1)(C)

are met with respect to such participant.

(4) 2 This section shall not apply to a plan

which the Secretary of the Treasury or his delegate has determined is a plan described in section 404(c) of title 26 (or a continuation thereof)

in which participation is substantially limited

to individuals who, before January 1, 1976,

ceased employment covered by the plan.

(4) 2 A plan shall not be treated as failing to

meet the requirements of paragraph (1)(C) or (2)

merely because the plan provides that benefits

will not be payable to the surviving spouse of

the participant unless the participant and such

spouse had been married throughout the 1-year

period ending on the earlier of the participant’s

annuity starting date or the date of the participant’s death.

(c) Plans meeting requirements of section

(1) A plan meets the requirements of this section only if—

(A) under the plan, each participant—

(i) may elect at any time during the applicable election period to waive the qualified

joint and survivor annuity form of benefit or

the qualified preretirement survivor annuity

form of benefit (or both), and

(ii) may revoke any such election at any

time during the applicable election period,

and

(B) the plan meets the requirements of paragraphs (2), (3), and (4).

(2) Each plan shall provide that an election

under paragraph (1)(A)(i) shall not take effect

unless—

(A)(i) the spouse of the participant consents

in writing to such election, (ii) such election

designates a beneficiary (or a form of benefits)

which may not be changed without spousal

consent (or the consent of the spouse expressly

permits designations by the participant without any requirement of further consent by the

spouse), and (iii) the spouse’s consent acknowledges the effect of such election and is

witnessed by a plan representative or a notary

public, or

(B) it is established to the satisfaction of a

plan representative that the consent required

under subparagraph (A) may not be obtained

because there is no spouse, because the spouse

cannot be located, or because of such other

circumstances as the Secretary of the Treasury may by regulations prescribe.

Any consent by a spouse (or establishment that

the consent of a spouse may not be obtained)

under the preceding sentence shall be effective

only with respect to such spouse.

(3)(A) Each plan shall provide to each participant, within a reasonable period of time before

the annuity starting date (and consistent with

such regulations as the Secretary of the Treasury may prescribe) a written explanation of—

(i) the terms and conditions of the qualified

joint and survivor annuity,

(ii) the participant’s right to make, and the

effect of, an election under paragraph (1) to

waive the joint and survivor annuity form of

benefit,

(iii) the rights of the participant’s spouse

under paragraph (2), and

(iv) the right to make, and the effect of, a

revocation of an election under paragraph (1).

(B)(i) Each plan shall provide to each participant, within the applicable period with respect

to such participant (and consistent with such

regulations as the Secretary may prescribe), a

written explanation with respect to the qualified preretirement survivor annuity comparable

to that required under subparagraph (A).

(ii) For purposes of clause (i), the term ‘‘applicable period’’ means, with respect to a participant, whichever of the following periods ends

last:

(I) The period beginning with the first day of

the plan year in which the participant attains

age 32 and ending with the close of the plan

year preceding the plan year in which the participant attains age 35.
Page 395 TITLE 29—LABOR § 1055

(II) A reasonable period after the individual

becomes a participant.

(III) A reasonable period ending after paragraph (5) ceases to apply to the participant.

(IV) A reasonable period ending after this

section applies to the participant.

In the case of a participant who separates from

service before attaining age 35, the applicable

period shall be a reasonable period after separation.

(4) Each plan shall provide that, if this section

applies to a participant when part or all of the

participant’s accrued benefit is to be used as security for a loan, no portion of the participant’s

accrued benefit may be used as security for such

loan unless—

(A) the spouse of the participant (if any)

consents in writing to such use during the 90-

day period ending on the date on which the

loan is to be so secured, and

(B) requirements comparable to the requirements of paragraph (2) are met with respect to

such consent.

(5)(A) The requirements of this subsection

shall not apply with respect to the qualified

joint and survivor annuity form of benefit or the

qualified preretirement survivor annuity form of

benefit, as the case may be, if such benefit may

not be waived (or another beneficiary selected)

and if the plan fully subsidizes the costs of such

benefit.

(B) For purposes of subparagraph (A), a plan

fully subsidizes the costs of a benefit if under

the plan the failure to waive such benefit by a

participant would not result in a decrease in any

plan benefits with respect to such participant

and would not result in increased contributions

from such participant.

(6) If a plan fiduciary acts in accordance with

part 4 of this subtitle in—

(A) relying on a consent or revocation referred to in paragraph (1)(A), or

(B) making a determination under paragraph

(2),

then such consent, revocation, or determination

shall be treated as valid for purposes of discharging the plan from liability to the extent of

payments made pursuant to such Act.

(7) For purposes of this subsection, the term

‘‘applicable election period’’ means—

(A) in the case of an election to waive the

qualified joint and survivor annuity form of

benefit, the 90-day period ending on the annuity starting date, or

(B) in the case of an election to waive the

qualified preretirement survivor annuity, the

period which begins on the first day of the

plan year in which the participant attains age

35 and ends on the date of the participant’s

death.

In the case of a participant who is separated

from service, the applicable election period

under subparagraph (B) with respect to benefits

accrued before the date of such separation from

service shall not begin later than such date.

(8) Notwithstanding any other provision of

this subsection—

(A)(i) A plan may provide the written explanation described in paragraph (3)(A) after the

annuity starting date. In any case to which

this subparagraph applies, the applicable election period under paragraph (7) shall not end

before the 30th day after the date on which

such explanation is provided.

(ii) The Secretary of the Treasury may by

regulations limit the application of clause (i),

except that such regulations may not limit

the period of time by which the annuity starting date precedes the provision of the written

explanation other than by providing that the

annuity starting date may not be earlier than

termination of employment.

(B) A plan may permit a participant to elect

(with any applicable spousal consent) to waive

any requirement that the written explanation

be provided at least 30 days before the annuity

starting date (or to waive the 30-day requirement under subparagraph (A)) if the distribution commences more than 7 days after such

explanation is provided.

(d) ‘‘Qualified joint and survivor annuity’’ defined

For purposes of this section, the term ‘‘qualified joint and survivor annuity’’ means an annuity—

(1) for the life of the participant with a survivor annuity for the life of the spouse which

is not less than 50 percent of (and is not greater than 100 percent of) the amount of the annuity which is payable during the joint lives

of the participant and the spouse, and

(2) which is the actuarial equivalent of a single annuity for the life of the participant.

Such term also includes any annuity in a form

having the effect of an annuity described in the

preceding sentence.

(e) ‘‘Qualified preretirement survivor annuity’’

defined

For purposes of this section—

(1) Except as provided in paragraph (2), the

term ‘‘qualified preretirement survivor annuity’’ means a survivor annuity for the life of

the surviving spouse of the participant if—

(A) the payments to the surviving spouse

under such annuity are not less than the

amounts which would be payable as a survivor annuity under the qualified joint and

survivor annuity under the plan (or the actuarial equivalent thereof) if—

(i) in the case of a participant who dies

after the date on which the participant attained the earliest retirement age, such

participant had retired with an immediate

qualified joint and survivor annuity on the

day before the participant’s date of death,

or

(ii) in the case of a participant who dies

on or before the date on which the participant would have attained the earliest retirement age, such participant had—

(I) separated from service on the date

of death,

(II) survived to the earliest retirement

age,

(III) retired with an immediate qualified joint and survivor annuity at the

earliest retirement age, and

(IV) died on the day after the day on

which such participant would have attained the earliest retirement age, and
§ 1055 TITLE 29—LABOR Page 396

(B) under the plan, the earliest period for

which the surviving spouse may receive a

payment under such annuity is not later

than the month in which the participant

would have attained the earliest retirement

age under the plan.

In the case of an individual who separated

from service before the date of such individual’s death, subparagraph (A)(ii)(I) shall not

apply.

(2) In the case of any individual account plan

or participant described in subparagraph (B)

or (C) of subsection (b)(1) of this section, the

term ‘‘qualified preretirement survivor annuity’’ means an annuity for the life of the surviving spouse the actuarial equivalent of

which is not less than 50 percent of the portion

of the account balance of the participant (as of

the date of death) to which the participant had

a nonforfeitable right (within the meaning of

section 1053 of this title).

(3) For purposes of paragraphs (1) and (2),

any security interest held by the plan by reason of a loan outstanding to the participant

shall be taken into account in determining the

amount of the qualified preretirement survivor annuity.

(f) Marriage requirements for plan

(1) Except as provided in paragraph (2), a plan

may provide that a qualified joint and survivor

annuity (or a qualified preretirement survivor

annuity) will not be provided unless the participant and spouse had been married throughout

the 1-year period ending on the earlier of—

(A) the participant’s annuity starting date,

or

(B) the date of the participant’s death.

(2) For purposes of paragraph (1), if—

(A) a participant marries within 1 year before the annuity starting date, and

(B) the participant and the participant’s

spouse in such marriage have been married for

at least a 1-year period ending on or before the

date of the participant’s death,

such participant and such spouse shall be treated as having been married throughout the 1-year

period ending on the participant’s annuity starting date.

(g) Distribution of present value of annuity; written consent; determination of present value

(1) A plan may provide that the present value

of a qualified joint and survivor annuity or a

qualified preretirement survivor annuity will be

immediately distributed if such value does not

exceed the dollar limit under section 1053(e)(1) of

this title. No distribution may be made under

the preceding sentence after the annuity starting date unless the participant and the spouse of

the participant (or where the participant has

died, the surviving spouse) consent in writing to

such distribution.

(2) If—

(A) the present value of the qualified joint

and survivor annuity or the qualified preretirement survivor annuity exceeds the dollar

limit under section 1053(e)(1) of this title, and

(B) the participant and the spouse of the participant (or where the participant has died,

the surviving spouse) consent in writing to the

distribution,

the plan may immediately distribute the

present value of such annuity.

(3) DETERMINATION OF PRESENT VALUE.—

(A) IN GENERAL.—

(i) PRESENT VALUE.—Except as provided in

subparagraph (B), for purposes of paragraphs

(1) and (2), the present value shall not be less

than the present value calculated by using

the applicable mortality table and the applicable interest rate.

(ii) DEFINITIONS.—For purposes of clause

(i)—

(I) APPLICABLE MORTALITY TABLE.—The

term ‘‘applicable mortality table’’ means

the table prescribed by the Secretary of

the Treasury. Such table shall be based on

the prevailing commissioners’ standard

table (described in section 807(d)(5)(A) of

title 26) used to determine reserves for

group annuity contracts issued on the date

as of which present value is being determined (without regard to any other subparagraph of section 807(d)(5) of such title).

(II) APPLICABLE INTEREST RATE.—The

term ‘‘applicable interest rate’’ means the

annual rate of interest on 30-year Treasury

securities for the month before the date of

distribution or such other time as the Secretary of the Treasury may by regulations

prescribe.

(B) EXCEPTION.—In the case of a distribution

from a plan that was adopted and in effect

prior to December 8, 1994, the present value of

any distribution made before the earlier of—

(i) the later of when a plan amendment applying subparagraph (A) is adopted or made

effective, or

(ii) the first day of the first plan year beginning after December 31, 1999,

shall be calculated, for purposes of paragraphs

(1) and (2), using the interest rate determined

under the regulations of the Pension Benefit

Guaranty Corporation for determining the

present value of a lump sum distribution on

plan termination that were in effect on September 1, 1993, and using the provisions of the

plan as in effect on the day before December 8,

1994; but only if such provisions of the plan

met the requirements of this paragraph as in

effect on the day before December 8, 1994.

(h) Definitions

For purposes of this section—

(1) The term ‘‘vested participant’’ means any

participant who has a nonforfeitable right

(within the meaning of section 1002(19) of this

title) to any portion of such participant’s accrued benefit.

(2)(A) The term ‘‘annuity starting date’’

means—

(i) the first day of the first period for

which an amount is payable as an annuity,

or

(ii) in the case of a benefit not payable in

the form of an annuity, the first day on

which all events have occurred which entitle

the participant to such benefit.

(B) For purposes of subparagraph (A), the

first day of the first period for which a benefit
Page 397 TITLE 29—LABOR § 1055

is to be received by reason of disability shall

be treated as the annuity starting date only if

such benefit is not an auxiliary benefit.

(3) The term ‘‘earliest retirement age’’

means the earliest date on which, under the

plan, the participant could elect to receive retirement benefits.

(i) Increased costs from providing annuity

A plan may take into account in any equitable

manner (as determined by the Secretary of the

Treasury) any increased costs resulting from

providing a qualified joint or survivor annuity

or a qualified preretirement survivor annuity.

(j) Use of participant’s accrued benefit as security for loan as not preventing distribution

If the use of any participant’s accrued benefit

(or any portion thereof) as security for a loan

meets the requirements of subsection (c)(4) of

this section, nothing in this section shall prevent any distribution required by reason of a

failure to comply with the terms of such loan.

(k) Spousal consent

No consent of a spouse shall be effective for

purposes of subsection (g)(1) or (g)(2) of this section (as the case may be) unless requirements

comparable to the requirements for spousal consent to an election under subsection (c)(1)(A) of

this section are met.

(l) Regulations; consultation of Secretary of the

Treasury with Secretary of Labor

In prescribing regulations under this section,

the Secretary of the Treasury shall consult with

the Secretary of Labor.

(Pub. L. 93–406, title I, §205, Sept. 2, 1974, 88 Stat.

862; Pub. L. 98–397, title I, §103(a), Aug. 23, 1984,

98 Stat. 1429; Pub. L. 99–514, title XI, §§1139(c)(2),

1145(b), title XVIII, §1898(b)(1)(B), (2)(B), (3)(B),

(4)(B), (5)(B), (6)(B), (7)(B), (8)(B), (9)(B), (10)(B),

(11)(B), (12)(B), (13)(B), (14)(B), Oct. 22, 1986, 100

Stat. 2488, 2491, 2945–2951; Pub. L. 101–239, title

VII, §§7861(d)(2), 7862(d)(1)(B), (3), (6)–(9),

7891(a)(1), (b)(3), (c), (e), 7894(c)(7)(A), Dec. 19,

1989, 103 Stat. 2431, 2434, 2445, 2447, 2449; Pub. L.

103–465, title VII, §767(c)(2), Dec. 8, 1994, 108 Stat.

5039; Pub. L. 104–188, title I, §1451(b), Aug. 20,

1996, 110 Stat. 1815; Pub. L. 105–34, title X,

§1071(b)(2), title XVI, §1601(d)(5), Aug. 5, 1997, 111

Stat. 948, 1089.)

AMENDMENTS

1997—Subsec. (c)(8)(A)(ii). Pub. L. 105–34, §1601(d)(5),

substituted ‘‘Secretary of the Treasury’’ for ‘‘Secretary’’.

Subsec. (g)(1), (2)(A). Pub. L. 105–34, §1071(b)(2), substituted ‘‘the dollar limit under section 1053(e)(1) of

this title’’ for ‘‘$3,500’’.

1996—Subsec. (c)(8). Pub. L. 104–188 added par. (8).

1994—Subsec. (g)(3). Pub. L. 103–465 amended par. (3)

generally. Prior to amendment, par. (3) read as follows:

‘‘(3)(A) For purposes of paragraphs (1) and (2), the

present value shall be calculated—

‘‘(i) by using an interest rate no greater than the

applicable interest rate if the vested accrued benefit

(using such rate) is not in excess of $25,000, and

‘‘(ii) by using an interest rate no greater than 120

percent of the applicable interest rate if the vested

accrued benefit exceeds $25,000 (as determined under

clause (i)).

In no event shall the present value determined under

subclause (II) be less than $25,000.

‘‘(B) For purposes of subparagraph (A), the term ‘applicable interest rate’ means the interest rate which

would be used (as of the date of the distribution) by the

Pension Benefit Guaranty Corporation for purposes of

determining the present value of a lump sum distribution on plan termination.’’

1989—Subsec. (b)(1)(C)(i). Pub. L. 101–239, §7862(d)(7),

made technical correction to directory language of

Pub. L. 99–514, §1898(b)(7)(B), see 1986 Amendment note

below.

Subsec. (b)(2)(A)(i). 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. (b)(3), (4). Pub. L. 101–239, §7862(d)(9), amended

directory language of Pub. L. 99–514, §1898(b)(14)(B), see

1986 Amendment note below, and redesignated par. (3),

as added by Pub. L. 99–514, §1898(b)(14)(B), as par. (4).

Pub. L. 101–239, §§7861(d)(2), 7891(c), realigned margins

of par. (3), as added by Pub. L. 99–514, §1145(b), and redesignated such par. (3) as (4).

Subsec. (c)(3)(B)(ii). Pub. L. 101–239, §7862(d)(1)(B), inserted at end ‘‘In the case of a participant who separates from service before attaining age 35, the applicable period shall be a reasonable period after separation.’’

Subsec. (c)(3)(B)(ii)(IV). Pub. L. 101–239, §7862(d)(6),

substituted ‘‘after this section’’ for ‘‘after section

1101(a)(11) of this title’’.

Subsec. (c)(3)(B)(ii)(V). Pub. L. 101–239, §7862(d)(1)(B),

struck out subcl. (V) which read as follows: ‘‘A reasonable period after separation from service in case of a

participant who separates before attaining age 35.’’

Subsec. (c)(6). Pub. L. 101–239, §7894(c)(7)(A), substituted ‘‘such Act’’ for ‘‘such act’’.

Subsec. (e)(2). Pub. L. 101–239, §7862(d)(8), substituted

‘‘nonforfeitable right (within the meaning of section

1053 of this title)’’ for ‘‘nonforfeitable accrued benefit’’.

Subsec. (g)(3)(A). Pub. L. 101–239, §7891(b)(3), realigned

margins of subpar. (A).

Subsec. (h)(1). Pub. L. 101–239, §§7862(d)(3)(A),

7891(e)(1), amended par. (1) identically, substituting

‘‘The term’’ for ‘‘the term’’ and ‘‘benefit.’’ for ‘‘benefit,’’.

Subsec. (h)(3). Pub. L. 101–239, §§7862(d)(3)B),

7891(e)(2), amended par. (3) identically, substituting

‘‘The term’’ for ‘‘the term’’.

1986—Subsec. (a)(1). Pub. L. 99–514, §1898(b)(3)(B), substituted ‘‘who does not die before the annuity starting

date’’ for ‘‘who retires under the plan’’.

Subsec. (b)(1). Pub. L. 99–514, §1898(b)(2)(B)(ii), inserted at end ‘‘Clause (iii) of subparagraph (C) shall

apply only with respect to the transferred assets (and

income therefrom) if the plan separately accounts for

such assets and any income therefrom.’’

Subsec. (b)(1)(C)(i). Pub. L. 99–514, §1898(b)(13)(B), substituted ‘‘(c)(2)’’ for ‘‘(c)(2)(A)’’.

Pub. L. 99–514, §1898(b)(7)(B), as amended by Pub. L.

101–239, §7862(d)(7), inserted ‘‘(reduced by any security

interest held by the plan by reason of a loan outstanding to such participant)’’.

Subsec. (b)(1)(C)(iii). Pub. L. 99–514, §1898(b)(2)(B)(i),

substituted ‘‘a direct or indirect transferee (in a transfer after December 31, 1984)’’ for ‘‘a transferee’’.

Subsec. (b)(3). Pub. L. 99–514, §1898(b)(14)(B), as

amended by Pub. L. 101–239, §7862(d)(9)(A), added par. (3)

relating to treatment of plan as meeting requirements

of par. (1)(C) or (2) of subsec. (b).

Pub. L. 99–514, §1145(b), added par. (3) relating to applicability of this section to plans described in section

404(c) of title 26.

Subsec. (c)(1)(B). Pub. L. 99–514, §1898(b)(4)(B)(i), substituted ‘‘paragraphs (2), (3), and (4)’’ for ‘‘paragraphs

(2) and (3)’’.

Subsec. (c)(2)(A). Pub. L. 99–514, §1898(b)(6)(B), amended subpar. (A) generally. Prior to amendment, subpar.

(A) read as follows: ‘‘the spouse of the participant consents in writing to such election, and the spouse’s consent acknowledges the effect of such election and is
§ 1055 TITLE 29—LABOR Page 398

witnessed by a plan representative or a notary public,

or’’.

Subsec. (c)(3)(B). Pub. L. 99–514, §1898(b)(5)(B), amended subpar. (B) generally. Prior to amendment, subpar.

(B) read as follows: ‘‘Each plan shall provide to each

participant, within the period beginning with the first

day of the plan year in which the participant attains

age 32 and ending with the close of the plan year preceding the plan year in which the participant attains

age 35 (and consistent with such regulations as the Secretary of the Treasury may prescribe), a written explanation with respect to the qualified preretirement survivor annuity comparable to that required under subparagraph (A).’’

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

par. (4). Former par. (4) redesignated (5).

Subsec. (c)(5). Pub. L. 99–514, §1898(b)(4)(B)(ii), redesignated par. (4) as (5). Former par. (5) redesignated (6).

Subsec. (c)(5)(A). Pub. L. 99–514, §1898(b)(11)(B), inserted ‘‘if such benefit may not be waived (or another

beneficiary selected) and’’.

Subsec. (c)(6), (7). Pub. L. 99–514, §1898(b)(4)(B)(ii), redesignated pars. (5) and (6) as (6) and (7), respectively.

Subsec. (e)(1). Pub. L. 99–514, §1898(b)(1)(B), inserted

at end ‘‘In the case of an individual who separated from

service before the date of such individual’s death, subparagraph (A)(ii)(I) shall not apply.’’

Subsec. (e)(2). Pub. L. 99–514, §1898(b)(9)(B)(i), substituted ‘‘the portion of the account balance of the participant (as of the date of death) to which the participant had a nonforfeitable accrued benefit’’ for ‘‘the account balance of the participant as of the date of

death’’.

Subsec. (e)(3). Pub. L. 99–514, §1898(b)(9)(B)(ii), added

par. (3).

Subsec. (g)(3). Pub. L. 99–514, §1139(c)(2), amended par.

(3) generally. Prior to amendment, par. (3) read as follows: ‘‘For purposes of paragraphs (1) and (2), the

present value of a qualified joint and survivor annuity

or a qualified preretirement survivor annuity shall be

determined as of the date of the distribution and by

using an interest rate not greater than the interest

rate which would be used (as of the date of the distribution) by the Pension Benefit Guaranty Corporation for

purposes of determining the present value of a lump

sum distribution on plan termination.’’

Subsec. (h)(1). Pub. L. 99–514, §1898(b)(8)(B), substituted ‘‘such participant’s accrued benefit’’ for ‘‘the

accrued benefit derived from employer contributions’’.

Subsec. (h)(2). Pub. L. 99–514, §1898(b)(12)(B), amended

par. (2) generally. Prior to amendment, par. (2) read as

follows: ‘‘the term ‘annuity starting date’ means the

first day of the first period for which an amount is received as an annuity (whether by reason of retirement

or disability), and’’.

Subsec. (j). Pub. L. 99–514, §1898(b)(4)(B)(iii), added

subsec. (j). Former subsec. (j) redesignated (k).

Subsec. (k). Pub. L. 99–514, §1898(b)(10)(B), added subsec. (k). Former subsec. (k) redesignated (l).

Pub. L. 99–514, §1898(b)(4)(B)(iii), redesignated subsec.

(j) as (k).

Subsec. (l). Pub. L. 99–514, §1898(b)(10)(B), redesignated subsec. (k) as (l).

1984—Subsec. (a). Pub. L. 98–397 substituted provisions relating to provisions to be included in applicable

plans for former provisions relating to form of payment

of annuity benefits.

Subsec. (b). Pub. L. 98–397 substituted provisions relating to applicable plans under this section for former

provisions relating to plans providing for payment of

benefits before normal retirement age.

Subsec. (c). Pub. L. 98–397 substituted provisions relating to conditions under which plans meet the requirements of this section for former provisions relating to election of qualified joint and survivor annuity

form.

Subsec. (d). Pub. L. 98–397 substituted provisions defining ‘‘qualified joint and survivor annuity’’ for former

provisions relating to the participant’s spouse not

being entitled to receive survivor annuity.

Subsec. (e). Pub. L. 98–397 substituted provisions defining ‘‘qualified preretirement survivor annuity’’ for

former provisions relating to election to take annuity.

Subsec. (f). Pub. L. 98–397 substituted provisions to

the effect that plans may provide that annuities will

not be provided unless the participant and spouse had

been married for a certain 1-year period, for former provisions relating to plan provisions which render election or revocation ineffective if participant dies within

period of up to 2 years following the date of election or

revocation.

Subsec. (g). Pub. L. 98–397 substituted provisions relating to plan provisions for immediate distribution of

present value if such value does not exceed $3,500 and

for written consent from the participant and spouse for

former provisions setting forth definitions. See subsec.

(h) of this section.

Subsec. (h). Pub. L. 98–397 substituted provisions setting forth definitions for former provisions relating to

increased costs resulting from providing joint and survivor annuity benefits. See subsec. (i) of this section.

Subsec. (i). Pub. L. 98–397 substituted provisions relating to increased costs resulting from providing annuities under applicable plans for former provisions

setting forth the effective date of this section.

Subsec. (j). Pub. L. 98–397 added subsec. (j).

EFFECTIVE DATE OF 1997 AMENDMENT

Amendment by section 1071(b)(2) of Pub. L. 105–34 applicable to plan years beginning after Aug. 5, 1997, see

section 1071(c) of Pub. L. 105–34, set out as a note under

section 411 of Title 26, Internal Revenue Code.

Amendment by section 1601(d)(5) of Pub. L. 105–34 effective as if included in the provisions of the Small

Business Job Protection Act of 1996, Pub. L. 104–188, to

which it relates, see section 1601(j) of Pub. L. 105–34, set

out as a note under section 23 of Title 26, Internal Revenue Code.

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by Pub. L. 104–188 applicable to plan

years beginning after Dec. 31, 1996, see section 1451(c) of

Pub. L. 104–188, set out as a note under section 417 of

Title 26, Internal Revenue Code.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103–465 applicable to plan

years and limitation years beginning after Dec. 31, 1994,

except that employer may elect to treat such amendment as effective on or after Dec. 8, 1994, with provisions relating to reduction of accrued benefits, exception, and timing of plan amendment, see section 767(d)

of Pub. L. 103–465, as amended, set out as a note under

section 411 of Title 26, Internal Revenue Code.

EFFECTIVE DATE OF 1989 AMENDMENT

Amendment by sections 7861(d)(2) and 7862(d)(1)(B),

(3), (6)–(9) of Pub. L. 101–239 effective as if included in

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

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

7863 of Pub. L. 101–239, set out as a note under section

106 of Title 26, Internal Revenue Code.

Amendment by section 7891(a)(1), (b)(3), (c), (e) 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.

Section 7894(c)(7)(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

103 of the Retirement Equity Act of 1984 [Pub. L. 98–397]

in reference to the new section 205(c)(5) of ERISA [subsec. (c)(5) of this section] as added by such section

3113.’’

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by section 1139(c)(2) of Pub. L. 99–514 applicable to distributions in plan years beginning after
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-