Source: http://uscode.house.gov/view.xhtml?req=(title:29%20section:1054%20edition:prelim)
Timestamp: 2019-06-16 04:34:22
Document Index: 463975508

Matched Legal Cases: ['art 2', '§ 1054', '§1054', '§204', '§102', '§301', '§11006', '§9202', '§1113', '§1879', '§9346', '§7862', '§766', '§1071', '§645', '§411', '§108', '§107', '§502', '§701', '§901', '§202', '§107', '§102', '§2', '§401', '§107', '§107', '§107', '§701', '§108', '§107', '§502', '§108', '§107', '§108', '§107', '§108', '§107', '§901', '§645', '§645', '§659', '§7894', '§7894', '§7871', '§7871', '§7871', '§7871', '§7881', '§7881', '§7881', '§7894', '§7891', '§7862', '§1879', '§7862', '§9346', '§9346', '§9202', '§9202', '§9202', '§1898', '§1898', '§1898', '§1879', '§7862', '§1113', '§102', '§105', '§102', '§301', '§9302', '§9346', '§1879', '§1879', '§7862', '§11006', '§7881']

[USC04] 29 USC 1054: Benefit accrual requirements
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29 USC 1054: Benefit accrual requirements Text contains those laws in effect on June 15, 2019
§1054. Benefit accrual requirements
(1)(A) A defined benefit plan satisfies the requirements of this paragraph if the accrued benefit to which each participant is entitled upon his separation from the service is not less than-
(G) Notwithstanding the preceding subparagraphs, a defined benefit plan shall be treated as not satisfying the requirements of this paragraph if the participant's accrued benefit is reduced on account of any increase in his age or service. The preceding sentence shall not apply to benefits under the plan commencing before benefits payable under title II of the Social Security Act [42 U.S.C. 401 et seq.] which benefits under the plan-
(H)(i) Notwithstanding the preceding subparagraphs, a defined benefit plan shall be treated as not satisfying the requirements of this paragraph if, under the plan, an employee's benefit accrual is ceased, or the rate of an employee's benefit accrual is reduced, because of the attainment of any age.
(2)(A) A defined contribution plan satisfies the requirements of this paragraph if, under the plan, allocations to the employee's account are not ceased, and the rate at which amounts are allocated to the employee's account is not reduced, because of the attainment of any age.
(4)(A) For purposes of determining an employee's accrued benefit, the term "year of participation" means a period of service (beginning at the earliest date on which the employee is a participant in the plan and which is included in a period of service required to be taken into account under section 1052(b) of this title, determined without regard to section 1052(b)(5) of this title) as determined under regulations prescribed by the Secretary which provide for the calculation of such period on any reasonable and consistent basis.
(2)(A) In the case of a plan other than a defined benefit plan, the accrued benefit derived from contributions made by an employee as of any applicable date is-
(4)(A) A defined contribution plan (in this subparagraph referred to as the "transferee plan") shall not be treated as failing to meet the requirements of this subsection merely because the transferee plan does not provide some or all of the forms of distribution previously available under another defined contribution plan (in this subparagraph referred to as the "transferor plan") to the extent that-
( Pub. L. 93–406, title I, §204, Sept. 2, 1974, 88 Stat. 858 ; Pub. L. 98–397, title I, §§102(e)(3), (f), 105(b), title III, §301(a)(2), Aug. 23, 1984, 98 Stat. 1429 , 1436, 1451; Pub. L. 99–272, title XI, §11006(a), Apr. 7, 1986, 100 Stat. 243 ; Pub. L. 99–509, title IX, §9202(a), Oct. 21, 1986, 100 Stat. 1975 ; Pub. L. 99–514, title XI, §1113(e)(4)(B), title XVIII, §§1879(u)(1), 1898(a)(4)(B)(ii), (f)(1)(B), (2), Oct. 22, 1986, 100 Stat. 2448 , 2913, 2944, 2956; Pub. L. 100–203, title IX, §9346(a), Dec. 22, 1987, 101 Stat. 1330–374 ; Pub. L. 101–239, title VII, §§7862(b)(1)(A), (2), 7871(a)(1), (3), 7881(m)(2)(A)–(C), 7891(a)(1), 7894(c)(4)–(6), Dec. 19, 1989, 103 Stat. 2432 , 2434, 2435, 2444, 2445, 2449; Pub. L. 103–465, title VII, §766(a), Dec. 8, 1994, 108 Stat. 5036 ; Pub. L. 105–34, title X, §1071(b)(2), Aug. 5, 1997, 111 Stat. 948 ; Pub. L. 107–16, title VI, §§645(a)(2), (b)(2), 659(b), June 7, 2001, 115 Stat. 124 , 125, 139; Pub. L. 107–147, title IV, §411(u)(2), Mar. 9, 2002, 116 Stat. 52 ; Pub. L. 109–280, title I, §108(a)(5)–(8), formerly §107(a)(5)–(8), title V, §502(c)(1), title VII, §701(a)(1), title IX, §901(b)(1), Aug. 17, 2006, 120 Stat. 819 , 941, 981, 1029, renumbered Pub. L. 111–192, title II, §202(a), June 25, 2010, 124 Stat. 1297 ; Pub. L. 110–458, title I, §107(a)(2), (3), Dec. 23, 2008, 122 Stat. 5107 ; Pub. L. 113–97, title I, §102(b)(4), Apr. 7, 2014, 128 Stat. 1116 ; Pub. L. 113–235, div. P, §2(a), Dec. 16, 2014, 128 Stat. 2827 .)
The Social Security Act, referred to in subsec. (b)(1)(G), is act Aug. 14, 1935, ch. 531, 49 Stat. 620 . 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.
2014-Subsec. (i)(3). Pub. L. 113–97 substituted "multiemployer plans or CSEC plans" for "multiemployer plans".
2008-Subsec. (b)(5)(A)(iii). Pub. L. 110–458, §107(a)(2)(A), substituted "subparagraph" for "clause".
Subsec. (b)(5)(B)(i)(II). Pub. L. 110–458, §107(a)(3), amended subcl. (II) generally. Prior to amendment, text read as follows: "An interest credit (or an equivalent amount) of less than zero shall in no event result in the account balance or similar amount being less than the aggregate amount of contributions credited to the account."
Subsec. (b)(5)(C). Pub. L. 110–458, §107(a)(2)(B), inserted "otherwise" before "allowable".
2006-Subsec. (b)(5). Pub. L. 109–280, §701(a)(1), added par. (5).
Subsec. (g)(1). Pub. L. 109–280, §108(a)(5), formerly §107(a)(5), as renumbered by Pub. L. 111–192, substituted "1082(d)(2)" for "1082(c)(8)".
Subsec. (h)(1). Pub. L. 109–280, §502(c)(1), inserted before period at end "and to each employer who has an obligation to contribute to the plan".
Subsec. (i)(2)(B). Pub. L. 109–280, §108(a)(6), formerly §107(a)(6), as renumbered by Pub. L. 111–192, substituted "1082(d)(2)" for "1082(c)(8)".
Subsec. (i)(3). Pub. L. 109–280, §108(a)(7), formerly §107(a)(7), as renumbered by Pub. L. 111–192, substituted "funding target attainment percentage (as defined in section 1083(d)(2) of this title)" for "funded current liability percentage (within the meaning of section 1082(d)(8) of this title)".
Subsec. (i)(4). Pub. L. 109–280, §108(a)(8), formerly §107(a)(8), as renumbered by Pub. L. 111–192, substituted "section 1082(b)(1) of this title, without regard to section 1082(b)(2) of this title" for "section 1082(c)(11)(A) of this title, without regard to section 1082(c)(11)(B) of this title".
Subsecs. (j), (k). Pub. L. 109–280, §901(b)(1), added subsec. (j) and redesignated former subsec. (j) as (k).
2002-Subsec. (h)(9). Pub. L. 107–147 struck out "significantly" before "reduces" and before "reducing".
2001-Subsec. (g)(2). Pub. L. 107–16, §645(b)(2), inserted after second sentence "The Secretary of the Treasury shall by regulations provide that this paragraph shall not apply to any plan amendment which reduces or eliminates benefits or subsidies which create significant burdens or complexities for the plan and plan participants, unless such amendment adversely affects the rights of any participant in a more than de minimis manner."
Subsec. (g)(4), (5). Pub. L. 107–16, §645(a)(2), added pars. (4) and (5).
Subsec. (h). Pub. L. 107–16, §659(b), amended subsec. (h) generally. Prior to amendment, subsec. (h) read as follows:
"(1) A plan described in paragraph (2) may not be amended so as to provide for a significant reduction in the rate of future benefit accrual, unless, after adoption of the plan amendment and not less than 15 days before the effective date of the plan amendment, the plan administrator provides a written notice, setting forth the plan amendment and its effective date, to-
"(A) each participant in the plan,
"(B) each beneficiary who is an alternate payee (within the meaning of section 1056(d)(3)(K) of this title) under an applicable qualified domestic relations order (within the meaning of section 1056(d)(3)(B)(i) of this title), and
"(C) each employee organization representing participants in the plan,
"(2) A plan is described in this paragraph if such plan is-
"(A) a defined benefit plan, or
"(B) an individual account plan which is subject to the funding standards of section 1082 of this title."
1997-Subsec. (d)(1). Pub. L. 105–34 substituted "the dollar limit under section 1053(e)(1) of this title" for "$3,500".
1994-Subsecs. (i), (j). Pub. L. 103–465 added subsec. (i) and redesignated former subsec. (i) as (j).
1989-Subsec. (b)(1)(A). Pub. L. 101–239, §7894(c)(4), substituted "subparagraph" for "suparagraph" in last sentence.
Subsec. (b)(1)(E). Pub. L. 101–239, §7894(c)(5), substituted "term 'year of service' " for "term 'years of service' ".
Subsec. (b)(2)(B). Pub. L. 101–239, §7871(a)(1), redesignated subpar. (C) as (B) and struck out former subpar. (B) which read as follows: "Subparagraph (A) shall not apply with respect to any employee who is a highly compensated employee (within the meaning of section 414(q) of title 26) to the extent provided in regulations prescribed by the Secretary of the Treasury for purposes of precluding discrimination in favor of highly compensated employees within the meaning of subchapter D of chapter 1 of title 26."
Subsec. (b)(2)(C). Pub. L. 101–239, §7871(a)(3), substituted "subparagraphs (B) and (C)" for "subparagraphs (C) and (D)".
Pub. L. 101–239, §7871(a)(1), redesignated subpar. (D) as (C). Former subpar. (C) redesignated (B).
Subsec. (b)(2)(D). Pub. L. 101–239, §7871(a)(1), redesignated subpar. (D) as (C).
Subsec. (c)(2)(B). Pub. L. 101–239, §7881(m)(2)(B), inserted heading and amended text generally. Prior to amendment, text read as follows:
"(i) In the case of a defined benefit plan providing an annual benefit in the form of a single life annuity (without ancillary benefits) commencing at normal retirement age, the accrued benefit derived from contributions made by an employee as of any applicable date is the annual benefit equal to the employee's accumulated contributions multiplied by the appropriate conversion factor.
"(ii) For purposes of clause (i), the term 'appropriate conversion factor' means the factor necessary to convert an amount equal to the accumulated contributions to a single life annuity (without ancillary benefits) commencing at normal retirement age and shall be 10 percent for a normal retirement age of 65 years. For other normal retirement ages the conversion factor shall be determined in accordance with regulations prescribed by the Secretary of the Treasury or his delegate."
Subsec. (c)(2)(C)(iii). Pub. L. 101–239, §7881(m)(2)(A), amended cl. (iii) generally. Prior to amendment, cl. (iii) read as follows: "interest on the sum of the amounts determined under clauses (i) and (ii) compounded annually at the rate of 120 percent of the Federal mid-term rate (as in effect under section 1274 of title 26 for the 1st month of a plan year) from the beginning of the first plan year to which section 1053(a)(2) of this title applies (by reason of the applicable effective date) to the date upon which the employee would attain normal retirement age."
Subsec. (c)(2)(E). Pub. L. 101–239, §7881(m)(2)(C), struck out subpar. (E) which read as follows: "The accrued benefit derived from employee contributions shall not exceed the greater of-
Subsec. (d). Pub. L. 101–239, §7894(c)(6), removed the indentation of the term "Paragraph" where first appearing in concluding provisions.
Subsec. (g)(3)(A). 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. (h). Pub. L. 101–239, §7862(b)(1)(A), made technical correction to directory language of Pub. L. 99–514, §1879(u)(1), see 1986 Amendment note below.
Subsec. (h)(2). Pub. L. 101–239, §7862(b)(2), adjusted left-hand margin of introductory provisions to full measure.
1987-Subsec. (c)(2)(C)(iii). Pub. L. 100–203, §9346(a)(1), substituted "120 percent of the Federal mid-term rate (as in effect under section 1274 of title 26 for the 1st month of a plan year)" for "5 percent per annum".
Subsec. (c)(2)(D). Pub. L. 100–203, §9346(a)(2), struck out ", the rate of interest described in clause (iii) of subparagraph (C), or both," before "from time to time" in first sentence and struck out second sentence which read as follows: "The rate of interest shall bear the relationship to 5 percent which the Secretary of the Treasury determines to be comparable to the relationship which the long-term money rates and investment yields for the last period of 10 calendar years ending at least 12 months before the beginning of the plan year bear to the long-term money rates and investment yields for the 10-calendar year period 1964 through 1973."
1986-Subsec. (a). Pub. L. 99–509, §9202(a)(1), amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: "Each pension plan shall satisfy the requirements of subsection (b)(2), and in the case of a defined benefit plan shall also satisfy the requirements of subsection (b)(1)."
Subsec. (b)(1)(H). Pub. L. 99–509, §9202(a)(2), added subpar. (H).
Subsec. (b)(2) to (4). Pub. L. 99–509, §9202(a)(3), added par. (2) and redesignated former pars. (2) and (3) as (3) and (4), respectively.
Subsec. (e). Pub. L. 99–514, §1898(a)(4)(B)(ii), inserted last sentence and struck out former last sentence which read as follows: "In the case of a defined contribution plan, the plan provision required under this subsection may provide that such repayment must be made before the participant has 5 consecutive 1-year breaks in service commencing after such withdrawal".
Subsec. (g)(1). Pub. L. 99–514, §1898(f)(2), inserted reference to section 1441.
Subsec. (g)(3). Pub. L. 99–514, §1898(f)(1)(B), added par. (3).
Subsec. (h). Pub. L. 99–514, §1879(u)(1), as amended by Pub. L. 101–239, §7862(b)(1)(A), designated existing provisions as par. (1), substituted "plan described in paragraph (2)" for "single-employer plan", redesignated former pars. (1) to (3) as subpars. (A) to (C), respectively, substituted "subparagraph (A), (B), or (C)" for "paragraph (1), (2), or (3)" in concluding provisions, and added par. (2).
Subsec. (i). Pub. L. 99–514, §1113(e)(4)(B), amended subsec. (i) generally, striking out reference to class year plans under section 1053(c)(3) of this title.
1984-Subsec. (b)(3)(A). Pub. L. 98–397, §102(e)(3), inserted ", determined without regard to section 1052(b)(5) of this title" after "section 1052(b) of this title".
Subsec. (d)(1). Pub. L. 98–397, §105(b), substituted "$3,500" for "$1,750".
Subsec. (e). Pub. L. 98–397, §102(f), substituted "5 consecutive 1-year breaks in service" for "any 1-year break in service".
Subsec. (g). Pub. L. 98–397, §301(a)(2), designated existing provisions as par. (1) and added par. (2).
Amendment by section 7881(m)(2)(A)–(C) of Pub. L. 101–239 effective, except as otherwise provided, as if included in the provision of the Pension Protection Act, Pub. L. 100–203, §§9302–9346, to which such amendment relates, see section 7882 of Pub. L. 101–239, set out as a note under section 401 of Title 26.
Pub. L. 100–203, title IX, §9346(c), Dec. 22, 1987, 101 Stat. 1330–374 , 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."
Pub. L. 99–514, title XVIII, §1879(u)(5), formerly §1879(u)(4), Oct. 22, 1986, 100 Stat. 2913 , 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]."
Pub. L. 99–272, title XI, §11006(b), Apr. 7, 1986, 100 Stat. 243 , 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."
Pub. L. 101–239, title VII, §7881(m)(3), Dec. 19, 1989, 103 Stat. 2444 , 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]."