A bill relating to the application of certain provisions of the Internal Revenue Code of 1954 to specified transactions by certain public employee retirement systems created by the State of New York or any of its political subdivisions.
PL 94-236 (H.R.11700), enacted 03/19/1976

90 STAT. 238 
PUBLIC LAW 94-236—MAR. 19, 1976 
Public Law 94-236 
94th Congress 
An Act 
Mar. 19, 1976 
[H.R. 11700] 
New York. 
Public employee 
retirement 
systems. 
26 use 401. 
26 use 503. 
Relating to the application of certain provisions of the Internal Revenue Code 
of 1954 to specified transactions by certain public employee retirement 
systems created by the State of New Yorli or any of its political subdivisions. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assemhled^ That (a) any pen-
sion plan or trust which, on December 5, 1975, was a party to the 
amended and restated agreement of November 26, 1975, set forth on 
pages S21308, S21309, and S21310 of the Congressional Record pub-
lished on such date, and any trust forming a part of such a plan, shall 
not be considered to fail to satisfy the requirements of section 401 (a) of 
the Internal Revenue Code of 1954, and shall not be considered to have 
engaged in a prohibited transaction described in section 503(b) of 
such Code, merely because such plan or trust does any or all of the 
following: 
(1) (A) enters into such agreement or agrees to an amendment 
of such agreement; 
(B) forebears from any act prohibited by such agreement; 
(C) acquires or holds any obligation the acquisition or holding 
of which is provided for by such agreement; 
(D) makes any election provided for by such agreement; 
(E) executes a waiver of any requirement of such agreement; 
(F) after the expiration of such agreement, holds any obliga-
tion acquired or held pursuant to such agreement; or 
(G) performs any other act provided for by such agreement; 
(2) on or after August 20, 1975, and before January 1, 1979, 
considers, for purposes of determining investments to be made by 
the plan or trust, the extent to which such investments will— 
(A) maintain the ability of the city of New York— 
(i) to make future contributions to the plan or trust, 
and 
(ii) to satisfy its future obligations to pay pension 
and retirement benefits to members and beneficiaries of 
such plan or trust, and 
(B) protect the sources of funds to provide retirement 
benefits for members and beneficiaries of the plan or trust; or 
(3) after December 31, 1978, considers, for purposes of deter-
mining whether to retain investments held on December 31, 1978, 
the factors enumerated in paragraph (2). 
For purposes of paragraph (1), the acquisition or holding of any 
obligation of the Municipal Assistance Corporation for the city of 
New York on or after August 20, 1975, and before November 26, 
1975, shall be considered an acquisition or holding provided for by 
such agreement. 
(b) In the case of— 
(1) any amendment to the agreement described in subsection 
(a) which relates to the application of the factors set forth in 
subsection (a) to the requirements of section 401(a) or 503(b) 
of the Internal Revenue Code of 1954 and which is adopted after 
December 5,1975, and 
PUBLIC LAW 94-236—MAR. 19, 1976 
90 STAT. 239 
(2) any waiver of any requirement of the agreement by a plan Waiver, 
or trust after December 5,1975, 
such amendment or waiver shall take effect for purposes of subsection 
(a) on the date on which a copy of such amendment or waiver is 
submitted directly to the Secretary of the Treasury; except that, if 
the Secretary determines, not later than 30 days after such date of 
submission (or, if later, the date of the enactment of this Act) that 
the taking effect of such amendment or waiver for purposes of sub-
section (a) is inconsistent with the considerations set forth in sub-
section (a)(2), such amendment or waiver shall not be deemed to 
^ 
have been effective for any period for purposes of subsection (a). No 
amendment to the agreement which has the effect of extending the 
expiration date of the agreement to a date later than December 31, 
1978, shall take effect for purposes of subsection (a). 
(c) The trustees of each pension plan or trust described in subsec- Report to 
tion (a) shall furnish a copy of the annual i-eport filed by such plan or Secretary of the 
trust with the New York State Insurance Department for each fiscal Treasury, 
year of the plan or trust beginning after June 30, 1975, and ending 
with the first fiscal year in which there are no obligations with respect 
to which subsection (a) applies, to the Secretary of the Treasury not 
later than 30 days after the date such report is filed with the New York 
State Insurance Department, and shall furnish such additional reports 
and other information as the Secretary of the Treasury may reasonably 
require. A copy of each such i-eport shall be furnished by the Secretary 
of the Treasui'Y to the chaii-man of the Committee on Ways and Means 
of the House of Representatives and the chaii-man of the Committee 
on Finance of the Senate. 
(d) The Secretary of the Treasury or his delegate is authorized to Regulations, 
prescribe such regulations as may be necessary to carry out the pur-
poses of this Act. 
(e) This Act shall be effective on and after August 20, 1975. 
Effective date. 
Approved March 19, 1976. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 94-851 (Comm. on Ways and Means). 
CONGRESSIONAL RECORD, VoL 122 (1976): 
Mar. 1, considered and passed House. 
Mar. 4, considered and passed Senate. 
3-194 o—78—Dt 1 
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