Retirement Equity Act of 1984
PL 98-397 (H.R.4280), enacted 08/23/1984

98 STAT. 1426 
PUBLIC LAW 98-397—AUG. 23, 1984 
Public Law 98-397 
98th Congress 
An Act 
To amend the Employee Retirement Income Security Act of 1974 and the Internal 
Revenue Code of 1954 to improve the delivery of retirement benefits and provide 
Aug. 23, 1984 
for greater equity under private pension plans for workers and their spouses and 
[H.R. 4280] 
dependents by taking into account changes in work patterns, the status of marriage 
as an economic partnership, and the substantial contribution to that partnership of 
spouses who work both in and outside the home, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
Retirement 
United States of America in Congress assembled, 
Equity Act of 
' 
1984. 
SECTION 1. SHORT TITLE. 
29 use 1001 
note. 
This Act may be cited as the "Retirement Equity Act of 1984". 
TITLE 
I — AMENDMENTS 
TO 
THE 
EMPLOYEE RETIREMENT INCOME SE-
CURITY ACT OF 1974 
SEC. 101. AMENDMENT OF ERISA. 
Except as otherwise expressly provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to, or 
repeal of, a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the Employee 
29 use 1001 
Retirement Income Security Act of 1974. 
SEC. 102. MODIFICATIONS OF MINIMUM PARTICIPATION AND VESTING 
STANDARDS. 
(a) AGE LIMITATION FOR MINIMUM PARTICIPATION STANDARDS LOW-
ERED FROM AGE 25 TO AGE 21.— 
(1) IN GENERAL.—Clause (i) of section 202(a)(lXA) (29 U.S.C. 
1052(aXlXAXi)) is amended by striking out "25" and inserting in 
lieu thereof "21". 
(2) SPECIAL RULE FOR CERTAIN PLANS.—Clause (ii) of section 
202(aXlXB) (29 U.S.C. 1052(aXlXBXii)) is amended by striking 
out " '30' for '25' " and inserting in lieu thereof " '26' for '21' '\ 
(b) YEARS OF SERVICE AFTER AGE 18 (INSTEAD OF AGE 22) TAKEN 
INTO ACCOUNT FOR DETERMINING NONFORFEITABLE PERCENTAGE.— 
Subparagraph (A) of section 203(bXl) (29 U.S.C. 1053(bXlXA)) is 
amended by striking out "22" and inserting in lieu thereof "18". 
(c) BREAK IN SERVICE FOR VESTING UNDER INDIVIDUAL ACCOUNT 
PLANS.—Subparagraph 
(C) 
of 
section 
203(bX3) 
(29 
U.S.C. 
1053(bX3XC)) is amended— 
(1) by striking out "any 1-year break in service" and inserting 
in lieu thereof "5 consecutive 1-year breaks in service", and 
(2) by striking out "such break" each place it appears and 
inserting in lieu thereof "such 5-year period". 
(d) RULE OF PARITY FOR NONVESTED PARTICIPANTS TO BE APPUED 
ONLY IF BREAK IN SERVICE EXCEEDS 5 YEARS.— 
note. 
PUBLIC LAW 98-397—AUG. 23, 1984 
98 STAT. 1427 
(1) MINIMUM PARTICIPATION STANDARDS.—Paragraph (4) of sec-
tion 202(b) (29 U.S.C. 1052(b)(4)) is amended to read as follows: 
"(4XA) For purposes of paragraph (1), in the case of a nonvested 
participant, years of service with the employer or employers main-
taining the plan before any period of consecutive 1-year breaks in 
service shall not be required to be taken into account in computing 
the period of service if the number of consecutive 1-year breaks in 
service within such period equals or exceeds the greater of— 
"(i)5,or 
"(ii) the aggregate number of years of service before such 
period. 
"(B) If any years of service are not required to be taken into 
account by reason of a period of breaks in service to which subpara-
graph (A) applies, such years of service shall not be taken into 
account in appl3dng subparagraph (A) to a subsequent period of 
breaks in service. 
"(C) For purposes of subparagraph (A), the term 'nonvested partic-
ipant' means a participant who does not have any nonforfeitable 
right under the plan to an accrued benefit derived from employer 
contributions.". 
(2) MINIMUM VESTING STANDARDS.—Subparagraph (D) of sec-
tion 203(b)(3) (29 U.S.C. 1053(b)(3)(D)) is amended to read as 
follows: 
"(DXi) For purposes of paragraph (1), in the case of a nonvested 
participant, years of service with the employer or employers main-
taining the plan before any period of consecutive 1-year breaks in 
service shall not be required to be taken into account if the number 
of consecutive 1-year breaks in service within such period equals or 
exceeds the greater of— 
"(I) 5, or 
"(II) the aggregate number of years of service before such 
period. 
"(ii) If any years of service are not required to be taken into 
account by reason of a period of breaks in service to which clause (i) 
applies, such years of service shall not be taken into account in 
applying clause (i) to a subsequent period of breaks in service. 
"(iii) For purposes of clause (i), the term 'nonvested participant' 
means a participant who does not have any nonforfeitable right 
under the plan to an accrued benefit derived from employer 
contributions.". 
(e) CERTAIN MATERNITY OR PATERNITY ABSENCES NOT TREATED AS 
BREAKS IN SERVICE.— 
(1) MINIMUM PARTICIPATION STANDARDS.—Subsection (b) of sec-
tion 202 (29 U.S.C. 1052(b)) is amended by adding at the end 
thereof the following new paragraph: 
"(5)(A) In the case of each individual who is absent from work for 
any period— 
"(i) by reason of the pregnancy of the individual, 
"(ii) by reason of the birth of a child of the individual, 
"(iii) by reason of the placement of a child with the individual 
in connection with the adoption of such child by such individ-
ual, or 
"(iv) for purposes of caring for such child for a period begin-
ning immediately following such birth or placement, 
the plan shall treat as hours of service, solely for purposes of 
determining under this subsection whether a 1-year break in service 
98 STAT. 1428 
PUBLIC LAW 98-397—AUG. 23, 1984 
29 use 1053. 
(as defined in section 203(b)(3XA)) has occurred, the hours described 
in subparagraph (B). 
"(B) The hours described in this subparagraph are— 
"(i) the hours of service which otherwise would normally have 
been credited to such individual but for such absence, or 
"(ii) in any case in which the plan is unable to determine the 
hours described in clause (i), 8 hours of service per day of such 
absence, 
except that the total number of hours treated as hours of service 
under this subparagraph by reason of any such pregnancy or place-
ment shall not exceod 501 hours. 
"(C) The hours described in subparagraph (B) shall be treated as 
hours of service as provided in this par£^aph— 
"(i) only in the year in which the absence from work begins, if 
a participant would be prevented from incurring a 1-year break 
in service in such year solely because the period of absence is 
treated as hours of service as provided in subparagraph (A); or 
"(ii) in any other case, in the immediately following year. 
"(D) For purposes of this paragraph, the term 'year' means the 
29 use 1052. 
period used in computations pursuant to section 202(a)(3)(A). 
"(E) A plan may provide that no credit will be given pursuant to 
this paragraph unless the individual furnishes to the plan adminis-
trator such timely information as the plan may reasonably require 
to establish— 
"(i) that the absence from work is for reasons referred to in 
subparagraph (A), and 
"(ii) the number of days for which there was such an 
absence 
(2) MINIMUM VESTING STANDARDS.—Section 203(bX3) (29 U.S.C. 
1053(b)(3)) is amended by adding at the end thereof the following 
new subparagraph: 
"(EXi) In the case of each individual who is absent from work for 
any period— 
"(I) by reason of the pregnancy of the individual, 
"(II) by reason of the birth of a child of the individual, 
"(III) by reason of the placement of a child with the individual 
in connection with the adoption of such child by such individ-
ual, or 
"(IV) for purposes of caring for such child for a period begin-
ning immediately following such birth or placement, 
the plan shall treat as hours of service, solely for purposes of 
determining under this paragraph whether a 1-year break in service 
has occurred, the hours described in clause (ii). 
"(ii) The hours described in this clause are— 
"(I) the hours of service which otherwise would normally have 
been credited to such individual but for such absence, or 
"(II) in any case in which the plan is unable to determine the 
hours described in subclause (I), 8 hours of service per day of 
absence, 
except that the total number of hours treated as hours of service 
under this clause by reason of such pregnancy or placement shall 
not exceed 501 hours. 
"(iii) The hours described in clause (ii) shall be treated as hours of 
service as provided in this subparagraph— 
"(I) only in the year in which the absence from work begins, if 
a participant would be prevented from incurring a 1-year break 
PUBLIC LAW 98-397—AUG. 23, 1984 
98 STAT. 1429 
in service in such year solely because the period of absence is 
treated as hours of service as provided in clause (i); or 
"(ID in any other case, in the immediately following year, 
"(iv) For purposes of this subparagraph, the term 'year' means the 
period used in computations pursuant to paragraph (2). 
"(v) A plan may provide that no credit will be given pursuant to 
this subparagraph unless the individual furnishes to the plan ad-
ministrator such timely information as the plan may reasonably 
require to establish— 
"(I) that the absence from work is for reasons referred to in 
clause (i), and 
"(11) the number of days for which there was such an 
absence.". 
(3) ABSENCES DISREGARDED FOR PURPOSES OF ACCRUED BENEFIT 
REQUIREMENTS.—Subparagraph (A) of section 204(bX3) (29 U.S.C. 
1054(bX3XA)) is amended by inserting ", determined without 
regard to section 202(bX5)" after "section 202(b)". 
(f) APPUCATION OF BREAK IN SERVICE RULES TO ACCRUED BENE-
FITS.—Subsection (e) of section 204 (29 U.S.C. 1054(e)) is amended by 
striking out "any 1-year break in service" and inserting in lieu 
thereof "5 consecutive 1-year breaks in service". 
SEC. 103. REQUIREMENT OF JOINT AND SURVIVOR ANNUITIES AND PRE-
RETIREMENT SURVIVOR ANNUITIES. 
(a) GENERAL RULE.—Section 205 (29 U.S.C. 1055) is amended to 
read as follows: 
"REQUIREMENT OF JOINT A N D SURVIVOR ANNUITY AND 
PRERETIREMENT SURVIVOR ANNUITY 
"SEC. 205. (a) Each pension plan to which this section applies shall 
provide that— 
"(1) in the case of a vested participant who retires under the 
plan, the accrued benefit payable to such participant shall be 
provided in the form of a qualified joint and survivor annuity, 
and 
"(2) in the case of a vested participant who dies before the 
annuity starting date and who has a surviving spouse, a quali-
fied preretirement survivor annuity shall be provided to the 
surviving spouse of such participant. 
"(bXD This section shall apply to— 
"(A) any defined benefit plan, 
"(B) any individual account plan which is subject to the 
funding standards of section 302, and 
2
9 use 1082. 
"(C) any participant under any other individual account plan 
unless— 
"(i) such plan provides that the participant's nonforfeit-
able accrued benefit 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 con-
sents in the manner required under subsection (cX2XA), to a 
designated beneficiary), 
"(ii) such participant does not elect the payment of bene-
fits in the form of a life annuity, and 
"(iii) with respect to such participant, such plan is not a 
transferee of a plan which is described in subparagraph (A) 
98 STAT. 1430 
PUBLIC LAW 98-397—AUG. 23, 1984 
or (B) or to which this clause applied with respect to the 
participant. 
"(2XA) In the case of— 
"(i) a tax credit employee stock ownership plan (as defined in 
Ante, p. 852. 
section 409(a) of the Internal Revenue CJode of 1954), or 
"(ii) an employee stock ownership plan (as defined in section 
26 use 4975. 
4975(eX7) of such Ck)de), 
subsection (a) shall not apply to that portion of the employee's 
Ante, p. 852. 
accrued benefit to which the requirements of section 409(h) of such 
Code apply. 
"(B) Subparagraph (A) shall not apply with respect to any partici-
pant unless the requirements of clause (i), (ii), and (iii) of paragraph 
(IXC) are met with respect to such participant. 
"(cXD A plan meete 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, £uid 
"(B) the plan meets the requirements of paragraphs (2) 
and (3). 
"(2) Each plan shall provide that an election under paragraph 
(IXAXi) shall not take effect unless— 
"(A) the spouse of the participant consents in writing to such 
election, and 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 representa-
tive 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 estoblishment that the consent of a 
spouse may not be obtained) under the preceding sentence shall be 
effective only with respect to such spouse. 
"(3XA) 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 explemation of— 
"(i) the terms and conditions of the qualified joint and survi-
vor 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). 
Age limitation. 
"(B) Each plan shall provide to each participant, within the period 
beginning with the first day of the plan year in which the partici-
p£int 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 
PUBLIC LAW 98-397—AUG. 23, 1984 
98 STAT. 1431 
preretirement survivor annuity comparable to that required under 
subparagraph (A). 
"(4XA) 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 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. 
"(5) If a plan fiduciary acts in accordance with part 4 of this 
subtitle in— 
29 use iioi. 
"(A) relying on a consent or revocation referred to in para-
graph dXA), 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. 
"(6) 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 preretire-
ment 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. 
"(d) 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) 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 i
f
— 
"(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 equiva-
lent thereof) i
f
— 
"(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 
98 STAT. 1432 
PUBLIC LAW 98-397—AUG. 23, 1984 
"(ii) in the case of a participant who dies on or before 
the date on which the participant would have attained 
the eariiest retirement age, such participant had— 
"(I) separated from service on the date of death, 
"(II) survived to the earUest 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 retire-
ment age, and 
"(B) under the plan, the earliest period for which the 
surviving spouse may receive a payment under such annu-
ity is not later than the month in which the participant 
would have attained the earliest retirement age under the 
plan. 
"(2) In the case of any individual account plan or participant 
described in subparagraph (B) or (C) of subsection (bXD, the 
term 'qualified preretirement survivor annuity' means an annu-
ity for the life of the surviving spouse the actuarial equivalent 
of which is not less than 50 percent of the account balance of the 
participant as of the date of death. 
"(f)(1) Except as provided in paragraph (2), a plan may provide 
that a qualified joint and survivor annuity (or a qualified preretire-
ment 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), i
f
— 
"(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)(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 $3,500. 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 
$3,500, 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) 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 distribu-
PUBLIC LAW 98-397—AUG. 23, 1984 
98 STAT. 1433 
tion 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. 
"(h) For purposes of this section— 
"(1) the term 'vested participant' means any participant who 
has a nonforfeitable right (within the meaning of section 3(19)) 
29 USC 1002. 
to any portion of the accrued benefit derived from employer 
contributions, 
"(2) 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 
"(3) the term 'earliest retirement age' means the earliest date 
on which, under the plan, the participant could elect to receive 
retirement benefits. 
"(i) 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) In prescribing regulations under this section, the Secretary of 
the Treasury shall consult with the Secretary of Labor.". 
(b) CLERICAL AMENDMENT.—The table of contents in section 1 is 
amended by striking out the item relating to section 205 and 
inserting in lieu thereof the following new item: 
"Sec. 205. Requirement of joint and survivor annuity and preretirement survivor 
annuity.", 
SEC. 104. SPECIAL RULES FOR ASSIGNMENTS 
IN DIVORCE. ETC., 
PROCEEDINGS. 
(a) IN GENERAL.—Section 206(d) (29 U.S.C. 1056(d)) is amended by 
adding at the end thereof the following new paragraph: 
"(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 alter-
nate 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 subpara-
graphs (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). 
98 STAT. 1434 
PUBLIC LAW 98-397—AUG. 23, 1984 
"(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 pajmaent 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. 
"(EXi) In the case of any pajmient before a participant has sepa-
rated from service, 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) on or after the date on which the participant attains (or 
would have attained) the eeirliest 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 retire-
Ante, p. 1429. 
ment age' has the meaning given such term by section 205(hX3), 
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. 
"(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 205, 
and 
"(ii) if married for at least 1 year, the former spouse shall be 
treated £is meeting the requirements of section 205(f). 
"(G)(i) In the case of any domestic relations order received by a 
plan— 
"(I) the plan administrator shall promptly notify the partici-
pant and any other alternate payee of the receipt of such order 
PUBLIC LAW 98-397—AUG. 23, 1984 
98 STAT. 1435 
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, 
"(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 rela-
tions 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 repre-
sentative 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 segregate in 
a separate account in the plan or in an escrow account the 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 18 months the order (or modification thereof) is 
determined to be a qualified domestic relations order, the plan 
administrator shall pay the segregated amounts (plus any interest 
thereon) to the person or persons entitled thereto, 
"(iii) If within 18 months— 
"(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 (plus 
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 
shall be applied prospectively only. 
"(I) If a plan fiduciary acts in accordance with part 4 of this 
29 use iioi. 
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 
e 
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 Act a beneficiary under the plan. Nothing in the preceding 
sentence shall permit a requirement under section 4001 of the 29 USC 1301. 
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 
98 STAT. 1436 
PUBLIC LAW 98-397—AUG. 23, 1984 
domestic relations order as having a right to receive all, or a por-
tion of, the benefits payable under a plan with respect to such 
participant. 
"(L) In prescribing regulations under this paragraph, the Secre-
tary shall consult with the Secretary of the Treasury.". 
(b) CLARIFICATION OF PREEMPTION PROVISION.—Subsection (b) of 
section 514 (29 U.S.C. 1144(b)) is amended by adding at the end 
thereof the following new paragraph: 
"(7) Subsection (a) shall not apply to qualified domestic relations 
Ante, p. 1433. 
Orders (within the meaning of section 206(d)(3)(BXi)).". 
SEC. 105. RESTRICTIONS ON MANDATORY DISTRIBUTIONS. 
(a) GENERAL RULE.—Section 203 (29 U.S.C. 1053) is amended by 
adding at the end thereof the following new subsection: 
"(eXD If the present value of any accrued benefit exceeds $3,500, 
such benefit shall not be treated as nonforfeitable if the plan 
provides that the present value of such benefit could be immediately 
distributed without the consent of the participant. 
"(2) For purposes of paragraph (1), the present value shall be 
calculated 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.'. 
(b) CONFORMING AMENDMENT.—Paragraph (1) of section 204(d) (29 
U.S.C. 1054(dXl)) is amended by striking out "$1,750" and inserting 
in lieu thereof "$3,500". 
SEC. 106. PARTICIPANT TO BE NOTIFIED THAT BENEFITS MAY BE FOR-
FEITABLE. 
Subsection (c) of section 105 (29 U.S.C. 1025(c)) is amended by 
inserting at the end thereof the following new sentence: "Such 
statement shall also include a notice to the participant of any 
benefits which are forfeitable if the participant dies before a certain 
date.". 
TITLE II—AMENDMENTS TO THE 
INTERNAL REVENUE CODE OF 1954 
SEC. 201. AMENDMENT OF 1954 CODE. 
Except as otherwise expressly provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to, or 
repeal of, a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the Internal 
26 use 1 et seg. Revenue Code of 1954. 
SEC. 202. MODIFICATIONS OF MINIMUM PARTICIPATION AND VESTING 
STANDARDS. 
(a) AGE LIMITATION FOR MINIMUM PARTICIPATION STANDARDS LOW-
ERED FROM AGE 25 TO AGE 21.— 
26 use 410. 
(1) IN GENERAL.—Subparagraph (AXi) of section 410(aXl) 
relating to minimum a^e requirement for participation is 
amended by striking out "25" and inserting in lieu thereof "21". 
(2) SPECIAL RULE FOR CERTAIN PLANS.—Subparagraph (BXii) of 
section 410(aXl) (relating to special rules for certain plans) is 
amended by striking out " '30' for '25'" and inserting in lieu 
thereof "'26'for'21'". 
PUBLIC LAW 98-397—AUG. 23, 1984 
98 STAT. 1437 
(b) YEARS OF SERVICE AFTER AGE 18 (INSTEAD OF AGE 22.) TAKEN 
INTO ACCOUNT FOR DETERMINING NONFORFEITABLE PERCENTAGE.— 
Subparagraph (A) of section 411(a)(4) (relating to service included in 
26 use 4ii. 
determination of nonforfeitable percentage) is amended by striking 
out "22" and inserting in lieu thereof "18 . 
(c) BREAK IN SERVICE FOR VESTING UNDER DEFINED CONTRIBUTION 
PLANS, ETC.—Subparagraph (C) of section 411(a)(6) (relating to 1-
year break in service under defined contribution plan) is amended— 
(1) by striking out "I-YEAR BREAK IN SERVICE" in the subpara-
graph heading and inserting in lieu thereof "5 CONSECUTIVE i-
YEAR BREAKS IN SERVICE", 
(2) by striking out "any 1-year break in service" and inserting 
in lieu thereof "5 consecutive 1-year breaks in service", and 
(3) by striking out "such break" each place it appears and 
inserting in lieu thereof "such 5-year period". 
(d) RULE OF PARITY FOR NONVESTED PARTICIPANTS TO BE APPUED 
ONLY IF BREAK IN SERVICE EXCEEDS 5 YEARS.— 
(1) MINIMUM PARTICIPATION STANDARDS.—Subparagraph (D) of 
section 410(a)(5) (relating to breaks in service) is amended to 
26 use 410. 
read as follows: 
"(D) NONVESTED PARTICIPANTS.— 
"(i) IN GENERAL.—For purposes of paragraph (1), in 
the case of a nonvested participant, years of service 
with the employer or employers maintaining the plan 
before any period of consecutive 1-year breaks in serv-
ice shall not be required to be taken into account in 
computing the period of service if the number of con-
secutive 1-year breaks in service within such period 
equals or exceeds the greater of— 
"(I) 5, or 
"(II) the aggregate number of years of service 
before such period, 
"(ii) YEARS OF SERVICE NOT TAKEN INTO ACCOUNT.—If 
any years of service are not required to be taken into 
account by reason of a period of breaks in service to 
which clause (i) applies, such years of service shall not 
be taken into account in applying clause (i) to a subse-
quent period of breaks in service. 
"(iii) NONVESTED PARTICIPANT DEFINED.—For pur-
poses of clause (i), the term 'nonvested participant' 
means a participant who does not have any nonforfeit-
able right under the plan to an accrued benefit derived 
from employer contributions.". 
(2) MINIMUM VESTING STANDARDS.—Subparagraph (D) of sec- 
26 use 4ii. 
tion 411(a)(6) (relating to breaks in service) is amended to read 
as follows: 
"(D) NONVESTED PARTICIPANTS.— 
"(i) IN GENERAL.—For purposes of paragraph (4), in 
the case of a nonvested participant, years of service 
with the employer or employers maintaining the plan 
before any period of consecutive 1-year breaks in serv-
ice shall not be required to be taken into account if the 
number of consecutive 1-year breaks in service within 
such period equals or exceeds the greater of— 
"(I) 5, or 
"(II) the aggregate number of years of service 
before such period. 
98 STAT. 1438 
PUBLIC LAW 98-397—AUG. 23, 1984 
"(ii) YEARS OF SERVICE NOT TAKEN INTO ACCOUNT.—If 
any years of service are not required to be taken into 
,,f i:; , . 
account by reason of a period of breaks in service to 
which clause (i) applies, such years of service shall not 
be taken into account in applying clause (i) to a subse-
quent period of breaks in service. 
"(iii) NONVESTED PARTICIPANT DEFINED.—For pur-
poses of clause (i), the term 'nonvested participant' 
means a participant who does not have any nonforfeit-
able right under the plan to an accrued benefit derived 
from employer contributions.", 
(e) CERTAIN MATERNITY OR PATERNITY ABSENCES NOT TREATED AS 
BREAKS IN SERVICE.— 
(1) MINIMUM PARTICIPATION STANDARDS.—Paragraph (5) of sec-
26 use 410. 
tion 410(a) (relating to breaks in service) is amended by adding 
at the end thereof the following new subparagraph: 
"(E) 
SPECIAL 
RULE 
FOR 
MATERNITY 
OR 
PATERNITY 
ABSENCES.— 
"(i) GENERAL RULE.—In the case of each individual 
who is absent from work for any period— 
"(I) by reason of the pregnancy of the individual, 
"(II) by reason of the birth of a child of the 
individual, 
"(HI) by reason of the placement of a child with 
the individual in connection with the adoption of 
such child by such individual, or 
"(IV) for purposes of caring for such child for a 
period beginning immediately following such birth 
or placement, 
the plan shall treat as hours of service, solely for 
purposes of determining under this paragraph whether 
a 1-year break in service (as defined in section 
26 use 411. 
411(aX6XA)) has occurred, the hours described in clause 
(ii). 
"(ii) 
HOURS TREATED AS HOURS OF SERVICE.—The 
hours described in this clause are— 
"(I) the hours of service which otherwise would 
normally have been credited to such individual but 
for such absence, or 
"(II) in any case in which the plan is unable to 
determine the hours described in subclause (I), 8 
hours of service per day of such absence, 
lii .)c J o 
except that the total number of hours treated as hours 
of service under this clause by reason of any such 
pregnancy or placement shall not exceed 501 hours. 
"(iii) YEAR TO WHICH HOURS ARE CREDITED.—The 
hours described in clause (ii) shall be treated as hours 
of service as provided in this subparagraph— 
"(I) only in the year in which the absence from 
work begins, if a participant would be prevented 
from incurring a 1-year break in service in such 
year solely because the period of absence is treated 
as hours of service as provided in clause (i); or 
• 
-i, 
"(II) in any other case, in the immediately follow-
• • ' 
ingyear. 
PUBLIC LAW 98-397—AUG. 23, 1984 
98 STAT. 1439 
"(iv) YEAR DEFINED.—For purposes of this subpara-
graph, the term 'year' means the period used in compu-
tations pursuant to paragraph (3). 
"(v) INFORMATION REQUIRED TO BE FILED.—A plan 
shall not fail to satisfy the requirements of this sub-
paragraph solely because it provides that no credit will 
be given pursuant to this subparagraph unless the 
individual furnishes to the plan administrator such 
timely information as the plan may reasonably require 
to establish— 
"(I) that the absence from work is for reasons 
referred to in clause (i), and 
"(II) the number of days for which there was 
such an absence.". 
(2) MINIMUM VESTING STANDARDS.—Paragraph (6) of section 
26 use 4ii. 
411(a) (relating to breaks in service) is amended by adding at the 
end thereof the following new subparagraph: 
"(E) 
SPECIAL 
RULE 
FOR MATERNITY OR PATERNITY 
ABSENCES.— 
"(i) GENERAL RULE.—In the case of each individual 
who is absent from work for any period— 
"(I) by reason of the pregnancy of the individual, 
"(II) by reason of the birth of a child of the 
individual, 
"(III) by reason of the placement of a child with 
the individual in connection with the adoption of 
such child by such individual, or 
"(IV) for purposes of caring for such child for a 
period beginning immediately following such birth 
^ .,, 
or placement, 
"" ' 
the plan shall treat as hours of service, solely for 
purposes of determining under this paragraph whether 
' 
a 1-year break in service has occurred, the hours de-
scribed in clause (ii). 
"(ii) HOURS TREATED AS HOURS OF SERVICE.—The 
hours described in this clause are— 
"(I) the hours of service which otherwise would 
normally have been credited to such individual but 
for such absence, or 
"(II) in any case in which the plan is unable to 
determine the hours described in subclause (I), 8 
hours of service per day of absence, 
except that the total number of hours treated as hours 
of service under this clause by reason of any such 
pregnancy or placement shall not exceed 501 hours. 
"(iii) YEAR TO WHICH HOURS ARE CREDITED.—The 
hours described in clause (ii) shall be treated as hours 
of service as provided in this subparagraph— 
"(I) only in the year in which the absence from 
work begins, if a participant would be prevented 
from incurring a 1-year break in service in such 
year solely because the period of absence is treated 
as hours of service as provided in clause (i); or 
"(II) in any other case, in the immediately follow-
ing year. 
\ 
98 STAT. 1440 
PUBLIC LAW 98-397—AUG. 23, 1984 
"(iv) YEAR DEFINED.—For purposes of this subpara-
graph, the term 'year' means the period used in compu-
tations pursuant to paragraph (5). 
"(v) INFORMATION REQUIRED TO BE FILED.—A plan 
shall not fail to satisfy the requirements of this sub-
paragraph solely because it provides that no credit will 
be given pursuant to this subparagraph unless the 
individual furnishes to the plan administrator such 
timely information as the plan may reasonably require 
to establish— 
"(I) that the absence from work is for reasons 
referred to in clause (i), and 
"(II) the number of days for which there was 
such an absence.". 
(3) ABSENCES DISREGARDED FOR PURPOSES OF ACCRUED BENEFIT 
26 use 411. 
REQUIREMENTS.—Subparagraph (A) of section 411(b)(3) (relating 
to year of participation) is amended by inserting ", determined 
without regard to section 410(a)(5)(E)" after "section 410(a)(5)". 
(f) APPLICATION OF BREAK IN SERVICE RULES TO ACCRUED BENE-
FITS.—Subparagraph (C) of section 411(aX7) (defining accrued bene-
fit) is amended by striking out "any one-year break in service" and 
inserting in lieu thereof "5 consecutive 1-year breaks in service". 
SEC. 203. REQUIREMENT OF JOINT AND SURVIVOR ANNUITIES AND PRE-
RETIREMENT SURVIVOR ANNUITIES. 
26 use 401. 
(a) GENERAL RULE.—Paragraph (11) of section 401(a) (relating to 
requirement of joint and survivor annuities) is amended to read as 
follows: 
"(11) 
REQUIREMENT OF JOINT AND SURVIVOR ANNUITY AND 
Trust. 
PRERETIREMENT SURVIVOR ANNUITY.— 
"(A) IN GENERAL.—In the case of any plan to which this 
Post, p. 1441. 
paragraph applies, except as provided in section 417, a trust 
forming part of such plan shall not constitute a qualified 
trust under this section unless— 
"(i) in the case of a vested participant who retires 
under the plan, the accrued benefit payable to such 
participant is provided in the form of a qualified joint 
and survivor annuity, and 
"(ii) in the case of a vested participant who dies 
before the annuity starting date and who has a surviv-
ing spouse, a qualified preretirement survivor annuity 
is provided to the surviving spouse of such participant. 
"(B) PLANS TO WHICH PARAGRAPH APPUES.—This para-
graph shall apply to— 
"(i) any defined benefit plan, 
"(ii) any defined contribution plan which is subject to 
26 use 412. 
the funding standards of section 412, and 
"(iii) any participant under any other defined contri-
bution plan unless— 
"(I) such plan provides that the participant's 
nonforfeitable accrued benefit 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 
Post, p. 1441. 
required under section 417(a)(2)(A), to a designated 
beneficiary). 
PUBLIC LAW 98-397—AUG. 23, 1984 
98 STAT. 1441 
"(11) such participant does not elect a 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 of a plan 
which is described in clause (i) or (ii) or to which 
this clause applied with respect to the participant. 
J 
"(C) EXCEPTION FOR CERTAIN ESOP BENEFITS.— 
"(i) IN GENERAL.—In the case of— 
"(I) a tax credit employee stock ownership plan 
(as defined in section 409(a)), or 
Ante, p. 852. 
"(II) an employee stock ownership plan (as de-
fined in section 4975(eX7)), 
26 use 4975. 
subparagraph (A) shall not apply to that portion of the 
employee's accrued benefit to which the requirements 
of section 409(h) apply. 
Ante, p. 852. 
"(ii) NONFORFEITABLE BENEFIT MUST BE PAID IN FULL, 
ETC.—In the case of any participant, clause (i) shall 
apply only if the requirements of subclauses (I), (II), and 
(III) of subparagraph (B)(iii) are met with respect to 
such participant. 
' 
' 
' 
"(D) CROSS REFERENCE.—For— 
"(i) provisions under which participants may elect to 
waive the requirements of this paragraph, and 
"(ii) other definitions and special rules for purposes 
of this paragraph, 
see section 417. . 
(b) DEFINITIONS AND SPECIAL RULES.—Subpart B of part I of 
subchapter D of chapter 1 is amended by adding at the end thereof 
the following new section: 
"SEC. 417. DEFINITIONS AND SPECIAL RULES FOR PURPOSES OF MINIMUM 
26 USC 417. 
SURVIVOR ANNUITY REQUIREMENTS. 
"(a) ELECTION TO WAIVE QUAUFIED JOINT AND SURVIVOR ANNUITY 
O
R QUAUFIED PRERETIREMENT SURVIVOR ANNUITY.— 
"(1) IN GENERAL.—A plan meets the requirements of section 
401(aXii) 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) 
and (3) of this subsection. 
"(2) SPOUSE MUST CONSENT TO ELECTION.—Each plan shall 
provide that an election under paragraph (IXAXi) shall not take 
effect unless— 
"(A) the spouse of the participant consents in writing to 
such election, and the spouse's consent acknowledges the 
effect of such election and is witnessed by a plan represent-
ative or a notary public, or 
"(B) it is established to the satisfaction of a plan repre-
sentative 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 circum-
stances £is the Secretary may by regulations prescribe. 
98 STAT. 1442 
PUBLIC LAW 98-397—AUG. 23, 1984 
Any consent by a spouse (or establishment that the consent of a 
spouse may not be obtained) under the preceding sentence shall 
De effective only with respect to such spouse. 
"(3) PLAN TO PROVIDE WRITTEN EXPLANATIONS.— 
"(A) EXPLANATION OP JOINT AND SURVIVOR ANNUITY.— 
Each plan shall provide to each participant, within a rea-
sonable period of time before the annuity starting date (and 
consistent with such regulations as the Secretary may pre-
scribe), 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 para^aph (1). 
Age limitation. 
"(B) EXPLANATION OF QUALIFIED PRERETIREMENT SURVIVOR 
ANNUITY.—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 may prescribe), a written 
explanation with respect to the qualified preretirement 
survivor annuity comparable to that required under sub-
paragraph (A). 
"(4) SPECIAL RULES WHERE PLAN FULLY SUBSIDIZES COSTS.— 
"(A) IN GENERAL.—The requirements of this subsection 
shall not apply with respect to the qualified joint and 
survivor annuity form of benefit or the qualified preretire-
ment survivor annuity form of benefit, as the case may be, 
if the plan fully subsidizes the costs of such benefit. 
"(B) DEFINITION.—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 contri-
butions from such participant. 
"(5) APPLICABLE ELECTION PERIOD DEFINED.—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 C£ise of a participemt 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. 
"(b) DEFINITION OF QUALIFIED JOINT AND SURVIVOR ANNUITY.—For 
Ante, p. 1440. 
purposes of this section and section 401(aXll), the term 'qualified 
joint and survivor annuity' means an annuity— 
PUBLIC LAW 98-397—AUG. 23, 1984 
98 STAT. 1443 
: 
"(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. 
"(c) DEFINITION OF QUAUFIED PRERETIREMENT SURVIVOR ANNU-
ITY.—For purposes of this section and section 401(aXll)— 
Ante, p. 1440. 
"(1) IN GENERAL.—Except as provided in paragraph (2), the 
term 'qualified preretirement survivor annuity' means a survi-
vor annuity or the life of the surviving spouse of the participant 
i
f
— 
"(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 actuarim equiva-
lent thereof) i
f
— 
"(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* 
dav before the participant's date of death, or 
fd» 
"(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, 
n 
"(III) retired with an immediate qualified joint 
and survivor annuity at the earliest retirement 
age, and 
4 
"(IV) died on the day after the day on which such 
participant would have attained the earliest retire-
I 
ment s^e, and 
"(B) under the plan, the earliest period for which the 
surviving spouse may receive a pa5niient under such annu-
ity is not later than the month in which the participant 
would have attained the earliest retirement age under the 
plan. 
"(2) SPECIAL RULE FOR DEFINED CONTRIBUTION PLANS.—In the 
case of any defined contribution plan or participant described in 
clause (ii) or (iii) of section 401(aXllXB), the term 'qualified 
Ante, p. 1440. 
preretirement survivor annuity' means an annuity for the life 
of the surviving spouse the actuarial equivalent of which is not 
: r :• ^i^f^ 
less than 50 percent of the account balance of the participant as 
of the date of death. 
"(d) SURVIVOR ANNUITIES NEED NOT BE PROVIDED IF PARTICIPANT 
; ij )8i g
*
; 
A
N
D SPOUSE MARRIED LESS THAN 1 YEAR.— 
"(1) IN GENERAL.—Except as provided in paragraph (2);, a plan 
shall not be treated as failing to meet the requirements of 
section 401(a)(ll) merely because the plan provides that a quali- Ante, p. 1440. 
fied 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 o
f
— 
98 STAT. 1444 
PUBLIC LAW 98-397—AUG. 23, 1984 
"(A) the participant's annuity starting date, or 
"(B) the date of the participant's death. 
"(2) TREATMENT OF CERTAIN MARRIAGES WITHIN i YEAR OF 
ANNUITY STARTING D
A
T
E FOR PURPOSES OF QUAUFIED JOINT AND 
SURVIVOR ANNUITIES.—For purposes of paragraph (1), i
f
— 
"(A) a participant marries within 1 year before the annu-
ity starting date, and 
"(B) the participant and the participant's spouse in such 
marriage have been meirried 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 par-
ticipant's annuity starting date. 
"(e) RESTRICTIONS ON CASH-OUTS.— 
"(1) PLAN MAY REQUIRE DISTRIBUTION IF PRESENT VALUE NOT IN 
E
X
C
E
S
S OF $3,500.—A plan may provide that the present value of 
a qualified joint and survivor annuity or a qugdified preretire-
ment survivor annuity will be immediately distributed if such 
value does not exceed $3,500. No distribution may be made 
under the preceding sentence after the annuity starting date 
unless the participsmt and the spouse of the participant (or 
where the participsmt has died, the surviving spouse) consents 
in writing to such distribution. 
"(2) PLAN MAY DISTRIBUTE BENEFIT IN EXCESS OF $3,500 ONLY 
WITH CONSENT.—If^ 
"(A) the present value of the qualified joint and survivor 
annuity or the qualified preretirement survivor annuity 
exceeds $3,500, and 
"(B) the participgmt and the spouse of the participant (or 
where the participant has died, the surviving spouse) con-
sent in writing to the distribution, 
the plan may immediately distribute the present value of such 
annuity. 
"(3) DETERMINATION OF PRESENT VALUE.—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. 
"(f) OTHER DEFINITIONS AND SPECIAL RULES.—For purposes of this 
Ante, p. 1440. 
section and section 401(aXll)— 
"(1) VESTED PARTICIPANT.—The term 'vested participant' 
means any participant who has a nonforfeitable right (within 
26 use 411. 
the meaning of section 411(a)) to any portion of the accrued 
benefit derived from employer contributions. 
"(2) ANNUITY STARTING DATE.—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). 
"(3) EARUEST RETIREMENT AGE.—The term 'earliest retire-
ment age' means the earliest date on which, under the plan, the 
participant could elect to receive retirement benefits. 
"(4) PLAN MAY TAKE INTO ACCOUNT INCREASED COSTS.—A plan 
may take into account in any equitable manner (as determined 
by the Secretary) any increased costs resulting from providing a 
PUBLIC LAW 98-397—AUG. 23, 1984 
98 STAT. 1445 
qualified joint or survivor annuity or a qualified preretirement 
survivor annuity. 
"(5) CONSULTATION WITH THE SECRETARY OF LABOR.—In pre-
scribing regulations under this section and section 401(a)(ll), 
Ante, p. 1440. 
the Secretary shall consult with the Secretary of Labor.". 
(c) CLERICAL AMENDMENT.—The table of sections for subpart B of 
part I of subchapter D of chapter 1 is amended by adding at the end 
thereof the following new item: 
"Sec. 417. Definitions and special rules for purposes of minimum survivor 
annuity requirements.". 
SEC. 204. SPECIAL RULES FOR ASSIGNMENTS IN DIVORCE, ETC., PROCEED-
INGS. 
(a) PROHIBITION AGAINST ASSIGNMENT NOT TO APPLY IN DIVORCE, 
ETC., PROCEEDINGS.—Paragraph (13) of section 401(a) (relating to 
26USC401. 
assignment of benefits) is amended— 
(1) by striking out "(13) A trust" and inserting in lieu thereof 
the following: 
"(13) ASSIGNMENT AND ALIENATION.— 
"(A) IN GENERAL.—A trust", and 
(2) by correcting the margin for such subparagraph (A), and 
(3) by adding at the end thereof the following new sub-
paragraph: 
"(B) SPECIAL RULES FOR DOMESTIC RELATIONS ORDERS.— 
Subparagraph (A) 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 subparagraph (A) shall not apply if the order is 
determined to be a qualified domestic relations order.". 
(b) QUALIFIED DOMESTIC RELATIONS ORDER DEFINED.—Section 414 
Ante, p. 875. 
is amended by adding at the end thereof the following new 26 USC 414. 
subsection: 
"(p) QUALIFIED DOMESTIC RELATIONS ORDER DEFINED.—For pur-
poses of this subsection and section 401(a)(13)— 
"(1) IN GENERAL.— 
"(A) QUAUFIED DOMESTIC RELATIONS ORDER.—The term 
'qualified domestic relations order' means a domestic rela-
tions 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 para-
graphs (2) and (3) are met. 
"(B) DOMESTIC RELATIONS ORDER.—The term 'domestic re-
lations order' means any judgment, decree, or order (includ-
ing approval of a property settlement agreement) which— 
(i) relates to the provision of child support, alimony 
payments, or marital property rights to a spouse, child, 
or other dependent of a participant, and 
"(ii) is made pursuant to a State domestic relations 
law (including a community property law). 
"(2) ORDER MUST CLEARLY SPECIFY CERTAIN FACTS.—A domestic 
relations order meets the requirements of this paragraph only if 
such order clearly specifies— 
98 STAT. 1446 
PUBLIC LAW 98-397—AUG. 23, 1984 
"(A) 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, 
"(B) the amount or percentage of the participant's bene-
fits to be paid by the plan to each such alternate payee, or 
the manner in which such amount or percentage is to be 
determined, 
"(C) the number of payments or period to which such 
order applies, and 
"(D) each plan to which such order applies. 
"(3) ORDER MAY NOT ALTER AMOUNT, FORM, ETC., OF BENEFITS.— 
A domestic relations order meets the requirements of this 
paragraph only if such order— 
"(A) does not require a plan to provide any type or form 
of benefit, or any option, not otherwise provided under the 
plan, 
"(B) does not require the plan to provide increased bene-
fits, (determined on the basis of actuarial value), and 
"(C) 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. 
"(4) EXCEPTION FOR CERTAIN PAYMENTS MADE AFTER EARUEST 
RETIREMENT AGE.— 
"(A) IN GENERAL.—In the case of any payment before a 
participant has separated from service, a domestic relations 
order shall not be treated as failing to meet the require-
ments of subparagraph (A) of paragraph (3) solely because 
such order requires that payment of benefits be made to an 
alternate payee— 
"(i) 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 pajmient is to begin under such order (but 
taking into accoimt only the present value of the bene-
fits actually accrued and not tsddng into account the 
present value of any employer subsidy for early retire-
ment), 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 clause (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. 
"(B) EARLIEST RETIREMENT AGE.—For purposes of this 
paragraph, the term 'earliest retirement age* has the mean-
Ante, p. 1441. 
ing given such term by section 417(fK3), except that in the 
case of any defined contribution plem, the earliest retire-
ment age shall be the date which is 10 years before the 
normal retirement age (within the meaning of section 
26 use 411. 
411(aX8)). 
"(5) TREATMENT OF FORMER SPOUSE AS SURVIVING SPOUSE FOR 
PURPOSES OF DETERMINING SURVIVOR BENEFITS.—To the extent 
provided in any qualified domestic relations order— 
PUBLIC LAW 98-397—AUG. 23, 1984 
98 STAT. 1447 
"(A) the former spouse of a participant shall be treated as 
a surviving spouse of such participant for purposes of sec-
tions 401(aXll) and 417, and 
Ante, pp. 1440, 
"(B) if married for at least 1 year, the surviving spouse 
I44i. 
shall be treated as meeting the requirements of section 
417(d). 
A plan shall not be treated as failing to meet the requirements 
Prohibition. 
of subsection (a) or (k) of section 401 which prohibit payment of 
26 use 40i. 
benefits before termination of employment solely by reason of 
payments to an alternate payee pursuant to a qualified domes-
tic relations order. 
"(6) P L A N PROCEDURES WITH RESPECT TO ORDERS.— 
'*f 
• . ' . » 
"(A) NOTICE AND DETERMINATION BY ADMINISTRATOR.—In 
the case of any domestic relations order received by a 
plan— 
"(i) the plan administrator shall promptly notify the 
-.•>:. * 
participant and any other altern^e payee of the re-
ceipt of such order and the plan's procedures for deter-
mining the qualified status of domestic relations 
orders, and 
"(ii) within a reasonable period after receipt of such 
i > ' ) , . 
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. 
"(B) PLAN TO ESTABUSH REASONABLE PROCEDURES.—Each 
plan shall establish reasonable procedures to determine the 
qualified status of domestic relations orders and to adminis-
ter distributions under such qualified orders. 
"(7) PROCEDURES FOR PERIOD DURING WHICH DETERMINATION IS 
BEING MADE.— 
"(A) IN GENERAL.—During any period in which the issue 
of whether a domestic relations order is a qualified domes- 
>^'AV: 
tic relations order is being determined (by the plan adminis-
trator, by a court of competent jurisdiction, or otherwise), 
the plan administrator shall segregate in a separate ac-
count in the plan or in an escrow account the 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. 
s j at 
"(B) PAYMENT TO ALTERNATE PAYEE IF ORDER DETERMINED 
T
O BE QUALIFIED DOMESTIC RELATIONS ORDER,—If within 18 
months the order (or modification thereof) is determined to 
be a qualified domestic relations order, the plan administra-
tor shall pay the segregated amounts (plus any interest 
thereon) to the person or persons entitled thereto. 
"(C) PAYMENT TO PLAN PARTICIPANT IN CERTAIN CASES.—If 
within 18 months— 
"(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 (plus any interest thereon) to the person or per-
sons who would have been entitled to such amounts if there 
had been no order. 
98 STAT. 1448 
PUBLIC LAW 98-397—AUG. 23, 1984 
"(D) SUBSEQUENT DETERMINATION OR ORDER TO BE APPLIED 
PROSPECTIVELY ONLY.—Any determination that an order is a 
qualified domestic relations order which is made after the 
close of the 18-month period shall be applied prospectively 
only. 
"(8) ALTERNATE PAYEE DEFINED.—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. 
"(9) CONSULTATION WITH THE SECRETARY.—In prescribing regu-
Ante, p. 1445. 
lations Under this subsection and section 401(a)(13), the Secre-
tary of Labor shall consult with the Secretary.", 
(c) TAX TREATMENT OF DIVORCE DISTRIBUTIONS.— 
(1) 
ALTERNATE PAYEE MUST INCLUDE BENEFITS IN GROSS 
26 use 402. 
INCOME.—Section 402(a) (relating to taxability of beneficiary of 
trust) is amended by adding at the end thereof the following 
new paragraph: 
"(9) ALTERNATE PAYEE UNDER QUAUFIED DOMESTIC RELATIONS 
O
R
D
E
R TREATED AS DISTRIBUTEE.—For purposes of subsection 
26 use 72. 
(a)(1) and section 72, the alternate payee shall be treated as the 
distributee of any distribution or payment made to the alter-
nate payee under a qualified domestic relations order (as de-
Ante, p. 1445. 
fined in section 414(p)).". 
26 use 72. 
(2) ALLOCATION OF INVESTMENT IN THE CONTRACT.—Subsection 
(m) of section 72 (relating to special rules applicable to employee 
annuities and distributions under employee plans) is amended 
by adding at the end thereof the following new paragraph: 
"(10) DETERMINATION OF INVESTMENT IN THE CONTRACT IN THE 
CASE OF QUAUFIED DOMESTIC RELATIONS ORDERS.—Under regula-
tions prescribed by the Secretary, in the case of a distribution or 
payment made to an alternate payee pursuant to a qualified 
Supra. 
domestic relations order (as defined in section 414(p)), the in-
vestment in the contract as of the date prescribed in such 
regulations shall be allocated on a pro rata basis between the 
present value of such distribution or payment and the present 
value of all other benefits payable with respect to the partici-
pant to which such order relates.". 
(3) ROLLOVER OF DISTRIBUTIONS UNDER QUALIFIED DOMESTIC 
26 use 402. 
RELATIONS ORDERS.—Paragraph (6) of section 402(a) (relating to 
special rules for rollovers) is amended by adding at the end 
thereof the following new subparagraph: 
"(F) QUALIFIED DOMESTIC RELATIONS ORDERS.—If— 
"(i) within 1 taxable year of the recipient, the balance 
to the credit of the recipient by reason of any qualified 
domestic relations order (within the meaning of section 
414(p)) is distributed or paid to the recipient, 
"(ii) the recipient transfers any portion of the 
property the recipient receives in such distributions 
to an eligible retirement plan described in subclause (I) 
or (II) of paragraph (5XE)(iv), and 
"(iii) in the case of a distribution of property other 
than money, the amount so transferred consists of the 
property distributed, 
then the portion of the distribution so transferred shall be 
treated as a distribution described in paragraph (5)(A).". 
PUBLIC LAW 98-397—AUG. 23, 1984 
98 STAT. 1449 
I 
(4) CLARIFICATION OF ELIGIBIUTY OF PARTICIPANT FOR LUMP 
SUM TREATMENT.—Paragraph (4) of section 402(e) (relating to tax 
26 use 402. 
on lump sum distributions) is amended by adding at the end 
thereof the following new subparagraph: 
"(M) BALANCE TO CREDIT OF EMPLOYEE NOT TO INCLUDE 
AMOUNTS PAYABLE UNDER QUAUFIED DOMESTIC RELATIONS 
ORDER.—For purposes of this subsection, subsection (a)(2) of 
this section, and section 403(a)(2), the balance to the credit 
26 use 403. 
of an employee shall not include any amount payable to an 
alternate payee under a qualified domestic relations order 
(within the meaning of section 414(p)).". 
Ante, p. 1445. 
SEC. 205. RESTRICTION ON M
A
N
D
A
T
O
R
Y DISTRIBUTIONS. 
(a) GENERAL RULE.—Subsection (a) of section 411 (relating to 
26 use 4 ii. 
minimum vesting standards) is amended by adding at the end 
thereof the following new paragraph: 
"(11) RESTRICTIONS ON CERTAIN MANDATORY DISTRIBUTIONS.— 
"(A) IN GENERAL.—If the present value of any accrued 
benefit exceeds $3,500, such benefit shall not be treated as 
*
? 
nonforfeitable if the plan provides that the present value of 
such benefit could be immediately distributed without the 
consent of the participant. 
"(B) DETERMINATION OF PRESENT VALUE.—For purposes of 
subparagraph (A), the present value shall be calculated by 
J. 
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.". 
(b) CONFORMING AMENDMENT.—Subparagraph (B) of section 
411(aX7) (relating to effect of certein distributions) is amended by 
26 use 411. 
striking out "$1,750" and inserting in lieu thereof "$3,500". 
SEC. 206. PARTICIPANT TO BE NOTIFIED THAT BENEFITS M
A
Y BE 
FORFEITABLE. 
Subsection (e) of section 6057 (relating to individual statement to 
26 use 6
C
i
5
7
. 
participants) is amended by adding at the end thereof the following 
new sentence: "Such statement shall also include a notice to the 
participant of any benefits which are forfeitable if the participant 
,| j ^ , f
«
;
. 
dies before a certain date.". 
SEC. 207. WRITTEN EXPLANATION OF ROLLOVER TREATMENT REQUIRED 
TO BE GIVEN TO RECIPIENT OF DISTRIBUTIONS ELIGIBLE 
FOR ROLLOVER TREATMENT. 
(a) GENERAL RULE.—Section 402 (relating to taxability of benefici- 
26 use 402. 
ary of employees trusts) is amended by adding at the end thereof the 
following new subsection: 
"(f) WRITTEN EXPLANATION TO RECIPIENTS OF DISTRIBUTIONS EUGI-
B
L
E FOR ROLLOVER TREATMENT.— 
"(1) IN GENERAL.—The plan administrator of any plan shall, 
when making a qualifying rollover distribution, provide a writ-
ten explanation to the recipient— 
"(A) of the provisions under which such distribution will 
not be subject to tax if transferred to an eligible retirement 
• > 
plan within 60 days after the date on which the recipient 
received the distribution, and 
31-194 - 0 - 86 - 10 : QL. 3 Part 2 
98 STAT. 1450 
PUBLIC LAW 98-397—AUG. 23, 1984 
"(B) if applicable, the provisions of subsections (aX2) and 
(e) of this section. 
"(2) DEFINITIONS.—For purposes of this subsection, the terms 
'qualifying rollover distribution' and 'eligible retirement plan* 
have the respective meanings given such terms by subsection 
(a)(5)(E).". 
(b) PENALTY FOR FAILURE TO PROVIDE WRITTEN EXPLANATION.— 
Ante, p. 963. 
Section 6652 (relating to penalty for failure to file certain informa-
26 use 6652. 
tion returns, registration statements, etc.) is amended by redesignat-
ing subsection (j) as subsection (k) and by inserting after subsection 
(i) the following new subsection: 
"(j) FAILURE TO GIVE WRITTEN EXPLANATION TO RECIPIENTS OF 
CERTAIN QUAUFYING ROLLOVER DISTRIBUTIONS.—In the case of each 
Ante, p. 1449. 
failure to provide a written explanation as required by section 402(f), 
at the time prescribed therefor, unless it is shown that such failure 
is due to reasonable cause and not to willful neglect, there shall be 
paid, on notice and demand of the Secretary and in the same 
manner as tax, by the person failing to provide such written expla-
nation, an amount equal to the $10 for each such failure, but the 
total amount imposed on such person for all such failures during 
any calendar year shall not exceed $5,000.". 
TITLE III—GENERAL PROVISIONS 
SEC. 301. TREATMENT OF CERTAIN PLAN AMENDMENTS AND ACTUARIAL 
ASSUMPTIONS. 
(a) 
CERTAIN 
PLAN 
AMENDMENTS 
TREATED 
AS 
REDUCING 
BENEFITS.— 
(1) AMENDMENT OF INTERNAL REVENUE CODE OF 1954.—Para-
26 use 411. 
graph (6) of section 411(d) of the Internal Revenue Code of 1954 
(relating to accrued benefit not to be decreased by amendment) 
is amended to read as follows: 
"(6) ACCRUED BENEFIT NOT TO BE DECREASED BY AMENDMENT.— 
"(A) IN GENERAL.—A plan shall be treated as not satisfy-
ing the requirements of this section if the accrued benefit of 
a participant is decreased by an amendment of the plan, 
26 use 412. 
other than an amendment described in section 412(cX8), or 
section 4281 of the Employee Retirement Income Security 
29 use 1441. 
Act of 1974. 
"(B) 
TREATMENT OF CERTAIN PLAN AMENDMENTS.—For 
purposes of subparagraph (A), a plan amendment which has 
the effect of^ 
"(i) eliminating or reducing an early retirement ben-
efit or a retirement-type subsidy (as defined in regula-
tions), or 
"(ii) eliminating an optional form of benefit, 
with respect to benefits attributable to service before the 
amendment shall be treated as reducing accrued benefits. 
In the case of a retirement-type subsidy, the preceding 
sentence shall apply only with respect to a participant who 
satisfies (either before or after the amendment) the pre-
amendment conditions for the subsidy. The Secretary may 
by regulations provide that this subparagraph shall not 
apply to a plan amendment described in clause (ii) (other 
. 
than a plan amendment having an effect described in 
clause (i)).". 
PUBLIC LAW 98-397—AUG. 23, 1984 
98 STAT. 1451 
(2) AMENDMENT OF EMPLOYEE RETIREMENT INCOME SECURITY 
ACT OF 1974.—Subsection (g) of section 204 of the Employee 
Retirement Income Security Act of 1974 is amended to read as 
29 USC 1054. 
follows: 
"(gXl) The accrued benefit of a participant under a plan may not 
be decreased by an amendment of the plan, other than an amend-
ment described in section 302(c)(8). 
29 use 1082. 
"(2) For purposes of paragraph (1), a plan amendment which has 
the effect of^ 
"(A) eliminating or reducing an early retirement benefit or a 
retirement-type subsidy (as defined in regulations), or 
"(B) eliminating an optional form of benefit, 
with respect to benefits attributable to service before the amend- 
^
K ^i 4 , vi 
ment shall be treated as reducing accrued benefits. In the case of a 
retirement-type subsidy, the preceding sentence shall apply only 
with respect to a participant who satisfies (either before or after the 
amendment) the preamendment conditions for the subsidy. The 
., 
c: K 
Secretary of the Treasury may by regulations provide that this 
'"'"' 
,,. 
subparagraph shall not apply to a plan amendment described in 
subparagraph (B) (other than a plan amendment having an effect 
described in subparagraph (A)).". 
(b) REQUIREMENT THAT ACTUARIAL ASSUMPTIONS BE SPECIFIED.— 
A' 
Subsection (a) of section 401 of the Internal Revenue Code of 1954 
26 use 401. 
(relating to qualified pension, profit-sharing, and stock bonus plans) 
is amended by inserting after paragraph (24) the following new 
paragraph: 
"(25) 
REQUIREMENT THAT ACTUARIAL ASSUMPTIONS BE SPECI-
FIED.—A defined benefit plan shall not be treated as providing 
definitely determinable benefits unless, whenever the amount 
of any benefit is to be determined on the basis of actuarial 
assumptions, such assumptions are specified in the plan in a 
' 
'" 
way which precludes employer discretion.". 
SEC. 302. GENERAL EFFECTIVE DATES. 
29 USC 1001 
(a) IN GENERAL.—Except as otherwise provided in this section or 
Pogt p 1452 
section 303, the amendments made by this Act shall apply to plan 
years beginning after December 31,1984. 
(b) SPECIAL RULE FOR COLLECTIVE BARGAINING AGREEMENTS.—In 
the case of a plan maintained pursuant to 1 or more collective 
,: qq ^ 
bargaining agreements between employee representatives and 1 or 
more employers ratified before the date of the enactment of this Act, 
except as provided in subsection (d) or section 303, the amendments 
Post, p. 1452. 
made by this Act shall not apply to plan years beginning before the 
earlier of— 
(1) the date on which the last of the collective bargaining 
agreements relating to the plan terminates (determined without 
regard to any extension thereof agreed to after the date of the 
enactment of this Act), or 
(2) January 1,1987. 
For purposes of paragraph (1), any plan amendment made pursuant 
to a collective bargaining agreement relating to the plan which 
amends the plan solely to conform to any requirement added by title 
I or II shall not be treated as a termination of such collective 
Ante, pp. 1426, 
bargaining agreement. 
1436. 
(c) NOTICE REQUIREMENT.—The amendments made by section 207 Ante, p. 1449. 
shall apply to distributions after December 31,1984. 
(d) SPECIAL RULES FOR TREATMENT OF PLAN AMENDMENTS.— 
98 STAT. 1452 
PUBLIC LAW 98-397—AUG. 23, 1984 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
Ante, p. 1450. 
amendments made by section 301 shall apply to plan amend-
ments made after July 30,1984. 
(2) SPECIAL RULE FOR COLLECTIVE BARGAINING AGREEMENTS.— 
In the case of a plan maintained pursuant to 1 or more collec-
tive bargaining agreements entered into before January 1,1985, 
.':b-'.n ':P\I ?is 
which are— 
>.• 
(A) between employee representatives and 1 or more 
employers, and 
g I 
(B) successor agreements to 1 or more collective bargain-
ing agreements which terminate after July 30, 1984, and 
before January 1,1985, 
Ante, p. 1450. 
the amendments made by section 301 shall not apply to plan 
amendments adopted before April 1, 1985, pursuant to such 
successor agreements (without regard to any modification or 
reopening after December 31,1984). 
29 use 1001 
SEC. 303. TRANSITIONAL RULES. 
(a) AMENDMENTS RELATING TO VESTING RULES; BREAKS IN SERVICE; 
MATERNITY OR PATERNITY LEAVE.— 
(1) MINIMUM AGE FOR VESTING.—The amendments made by 
Ante, pp. 1426, 
sections 1020t)) and 202(b) shall apply in the case of participants 
1436. 
who have at least 1 hour of service under the plan on or after 
the first day of the first plan year to which the amendments 
made by this Act apply. 
(2) BREAK IN SERVICE RULES.—If, as of the day before the first 
day of the first plan year to which the amendments made by 
this Act apply, section 202 (a) or (b) or 203(b) of the Employee 
29 use 1052, 
Retirement Income Security Act of 1974 or section 410(a) or 
1053. 
411(a) of the Internal Revenue Code of 1954 (as in effect on the 
26 use 410, 411. 
^ay before the date of the enactment of this Act) would not 
require any service to be taken into account, nothing in the 
amendments made by subsections (c) and (d) of section 102 of 
''; 
this Act and subsections (c) and (d) of section 202 of this Act 
shall be construed as requiring such service to be taken into 
Supra. 
account under such section 202 (a) or (b), 2030)), 410(a), or 411(a); 
as the case may be. 
(3) MATERNITY OR PATERNITY LEAVE.—The amendments made 
Ante, pp. 1426, 
by sections 102(e) and 202(e) shall apply in the case of absences 
1436. 
from work which begin on or after the first day of the first plan 
year to which the amendments made by this Act apply. 
1 
A 
(b) SPECIAL RULE FOR AMENDMENTS RELATING TO MATERNITY OR 
PATERNITY ABSENCES.—If a plan is administered in a manner which 
would meet the amendments made by sections 102(e) and 202(e) 
(relating to certain maternity or paternity absences not treated as 
breaks in service), such plan need not be amended to meet such 
requirements until the earlier of— 
(1) the date on which such plan is first otherwise amended 
after the date of the enactment of this Act, or 
(2) the beginning of the first plan year beginning after Decem-
ber 31,1986. 
(c) REQUIREMENT OF JOINT AND SURVIVOR ANNUITY AND PRERE-
!;ir.(<. v;.; 
TIREMENT SURVIVOR ANNUITY.— 
(1^ REQUIREMENT THAT PARTICIPANT HAVE AT LEAST i HOUR OF 
" 
SERVICE OR PAID LEAVE ON OR AFTER DATE OF ENACTMENT.—The 
Ante, pp. 1429, 
amendments made by sections 103 and 203 shall apply only in 
1440. 
the c£ise of participants who have at least 1 hour of service 
PUBLIC LAW 98-397—AUG. 23, 1984 
98 STAT. 1453 
under the plan on or after the date of the enactment of this Act 
or have at least 1 hour of paid leave on or after such date of 
enactment. 
(2) REQUIREMENT THAT PRERETIREMENT SURVIVOR ANNUITY BE 
PROVIDED IN CASE OF CERTAIN PARTICIPANTS DYING ON O
R AFTER 
DATE OF ENACTMENT.—In the case of any participant— 
(A) who has at least 1 hour of service under the plan on or 
after the date of the enactment of this Act or has at least 1 
hour of paid leave on or after such date of enactment, 
. r 
(B) who dies before the annuity starting date, and 
(C) who dies on or after the date of the enactment of this 
Act and before the first day of the first plan year to which 
the amendments made by this Act apply, 
the amendments made by sections 103 and 203 shsill be treated 
Ante, pp. 1429, 
as in effect as of the time of such participant's death. 
1440. 
(3) SPOUSAL CONSENT REQUIRED FOR CERTAIN ELECTIONS AFTER 
DECEMBER 31, 1984.—Any election after December 31, 1984, and 
before the first day of the first plan year to which the amend-
ments made by this Act apply not to take a joint and survivor 
' 
annuity shall not be effective unless the requirements of section 
205(cX2) of the Employee Retirement Income Security Act of 
1974 (as amended by section 103 of this Act) and section 417(aX2) Ante, p. 1429. 
of the Internal Revenue Code of 1954 (as added by section 203 of Ante, p. 1441. 
this Act) are met with respect to such election. 
(d) AMENDMENTS RELATING TO ASSIGNMENTS IN DIVORCE, ETC., Effective date. 
PROCEEDINGS.—The amendments made by sections 104 and 204 shall 
Ante, pp. 1433, 
take effect on January 1,1985, except that in the case of a domestic 1445. 
relations order entered before such date, the plan administrator— 
(1) shall treat such order as a qualified domestic relations 
order if such administrator is paying benefits pursuant to such 
order on such date, and 
(2) may treat any other such order entered before such date as 
a qualified domestic relations order even if such order does not 
meet the requirements of such amendments. 
(e) TREATMENT OF CERTAIN PARTICIPANTS WHO SEPARATE 
FROM 
SERVICE BEFORE DATE OF ENACTMENT.— 
(1) JOINT AND SURVIVOR ANNUITY PROVISIONS OF EMPLOYEE 
RETIREMENT INCOME SECURITY ACT OF 1974 APPLY TO CERTAIN 
29 use 1001 
PARTICIPANTS.—If— 
note. 
(A) a participant had at least 1 hour of service under the 
plan on or after September 2,1974, 
(B) section 205 of the Employee Retirement Income Secu-
rity Act of 1974 and section 401(aXll) of the Internal Reve- 
29 use 1055. 
nue Code of 1954 (as in effect on the day before the date of 26 use 40i. 
the enactment of this Act) would not (but for this para-
graph) apply to such participant, 
(C) the amendments made by sections 103 and 203 of this 
Act do not apply to such participant, and 
(D) as of the date of the enactment of this Act, the 
participant's annuity starting date has not occurred and 
the participant is alive, 
then such participant may elect to have section 205 of the 
Employee Retirement Income Security Act of 1974 and section 
401(a)(ll) of the Internal Revenue Code of 1954 (as in effect on 
the day before the date of the enactment of this Act) apply. 
(2) TREATMENT OF CERTAIN PARTICIPANTS WHO PERFORM SERV-
ICE ON O
R AFTER JANUARY 1, 1976.—If— 
«f**^ 
98 STAT. 1454 
PUBLIC LAW 98-397—AUG. 23, 1984 
(A) a participant had at least 1 hour of service in the first 
plan year beginning on or after January 1,1976, 
Ante, pp. 1429, 
(B) the amendments made by sections 103 and 203 would 
1440. 
not (but for this paragraph) apply to such participant, 
(C) when such participant separated from service, such 
participant had at least 10 years of service under the plan 
;;j 
and had a nonforfeitable right to all (or any portion) of such 
participant's accrued benefit derived from employer contri-
butions, and 
(D) as of the date of the enactment of this Act, such 
participant's annuity starting date has not occurred and 
such participant is alive, 
then such participant may elect to have the qualified preretire-
'•^' ' 
ment survivor annuity requirements of the amendments made 
by sections 103 and 203 apply. 
(3) PERIOD DURING WHICH ELECTION MAY BE MADE.—An elec-
tion under paragraph (1) or (2) may be made by any participant 
during the period— 
(A) beginning on the date of the enactment of this Act, 
and 
(B) ending on the earlier of the participant's annuity 
starting date or the date of the participant's death. 
(4) REQUIREMENT OP NOTICE.— 
(A) IN GENERAL.— 
(i) TIME AND MANNER.—Every plan shall give notice 
of the provisions of this subsection at such time or 
times and in such manner or manners as the Secretary 
of the Treasury may prescribe. 
(ii) PENALTY.—If any plan fails to meet the require-
ments of clause (i), such plan shall pay a civil penalty 
^ ^ mBb 
*° *^® Secretary of the Treasury equal to $1 per partici-
30FI ¥
K 
P^^* ^^^ ®^^^ ^^7 during the period beginning with the 
first day on which such failure occurs and ending on 
j,,^^nr 
the day before notice is given by the plan; except that 
the amount of such penalty imposed on any plan shall 
not exceed $2,500. 
100r DP!J '2 
^^^ RESPONSIBIUTIES OF SECRETARY OF LABOR.—The Secre-
eJon 
tary of Labor shall take such steps (by public announce-
ments and otherwise) as may be necessary or appropriate to 
bring to public attention the provisions of this subsection. 
29 use 1001 
SEC. 304. STUDY BY COMPTROLLER GENERAL OF THE UNITED STATES. 
Women. 
(&) GENERAL RuLE.—The Comptroller General of the United 
States shall conduct a detailed study Glased on a reliable scientific 
sample of t3T)ical pension plans of various designs £md sizes) of the 
effect on women of participation, vesting, funding, integration, sur-
vivorship features, and other relevant plan and Federal pension 
rules. 
(b) GENERAL ACCOUNTING OFFICE ACCESS TO RECORDS.—For 
the 
purpose of conducting the study under subsection (a), the Comptrol-
ler General, or any of his duly authorized representatives, shall 
have access to and the right to examine and copy— 
(1) any pension plan books, documents, papers, records, or 
other recorded information within the possession or control of 
,, the plan administrator or sponsor, or any person providing 
services to the plan, and 
PUBLIC LAW 98-397—AUG. 23, 1984 
98 STAT. 1455 
(2) any payroll, employment, or other related records within 
the possession or control of any employer contributing to or 
sponsoring a pension plan, 
that is pertinent to such study. The Comptroller General shall not 
disclose the identity of any individual or employer in making any 
information obtained under this subsection available to the public. 
(c) DEFINITIONS.—For purposes of this section, the terms "pension 
plan", "administrator", "plan sponsor", and "employer" are defined 
in section 3 of the Employee Retirement Income Security Act of 
1974, as amended. 
29 use lOOia. 
(d) COOPERATION WITH OTHER FEDERAL AGENCIES.—In conducting 
the study under subsection (a), the Comptroller General shall con-
sult with the Internal Revenue Service, the Department of Labor, 
and other interested Federal agencies so as to prevent any duplica-
tion of data compilation or analyses. 
(e) REPORT.—Not later than January 1, 1990, the Comptroller 
General shall submit a report on the study conducted under this 
section to the Committee on Ways and Means of the House of 
Representatives, the Committee on Education and Labor of the 
House of Representatives, the Committee on Finance of the Senate, 
* - -
the Committee on Labor and Human Resources of the Senate, and 
the Joint Committee on Taxation. 
Approved August 23, 1984. 
LEGISLATIVE HISTORY—H.R. 4280: 
HOUSE REPORTS: No. 98-655, Pt. 1 (Comm. on Education and Labor) and Pt. 2 
(Comm. on Ways and Means). 
SENATE REPORT No. 98-575 (Comm. on Finance). 
,/>« U^i. 
CONGRESSIONAL RECORD, Vol. 130 (1984): 
May 22, considered and passed House. 
Aug. 6, considered and passed Senate, amended. 
Aug. 9, House concurred in Senate amendment. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 20, No. 35 (1984): 
Aug. 23, Presidential statement.