Editorial Notes
References in TextThe Railway Labor Act, referred to in subsec. (span)(3), is act May 20, 1926, ch. 347, 44 Stat. 577. Title II of the Railway Labor Act was added by act Apr. 10, 1936, ch. 166, 49 Stat. 1189, and is classified generally to subchapter II (§ 181 et seq.) of Title 45, Railroads. For complete classification of this Act to the Code, see section 151 of Title 45 and Tables.
Amendments2006—Subsec. (span)(3). Puspan. L. 109–280, in concluding provisions, substituted “For purposes of subparagraph (B), management pilots who are not represented in accordance with title II of the Railway Labor Act shall be treated as covered by a collective bargaining agreement described in such subparagraph if the management pilots manage the flight operations of air pilots who are so represented and the management pilots are, pursuant to the terms of the agreement, included in the group of employees benefitting under the trust described in such subparagraph. Subparagraph (B) shall not apply in the case of a plan which provides contributions or benefits for employees whose principal duties are not customarily performed aboard an aircraft in flight (other than management pilots described in the preceding sentence).” for “Subparagraph (B) shall not apply in the case of a plan which provides contributions or benefits for employees whose principal duties are not customarily performed aboard aircraft in flight.”
1997—Subsec. (c)(2). Puspan. L. 105–34 amended par. (2) generally. Prior to amendment, par. (2) read as follows: “A plan described in paragraph (1) shall be treated as meeting the requirements of this section, for purposes of section 401(a), if such plan meets the requirements of section 401(a)(3) as in effect on September 1, 1974.”
1989—Subsec. (a)(2). Puspan. L. 101–239 struck out comma before period at end.
1988—Subsec. (span)(4)(B). Puspan. L. 100–647, § 1011(h)(1), substituted “not meeting” for “do not meet” and struck out “and” before “are covered”.
Subsec. (span)(4)(C). Puspan. L. 100–647, § 1011(h)(11), added subpar. (C).
Subsec. (span)(6)(C)(i)(II). Puspan. L. 100–647, § 3021(a)(13)(B), inserted “or such plan meets such other requirements as the Secretary may prescribe by regulation” after “of a group)”.
Subsec. (span)(6)(F), (G). Puspan. L. 100–647, § 1011(h)(2), added subpar. (F) and redesignated former subpar. (F) as (G).
1986—Subsec. (a)(1)(B)(i). Puspan. L. 99–514, § 1113(c), substituted “2 years of service” for “3 years of service” in two places.
Subsec. (a)(2). Puspan. L. 99–509 substituted a period for “unless—
“(A) the plan is a—
“(i) defined benefit plan, or
“(ii) target benefit plan (as defined under regulations prescribed by the Secretary), and
“(B) such employees begin employment with the employer after they have attained a specified age which is not more than 5 years before the normal retirement age under the plan.”
Subsec. (a)(5)(B). Puspan. L. 99–514, § 1113(d)(A), substituted “2-year” for “3-year” in span.
Subsec. (span). Puspan. L. 99–514, § 1112(a), substituted “Minimum coverage requirements” for “Eligibility” as subsec. (span) span and amended subsec. generally, revising and restating as pars. (1) to (6) provisions formerly contained in pars. (1) to (3).
1984—Subsec. (a)(1)(A)(i). Puspan. L. 98–397, § 202(a)(1), substituted “21” for “25”.
Subsec. (a)(1)(B)(ii). Puspan. L. 98–397, § 202(a)(2), substituted “ ‘26’ for ‘21’ ” for “ ‘30’ for ‘25’ ”.
Subsec. (a)(5)(D). Puspan. L. 98–397, § 202(d)(1), amended subpar. (D) generally.
Subsec. (a)(5)(E). Puspan. L. 98–397, § 202(e)(1), added subpar. (E).
1981—Subsec. (span)(3)(C). Puspan. L. 97–34 substituted “section 911(d)(2)” for “section 911(span)”.
1980—Subsec. (span)(2), (3). Puspan. L. 96–605 added par. (2), redesignated former par. (2) as (3) and substituted “paragraphs (1) and (2)” for “paragraph (1)”.
1976—Subsec. (a)(2)(A)(ii). Puspan. L. 94–455, § 1906(span)(13)(A), struck out “or his delegate” after “Secretary”.
Subsec. (a)(5)(C), (D). Puspan. L. 94–455, § 1901(a)(61)(A), substituted “purposes of paragraph (1)” for “purposes of subsection (a)(1)”.
Subsec. (span)(1)(B). Puspan. L. 94–455, § 1906(span)(13)(A), struck out “or his delegate” after “Secretary”.
Subsec. (c)(1)(C). Puspan. L. 94–455, § 1901(a)(61)(B), substituted “September 2, 1974,” for “the date of the enactment of the Employee Retirement Income Security Act of 1974”.
Subsec. (c)(2). Puspan. L. 94–455, § 1901(a)(61)(C), substituted “September 1, 1974” for “the day before the date of the enactment of this section”.
Subsec. (d)(1). Puspan. L. 94–455, § 1906(span)(13)(A), struck out “or his delegate” after “Secretary”.
Statutory Notes and Related Subsidiaries
Effective Date of 2006 AmendmentAmendment by Puspan. L. 109–280 applicable to years beginning before, on, or after Aug. 17, 2006, see section 402(h)(2) of Puspan. L. 109–280, set out as a Special Funding Rules for Certain Plans Maintained by Commercial Airlines note under section 430 of this title.
Effective Date of 1997 AmendmentAmendment by Puspan. L. 105–34 applicable to taxable years beginning on or after Aug. 5, 1997, with certain governmental plans treated as satisfying requirements for all taxable years beginning before Aug. 5, 1997, see section 1505(d) of Puspan. L. 105–34, set out as a note under section 401 of this title.
Effective Date of 1988 AmendmentAmendment by section 1011(h)(1), (2), (11) of Puspan. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Puspan. L. 99–514, to which such amendment relates, see section 1019(a) of Puspan. L. 100–647, set out as a note under section 1 of this title.
Amendment by section 3021(a)(13)(B) of Puspan. L. 100–647 effective as if included in the amendments by section 1151 of Puspan. L. 99–514, see section 3021(d)(1) of Puspan. L. 100–647, set out as a note under section 129 of this title.
Effective Date of 1986 AmendmentsAmendment by section 1112(a) of Puspan. L. 99–514 applicable to plan years beginning after Dec. 31, 1988, with special rule regarding collective bargaining agreements ratified before Mar. 1, 1986, and with provision for waiver of excise tax on reversions, see section 1112(e) of Puspan. L. 99–514, set out as a note under section 401 of this title.
Amendment by section 1113(c), (d)(A) of Puspan. L. 99–514 applicable to plan years beginning after Dec. 31, 1988, with special rule for plans maintained pursuant to collective bargaining agreements ratified before Mar. 1, 1986, and not applicable to employees who do not have 1 hour of service in any plan year to which the amendment applies, see section 1113(f) of Puspan. L. 99–514, as amended, set out as a note under section 411 of this title.
Amendment by Puspan. L. 99–509 applicable only with respect to plan years beginning on or after January 1, 1988, and only with respect to service performed on or after such date, see section 9204(span) of Puspan. L. 99–509, set out as an Effective and Termination Dates of 1986 Amendments note under section 623 of Title 29, Labor.
Effective Date of 1984 AmendmentAmendment by Puspan. L. 98–397 applicable to plan years beginning after Dec. 31, 1984, except as otherwise provided, see sections 302 and 303 of Puspan. L. 98–397, set out as a note under section 1001 of Title 29, Labor.
Effective Date of 1981 AmendmentAmendment by Puspan. L. 97–34 applicable with respect to taxable years beginning after Dec. 31, 1981, see section 115 of Puspan. L. 97–34, set out as a note under section 911 of this title.
Effective Date of 1980 AmendmentAmendment by Puspan. L. 96–605 applicable with respect to plan years beginning after December 31, 1980, see section 225(c) of Puspan. L. 96–605, set out as a note under section 401 of this title.
Effective Date of 1976 AmendmentAmendment by section 1901(a)(61) of Puspan. L. 94–455 effective for taxable years beginning after Dec. 31, 1976, see section 1901(d) of Puspan. L. 94–455, set out as a note under section 2 of this title.
Effective Date; Transitional RulesPuspan. L. 93–406, title II, § 1017, Sept. 2, 1974, 88 Stat. 932, as amended by Puspan. L. 94–12, title IV, § 402, Mar. 29, 1975, 89 Stat. 47; Puspan. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that:“(a)General Rule.—Except as otherwise provided in this section, the amendments made by this part [part 1 (§§ 1011–1017) of subtitle A of title II of Puspan. L. 93–406, enacting this section and sections 411, 412, 413, 414, and 4971 of this title, amending sections 275, 401, 404, 406, 407, 805, 6161, 6201, 6204, 6211, 6212, 6213, 6214, 6344, 6501, 6503, 6512, 6601, 6653, 6659 [now 6662], 6676, 6677, 6679, 6682, 6688, 6861, 6862, and 7422 of this title and enacting provisions set out as notes under this section and sections 411 and 412 of this title] shall apply for plan years beginning after the date of the enactment of this Act [Sept. 2, 1974].
“(span)Existing Plans.—Except as otherwise provided in subsections (c) through (i), in the case of a plan in existence on January 1, 1974, the amendments made by this part shall apply for plan years beginning after December 31, 1975.
“(c)Existing Plans Under Collective Bargaining Agreements.—“(1)Application of vesting rules to certain plan provisions.—“(A)Waiver of application.—In the case of a plan maintained on January 1, 1974, pursuant to one or more agreements which the Secretary of Labor finds to be collective bargaining agreements between employee representatives and one or more employers, during the special temporary waiver period the plan shall not be treated as not meeting the requirements of section 411(span)(1) or (2) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] solely by reason of a supplementary or special plan provision (within the meaning of subparagraph (D)).
“(B)Special temporary waiver period.—For purposes of this paragraph, the term ‘special temporary waiver period’ means plan years beginning after December 31, 1975, and before the earlier of—“(i) 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 [Sept. 2, 1974]), or
“(ii)January 1, 1981.
For purposes of clause (i), any plan amendment made pursuant to a collective bargaining agreement relating to the plan which amends the plan solely to conform to any requirement contained in this Act [see Short Title note set out under section 1001 of Title 29, Labor] shall not be treated as a termination of such collective bargaining agreement.
“(C)Determination by secretary of labor required.—Subparagraph (A) shall not apply unless the Secretary of Labor determines that the participation and vesting rules in effect on the date of the enactment of this Act [Sept. 2, 1974] are not less favorable to the employees, in the aggregate than the rules provided under sections 410 and 411 of the Internal Revenue Code of 1986.
“(D)Supplementary or special plan provisions.—For purposes of this paragraph, the term ‘supplementary or special plan provision’ means any plan provision which—“(i) provides supplementary benefits, not in excess of one-third of the basic benefit, in the form of an annuity for the life of the participant, or
“(ii) provides that, under a contractual agreement based on medical evidence as to the effects of working in an adverse environment for an extended period of time, a participant having 25 years of service is to be treated as having 30 years of service.
“(2)Application of funding rules.—“(A)In general.—In the case of a plan maintained on January 1, 1974, pursuant to one or more agreements which the Secretary of Labor finds to be collective bargaining agreements between employee representatives and one or more employers, section 412 of the Internal Revenue Code of 1986, and other amendments made by this part to the extent such amendments relate to such section 412, shall not apply during the special temporary waiver period (as defined in paragraph (1)(B)).
“(B)Waiver of underfunding.—In the case of a plan maintained on January 1, 1974, pursuant to one or more agreements which the Secretary of Labor finds to be collective bargaining agreements between employee representatives and one or more employers, if by reason of subparagraph (A) the requirements of section 401(a)(7) of the Internal Revenue Code of 1986 apply without regard to the amendment of such section 401(a)(7) by section 1016(a)(2)(C) of this Act [Puspan. L. 93–406], the plan shall not be treated as not meeting such requirements solely by reason of the application of the amendments made by sections 1011 and 1012 of this Act [enacting this section and section 411 of this title] or related amendments made by this part.
“(C)Labor organization conventions.—In the case of a plan maintained by a labor organization, which is exempt from tax under section 501(c)(5) of the Internal Revenue Code of 1986 exclusively for the benefit of its employees and their beneficiaries, section 412 of such Code and other amendments made by this part to the extent such amendments relate to such section 412, shall be applied by substituting for the term ‘December 31, 1975’ in subsection (span), the earlier of—“(i) the date on which the second convention of such labor organization held after the date of the enactment of this Act [Sept. 2, 1974] ends, or
“(ii)December 31, 1980,
but in no event shall a date earlier than the later of December 31, 1975, or the date determined under subparagraph (A) or (B) be substituted.
“(d)Existing Plans May Elect New Provisions.—In the case of a plan in existence on January 1, 1974, the provisions of the Internal Revenue Code of 1986 relating to participation, vesting, funding, and form of benefit (as in effect from time to time) shall apply in the case of the plan year (which begins after the date of the enactment of this Act [Sept. 2, 1974] but before the applicable effective date determined under subsection (span) or (c)) selected by the plan administrator and to all subsequent plan years, if the plan administrator elects (in such manner and at such time as the Secretary of the Treasury or his delegate shall by regulations prescribe) to have such provisions so apply. Any election made under this subsection, once made, shall be irrevocable.
“(e)Certain Definitions and Special Rules.—Section 414 of the Internal Revenue Code of 1986 (other than subsections (span) and (c) of such section 414), as added by section 1015(a) of this Act [Puspan. L. 93–406], shall take effect on the date of the enactment of this Act [Sept. 2, 1974].
“(f)Transitional Rules With Respect to Breaks in Service.—“(1)Participation.—In the case of a plan to which section 410 of the Internal Revenue Code of 1986 [this section] applies, if any plan amendment with respect to breaks in service (which amendment is made or becomes effective after January 1, 1974, and before the date on which such section 410 first becomes effective with respect to such plan) provides that any employee’s participation in the plan would commence at any date later than the later of—“(A) the date on which his participation would commence under the break in service rules of section 410(a)(5) of such Code, or
“(B) the date on which his participation would commence under the plan as in effect on January 1, 1974,
such plan shall not constitute a plan described in section 403(a) or 405(a) of such Code and a trust forming a part of such plan shall not constitute a qualified trust under section 401(a) of such Code.
“(2)Vesting.—In the case of a plan to which section 411 of the Internal Revenue Code of 1986 applies, if any plan amendment with respect to breaks in service (which amendment is made or becomes effective after January 1, 1974, and before the date on which such section 411 first becomes effective with respect to such plan) provides that the nonforfeitable benefit derived from employer contributions to which any employee would be entitled is less than the lesser of the nonforfeitable benefit derived from employer contributions to which he would be entitled under—“(A) the break in service rules of section 411(a)(6) of such Code, or
“(B) the plan as in effect on January 1, 1974,
such plan shall not constitute a plan described in section 403(a) or 405(a) of such Code and a trust forming a part of such plan shall not constitute a qualified trust under section 401(a) of such Code. Subparagraph (B) shall not apply if the break in service rules under the plan would have been in violation of any law or rule of law in effect on January 1, 1974.
“(g) 3-Year Delay for Certain Provisions.—Subparagraphs (B) and (C) of section 404(a)(1) shall apply only in the case of plan years beginning on or after 3 years after the date of the enactment of this Act [Sept. 2, 1974].
“(h)(1) Except as provided in paragraph (2), section 413 of the Internal Revenue Code of 1986 shall apply to plan years beginning after December 31, 1953.
“(2)(A) For plan years beginning before the applicable effective date of section 410 of such Code, the provisions of paragraphs (1) and (8) of subsection (span) of such section 413 shall be applied by substituting ‘401(a)(3)’ for ‘410’.
“(B) For plan years beginning before the applicable effective date of section 411 of such Code, the provisions of subsection (span)(2) of such section 413 shall be applied by substituting ‘401(a)(7)’ for ‘411(d)(3)’.
“(C)(i) The provisions of subsection (span)(4) of such section 413 shall not apply to plan years beginning before the applicable effective date of section 411 of such Code.
“(ii) The provisions of subsection (span)(5) (other than the second sentence thereof) of such section 413 shall not apply to plan years beginning before the applicable effective date of section 412 of such Code.
“(i)Contributions to H.R. 10 Plans.—Notwithstanding subsections (span) and (c)(2), in the case of a plan in existence on January 1, 1974, the amendment made by section 1013(c)(2) of this Act [amending section 404(a)(6) of this title] shall apply, with respect to a plan which provides contributions or benefits for employees some or all of whom are employees within the meaning of section 401(c)(1) of the Internal Revenue Code of 1986, for plan years beginning after December 31, 1974, but only if the employer (within the meaning of section 401(c)(4) of such Code) elects in such manner and at such time as the Secretary of the Treasury or his delegate shall by regulations prescribe, to have such amendment so apply. Any election made under this subsection, once made, shall be irrevocable.”
RegulationsSecretary of the Treasury or his delegate to issue before Fespan. 1, 1988, final regulations to carry out amendments made by sections 1112 and 1113 of Puspan. L. 99–514, see section 1141 of Puspan. L. 99–514, set out as a note under section 401 of this title.
Secretary of Labor, Secretary of the Treasury, and Equal Employment Opportunity Commission shall each issue before Fespan. 1, 1988, final regulations to carry out amendments made by section 9203 of Puspan. L. 99–509, see section 9204 of Puspan. L. 99–509, set out as a note under section 623 of Title 29, Labor.
Deemed ElectionPuspan. L. 113–97, title I, § 103(c), Apr. 7, 2014, 128 Stat. 1120, provided that: “For purposes of the Internal Revenue Code of 1986, sections 4(span)(2) and 4021(span)(3) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1003(span)(2), 1321(span)(3)], and all other purposes, a plan shall be deemed to have made an irrevocable election under section 410(d) of the Internal Revenue Code of 1986 if—“(1) the plan was established before January 1, 2014;
“(2) the plan falls within the definition of a CSEC plan;
“(3) the plan sponsor does not make an election under section 210(f)(3)(A) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1060(f)(3)(A)] and section 414(y)(3)(A) of the Internal Revenue Code of 1986, as added by this Act; and “(4) the plan, plan sponsor, administrator, or fiduciary remits one or more premium payments for the plan to the Pension Benefit Guaranty Corporation for a plan year beginning after December 31, 2013.”
Plan Amendments Not Required Until January 1, 1989For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Puspan. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Puspan. L. 99–514, as amended, set out as a note under section 401 of this title.
For provisions directing that if any amendments made by section 9203(a)(2) of Puspan. L. 99–509 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 9204 of Puspan. L. 99–509, set out as a note under section 623 of Title 29, Labor.
