Sec. 302. Clarification of the normal retirement age

460 words·~2 min read·/bill/113/s/1979/is/section-302

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Section 204 of the Employee Retirement Income Security Act of 1974 is amended by redesignating subsection

(k)as subsection

(l)and by inserting after subsection

(j)the following new subsection: For purposes of section 3(24), an applicable plan shall not be treated as failing to meet any requirement of this title, or as failing to have a uniform normal retirement age for purposes of this title, solely because the plan has adopted the normal retirement age described in paragraph (2). For purposes of this subsection— The term applicable plan means a defined benefit plan that, on the date of the introduction of this subsection, has adopted a normal retirement age which is the earlier of— an age otherwise permitted under section 2(24), or the age at which a participant completes the number of years (not less than 30 years) of benefit accrual service specified by the plan. A plan shall not fail to be treated as an applicable plan solely because, as of such date, the normal retirement age described in the preceding sentence only applied to certain participants or to certain employers participating in the plan. If, after the date described in subparagraph (A), an applicable plan expands the application of the normal retirement age described in subparagraph

(A)to additional participants or participating employers, such plan shall also be treated as an applicable plan with respect to such participants or participating employers. . Section 411 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: For purposes of subsection (a)(8)(A), an applicable plan shall not be treated as failing to meet any requirement of this subchapter, or as failing to have a uniform normal retirement age for purposes of this subchapter, solely because the plan has adopted the normal retirement age described in paragraph (2). For purposes of this subsection— The term applicable plan means a defined benefit plan that, on the date of the introduction of this subsection, has adopted a normal retirement age which is the earlier of— an age otherwise permitted under subsection (a)(8)(A), or the age at which a participant completes the number of years (not less than 30 years) of benefit accrual service specified by the plan. A plan shall not fail to be treated as an applicable plan solely because, as of such date, the normal retirement age described in the preceding sentence only applied to certain participants or to certain employers participating in the plan. If, after the date described in subparagraph (A), an applicable plan expands the application of the normal retirement age described in subparagraph

(A)to additional participants or participating employers, such plan shall also be treated as an applicable plan with respect to such participants or participating employers. .