§ 303. TRANSITIONAL RULES.
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Amendments Relating to Vesting Rules; Breaks in Service; Maternity or Paternity Leave.— Minimum age for vesting.— The amendments made by sections 102(b) and 202(b) [amending section 1053 of this title and section 411 of Title 26 , Internal Revenue Code] shall apply in the case of participants 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 [see Short Title of 1984 Amendments note below] apply. 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 Retirement Income Security Act of 1974 [section 1052(a) or
(b)or section 1053(b) of this title ] or section 410(a) or 411(a) of the Internal Revenue Code of 1986 [section 410(a) or section 411(a) of Title 26 ] (as in effect on the day before the date of the enactment of this Act [ Aug. 23, 1984 ]) 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 [amending sections 1052 and 1053 of this title] and subsections
(c)and
(d)of section 202 of this Act [amending sections 410 and 411 of Title 26] shall be construed as requiring such service to be taken into account under such section 202(a) or (b), 203(b), 410(a), or 411(a); as the case may be. Maternity or paternity leave.— The amendments made by sections 102(e) and 202(e) [amending sections 1052 to 1054 of this title and sections 410 and 411 of Title 26] shall apply in the case of absences from work which begin on or after the first day of the first plan year to which the amendments made by this Act apply. 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) [amending sections 1052 to 1054 of this title and sections 410 and 411 of Title 26] (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— the date on which such plan is first otherwise amended after the date of the enactment of this Act [ Aug. 23, 1984 ], or the beginning of the first plan year beginning after December 31, 1986 . Requirement of Joint and Survivor Annuity and Preretirement Survivor Annuity.— Requirement that participant have at least 1 hour of service or paid leave on or after date of enactment.— The amendments made by sections 103 and 203 [amending section 1055 of this title and section 401 of Title 26 and enacting section 417 of Title 26 ] shall apply only in the case of participants who have at least 1 hour of service under the plan on or after the date of the enactment of this Act [ Aug. 23, 1984 ] or have at least 1 hour of paid leave on or after such date of enactment. Requirement that preretirement survivor annuity be provided in case of certain participants dying on or after date of enactment.— In the case of any participant— who has at least 1 hour of service under the plan on or after the date of the enactment of this Act [ Aug. 23, 1984 ] or has at least 1 hour of paid leave on or after such date of enactment, who dies before the annuity starting date, and who dies on or after the date of the enactment of this Act [ Aug. 23, 1984 ] 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 shall be treated as in effect as of the time of such participant’s death. In the case of a profit-sharing or stock bonus plan to which this paragraph applies, the plan shall be treated as meeting the requirements of the amendments made by sections 103 and 203 with respect to any participant if the plan made a distribution in a form other than a life annuity to the surviving spouse of the participant of such participant’s nonforfeitable benefit. 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 amendments made by this Act apply not to take a joint and survivor annuity shall not be effective unless the requirements of section 205(c)(2) of the Employee Retirement Income Security Act of 1974 [ section 1055(c)(2) of this title ] (as amended by section 103 of this Act) and section 417(a)(2) of the Internal Revenue Code of 1986 [ section 417(a)(2) of Title 26 ] (as added by section 203 of this Act) are met with respect to such election. Elimination of double death benefits.— In general .— In the case of a participant described in paragraph (2), death benefits (other than a qualified joint and survivor annuity or a qualified preretirement survivor annuity) payable to any beneficiary shall be reduced by the amount payable to the surviving spouse of such participant by reason of paragraph (2). The reduction under the preceding sentence shall be made on the basis of the respective present values (as of the date of the participant’s death) of such death benefits and the amount so payable to the surviving spouse. Spouse may waive provisions of paragraph (2).— In the case of any participant described in paragraph (2), the surviving spouse of such participant may waive the provisions of paragraph (2). Such waiver shall be made on or before the close of the second plan year to which the amendments made by section 103 of this Act [amending section 1055 of this title ] apply. Such a waiver shall not be treated as a transfer of property for purposes of chapter 12 of the Internal Revenue Code of 1986 and shall not be treated as an assignment or alienation for purposes of section 401(a)(13) of the Internal Revenue Code of 1986 [ section 401(a)(13) of Title 26 ] or section 206(d) of the Employee Retirement Income Security Act of 1974 [ section 1056 of this title ]. The amendments made by sections 104 and 204 [amending sections 1056 and 1144 of this title and sections 72, 401, 402 and 414 of Title 26] shall take effect on January 1, 1985 , except that in the case of a domestic relations order entered before such date, the plan administrator— shall treat such order as a qualified domestic relations order if such administrator is paying benefits pursuant to such order on such date, and 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. Treatment of Certain Participants Who Separate From Service Before Date of Enactment.— Joint and survivor annuity provisions of employee retirement income security act of 1974 apply to certain participants.— If— a participant had at least 1 hour of service under the plan on or after September 2, 1974 , section 205 of the Employee Retirement Income Security Act of 1974 [ section 1055 of this title ] and section 401(a)(11) of the Internal Revenue Code of 1986 [ section 401(a)(11) of Title 26 ] (as in effect on the day before the date of the enactment of this Act [ Aug. 23, 1984 ]) would not (but for this paragraph) apply to such participant, the amendments made by sections 103 and 203 [amending section 1055 of this title and section 401 of Title 26 and enacting section 417 of Title 26 ] of this Act do not apply to such participant, and as of the date of the enactment of this Act [ Aug. 23, 1984 ], 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 [ section 1055 of this title ] and section 401(a)(11) of the Internal Revenue Code of 1986 [ section 401(a)(11) of Title 26 ] (as in effect on the day before the date of the enactment of this Act) apply. Treatment of certain participants who perform service on or after january 1, 1976 .— If— a participant had at least 1 hour of service in any plan year beginning on or after January 1, 1976 , the amendments made by sections 103 and 203 [amending section 1055 of this title and section 401 of Title 26 and enacting section 417 of Title 26 ] would not (but for this paragraph) apply to such participant, when such participant separated from service, such participant had at least 10 years of service under the plan and had a nonforfeitable right to all (or any portion) of such participant’s accrued benefit derived from employer contributions, and as of the date of the enactment of this Act [ Aug. 23, 1984 ], such participant’s annuity starting date has not occurred and such participant is alive, then such participant may elect to have the qualified preretirement survivor annuity requirements of the amendments made by sections 103 and 203 apply. Period during which election may be made.— An election under paragraph
(1)or
(2)may be made by any participant during the period— beginning on the date of the enactment of this Act [ Aug. 23, 1984 ], and ending on the earlier of the participant’s annuity starting date or the date of the participant’s death. Requirement of notice.— In general.— 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. Penalty.— If any plan fails to meet the requirements of clause (i), such plan shall pay a civil penalty to the Secretary of the Treasury equal to $1 per participant for each day during the period beginning with the first day on which such failure occurs and ending on 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. Responsibilities of secretary of labor.— The Secretary of Labor shall take such steps (by public announcements and otherwise) as may be necessary or appropriate to bring to public attention the provisions of this subsection. The amendments made by section 301 of this Act [amending section 1054 of this title and sections 401 and 411 of Title 26] shall not apply to the termination of a defined benefit plan if such termination— is pursuant to a resolution directing the termination of such plan which was adopted by the Board of Directors of a corporation on July 17, 1984 , and occurred on November 30, 1984 .”
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§ 303
TRANSITIONAL RULES.
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