Certain participation eligibility rules not treated as discriminatory
For purposes of subparagraph (A) of subsection (b)(1), a classification shall not be treated as discriminatory if the plan—
(A)#
benefits a group of employees described in section 410(b)(2)(A)(i), and
(B)#
meets the requirements of clauses (i) and (ii):
(i) No employee is required to complete more than 3 years of employment with the employer or employers maintaining the plan as a condition of participation in the plan, and the employment requirement for each employee is the same.
(ii) Any employee who has satisfied the employment requirement of clause (i) and who is otherwise entitled to participate in the plan commences participation no later than the first day of the first plan year beginning after the date the employment requirement was satisfied unless the employee was separated from service before the first day of that plan year.
(B)(i)#
No employee is required to complete more than 3 years of employment with the employer or employers maintaining the plan as a condition of participation in the plan, and the employment requirement for each employee is the same.
(B)(ii)#
Any employee who has satisfied the employment requirement of clause (i) and who is otherwise entitled to participate in the plan commences participation no later than the first day of the first plan year beginning after the date the employment requirement was satisfied unless the employee was separated from service before the first day of that plan year.