Page 324

TITLE 26-INTERNAL REVENUE CODE shall apply for plan years beginning after the date of the enactment of this Act [Sept. 2, 1974). "(b) 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 agree- ments. "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 be. tween 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(b)(1) or (2) of the Internal Revenue Code of 1954 [section 411(b)(1) or (2) of this title] solely by reason of a supple- mentary or special plan provision (within the meaning of subparagraph (D)). "(B) Special temporary waiver period.-For pur- poses of this paragraph, the term 'special tempo- rary 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 ter- minates (determined without regard to any ex- tension thereof agreed to after the date of the enactment of this Act [Sept. 2, 1974]), or "(i) January 1, 1981. For purposes of clause (i), any plan amendment made pursuant to a collective bargaining agree- ment 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 agree- ment. "(C) Determination by Secretary of Labor re- quired.-Subparagraph (A) shall not apply unless the Secretary of Labor determines that the partici- pation 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 1954 [this section and section 411 of this title]. "(D) Supplementary or special plan provisions.- For purposes of this paragi aph, the term 'supple- mentary 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 partici- pant, or "(i) provides that, under a contractual agree- ment based on medical evidence as to the effects of working in an adverse environment for an ex- tended 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. "CA) In general.-In the case of a plan main- tained on January 1, 1974, pursuant to one or more agreements which the Secretary of Labor finds to be collective bargaining agreements between em- ployee representatives and one or more employers, section 412 of the Internal Revenue Code of 1954 [section 412 of this title], and other amendments made by this part to the extent such amendments relate to such section 412 [section 412 of this title], 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 CA) the requirements of section 401(a)(7) of the Internal Revenue Code of 1954 [section 401(a)(7) of this title] apply without regard to the amendment of such section 401(a)(7) [section 401(a)(7) of this title] by section 1016(a)(2)(C) of this Act [section 1016(a)(2)(C) of Pub. 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 [enact- ing this section and section 411 of this title] or re- lated amendments made by this part. "CC) 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 1954 [section Ol(c)(5) of this title] exclusively for the benefit of its employees and their beneficiaries, section 412 of such Code [section 412 of this title] and other amendments made by this part to the extent such amendments relate to such section 412 [section 412 of this title], shall be applied by substituting for the term 'December 31, 1975' in subsection (b), 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 CA) or (B) be substituted. "(d) Existing plans may elect new provisions.-In the case of a plan in existence on January 1, 1974, the pro- visions of the Internal Revenue Code of 1954 (this title] 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 (b) or (c)) selected by the plan ad- ministrator 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 1954 [section 414 of this title] (other than subsections (b) and (c) of such section 414), as added by section 1015(a) of this Act [section 1015(a) of Pub. L. 93-406], shall take effect on the date of the enactment of this Act [Sept. 2, 1974]. "Cf) Transitional rules with respect to breaks in ser- vice. "l) Participation.-In the case of a plan to which section 410 of the Internal Revenue Code of 1954 [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 [this sec- tion] 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- "CA) the date on which his participation would commence under the break in service rules of sec- tion 410(a)(5) of such Code [subsec. (a)(5) of this section], 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 [section 403(a) or 405(a) of this title] and a trust forming a part of such plan shall not constitute a qualified trust under section 401(a) of such Code [section 401(a) of this title]. "2) Vesting.-In the case of a plan to which sec- tion 411 of the Internal Revenue Code of 1954 (see- Page 324 § 410