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TITLE 26-INTERNAL REVENUE CODE (it) resumes employment covered under the plan, and (liI) repays the full amount of such dis- tribution with, in the case of a defined benefit plan, interest at the rate deter- mined for purposes of subsection (c)(2)(C). In the case of a defined contribution plan, the plan provision required under this sub- paragraph may provide that such repay- ment must be made before the participant has any one-year break in service commenc- ing after such withdrawal. (8) Normal retirement age For purposes of this section, the term "normal retirement age" means the earlier of- (A) the time a plan participant attains normal retirement age under the plan, or (B) the latter of- (i) the time a plan participant attains age 65, or (ii) the 10th anniversary of the time a plan participant commenced participation in the plan. (9) Normal retirement benefit For purposes of this section, the term "normal retirement benefit" means the great- er of the early retirement benefit under the plan, or the benefit under the plan commenc- ing at normal retirement age. The normal re- tirement benefit shall be determined without regard to- (A) medical benefits, and (B) disability benefits not in excess of the qualified disability benefit. For purposes of this paragraph, a qualified disability benefit is a disability benefit pro- vided by a plan which does not exceed the benefit which would be provided for the par- ticipant if he separated from the service at normal retirement age. For purposes of this paragraph, the early retirement benefit under a plan shall be determined without regard to any benefits commencing before benefits payable under title II of the Social Security Act become payable which- (i) do not exceed such social security benefits, and (ii) terminate when such social security benefits commence. (10) Changes In vesting schedule (A) General rule A plan amendment changing any vesting schedule under the plan shall be treated as not satisfying the requirements of para- graph (2) if the nonforfeitable percentage of the accrued benefit derived from employ- er contributions (determined as of the later of the date such amendment is adopted, or the date such amendment becomes effec- tive) of any employee who is a participant in the plan is less than such nonforfeitable percentage computed under the plan with- out regard to such amendment. (B) Election of former schedule A plan amendment changing any vesting schedule under the plan shall be treated as not satisfying the requirements of para- graph (2) unless each participant having not less than 5 years of service is permitted to elect, within a reasonable period after the adoption of such amendment, to have his nonforfeitable percentage computed under the plan without regard to such amendment. (b) Accrued benefit requirements (1) General rules (A) 3-percent method A defined benefit plan satisfies the re- quirements of this paragraph if the accrued benefit to which each participant is entitled upon his separation from the service is not less than- (1) 3 percent of the normal retirement benefit to which he would be entitled if he commenced participation at the earli- est possible entry age under the plan and served continuously until the earlier of age 65 or the normal retirement age speci- fied under the plan, multiplied by (it) the number of years (not in excess of 33Va) of his participation in the plan. In the case of a plan providing retirement benefits based on compensation during any period, the normal retirement benefit to which a participant would be entitled shall be determined as if he continued to earn an- nually the average rate of compensation which he earned during consecutive years of service, not in excess of 10, for which his compensation was the highest. For purposes of this subparagraph, social security bene- fits and all other relevant factors used to compute benefits shall be treated as re- maining constant as of the current year for all years after such current year. (B) 133Vs percent rule A defined benefit plan satisfies the re- quirements of this paragraph for a particu- lar plan year if under the plan the accrued benefit payable at the normal retirement age is equal to the normal retirement bene- fit and the annual rate at which any indi- vidual who is or could be a participant can accrue the retirement benefits payable at normal retirement age under the plan for any later plan year is not more than 133V percent of the annual rate at which he can accrue benefits for any plan year beginning on or after such particular plan year and before such later plan year. For purposes of this subparagraph- (1) any amendment to the plan which is In effect for the current year shall be treated as in effect for all other plan years; (i) any change in an accrual rate which does not apply to any individual who is or could be a participant in the current year shall be disregarded; (11) the fact that benefits under the plan may be payable to certain employees before normal retirement age shall be dis- regarded; and (iv) social security benefits and all other relevant factors used to compute benefits shall be treated as remaining constant as §411 Page 328