{"identifier":"/us/usc/t29/s1060","title":29,"num":"\u00a7\u202f1060.","heading":"Multiple employer plans and other special rules","text":"\u00a7\u202f1060.\nMultiple employer plans and other special rules\n(a)\nPlan maintained by more than one employer\nNotwithstanding any other provision of this part or part 3, the following provisions of this subsection shall apply to a plan maintained by more than one employer:\n(1) Section 1052 of this title\n(2) Sections 1053 and 1054 of this title shall be applied as if all such employers constituted a single employer, except that the application of any rules with respect to breaks in service shall be made under regulations prescribed by the Secretary.\n(3) The minimum funding standard provided by\nsection 1082 of this title\n(b)\nMaintenance of plan of predecessor employer\nFor purposes of this part and part 3\u2014\n(1) in any case in which the employer maintains a plan of a predecessor employer, service for such predecessor shall be treated as service for the employer, and\n(2) in any case in which the employer maintains a plan which is not the plan maintained by a predecessor employer, service for such predecessor shall, to the extent provided in regulations prescribed by the Secretary of the Treasury, be treated as service for the employer.\n(c)\nPlan maintained by controlled group of corporations\nFor purposes of sections 1052, 1053, and 1054 of this title, all employees of all corporations which are members of a controlled group of corporations (within the meaning of\nsection 1563(a) of title 26\nsection 1082 of this title\n(d)\nPlan of trades or businesses under common control\nFor purposes of sections 1052, 1053, and 1054 of this title, under regulations prescribed by the Secretary of the Treasury, all employees of trades or businesses (whether or not incorporated) which are under common control shall be treated as employed by a single employer. The regulations prescribed under this subsection shall be based on principles similar to the principles which apply in the case of subsection (c).\n(e)\nSpecial rules for eligible combined defined benefit plans and qualified cash or deferred arrangements\n(1)\nGeneral rule\nExcept as provided in this subsection, this chapter shall be applied to any defined benefit plan or applicable individual account plan which are\n1\n1 So in original. Probably should be \u201cis\u201d.\n(2)\nEligible combined plan\nFor purposes of this subsection\u2014\n(A)\nIn general\nThe term \u201celigible combined plan\u201d means a plan\u2014\n(i) which is maintained by an employer which, at the time the plan is established, is a small employer,\n(ii) which consists of a defined benefit plan and an applicable individual account plan each of which qualifies under\nsection 401(a) of title 26\n(iii) the assets of which are held in a single trust forming part of the plan and are clearly identified and allocated to the defined benefit plan and the applicable individual account plan to the extent necessary for the separate application of this chapter under paragraph (1), and\n(iv) with respect to which the benefit, contribution, vesting, and nondiscrimination requirements of subparagraphs (B), (C), (D), (E), and (F) are met.\nFor purposes of this subparagraph, the term \u201csmall employer\u201d has the meaning given such term by\nsection 4980D(d)(2) of title 26\n(B)\nBenefit requirements\n(i)\nIn general\nThe benefit requirements of this subparagraph are met with respect to the defined benefit plan forming part of the eligible combined plan if the accrued benefit of each participant derived from employer contributions, when expressed as an annual retirement benefit, is not less than the applicable percentage of the participant\u2019s final average pay. For purposes of this clause, final average pay shall be determined using the period of consecutive years (not exceeding 5) during which the participant had the greatest aggregate compensation from the employer.\n(ii)\nApplicable percentage\nFor purposes of clause (i), the applicable percentage is the lesser of\u2014\n(I) 1 percent multiplied by the number of years of service with the employer, or\n(II) 20 percent.\n(iii)\nSpecial rule for applicable defined benefit plans\nIf the defined benefit plan under clause (i) is an applicable defined benefit plan as defined in\nsection 1053(f)(3)(B) of this title\nsection 1054(b)(5)(B)(i) of this title\nIf the participant\u2019s age as of the\nbeginning of the year is\u2014\nThe percentage is\u2014\n30 or less\n2\nOver 30 but less than 40\n4\n40 or over but less than 50\n6\n50 or over\n8.\n(iv)\nYears of service\nFor purposes of this subparagraph, years of service shall be determined under the rules of paragraphs (1), (2), and (3) of\nsection 1053(b) of this title\n(C)\nContribution requirements\n(i)\nIn general\nThe contribution requirements of this subparagraph with respect to any applicable individual account plan forming part of an eligible combined plan are met if\u2014\n(I) the qualified cash or deferred arrangement included in such plan constitutes an automatic contribution arrangement, and\n(II) the employer is required to make matching contributions on behalf of each employee eligible to participate in the arrangement in an amount equal to 50 percent of the elective contributions of the employee to the extent such elective contributions do not exceed 4 percent of compensation.\nRules similar to the rules of clauses (ii) and (iii) of\nsection 401(k)(12)(B) of title 26\n(ii)\nNonelective contributions\nAn applicable individual account plan shall not be treated as failing to meet the requirements of clause (i) because the employer makes nonelective contributions under the plan but such contributions shall not be taken into account in determining whether the requirements of clause (i)(II) are met.\n(D)\nVesting requirements\nThe vesting requirements of this subparagraph are met if\u2014\n(i) in the case of a defined benefit plan forming part of an eligible combined plan an employee who has completed at least 3 years of service has a nonforfeitable right to 100 percent of the employee\u2019s accrued benefit under the plan derived from employer contributions, and\n(ii) in the case of an applicable individual account plan forming part of eligible combined plan\u2014\n(I) an employee has a nonforfeitable right to any matching contribution made under the qualified cash or deferred arrangement included in such plan by an employer with respect to any elective contribution, including matching contributions in excess of the contributions required under subparagraph (C)(i)(II), and\n(II) an employee who has completed at least 3 years of service has a nonforfeitable right to 100 percent of the employee\u2019s accrued benefit derived under the arrangement from nonelective contributions of the employer.\nFor purposes of this subparagraph, the rules of\nsection 1053 of this title\n(E)\nUniform provision of contributions and benefits\nIn the case of a defined benefit plan or applicable individual account plan forming part of an eligible combined plan, the requirements of this subparagraph are met if all contributions and benefits under each such plan, and all rights and features under each such plan, must be provided uniformly to all participants.\n(F)\nRequirements must be met without taking into account social security and similar contributions and benefits or other plans\n(i)\nIn general\nThe requirements of this subparagraph are met if the requirements of clauses (ii) and (iii) are met.\n(ii)\nSocial security and similar contributions\nThe requirements of this clause are met if\u2014\n(I) the requirements of subparagraphs (B) and (C) are met without regard to section 401(\nl\n(II) the requirements of sections 401(a)(4) and 410(b) of title 26 are met with respect to both the applicable defined contribution plan and defined benefit plan forming part of an eligible combined plan without regard to section 401(\nl\n(iii)\nOther plans and arrangements\nThe requirements of this clause are met if the applicable defined contribution plan and defined benefit plan forming part of an eligible combined plan meet the requirements of sections 401(a)(4) and 410(b) of title 26 without being combined with any other plan.\n(3)\nAutomatic contribution arrangement\nFor purposes of this subsection\u2014\n(A)\nIn general\nA qualified cash or deferred arrangement shall be treated as an automatic contribution arrangement if the arrangement\u2014\n(i) provides that each employee eligible to participate in the arrangement is treated as having elected to have the employer make elective contributions in an amount equal to 4 percent of the employee\u2019s compensation unless the employee specifically elects not to have such contributions made or to have such contributions made at a different rate, and\n(ii) meets the notice requirements under subparagraph (B).\n(B)\nNotice requirements\n(i)\nIn general\nThe requirements of this subparagraph are met if the requirements of clauses (ii) and (iii) are met.\n(ii)\nReasonable period to make election\nThe requirements of this clause are met if each employee to whom subparagraph (A)(i) applies\u2014\n(I) receives a notice explaining the employee\u2019s right under the arrangement to elect not to have elective contributions made on the employee\u2019s behalf or to have the contributions made at a different rate, and\n(II) has a reasonable period of time after receipt of such notice and before the first elective contribution is made to make such election.\n(iii)\nAnnual notice of rights and obligations\nThe requirements of this clause are met if each employee eligible to participate in the arrangement is, within a reasonable period before any year, given notice of the employee\u2019s rights and obligations under the arrangement.\nThe requirements of this subparagraph shall not be treated as met unless the requirements of clauses (i) and (ii) of\nsection 401(k)(12)(D) of title 26\n(4)\nCoordination with other requirements\n(A)\nTreatment of separate plans\nThe except clause in\nsection 1002(35) of this title\n(B)\nReporting\nAn eligible combined plan shall be treated as a single plan for purposes of\nsection 1023 of this title\n(5)\nApplicable individual account plan\nFor purposes of this subsection\u2014\n(A)\nIn general\nThe term \u201capplicable individual account plan\u201d means an individual account plan which includes a qualified cash or deferred arrangement.\n(B)\nQualified cash or deferred arrangement\nThe term \u201cqualified cash or deferred arrangement\u201d has the meaning given such term by\nsection 401(k)(2) of title 26\n(f)\nCooperative and small employer charity pension plans\n(1)\nIn general\nFor purposes of this subchapter, except as provided in this subsection, a CSEC plan is an employee pension benefit plan (other than a multiemployer plan) that is a defined benefit plan\u2014\n(A) to which section 104 of the Pension Protection Act of 2006 applies, without regard to\u2014\n(i) section 104(a)(2) of such Act;\n(ii) the amendments to such section 104 by section 202(b) of the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010; and\n(iii) paragraph (3)(B);\n(B) that, as of\nJune 25, 2010\nsection 501(c)(3) of title 26\n(C) that, as of\n(i) described in section 501(c)(3) of such title,\n(ii) chartered under part B of subtitle II of title 36,\n(iii) with employees in at least 40 States, and\n(iv) whose primary exempt purpose is to provide services with respect to children; or\n(D) that, as of\n(i) described in\nsection 501(c)(3) of title 26\n(ii) who has been in existence since at least 1938,\n(iii) who conducts medical research directly or indirectly through grant making, and\n(iv) whose primary exempt purpose is to provide services with respect to mothers and children.\n(2)\nAggregation\nAll employers that are treated as a single employer under subsection (b) or (c) of\nsection 414 of title 26\n2\n2 So in original. Probably should be \u201csubparagraphs\u201d.\n(3)\nElection\n(A)\nIn general\nIf a plan falls within the definition of a CSEC plan under this subsection (without regard to this paragraph), such plan shall be a CSEC plan unless the plan sponsor elects not later than the close of the first plan year of the plan beginning after\nDecember 31, 2013\n(B)\nSpecial rule\nIf a plan described in subparagraph (A) is treated as a CSEC plan, section 104 of the Pension Protection Act of 2006, as amended by the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010, shall cease to apply to such plan as of the first date as of which such plan is treated as a CSEC plan.","url":"https://projectusc.org/usc/t29/s1060.html","content":[{"t":"sec","id":"/us/usc/t29/s1060","children":[{"t":"num","text":"\u00a7\u202f1060."},{"t":"heading","text":"Multiple employer plans and other special rules"},{"t":"subsec","id":"/us/usc/t29/s1060/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Plan maintained by more than one employer"},{"t":"chapeau","text":"Notwithstanding any other provision of this part or part 3, the following provisions of this subsection shall apply to a plan maintained by more than one employer:"},{"t":"para","id":"/us/usc/t29/s1060/a/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" ","children":[{"t":"ref","text":"Section 1052 of this title","href":"/us/usc/t29/s1052","tail":" shall be applied as if all employees of each of the employers were employed by a single employer."}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t29/s1060/a/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" Sections 1053 and 1054 of this title shall be applied as if all such employers constituted a single employer, except that the application of any rules with respect to breaks in service shall be made under regulations prescribed by the Secretary.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t29/s1060/a/3","children":[{"t":"num","text":"(3)"},{"t":"content","text":" The minimum funding standard provided by ","children":[{"t":"ref","text":"section 1082 of this title","href":"/us/usc/t29/s1082","tail":" shall be determined as if all participants in the plan were employed by a single employer."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t29/s1060/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Maintenance of plan of predecessor employer"},{"t":"chapeau","text":"For purposes of this part and part 3\u2014"},{"t":"para","id":"/us/usc/t29/s1060/b/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" in any case in which the employer maintains a plan of a predecessor employer, service for such predecessor shall be treated as service for the employer, and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t29/s1060/b/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" in any case in which the employer maintains a plan which is not the plan maintained by a predecessor employer, service for such predecessor shall, to the extent provided in regulations prescribed by the Secretary of the Treasury, be treated as service for the employer.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t29/s1060/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Plan maintained by controlled group of corporations"},{"t":"content","children":[{"t":"p","text":"For purposes of sections 1052, 1053, and 1054 of this title, all employees of all corporations which are members of a controlled group of corporations (within the meaning of ","children":[{"t":"ref","text":"section 1563(a) of title 26","href":"/us/usc/t26/s1563/a","tail":", determined without regard to section 1563(a)(4) and (e)(3)(C) of title 26) shall be treated as employed by a single employer. With respect to a plan adopted by more than one such corporation, the minimum funding standard of "},{"t":"ref","text":"section 1082 of this title","href":"/us/usc/t29/s1082","tail":" shall be determined as if all such employers were a single employer, and allocated to each employer in accordance with regulations prescribed by the Secretary of the Treasury."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t29/s1060/d","children":[{"t":"num","text":"(d)"},{"t":"heading","text":"Plan of trades or businesses under common control"},{"t":"content","children":[{"t":"p","text":"For purposes of sections 1052, 1053, and 1054 of this title, under regulations prescribed by the Secretary of the Treasury, all employees of trades or businesses (whether or not incorporated) which are under common control shall be treated as employed by a single employer. The regulations prescribed under this subsection shall be based on principles similar to the principles which apply in the case of subsection (c).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t29/s1060/e","children":[{"t":"num","text":"(e)"},{"t":"heading","text":"Special rules for eligible combined defined benefit plans and qualified cash or deferred arrangements"},{"t":"para","id":"/us/usc/t29/s1060/e/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"General rule"},{"t":"content","children":[{"t":"p","text":"Except as provided in this subsection, this chapter shall be applied to any defined benefit plan or applicable individual account plan which are\u202f","children":[{"t":"ref","text":"1"},{"t":"num","text":"1","tail":"\u202fSo in original. Probably should be \u201cis\u201d."},{"t":"text","text":"\u202fSo in original. Probably should be \u201cis\u201d.","tail":" part of an eligible combined plan in the same manner as if each such plan were not a part of the eligible combined plan. In the case of a termination of the defined benefit plan and the applicable defined contribution plan forming part of an eligible combined plan, the plan administrator shall terminate each such plan separately."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t29/s1060/e/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Eligible combined plan"},{"t":"chapeau","text":"For purposes of this subsection\u2014"},{"t":"subpara","id":"/us/usc/t29/s1060/e/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"The term \u201celigible combined plan\u201d means a plan\u2014"},{"t":"clause","id":"/us/usc/t29/s1060/e/2/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" which is maintained by an employer which, at the time the plan is established, is a small employer,","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t29/s1060/e/2/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" which consists of a defined benefit plan and an applicable individual account plan each of which qualifies under ","children":[{"t":"ref","text":"section 401(a) of title 26","href":"/us/usc/t26/s401/a","tail":","}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t29/s1060/e/2/A/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" the assets of which are held in a single trust forming part of the plan and are clearly identified and allocated to the defined benefit plan and the applicable individual account plan to the extent necessary for the separate application of this chapter under paragraph (1), and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t29/s1060/e/2/A/iv","children":[{"t":"num","text":"(iv)"},{"t":"content","text":" with respect to which the benefit, contribution, vesting, and nondiscrimination requirements of subparagraphs (B), (C), (D), (E), and (F) are met.","tail":"\n"}],"tail":"\n\n"},{"t":"continuation","text":"For purposes of this subparagraph, the term \u201csmall employer\u201d has the meaning given such term by ","children":[{"t":"ref","text":"section 4980D(d)(2) of title 26","href":"/us/usc/t26/s4980D/d/2","tail":", except that such section shall be applied by substituting \u201c500\u201d for \u201c50\u201d each place it appears."}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t29/s1060/e/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Benefit requirements"},{"t":"clause","id":"/us/usc/t29/s1060/e/2/B/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"The benefit requirements of this subparagraph are met with respect to the defined benefit plan forming part of the eligible combined plan if the accrued benefit of each participant derived from employer contributions, when expressed as an annual retirement benefit, is not less than the applicable percentage of the participant\u2019s final average pay. For purposes of this clause, final average pay shall be determined using the period of consecutive years (not exceeding 5) during which the participant had the greatest aggregate compensation from the employer.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t29/s1060/e/2/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Applicable percentage"},{"t":"chapeau","text":"For purposes of clause (i), the applicable percentage is the lesser of\u2014"},{"t":"subclause","id":"/us/usc/t29/s1060/e/2/B/ii/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" 1 percent multiplied by the number of years of service with the employer, or","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t29/s1060/e/2/B/ii/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" 20 percent.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t29/s1060/e/2/B/iii","children":[{"t":"num","text":"(iii)"},{"t":"heading","text":"Special rule for applicable defined benefit plans"},{"t":"content","children":[{"t":"p","text":"If the defined benefit plan under clause (i) is an applicable defined benefit plan as defined in ","children":[{"t":"ref","text":"section 1053(f)(3)(B) of this title","href":"/us/usc/t29/s1053/f/3/B","tail":" which meets the interest credit requirements of "},{"t":"ref","text":"section 1054(b)(5)(B)(i) of this title","href":"/us/usc/t29/s1054/b/5/B/i","tail":", the plan shall be treated as meeting the requirements of clause (i) with respect to any plan year if each participant receives pay credit for the year which is not less than the percentage of compensation determined in accordance with the following table:"},{"t":"text","text":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"},{"t":"p","children":[{"t":"text","text":"\u2001\u2001If the participant\u2019s age as of the"}]},{"t":"p","children":[{"t":"text","text":"\u2001\u2001\u2001beginning of the year is\u2014"}]},{"t":"p","children":[{"t":"text","text":"The percentage is\u2014"}]},{"t":"text","text":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"},{"t":"p","children":[{"t":"text","text":"30 or less"}]},{"t":"p","text":"2\u202f\u202f"},{"t":"text","text":"\n"},{"t":"p","children":[{"t":"text","text":"Over 30 but less than 40"}]},{"t":"p","text":"4\u202f\u202f"},{"t":"text","text":"\n"},{"t":"p","children":[{"t":"text","text":"40 or over but less than 50"}]},{"t":"p","text":"6\u202f\u202f"},{"t":"text","text":"\n"},{"t":"p","children":[{"t":"text","text":"50 or over"}]},{"t":"p","text":"8."},{"t":"text","text":"\n"},{"t":"text","text":"\n","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t29/s1060/e/2/B/iv","children":[{"t":"num","text":"(iv)"},{"t":"heading","text":"Years of service"},{"t":"content","children":[{"t":"p","text":"For purposes of this subparagraph, years of service shall be determined under the rules of paragraphs (1), (2), and (3) of ","children":[{"t":"ref","text":"section 1053(b) of this title","href":"/us/usc/t29/s1053/b","tail":", except that the plan may not disregard any year of service because of a participant making, or failing to make, any elective deferral with respect to the qualified cash or deferred arrangement to which subparagraph (C) applies."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t29/s1060/e/2/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Contribution requirements"},{"t":"clause","id":"/us/usc/t29/s1060/e/2/C/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"The contribution requirements of this subparagraph with respect to any applicable individual account plan forming part of an eligible combined plan are met if\u2014"},{"t":"subclause","id":"/us/usc/t29/s1060/e/2/C/i/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" the qualified cash or deferred arrangement included in such plan constitutes an automatic contribution arrangement, and","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t29/s1060/e/2/C/i/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" the employer is required to make matching contributions on behalf of each employee eligible to participate in the arrangement in an amount equal to 50 percent of the elective contributions of the employee to the extent such elective contributions do not exceed 4 percent of compensation.","tail":"\n"}],"tail":"\n"}],"tail":"\n\n"},{"t":"continuation","text":"\u2001Rules similar to the rules of clauses (ii) and (iii) of ","children":[{"t":"ref","text":"section 401(k)(12)(B) of title 26","href":"/us/usc/t26/s401/k/12/B","tail":" shall apply for purposes of this clause."}],"tail":"\n"},{"t":"clause","id":"/us/usc/t29/s1060/e/2/C/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Nonelective contributions"},{"t":"content","children":[{"t":"p","text":"An applicable individual account plan shall not be treated as failing to meet the requirements of clause (i) because the employer makes nonelective contributions under the plan but such contributions shall not be taken into account in determining whether the requirements of clause (i)(II) are met.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t29/s1060/e/2/D","children":[{"t":"num","text":"(D)"},{"t":"heading","text":"Vesting requirements"},{"t":"chapeau","text":"The vesting requirements of this subparagraph are met if\u2014"},{"t":"clause","id":"/us/usc/t29/s1060/e/2/D/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" in the case of a defined benefit plan forming part of an eligible combined plan an employee who has completed at least 3 years of service has a nonforfeitable right to 100 percent of the employee\u2019s accrued benefit under the plan derived from employer contributions, and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t29/s1060/e/2/D/ii","children":[{"t":"num","text":"(ii)"},{"t":"chapeau","text":" in the case of an applicable individual account plan forming part of eligible combined plan\u2014"},{"t":"subclause","id":"/us/usc/t29/s1060/e/2/D/ii/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" an employee has a nonforfeitable right to any matching contribution made under the qualified cash or deferred arrangement included in such plan by an employer with respect to any elective contribution, including matching contributions in excess of the contributions required under subparagraph (C)(i)(II), and","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t29/s1060/e/2/D/ii/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" an employee who has completed at least 3 years of service has a nonforfeitable right to 100 percent of the employee\u2019s accrued benefit derived under the arrangement from nonelective contributions of the employer.","tail":"\n"}],"tail":"\n"}],"tail":"\n\n"},{"t":"continuation","text":"\u2001For purposes of this subparagraph, the rules of ","children":[{"t":"ref","text":"section 1053 of this title","href":"/us/usc/t29/s1053","tail":" shall apply to the extent not inconsistent with this subparagraph."}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t29/s1060/e/2/E","children":[{"t":"num","text":"(E)"},{"t":"heading","text":"Uniform provision of contributions and benefits"},{"t":"content","children":[{"t":"p","text":"In the case of a defined benefit plan or applicable individual account plan forming part of an eligible combined plan, the requirements of this subparagraph are met if all contributions and benefits under each such plan, and all rights and features under each such plan, must be provided uniformly to all participants.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t29/s1060/e/2/F","children":[{"t":"num","text":"(F)"},{"t":"heading","text":"Requirements must be met without taking into account social security and similar contributions and benefits or other plans"},{"t":"clause","id":"/us/usc/t29/s1060/e/2/F/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"The requirements of this subparagraph are met if the requirements of clauses (ii) and (iii) are met.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t29/s1060/e/2/F/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Social security and similar contributions"},{"t":"chapeau","text":"The requirements of this clause are met if\u2014"},{"t":"subclause","id":"/us/usc/t29/s1060/e/2/F/ii/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" the requirements of subparagraphs (B) and (C) are met without regard to section 401(","children":[{"t":"text","text":"l","tail":") of title 26, and"}],"tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t29/s1060/e/2/F/ii/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" the requirements of sections 401(a)(4) and 410(b) of title 26 are met with respect to both the applicable defined contribution plan and defined benefit plan forming part of an eligible combined plan without regard to section 401(","children":[{"t":"text","text":"l","tail":") of title 26."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t29/s1060/e/2/F/iii","children":[{"t":"num","text":"(iii)"},{"t":"heading","text":"Other plans and arrangements"},{"t":"content","children":[{"t":"p","text":"The requirements of this clause are met if the applicable defined contribution plan and defined benefit plan forming part of an eligible combined plan meet the requirements of sections 401(a)(4) and 410(b) of title 26 without being combined with any other plan.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t29/s1060/e/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Automatic contribution arrangement"},{"t":"chapeau","text":"For purposes of this subsection\u2014"},{"t":"subpara","id":"/us/usc/t29/s1060/e/3/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"A qualified cash or deferred arrangement shall be treated as an automatic contribution arrangement if the arrangement\u2014"},{"t":"clause","id":"/us/usc/t29/s1060/e/3/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" provides that each employee eligible to participate in the arrangement is treated as having elected to have the employer make elective contributions in an amount equal to 4 percent of the employee\u2019s compensation unless the employee specifically elects not to have such contributions made or to have such contributions made at a different rate, and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t29/s1060/e/3/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" meets the notice requirements under subparagraph (B).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t29/s1060/e/3/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Notice requirements"},{"t":"clause","id":"/us/usc/t29/s1060/e/3/B/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"The requirements of this subparagraph are met if the requirements of clauses (ii) and (iii) are met.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t29/s1060/e/3/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Reasonable period to make election"},{"t":"chapeau","text":"The requirements of this clause are met if each employee to whom subparagraph (A)(i) applies\u2014"},{"t":"subclause","id":"/us/usc/t29/s1060/e/3/B/ii/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" receives a notice explaining the employee\u2019s right under the arrangement to elect not to have elective contributions made on the employee\u2019s behalf or to have the contributions made at a different rate, and","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t29/s1060/e/3/B/ii/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" has a reasonable period of time after receipt of such notice and before the first elective contribution is made to make such election.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t29/s1060/e/3/B/iii","children":[{"t":"num","text":"(iii)"},{"t":"heading","text":"Annual notice of rights and obligations"},{"t":"content","children":[{"t":"p","text":"The requirements of this clause are met if each employee eligible to participate in the arrangement is, within a reasonable period before any year, given notice of the employee\u2019s rights and obligations under the arrangement.","tail":"\n"}],"tail":"\n"}],"tail":"\n\n"},{"t":"continuation","text":"The requirements of this subparagraph shall not be treated as met unless the requirements of clauses (i) and (ii) of ","children":[{"t":"ref","text":"section 401(k)(12)(D) of title 26","href":"/us/usc/t26/s401/k/12/D","tail":" are met with respect to the notices described in clauses (ii) and (iii) of this subparagraph."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t29/s1060/e/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Coordination with other requirements"},{"t":"subpara","id":"/us/usc/t29/s1060/e/4/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Treatment of separate plans"},{"t":"content","children":[{"t":"p","text":"The except clause in ","children":[{"t":"ref","text":"section 1002(35) of this title","href":"/us/usc/t29/s1002/35","tail":" shall not apply to an eligible combined plan."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t29/s1060/e/4/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Reporting"},{"t":"content","children":[{"t":"p","text":"An eligible combined plan shall be treated as a single plan for purposes of ","children":[{"t":"ref","text":"section 1023 of this title","href":"/us/usc/t29/s1023","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t29/s1060/e/5","children":[{"t":"num","text":"(5)"},{"t":"heading","text":"Applicable individual account plan"},{"t":"chapeau","text":"For purposes of this subsection\u2014"},{"t":"subpara","id":"/us/usc/t29/s1060/e/5/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"The term \u201capplicable individual account plan\u201d means an individual account plan which includes a qualified cash or deferred arrangement.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t29/s1060/e/5/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Qualified cash or deferred arrangement"},{"t":"content","children":[{"t":"p","text":"The term \u201cqualified cash or deferred arrangement\u201d has the meaning given such term by ","children":[{"t":"ref","text":"section 401(k)(2) of title 26","href":"/us/usc/t26/s401/k/2","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t29/s1060/f","children":[{"t":"num","text":"(f)"},{"t":"heading","text":"Cooperative and small employer charity pension plans"},{"t":"para","id":"/us/usc/t29/s1060/f/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"For purposes of this subchapter, except as provided in this subsection, a CSEC plan is an employee pension benefit plan (other than a multiemployer plan) that is a defined benefit plan\u2014"},{"t":"subpara","id":"/us/usc/t29/s1060/f/1/A","children":[{"t":"num","text":"(A)"},{"t":"chapeau","text":" to which section 104 of the Pension Protection Act of 2006 applies, without regard to\u2014"},{"t":"clause","id":"/us/usc/t29/s1060/f/1/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" section 104(a)(2) of such Act;","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t29/s1060/f/1/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" the amendments to such section 104 by section 202(b) of the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010; and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t29/s1060/f/1/A/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" paragraph (3)(B);","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t29/s1060/f/1/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" that, as of ","children":[{"t":"text","text":"June 25, 2010","tail":", was maintained by more than one employer and all of the employers were organizations described in "},{"t":"ref","text":"section 501(c)(3) of title 26","href":"/us/usc/t26/s501/c/3","tail":";"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t29/s1060/f/1/C","children":[{"t":"num","text":"(C)"},{"t":"chapeau","text":" that, as of ","children":[{"t":"text","text":"June 25, 2010","tail":", was maintained by an employer\u2014"}]},{"t":"clause","id":"/us/usc/t29/s1060/f/1/C/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" described in section 501(c)(3) of such title,","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t29/s1060/f/1/C/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" chartered under part B of subtitle II of title 36,","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t29/s1060/f/1/C/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" with employees in at least 40 States, and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t29/s1060/f/1/C/iv","children":[{"t":"num","text":"(iv)"},{"t":"content","text":" whose primary exempt purpose is to provide services with respect to children; or","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t29/s1060/f/1/D","children":[{"t":"num","text":"(D)"},{"t":"chapeau","text":" that, as of ","children":[{"t":"text","text":"January 1, 2000","tail":", was maintained by an employer\u2014"}]},{"t":"clause","id":"/us/usc/t29/s1060/f/1/D/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" described in ","children":[{"t":"ref","text":"section 501(c)(3) of title 26","href":"/us/usc/t26/s501/c/3","tail":","}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t29/s1060/f/1/D/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" who has been in existence since at least 1938,","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t29/s1060/f/1/D/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" who conducts medical research directly or indirectly through grant making, and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t29/s1060/f/1/D/iv","children":[{"t":"num","text":"(iv)"},{"t":"content","text":" whose primary exempt purpose is to provide services with respect to mothers and children.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t29/s1060/f/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Aggregation"},{"t":"content","children":[{"t":"p","text":"All employers that are treated as a single employer under subsection (b) or (c) of ","children":[{"t":"ref","text":"section 414 of title 26","href":"/us/usc/t26/s414","tail":" shall be treated as a single employer for purposes of determining if a plan was maintained by more than one employer under subparagraph\u202f"},{"t":"ref","text":"2"},{"t":"num","text":"2","tail":"\u202fSo in original. Probably should be \u201csubparagraphs\u201d."},{"t":"text","text":"\u202fSo in original. Probably should be \u201csubparagraphs\u201d.","tail":" (B) and (C) of paragraph (1)."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t29/s1060/f/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Election"},{"t":"subpara","id":"/us/usc/t29/s1060/f/3/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"If a plan falls within the definition of a CSEC plan under this subsection (without regard to this paragraph), such plan shall be a CSEC plan unless the plan sponsor elects not later than the close of the first plan year of the plan beginning after ","children":[{"t":"text","text":"December 31, 2013","tail":", not to be treated as a CSEC plan. An election under the preceding sentence shall take effect for such plan year and, once made, may be revoked only with the consent of the Secretary of the Treasury."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t29/s1060/f/3/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Special rule"},{"t":"content","children":[{"t":"p","text":"If a plan described in subparagraph (A) is treated as a CSEC plan, section 104 of the Pension Protection Act of 2006, as amended by the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010, shall cease to apply to such plan as of the first date as of which such plan is treated as a CSEC plan.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}