§1061 Effective dates

Summary

Sets when parts of the pension rules start to apply to plans. In general the rules apply to plan years beginning after September 2, 1974. The specific rules in sections 1055, 1056(d), and 1058 start for plan years beginning after December 31, 1975. For plans that existed on January 1, 1974, the rules also start for plan years beginning after December 31, 1975, unless the later exceptions below or the election in the next paragraph apply. If a plan on January 1, 1974 is governed by one or more collective bargaining agreements, certain special extra benefits are allowed for earlier years until the plan year that begins after whichever comes first: the date the last of those agreements ends (ignoring any extensions agreed to after September 2, 1974), or December 31, 1980. The special extra benefits mean either up to one-third more than the basic benefit as a lifetime annuity, or treating a worker with 25 years as if they had 30 years under a contract based on medical evidence about a harmful work environment. That exception only applies if it makes the effective date later than the date in the earlier rule. If a plan administrator chooses under section 1017(d) to follow the Title 26 rules on participation, vesting, funding, and benefit form, then this part applies starting with the first plan year covered by that choice. Plans covered by section 1052 or 1053 may not adopt amendments made after January 1, 1974 and before those sections first take effect for the plan that would delay when someone begins participation or that would cut the nonforfeitable employer benefit below the lesser of the amounts set by the old plan or the break-in-service rules. The rules above do not apply to changes made by provisions enacted after September 2, 1974.