§1061 Effective Dates

Summary

Says when the pension rules in this part start to apply. In general, the rules apply to plan years that begin after September 2, 1974. However, sections 1055, 1056(d), and 1058 only apply to plan years that begin after December 31, 1975. For plans that existed on January 1, 1974, the whole part normally applies to plan years beginning after December 31, 1975, unless the special rules below change the date. If a plan on January 1, 1974 was governed by collective bargaining agreements, the plan may keep certain special benefits for plan years up to the year after the earlier of (A) the date the last of those agreements ends (do not count any extension agreed after September 2, 1974) or (B) December 31, 1980. A plan change made only to meet the requirements of this law or the tax code (title 26) does not count as ending a bargaining agreement. This special rule only applies if the old rules about joining the plan and earning rights (as of September 2, 1974) are not worse overall than the new rules. “Special provisions” here means either up to one-third extra annuity benefits or a rule that counts 25 years of service as 30 under a medical-based agreement. If a plan administrator elects under section 1017(d) to use the tax-code rules for participation, vesting, funding, and benefit form, then this part starts to apply for the first plan year covered by that election and after. Between January 1, 1974 and the date sections 1052 or 1053 first apply to a plan, plans may not adopt amendments that delay when an employee’s participation starts past the later of the date under section 1052(b) or the plan as of January 1, 1974, or that cut the nonforfeitable employer-derived benefit below the lesser of the break-in-service rule or the plan as of January 1, 1974 (unless the old break rule violated law on January 1, 1974). These timing rules do not apply to changes to this part made by laws enacted after September 2, 1974.