§1061 Effective Dates

Summary

Sets when these pension rules start to apply to plans. In general, the rules apply to plan years that begin after September 2, 1974. The specific rules in sections 1055, 1056(d), and 1058 apply for plan years that begin after December 31, 1975. If a plan already existed on January 1, 1974, the part generally takes effect for plan years beginning after December 31, 1975, except for the special cases below. For plans under collective bargaining on January 1, 1974, a few extra or special benefits won’t cause the plan to fail sections 1054 and 1055 for plan years before the year that starts after the earlier of (1) the date the last related agreement ends (not counting any extensions agreed to after September 2, 1974) or (2) December 31, 1980. “Extra or special benefits” means either extra annuity payments up to one-third of the basic benefit or a rule that treats someone with 25 years’ service as having 30 years based on medical evidence. If a plan administrator chooses under section 1017(d) to apply the tax rules in title 26 starting with a given plan year, then this part applies from that year on. Plans may not adopt, after January 1, 1974 and before sections 1052 or 1053 first apply to them, amendments that delay when someone starts participating or that cut the nonforfeitable employer-contribution benefit below the minimums described in sections 1052(b)/1052(b)(3) or the plan as of January 1, 1974. The rules above do not limit amendments to this part that were enacted after September 2, 1974.