ADDITIONAL LIMITATIONS ON INVESTMENT BY AN INDIVIDUAL ACCOUNT PLAN FORMING PART OF A FLOOR-OFFSET ARRANGEMENT AND ON INVESTMENT BY AN INDIVIDUAL ACCOUNT PLAN IN EMPLOYER STOCK.

SEC. 9345. ADDITIONAL LIMITATIONS ON INVESTMENT BY AN INDIVIDUAL ACCOUNT PLAN FORMING PART OF A FLOOR-OFFSET ARRANGEMENT AND ON INVESTMENT BY AN INDIVIDUAL ACCOUNT PLAN IN EMPLOYER STOCK. (a) Treatment of Individual Account Portions of Floor-Offset Arrangements.— (1) In general.— Section 407(d)(3) of ERISA (29 U.S.C. 1107(d)(3)) is amended by adding at the end the following new subparagraph: “(C) The term ‘eligible individual account plan’ does not include any individual account plan the benefits of which are taken into account in determining the benefits payable to a participant under any defined benefit plan.” (2) Treatment of floor-offset arrangement as single plan.— Section 407(d) of ERISA (29 U.S.C. 1107(d)) is amended by adding at the end the following new paragraph: “(9) For purposes of this section, an arrangement which consists of a defined benefit plan and an individual account plan shall be treated as 1 plan if the benefits of such arrangement are taken into account in determining the benefits payable under such defined benefit plan.” (3) Effective Date.— The amendments made by this subsection shall apply with respect to arrangements established after December 17, 1987. (b) Restrictions on Treatment of Stock as Qualifying Employer Security.— Section 407 of ERISA (29 U.S.C. 1107) is amended— (1) in subsection (d)(5), by adding at the end the following new sentence: “After December 17, 1987, in the case of a plan other than an eligible individual account plan, stock shall be considered a qualifying employer security only if such stock satisfies the requirements of subsection (f)(1).”; and (2) by adding at the end the following new subsection: “(f) (1) Stock satisfies the requirements of this subsection if— “(A) no more than 25 percent of the aggregate amount of stock of the same class issued and outstanding at the time of acquisition is held by the plan, and “(B) at least 50 percent of the aggregate amount referred to in subparagraph (A) is held by persons independent of the issuer. 101 STAT. 1330–374 “(2) Until January 1, 1993, a plan shall not be treated as violating subsection (a) solely by holding stock which fails to satisfy the requirements of paragraph (1) if such stock— “(A) has been so held since December 17, 1987, or “(B) was acquired after December 17, 1987, pursuant to a legally binding contract in effect on December 17, 1987, and has been so held at all times after the acquisition. “(3) After December 17, 1987, no plan may acquire stock which does not satisfy the requirements of paragraph (1) unless the acquisition is made pursuant to a legally binding contract in effect on such date”.