TRANSITION RULE FOR COMPUTING MAXIMUM BENEFITS UNDER SECTION 415 LIMITATIONS.

SEC. 1449. TRANSITION RULE FOR COMPUTING MAXIMUM BENEFITS UNDER SECTION 415 LIMITATIONS. (a) In General.— Subparagraph (A) of section 767(d)(3) of the Uruguay Round Agreements Act is amended to read as follows: “(A) Exception.— A plan that was adopted and in effect before December 8, 1994, shall not be required to apply the amendments made by subsection (b) with respect to benefits accrued before the earlier of— “(i) the later of the date a plan amendment applying the amendments made by subsection (b) is adopted or made effective, or “(ii) the first day of the first limitation year beginning after December 31, 1999. Determinations under section 415(b)(2)(E) of the Internal Revenue Code of 1986 before such earlier date shall be made with respect to such benefits on the basis of such section as in effect on December 7, 1994 (except that the modification made by section 1449(b) of the Small Business Job Protection Act of 1996 shall be taken into account), and the provisions of the plan as in effect on December 7, 1994, but only if such provisions of the plan meet the requirements of suchsection (as so in effect).”. 110 STAT. 1814 (b) Modification of Certain Assumptions for Adjusting Benefits of Defined Benefit Plans for Early Retirees.— Subparagraph (E) of section 415(b)(2) (relating to limitation on certain assumptions) is amended— (1) by striking “Except as provided in clause (ii), for purposes of adjusting any benefit or limitation under subparagraph (B) or (C),” in clause (i) and inserting “For purposes of adjusting any limitation under subparagraph (C) and, except as provided in clause (ii), for purposes of adjusting any benefit under subparagraph (B),”, and (2) by striking “For purposes of adjusting the benefit or limitation of any form of benefit subject to section 417(e)(3),” in clause (ii) and inserting “For purposes of adjusting any benefit under subparagraph (B) for any form of benefit subject to section 417(e)(3),”. (c) Effective Date.— The amendments made by this section shall take effect as if included in the provisions of section 767 of the Uruguay Round Agreements Act. (d) Transitional Rule.— In the case of a plan that was adopted and in effect before December 8, 1994, if— (1) a plan amendment was adopted or made effective on or before the date of the enactment of this Act applying the amendments made by section 767 of the Uruguay Round Agreements Act, and (2) within 1 year after the date of the enactment of this Act, a plan amendment is adopted which repeals the amendment referred to in paragraph (1), the amendment referred to in paragraph (1) shall not be taken into account in applying section 767(d)(3)(A) of the Uruguay Round Agreements Act, as amended by subsection (a).