MODIFICATIONS OF DISCRIMINATION RULES APPLICABLE TO CERTAIN ANNUITY CONTRACTS.

SEC. 6052. MODIFICATIONS OF DISCRIMINATION RULES APPLICABLE TO CERTAIN ANNUITY CONTRACTS. (a) Excluded Employees.— (1) In general.—The last sentence of section 403(b)(12)(A) of the 1986 Code is amended to read as follows: “Subject to the conditions applicable under section 410(b)(4), there may be excluded for purposes of this subparagraph employees who are students performing services described in section 3121(b)(10) and employees who normally work less than 20 hours per week.” (2) Effective date.—The amendment made by paragraph (1) shall take effect as if included in the amendment made by section 1120(b) of the Reform Act. (b) Sampling.—In the case of plan years beginning in 1989, 1990, or 1991, determinations as to whether a plan meets the requirements of section 403(b)(12) of the 1986 Code may be made on the basis of a statistically valid random sample. The preceding sentence shall apply only if— (1) the sampling is conducted by an independent person in a manner not inconsistent with regulations prescribed by the Secretary, and (2) the statistical method and sample size result in a 95 percent probability that the results will have a margin of error not greater than 3 percent.