LIMITATION FOR STATE AND LOCAL PLANS.

SEC. 6054. SECTION 415 LIMITATION FOR STATE AND LOCAL PLANS. (a) Modified Limitations.—Section 415(b) of the 1986 Code is amended by adding at the end thereof the following new paragraph: “(10) Special rule for state and local government PLANS.— “(A) Limitation to equal accrued benefit.—In the case of a plan maintained for its employees by any State or political subdivision thereof, or by any agency or instrumentality of the foregoing, the limitation with respect to a qualified participant under this subsection shall 102 STAT. 3697not be less than the accrued benefit of the participant under the plan (determined without regard to any amendment of the plan made after October 14, 1987). “(B) Qualified participant.—For purposes of this paragraph, the term ‘qualified participant’ means a participant who first became a participant in the plan maintained by the employer before January 1, 1990. “(C) Election.—This paragraph shall not apply to any plan unless each employer maintaining the plan elects before the close of the 1st plan year beginning after December 31, 1989, to have this subsection (other than paragraph (2)(G)) applied without regard to paragraph (2)(F).” (b) Effective Dates.— (1) In general.—Except as provided in this subsection, the amendment made by this subsection apply to years beginning after December 31, 1982. (2) Election.—Section 415(b)(10)(C) of the 1986 Code (as added by subsection (a)) shall not apply to any year beginning before January 1, 1990.