Section 1 Clarification of treatment of certain retirement plan contributions picked up by governmental employers
by striking “For purposes of paragraph (1)” and inserting the following:
“(A) In general—For purposes of paragraph (1)”
by adding at the end the following new subparagraph:
“(B) Treatment of elections between alternative benefit formulas
“(i) In general—For purposes of subparagraph (A), a contribution shall not fail to be treated as picked up by an employing unit merely because the employee may make an irrevocable election between the application of two alternative benefit formulas involving the same or different levels of employee contributions.
“(ii) Application to existing employees—Clause (i) shall be applied without regard to whether the employee is already covered by one of the benefit formulas referred to therein.”
Effective date— The amendment made by this section shall apply to years ending after the date of the enactment of this Act.