PUBLIC LAW 100-647—NOV. 10,1988

102 STAT. 3705

SEC. 6071. RURAL TELEPHONE COOPERATIVES PERMITTED TO HAVE

QUALIFIED CASH OR DEFERRED ARRANGEMENTS.

(a) IN GENERAL.—Paragraphs (1) and (2) of section 401(k) of the
1986 Code (relating to cash or deferred arrangements) are each
amended by striking out "or a rural electric cooperative plan" and
inserting in lieu thereof "or a rural cooperative plan".

(b) RURAL COOPERATIVE PLAN DEFINED.—

(1) Paragraph (7) of section 401(k) of the 1986 Code (as
amended by title I) is amended to read as follows:

"(7) RURAL COOPERATIVE PLAN.—For purposes of this sub-
section—

"(A) IN GENERAL.—The term 'rural cooperative plan'
means any pension plan—

"(i) which is a defined contribution plan (as defined
in section 414(i)), and

"(ii) which is established and maintained by a rural
cooperative.

"(B) RURAL COOPERATIVE DEFINED.—For purposes of
subparagraph (A), the term 'rural cooperative' means—
"(i) any organization which—

"(I) is exempt from tax under this subtitle or
which is a State or local government or political
subdivision thereof (or agency or instrumentality
thereof), and

"(II) is engaged primarily in providing electric

service on a mutual or cooperative basis,

"(ii) any organization described in paragraph (4) or

(6) of section 501(c) and at least 80 percent of the

members of which are organizations described in clause

(i),

"(iii) a cooperative telephone company described in
section 501(cX12), and

"(iv) an organization which is a national association
of organizations described in clause (i), (ii), or (iii)."

(2) Subparagraph (B) of section 401(kX4) of the 1986 Code (as
amended by title I) is amended by striking out "rural electric
plan" and inserting in lieu thereof "rural cooperative plan".

(c) AMENDMENTS TO SECTION 457.—Section 457 of the 1986 Code
(as amended by section 1107 of the Reform Act) is amended by
striking out "rural electric cooperative plan" in subsection (c)(2) and
inserting in lieu thereof "rural cooperative plan".

(d) EFFECTIVE DATE.—The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.

SEC. 6072. STUDY OF TREATMENT OF CERTAIN TECHNICAL PERSONNEL.

The Secretary of the Treasury or his delegate shall conduct a
study of the treatment provided by section 1706 of the Reform Act
(relating to treatment of certain technical personnel). The report of
such study shall be submitted not later than September 1, 1989, to
the Committee on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate.

26 USC 401 note.

Reports.