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participant’s spouse must consent in writing before the plan may
distribute the present value of the participant’s QJSA. Under
section 417(e)(3), as amended by the Uruguay Round Agreements
Act, Pub. L. 103-465, sec. 767(a)(2), 108 Stat. 5038, the present
value of a participant’s QJSA shall not be less than the present
value calculated by using the applicable mortality table and the
applicable interest rate. See also sec. 1.417(e)-1(d)(1), Income
Tax Regs. Under section 417(e)(3)(A)(ii)(II), the term
“applicable interest rate” means the annual interest rate on
30-year Treasury securities for the month before the date of
distribution or such other time as the Secretary may by
regulations prescribe. See also sec. 1.417(e)-1(d)(3), Income
Tax Regs. Prior to its amendment by the Uruguay Round Agreements
Act, section 417(e)(3) required retirement plans to calculate the
present value of a participant’s QJSA using an interest rate
assumption based on the rate that would be used (as of the date
of distribution) by the PBGC for purposes of determining the
present value of a lump-sum distribution on plan termination
(PBGC interest rate). Section 417(e)(3), as amended, is
effective for plan years beginning after December 31, 1994.
Uruguay Round Agreements Act, Pub. L. 103-465, sec. 767(d)(1),
108 Stat. 5040.
The amendment to section 417(e)(3) offered a financial
benefit to sponsors of defined benefit plans by allowing them to
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