(a) Effective for limitation years beginning on and after December 31, 2001, in the case of mandatory employee contributions as defined in § 411(c)(2)(C), Internal Revenue Code, and Treasury Regulation § 1.411(c)-1(c)(4), or contributions that would be mandatory employee contributions if § 411, Internal Revenue Code, applied to the plan, the annual benefit attributable to such mandatory employee contributions is determined by applying the factors applicable to mandatory employee contributions as described in § 411(c)(2)(B) and (C), Internal Revenue Code, and regulations promulgated under § 411, Internal Revenue Code, to those contributions to determine the amount of a straight life annuity commencing at the annuity starting date, regardless of whether the requirements of § 411 and § 417, Internal Revenue Code, apply.

(b) For purposes of applying such factors to the plan, the applicable effective date of § 411(a)(2), Internal Revenue Code, which is used under Treasury Regulation § 1.411(c)-1(c)(3) to determine the beginning date from which statutorily specified interest shall be credited to mandatory employee contributions, shall be determined as if § 411, Internal Revenue Code, applied to the plan, and in determining the annual benefit that is actuarially equivalent to these accumulated contributions, the plan shall determine the interest rate that would have been required under § 417(e)(3), Internal Revenue Code, as if § 417, Internal Revenue Code, applied to the plan.