contribution arrangement (as defined in section 414(w)(3)) which meets the requirements of paragraphs (2) through (4). (2) Allowance of permissible withdrawals An eligible automatic contribution arrangement meets the requirements of this paragraph if such arrangement allows employees to make permissible withdrawals (as defined in section 414(w)(2)). (3) Minimum contribution percentage An eligible automatic contribution arrangement meets the requirements of this paragraph if— (A) the uniform percentage of compensation contributed by the participant under such arrangement during the first year of participation is not less than 3 percent and not more than 10 percent (unless the participant specifically elects not to have such contributions made or to have such contributions made at a different percentage), and (B) such uniform percentage is increased by 1 percentage point for each year of participation under such arrangement (but not above 10 percent) unless the participant specifically elects not to have such contributions made or to have such contributions made at a different percentage. (4) Investment requirements An eligible automatic contribution arrangement meets the requirements of this paragraph if amounts contributed pursuant to such arrangement, and for which no investment is elected by the participant, are invested consistent with the requirements of section 2550.404c–5 of title 29, Code of Federal Regulations (or any successor regulations). (c) Exceptions For purposes of this section— (1) Exception for plans or arrangements established before enactment of section Subsection (a) shall not apply to— (A) any qualified cash or deferred arrangement or qualified salary reduction arrangement established before the date of the enactment of this section, or (B) any annuity contract purchased under a plan established before the date of the enactment of this section. (2) Exception for governmental and church plans Subsection (a) shall not apply to any governmental plan (within the meaning of section 414(d)) or any