Common use of Compensation Taken Into Account Clause in Contracts

Compensation Taken Into Account. If you wish to count a participant's full year's compensation (even if he or she entered during the year), for contributions choose option (a), if not, choose Option (b). Accrual Requirements - Specify the service requirements a participant must satisfy to receive an allocation. You may specify an hours of service requirement, waive the service requirement for specific contributions and/or require the participant to be employed on the last day to receive a contribution. Suspension of Accrual Requirements This section allows you to suspend some or all of the accrual requirements found in Section 3.06(E) of the plan for participants to receive allocations. This would apply in plan years when a plan may not satisfy coverage and participation requirements. For administrative convenience choose option (g).

Compensation Taken Into Account. If you wish to count a participant's full year's compensation (even if he or she entered during the year), for contributions choose option (a), if not, choose Option option (b). Accrual Requirements - Specify the service requirements a participant must satisfy to receive an allocation. You may specify an hours of service requirement, waive the service requirement for specific contributions and/or require the participant to be employed on the last day to receive a contribution. Suspension of Accrual Requirements - This section allows you to suspend some or all of the accrual requirements found in Section 3.06(E) of the plan for participants to receive allocations. This would apply in plan years when a plan may not satisfy coverage and participation requirements. For administrative convenience choose option (g).