DETERMINATION OF BENEFITS UPON TERMINATION. (a) If a Participant's employment with the Employer is terminated for any reason other than death, Total and Permanent Disability or retirement, such Participant shall be entitled to such benefits as are provided hereinafter pursuant to this Section 7.4. If a portion of a Participant's Account is forfeited, Company Stock allocated to the Participant's Company Stock Account must be forfeited only after the Participant's Other Investments Account has been depleted. If interest in more than one class of Company Stock has been allocated to a Participant's Account, the Participant must be treated as forfeiting the same proportion of each such class. In the event that the amount of the Vested portion of the Terminated Participant's Account equals or exceeds the fair market value of any insurance Contracts, the Trustee, when so directed by the Administrator and agreed to by the Terminated Participant, shall assign, transfer, and set over to such Terminated Participant all Contracts on his life in such form or with such endorsements so that the settlement options and forms of payment are consistent with the provisions of Section 7.5. In the event that the Terminated Participant's Vested portion does not at least equal the fair market value of the Contracts, if any, the Terminated Participant may pay over to the Trustee the sum needed to make the distribution equal to the value of the Contracts being assigned or transferred, or the Trustee, pursuant to the Participant's election, may borrow the cash value of the Contracts from the insurer so that the value of the Contracts is equal to the Vested portion of the Terminated Participant's Account and then assign the Contracts to the Terminated Participant. Distribution of the funds due to a Terminated Participant shall be made on the occurrence of an event which would result in the distribution had the Terminated Participant remained in the employ of the Employer (upon the Participant's death, Total and Permanent Disability or Normal Retirement). However, at the election of the Participant, the Administrator shall direct the Trustee to cause the entire Vested portion of the Terminated Participant's Account to be payable to such Terminated Participant as soon as practicable but in no event later than in the case of a Participant, Former Participant, or Beneficiary (as the case may be) who requests a distribution in accordance with this Article on or after January 1 but before June 30 of a Plan Year, 180 days after such June 30 provided that the Participant or Former Participant has not completed 1,000 or more Hours of Service during the Plan Year in which the request is made; or in the case of any other Participant, Former Participant, or Beneficiary (as the case may be) who requests a distribution in accordance with this Article, 180 days after the close of the Plan Year in which the request is made. Any distribution under this paragraph shall be made in a manner which is consistent with and satisfies the provisions of Sections 7.5 and 7.6, including, but not limited to, all notice and consent requirements of Code Section 411(a)(11) and the Regulations thereunder. If the value of a Terminated Participant's Vested benefit derived from Employer and Employee contributions (including accumulated Qualified Voluntary Employee Contributions) does not exceed $3,500 ($5,000 for Plan Years beginning after August 5, 1997) and has never exceeded $3,500 or $5,000, whichever is applicable, at the time of any prior distribution, the Administrator shall direct the Trustee to cause the entire Vested benefit to be paid to such Participant in a single lump sum. For purposes of this Section 7.4, if the value of a Terminated Participant's Vested benefit is zero, the Terminated Participant shall be deemed to have received a distribution of such Vested benefit. (b) The Vested portion of any Participant's Account for any Participant who terminated employment prior to January 1, 1995 shall be a percentage of the total amount credited to his Participant's Account determined on the basis of the Participant's number of Years of Service according to the following schedule: Vesting Schedule Years of Service Percentage Less than 2 0 % 2 20 % 3 40 % 4 60 % 5 80 % 6 100 %
Appears in 1 contract
Samples: Employee Stock Ownership Plan and Trust Agreement (Allied Capital Corp)
DETERMINATION OF BENEFITS UPON TERMINATION. (a) If a Participant's employment with the Employer is terminated for any reason other than death, Total and Permanent Disability Disability, or retirement, then such Participant shall be entitled to such benefits as are provided hereinafter pursuant herein. Distribution of the funds due to this Section 7.4. If a portion Terminated Participant shall be made on the occurrence of a Participant's Account is forfeited, Company Stock allocated to an event which would result in the distribution had the Terminated Participant remained in the employ of the Employer (upon the Participant's Company Stock Account must be forfeited only after death, Total and Permanent Disability, Early or Normal Retirement). However, at the election of the Participant's Other Investments Account has been depleted. If interest in more than one class , the Administrator shall direct that the entire Vested portion of Company Stock has been allocated to a the Terminated Participant's AccountCombined Account be payable to such Terminated Participant provided the conditions, if any, set forth in the Participant must Adoption Agreement have been satisfied. Any distribution under this paragraph shall be treated as forfeiting made in a manner which is consistent with and satisfies the same proportion provisions of each such classSection 6.5, including but not limited to, all notice and consent requirements of Code Sections 411(a)(11) and 417 and the Regulations thereunder. In Regardless of whether distributions in kind are permitted, in the event that the amount of the Vested portion of the Terminated Participant's Combined Account equals or exceeds the fair market value of any insurance Contracts, the Trustee, when so directed by the Administrator and agreed to by the Terminated Participant, shall assign, transfer, and set over to such Terminated Participant all Contracts on his such Terminated Participant's life in such form or with such endorsements endorsements, so that the settlement options and forms of payment are consistent with the provisions of Section 7.56.5. In the event that the Terminated Participant's Vested portion does not at least equal the fair market value of the Contracts, if any, the Terminated Participant may pay over to the Trustee the sum needed to make the distribution equal to the value of the Contracts being assigned or transferred, or the Trustee, pursuant to the Participant's election, may borrow the cash value of the Contracts from the insurer Insurer so that the value of the Contracts is equal to the Vested portion of the Terminated Participant's Combined Account and then assign the Contracts to the Terminated Participant. Distribution of Notwithstanding the funds due to a Terminated Participant shall be made on the occurrence of an event which would result above, unless otherwise elected in the distribution had the Terminated Participant remained in the employ of the Employer (upon the Participant's deathAdoption Agreement, Total and Permanent Disability or Normal Retirement). However, at the election of the Participant, the Administrator shall direct the Trustee to cause the entire Vested portion of the Terminated Participant's Account to be payable to such Terminated Participant as soon as practicable but in no event later than in the case of a Participant, Former Participant, or Beneficiary (as the case may be) who requests a distribution in accordance with this Article on or after January 1 but before June 30 of a Plan Year, 180 days after such June 30 provided that the Participant or Former Participant has not completed 1,000 or more Hours of Service during the Plan Year in which the request is made; or in the case of any other Participant, Former Participant, or Beneficiary (as the case may be) who requests a distribution in accordance with this Article, 180 days after the close of the Plan Year in which the request is made. Any distribution under this paragraph shall be made in a manner which is consistent with and satisfies the provisions of Sections 7.5 and 7.6, including, but not limited to, all notice and consent requirements of Code Section 411(a)(11) and the Regulations thereunder. If if the value of a Terminated Participant's Vested benefit derived from Employer and Employee contributions (including accumulated Qualified Voluntary Employee Contributions) does not exceed $5,000 (or, $3,500 ($5,000 for distributions made prior to the later of the first day of the first Plan Years Year beginning on or after August 5, 1997, or the date specified in the Adoption Agreement) and has never exceeded $3,500 or $5,000, whichever is applicable, at the time of any prior distribution, the Administrator shall direct the Trustee to cause that the entire Vested benefit to be paid to such Participant in a single lump sumlump-sum without regard to the consent of the Participant or the Participant's spouse. For purposes A Participant's Vested benefit shall not include Qualified Voluntary Employee Contributions within the meaning of this Code Section 7.472(o)(5)(B) for Plan Years beginning prior to January 1, 1989. Furthermore, the determination of whether the $5,000 (or, if applicable, $3,500) threshold has been exceeded is generally based on the value of the Vested benefit as of the Valuation Date preceding the date of the distribution. However, if the "lookback rule" applies, the applicable threshold is deemed to be exceeded if the Vested benefit exceeded the applicable threshold at the time of any prior distribution. The "lookback rule" generally applies to all distributions made prior to March 22, 1999. With respect to distributions made on or after March 22, 1999, the "lookback rule" applies if either (1) the provisions of Section 6.12 do not apply or (2) a Participant has begun to receive distributions pursuant to an optional form of benefit under which at least one scheduled periodic distribution has not yet been made, and if the value of a Terminated the Participant's Vested benefit, determined at the time of the first distribution under that optional form of benefit is zeroexceeded the applicable threshold. However, the Terminated Participant shall be deemed Plan does not fail to have received a distribution satisfy the requirements of such Vested benefitthis paragraph if, prior to the adoption of this Prototype Plan, the "lookback rule" was applied to all distributions. Notwithstanding the preceding, the "lookback rule" will not apply to any distributions made on or after October 17, 2000.
(b) The Vested portion of any Participant's Account for any Participant who terminated employment prior to January 1, 1995 shall be a percentage of the total amount credited to his such Participant's Account determined on the basis of the Participant's number of Years of Service (or Periods of Service if the Elapsed Time Method is elected) according to the following vesting schedule specified in the Adoption Agreement. However, a Participant's entire interest in the Plan shall be non-forfeitable upon the Participant's Normal Retirement Age (if the Participant is employed by the Employer on or after such date).
(c) For any Top Heavy Plan Year, the minimum top heavy vesting schedule elected by the Employer in the Adoption Agreement will automatically apply to the Plan. The minimum top heavy vesting schedule applies to all benefits within the meaning of Code Section 411(a)(7) except those attributable to Employee contributions, including benefits accrued before the effective date of Code Section 416 and benefits accrued before the Plan became top heavy. Further, no decrease in a Participant's Vested percentage shall occur in the event the Plan's status as top heavy changes for any Plan Year. However, this Section does not apply to the account balances of any Employee who does not have an Hour of Service after the Plan has initially become top heavy and the Vested percentage of such Employee's Participant's Account shall be determined without regard to this Section 6.4(c). If in any subsequent Plan Year the Plan ceases to be a Top Heavy Plan, then unless a specific Plan amendment is made to provide otherwise, the Administrator will continue to use the vesting schedule in effect while the Plan was a Top Heavy Plan.
(d) Upon the complete discontinuance of the Employer's contributions to the Plan (if this is a profit sharing plan) or upon any full or partial termination of the Plan, all amounts then credited to the account of any affected Participant shall become 100% Vested and shall not thereafter be subject to Forfeiture.
(e) If this is an amended or restated Plan, then notwithstanding the vesting schedule specified in the Adoption Agreement, the Vested percentage of a Participant's Account shall not be less than the Vested percentage attained as of the later of the effective date or adoption date of this amendment and restatement. The computation of a Participant's nonforfeitable percentage of such Participant's interest in the Plan shall not be reduced as the result of any direct or indirect amendment to this Article, or due to changes in the Plan's status as a Top Heavy Plan. Furthermore, if the Plan's vesting schedule is amended, then the amended schedule will only apply to those Participants who complete an Hour of Service after the effective date of the amendment.
(f) If the Plan's vesting schedule is amended, or if the Plan is amended in any way that directly or indirectly affects the computation of the Participant's nonforfeitable percentage or if the Plan is deemed amended by an automatic change to a top heavy vesting schedule: Vesting Schedule , then each Participant with at least three (3) Years of Service Percentage Less than 2 0 % 2 20 % 3 40 % 4 60 % 5 80 % 6 100 %(or Periods of Service if the Elapsed Time Method is elected) as of the expiration date of the election period may elect to have such Participant's nonforfeitable percentage computed under the Plan without regard to such amendment or change. If a Participant fails to make such election, then such Participant shall be subject to the new vesting schedule. The Participant's election period shall commence on the adoption date of the amendment and shall end sixty (60) days after the latest of:
(1) the adoption date of the amendment,
(2) the effective date of the amendment, or
(3) the date the Participant receives written notice of the amendment from the Employer or Administrator.
(g) In determining Years of Service or Periods of Service for purposes of vesting under the Plan, Years of Service or Periods of Service shall be excluded as elected in the Adoption Agreement.
Appears in 1 contract
Samples: Non Standardized 401(k) Profit Sharing Plan (Aceto Corp)
DETERMINATION OF BENEFITS UPON TERMINATION. (a) Payment on severance of employment. If a Participant's employment with the Employer and any Affiliated Employer is terminated severed for any reason other than death, Total and Permanent Disability Disability, or retirementattainment of the Participant's Retirement Date, then such Participant shall be entitled to such benefits as are provided hereinafter pursuant to this Section 7.4. If a portion of a Participant's Account is forfeited, Company Stock allocated to the Participant's Company Stock Account must be forfeited only after the Participant's Other Investments Account has been depleted. If interest in more than one class of Company Stock has been allocated to a Participant's Account, the Participant must be treated as forfeiting the same proportion of each such class. In the event that the amount of the Vested portion of the Terminated Participant's Account equals or exceeds the fair market value of any insurance Contracts, the Trustee, when so directed by the Administrator and agreed to by the Terminated Participant, shall assign, transfer, and set over to such Terminated Participant all Contracts on his life in such form or with such endorsements so that the settlement options and forms of payment are consistent with the provisions of Section 7.5. In the event that the Terminated Participant's Vested portion does not at least equal the fair market value of the Contracts, if any, the Terminated Participant may pay over to the Trustee the sum needed to make the distribution equal to the value of the Contracts being assigned or transferred, or the Trustee, pursuant to the Participant's election, may borrow the cash value of the Contracts from the insurer so that the value of the Contracts is equal to the Vested portion of the Terminated Participant's Account and then assign the Contracts to the Terminated Participantherein. Distribution of the funds due to a Terminated Participant shall be made on the occurrence of an event which would result in the distribution had the Terminated Participant remained in the employ of the Employer (upon the Participant's death, Total and Permanent Disability Disability, Early or Normal Retirement). However, at the election of the Participant, the Administrator shall direct the Trustee to cause that the entire Vested portion of the Terminated Participant's Combined Account to be payable to such Terminated Participant as soon as practicable but in no event later than provided the conditions, if any, set forth in the case of a Participant, Former Participant, or Beneficiary (as the case may be) who requests a distribution in accordance with this Article on or after January 1 but before June 30 of a Plan Year, 180 days after such June 30 provided that the Participant or Former Participant has not completed 1,000 or more Hours of Service during the Plan Year in which the request is made; or in the case of any other Participant, Former Participant, or Beneficiary (as the case may be) who requests a distribution in accordance with this Article, 180 days after the close of the Plan Year in which the request is madeAdoption Agreement have been satisfied. Any distribution under this paragraph shall be made in a manner which is consistent with and satisfies the provisions of Sections 7.5 and 7.6Section 6.5, including, including but not limited to, all notice and consent requirements of Code Section §§411(a)(11) and 417 and the Regulations thereunder. If Regardless of whether distributions in kind are permitted, in the event the amount of the Vested portion of the Terminated Participant's Combined Account equals or exceeds the fair market value of any insurance Contracts, the Trustee (or Insurer), when so directed by the Administrator and agreed to by the Terminated Participant, shall assign, transfer, and set over to such Terminated Participant all Contracts on such Terminated Participant's life in such form or with such endorsements, so that the settlement options and forms of payment are consistent with the provisions of Section 6.5. In the event that the Terminated Participant's Vested portion does not at least equal the fair market value of the Contracts, if any, the Terminated Participant may pay over to the Trustee (or Insurer) the sum needed to make the distribution equal to the value of the Contracts being assigned or transferred, or the Trustee (or Insurer), pursuant to the Participant's election, may borrow the cash value of the Contracts from the Insurer so that the value of the Contracts is equal to the Vested portion of the Terminated Participant's Combined Account and then assign the Contracts to the Terminated Participant. Notwithstanding the above, unless otherwise elected in the Adoption Agreement, if the value of a Terminated Participant's Vested benefit derived from Employer and Employee contributions (including accumulated Qualified Voluntary Employee Contributions) does not exceed $3,500 5,000 ($5,000 for Plan Years beginning after August 5or such lower amount as elected in the Adoption Agreement), 1997the Administrator shall direct that the entire Vested benefit be paid to such Participant in a single lump-sum as soon as practical without regard to the consent of the Participant, provided the conditions, if any, set forth in the Adoption Agreement have been satisfied. A Participant's Vested benefit shall not include (1) qualified voluntary employee contributions within the meaning of Code §72(o)(5)(B) and has never exceeded (2) if selected in the Conditions for Distributions Upon Severance of Employment Section of the Adoption Agreement, the Participant's Rollover Account. If a mandatory distribution is made pursuant to this paragraph and such distribution is greater than $3,500 1,000 and the Participant does not elect to have such distribution paid directly to an "eligible retirement plan" specified by the Participant in a "direct rollover" in accordance with Section 6.15 or $5,000to receive the distribution directly, whichever is applicablethen the Administrator shall transfer such amount to an individual retirement account described in Code §408(a) or an individual retirement annuity described in Code §408(b) designated by the Administrator. However, at if the time Participant elects to receive or make a "direct rollover" of any prior distributionsuch amount, then the Administrator shall direct the Trustee (or Insurer) to cause the entire Vested benefit to be paid to such Participant in a single lump sum, or make a "direct rollover" pursuant to Section 6.15, provided the conditions, if any, set forth in the Adoption Agreement have been satisfied. The Administrator may establish a uniform and nondiscriminatory procedure as to whether a Participant who fails to make an Affirmative Election with respect to a mandatory distribution of $1,000 or less is treated as having made a "direct rollover" election. For purposes of determining whether the $1,000 threshold set forth in this Section 7.4paragraph is met, if the value of mandatory distribution includes amounts in a Terminated Participant's Vested benefit Rollover Account. For purposes of determining whether the $5,000 threshold in this paragraph is zeromet, a Participant's Rollover Account is taken into account unless otherwise elected in the Adoption Agreement. Furthermore, the Terminated Participant shall be deemed to have received Administrator may apply this paragraph by treating a distribution of such Vested benefit.
(b) The Vested portion of any Participant's Xxxx Elective Deferral Account for any Participant who terminated employment prior to January 1, 1995 shall be a percentage of the total amount credited to his Participant's Account determined on the basis of separately from the Participant's number of Years of Service according to the following schedule: Vesting Schedule Years of Service Percentage Less than 2 0 % 2 20 % 3 40 % 4 60 % 5 80 % 6 100 %other Accounts.
Appears in 1 contract
DETERMINATION OF BENEFITS UPON TERMINATION. (a) If a Participant's employment with the Employer is terminated for any reason other than death, Total and Permanent Disability or retirement, such Participant shall be entitled to such benefits as are provided hereinafter pursuant to this Section 7.4. If a portion of a Participant's Account is forfeited, Company Stock allocated to the Participant's Company Stock Account must be forfeited only after the Participant's Other Investments Account has been depleted. If interest in more than one class of Company Stock has been allocated to a Participant's Account, the Participant must be treated as forfeiting the same proportion of each such class. In the event that the amount of the Vested portion of the Terminated Participant's Account equals or exceeds the fair market value of any insurance Contracts, the Trustee, when so directed by the Administrator and agreed to by the Terminated Participant, shall assign, transfer, and set over to such Terminated Participant all Contracts on his life in such form or with such endorsements so that the settlement options and forms of payment are consistent with the provisions of Section 7.5. In the event that the Terminated Participant's Vested portion does not at least equal the fair market value of the Contracts, if any, the Terminated Participant may pay over to the Trustee the sum needed to make the distribution equal to the value of the Contracts being assigned or transferred, or the Trustee, pursuant to the Participant's election, may borrow the cash value of the Contracts from the insurer so that the value of the Contracts is equal to the Vested portion of the Terminated Participant's Account and then assign the Contracts to the Terminated Participant. Distribution of the funds due to a Terminated Participant shall be made on the occurrence of an event which would result in the distribution had the Terminated Participant remained in the employ of the Employer (upon the Participant's ’s death, Total and Permanent Disability Disability, or Normal RetirementRetirement Date). However, at the election of the Participant, the Administrator shall direct the Trustee Insurer (or Trustee, if applicable) to cause the entire Vested portion of the Terminated Participant's ’s Account to be payable to such Terminated Participant as soon as practicable but in no event later than provided the conditions, if any, set forth in the case of a Participant, Former Participant, or Beneficiary (as the case may be) who requests a distribution in accordance with this Article on or after January 1 but before June 30 of a Plan Year, 180 days after such June 30 provided that the Participant or Former Participant has not completed 1,000 or more Hours of Service during the Plan Year in which the request is made; or in the case of any other Participant, Former Participant, or Beneficiary (as the case may be) who requests a distribution in accordance with this Article, 180 days after the close of the Plan Year in which the request is madeAdoption Agreement have been satisfied. Any distribution under this paragraph shall be made in a manner which is consistent with and satisfies the provisions of Sections 7.5 and 7.6Section 6.05, including, including but not limited to, all the notice and consent requirements of under Code Section 411(a)(11) and the Regulations thereunder. If the value of a Terminated Participant's Vested benefit derived from Employer and Employee contributions (including accumulated Qualified Voluntary Employee Contributions) does not exceed $3,500 ($5,000 for Plan Years beginning after August 5, 1997) and has never exceeded $3,500 or $5,000, whichever is applicable, at the time of any prior distribution, the Administrator shall direct the Trustee to cause the entire Vested benefit to be paid to such Participant in a single lump sum. For purposes of this Section 7.4, if the value of a Terminated Participant's Vested benefit is zero, the Terminated Participant shall be deemed to have received a distribution of such Vested benefit402(f).
(b) The Vested portion of any Participant's ’s Account for any Participant who terminated employment prior to January 1, 1995 shall be a percentage of the total amount credited to his such Participant's ’s Account determined on the basis of the Participant's ’s number of Years of Service (or twelve month Periods of Service if the Elapsed Time Method is elected) according to the following schedule: Vesting Schedule vesting schedule specified in the Adoption Agreement. Notwithstanding any other provision of this Plan to the contrary, contributions for Part-time, Seasonal and Temporary Employees pursuant to Section 4.01(e), Special Pay contributions and Employee non-elective contributions, shall be 100% immediately vested.
(c) Notwithstanding the vesting schedule above, upon any termination of the Plan or in the case of a profit sharing plan the complete discontinuance of contributions to the Plan, all amounts credited to the account of any affected Participant shall become 100% Vested and shall not thereafter be subject to Forfeiture.
(d) If this is an amended or restated Plan, then notwithstanding the vesting schedule specified in the Adoption Agreement, the Vested percentage of a Participant’s Account shall not be less than the Vested percentage attained as of the later of the effective date or adoption date of this amendment and restatement. The computation of a Participant’s nonforfeitable percentage of such Participant’s interest in the Plan shall not be reduced as the result of any direct or indirect amendment to this Article.
(e) This subsection (e) applies if break in service rules have been selected in the Adoption Agreement.
(1) If any Former Participant shall be reemployed by the Employer before a 1-Year Break in Service occurs, the Former Participant shall continue to participate in the Plan in the same manner as if such termination had not occurred.
(2) If any Former Participant shall be reemployed by the Employer, and such Former Participant had received a distribution of the entire Vested interest prior to reemployment, the forfeited account shall not be reinstated.
(3) If any Former Participant is reemployed after a 1-Year Break in Service has occurred, Years of Service Percentage Less than 2 0 % 2 20 % 3 40 % 4 60 % 5 80 % 6 100 %(or Periods of Service) shall include Years of Service (or Periods of Service) prior to the 1-Year Break in Service subject to the following rules:
(i) Any Former Participant who under the Plan does not have a nonforfeitable right to any interest in the Plan resulting from Employer contributions shall lose credits if the consecutive 1-Year Breaks in Service equal or exceed the greater of (A) five (5) or (B) the aggregate number of pre-break Years of Service (or Periods of Service);
(ii) After five (5) consecutive 1-Year Breaks in Service, a Former Participant’s Vested Account balance attributable to pre-break service shall not be increased as a result of post-break service;
(iii) A Former Participant who is reemployed and who has not had Years of Service (or Periods of Service) before a 1-Year Break in Service disregarded pursuant to (i) above, shall participate in the Plan as of the date of reemployment.
(iv) If a Former Participant completes a Year of Service (a 1-Year Break in Service previously occurred, but employment had not terminated), the Former Participant shall participate in the Plan retroactively from the first day of the Plan Year during which one (1) Year of Service (or Period of Service) is completed.
(f) In determining Years of Service (or Periods of Service) for purposes of vesting under the Plan, Years of Service (or Periods of Service) shall be excluded as specified in the Adoption Agreement.
Appears in 1 contract
DETERMINATION OF BENEFITS UPON TERMINATION. (a) If a Participant's employment with the Employer is terminated for any reason other than death, Total and Permanent Disability Disability, or retirement, then such Participant shall be entitled to such benefits as are provided hereinafter pursuant herein. Distribution of the funds due to this Section 7.4. If a portion Terminated Participant shall be made on the occurrence of a Participant's Account is forfeited, Company Stock allocated to an event which would result in the distribution had the Terminated Participant remained in the employ of the Employer (upon the Participant's Company Stock Account must be forfeited only after death, Total and Permanent Disability, Early or Normal Retirement). However, at the election of the Participant's Other Investments Account has been depleted. If interest in more than one class , the Administrator shall direct that the entire Vested portion of Company Stock has been allocated to a the Terminated Participant's AccountCombined Account be payable to such Terminated Participant provided the conditions, if any, set forth in the Participant must Adoption Agreement have been satisfied. Any distribution under this paragraph shall be treated as forfeiting made in a manner which is consistent with and satisfies the same proportion provisions of each such classSection 6.5, including but not limited to, all notice and consent requirements of Code Sections 411(a)(11) and 417 and the Regulations thereunder. In Regardless of whether distributions in kind are permitted, in the event that the amount of the Vested portion of the Terminated Participant's Combined Account equals or exceeds the fair market value of any insurance Contracts, the Trustee, when so directed by the Administrator and agreed to by the Terminated Participant, shall assign, transfer, and set over to such Terminated Participant all Contracts on his such Terminated Participant's life in such form or with such endorsements endorsements, so that the settlement options and forms of payment are consistent with the provisions of Section 7.56.5. In the event that the Terminated Participant's Vested portion does not at least equal the fair market value of the Contracts, if any, the Terminated Participant may pay over to the Trustee the sum needed to make the distribution equal to the value of the Contracts being assigned or transferred, or the Trustee, pursuant to the Participant's election, may borrow the cash value of the Contracts from the insurer Insurer so that the value of the Contracts is equal to the Vested portion of the Terminated Participant's Combined Account and then assign the Contracts to the Terminated Participant. Distribution of Notwithstanding the funds due to a Terminated Participant shall be made on the occurrence of an event which would result above, unless otherwise elected in the distribution had the Terminated Participant remained in the employ of the Employer (upon the Participant's deathAdoption Agreement, Total and Permanent Disability or Normal Retirement). However, at the election of the Participant, the Administrator shall direct the Trustee to cause the entire Vested portion of the Terminated Participant's Account to be payable to such Terminated Participant as soon as practicable but in no event later than in the case of a Participant, Former Participant, or Beneficiary (as the case may be) who requests a distribution in accordance with this Article on or after January 1 but before June 30 of a Plan Year, 180 days after such June 30 provided that the Participant or Former Participant has not completed 1,000 or more Hours of Service during the Plan Year in which the request is made; or in the case of any other Participant, Former Participant, or Beneficiary (as the case may be) who requests a distribution in accordance with this Article, 180 days after the close of the Plan Year in which the request is made. Any distribution under this paragraph shall be made in a manner which is consistent with and satisfies the provisions of Sections 7.5 and 7.6, including, but not limited to, all notice and consent requirements of Code Section 411(a)(11) and the Regulations thereunder. If if the value of a Terminated Participant's Vested benefit derived from Employer and Employee contributions (including accumulated Qualified Voluntary Employee Contributions) does not exceed $5,000 (or, $3,500 ($5,000 for distributions made prior to the later of the first day of the first Plan Years Year beginning on or after August 5, 1997, or the date specified in the Adoption Agreement) and has never exceeded $3,500 or $5,000, whichever is applicable, at the time of any prior distribution, the Administrator shall direct the Trustee to cause that the entire Vested benefit to be paid to such Participant in a single lump sumlump-sum without regard to the consent of the Participant or the Participant's spouse. For purposes A Participant's Vested benefit shall not include Qualified Voluntary Employee Contributions within the meaning of this Code Section 7.472(o)(5)(B) for Plan Years beginning prior to January I, 1989. Furthermore, the determination of whether the $5,000 (or, if applicable, $3,500) threshold has been exceeded is generally based on the value of the Vested benefit as of the Valuation Date preceding the date of the distribution. However, if the "lookback rule" applies, the applicable threshold is deemed to be exceeded if the Vested benefit exceeded the applicable threshold at the time of any prior distribution. The "lookback rule" generally applies to all distributions made prior to March 22, 1999. With respect to distributions made on or after March 22, 1999, the "lookback rule" applies if either (1) the provisions of Section 6.12 do not apply or (2) a Participant has begun to receive distributions pursuant to an optional form of benefit under which at least one scheduled periodic distribution has not yet been made, and if the value of a Terminated Participant's Vested benefit is zero, the Terminated Participant shall be deemed to have received a distribution of such Vested benefit.
(b) The Vested portion of any Participant's Account for any Participant who terminated employment prior to January 1, 1995 shall be a percentage of the total amount credited to his Participant's Account determined on the basis of the Participant's number benefit, determined at the time of Years the first distribution under that optional form of Service according benefit exceeded the applicable threshold. However, the Plan does not fail to satisfy the requirements of this paragraph if, prior to the following schedule: Vesting Schedule Years adoption of Service Percentage Less than 2 0 % 2 20 % 3 40 % 4 60 % 5 80 % 6 100 %this Prototype Plan, the "lookback rule" was applied to all distributions. Notwithstanding the preceding, the "lookback rule" will not apply to any distributions made on or after October 17, 2000.
Appears in 1 contract
Samples: 401(k) Profit Sharing Plan Adoption Agreement (Wayne Savings Bancshares Inc /De/)
DETERMINATION OF BENEFITS UPON TERMINATION. (a) If a Participant's employment with the Employer is terminated for any reason other than death, Total and Permanent Disability Disability, or retirement, then such Participant shall be entitled to such benefits as are provided hereinafter pursuant to this Section 7.4Section. If Distribution of the funds due to a portion Terminated Participant shall be made on the occurrence of a Participant's Account is forfeited, Company Stock allocated to an event which would result in the distribution had the Terminated Participant remained in the employ of the Employer (upon the Participant's Company Stock Account must be forfeited only after death, Total and Permanent Disability, Early or Normal Retirement). However, at the election of the Participant's Other Investments Account has been depleted. If interest in more than one class , the Administrator shall direct that the entire Vested portion of Company Stock has been allocated to a the Terminated Participant's AccountCombined Account be payable to such Terminated Participant provided the conditions, if any, set forth in the Participant must Adoption Agreement have been satisfied. Any distribution under this paragraph shall be treated as forfeiting made in a manner which is consistent with and satisfies the same proportion provisions of each such classSection 6.5, including but not limited to, all notice and consent requirements of Code Sections 411(a)(11) and 417 and the Regulations thereunder. In Regardless of whether distributions in kind are permitted, in the event that the amount of the Vested portion of the Terminated Participant's Combined Account equals or exceeds the fair market value of any insurance Contracts, the Trustee, when so directed by the Administrator and agreed to by the Terminated Participant, shall assign, transfer, and set over to such Terminated Participant all Contracts on his such Terminated Participant's life in such form or with such endorsements endorsements, so that the settlement options and forms of payment are consistent with the provisions of Section 7.56.5. In the event that the Terminated Participant's Vested portion does not at least equal the fair market value of the Contracts, if any, the Terminated Participant may pay over to the Trustee the sum needed to make the distribution equal to the value of the Contracts being assigned or transferred, or the Trustee, pursuant to the Participant's election, may borrow the cash value of the Contracts from the insurer Insurer so that the value of the Contracts is equal to the Vested portion of the Terminated Participant's Combined Account and then assign the Contracts to the Terminated Participant. Distribution of Notwithstanding the funds due to a Terminated Participant shall be made on the occurrence of an event which would result above, unless otherwise elected in the distribution had the Terminated Participant remained in the employ of the Employer (upon the Participant's deathAdoption Agreement, Total and Permanent Disability or Normal Retirement). However, at the election of the Participant, the Administrator shall direct the Trustee to cause the entire Vested portion of the Terminated Participant's Account to be payable to such Terminated Participant as soon as practicable but in no event later than in the case of a Participant, Former Participant, or Beneficiary (as the case may be) who requests a distribution in accordance with this Article on or after January 1 but before June 30 of a Plan Year, 180 days after such June 30 provided that the Participant or Former Participant has not completed 1,000 or more Hours of Service during the Plan Year in which the request is made; or in the case of any other Participant, Former Participant, or Beneficiary (as the case may be) who requests a distribution in accordance with this Article, 180 days after the close of the Plan Year in which the request is made. Any distribution under this paragraph shall be made in a manner which is consistent with and satisfies the provisions of Sections 7.5 and 7.6, including, but not limited to, all notice and consent requirements of Code Section 411(a)(11) and the Regulations thereunder. If if the value of a Terminated Participant's Vested benefit derived from Employer and Employee contributions (including accumulated Qualified Voluntary Employee Contributions) does not exceed $5,000 (or, $3,500 ($5,000 for distributions made prior to the later of the first day of the first Plan Years Year beginning on or after August 5, 1997, or the date specified in the Adoption Agreement) and has never exceeded $3,500 or $5,000, whichever is applicable, at the time of any prior distribution, the Administrator shall direct the Trustee to cause that the entire Vested benefit to be paid to such Participant in a single lump sumlump-sum without regard to the consent of the Participant or the Participant's spouse. For purposes A Participant's Vested benefit shall not include Qualified Voluntary Employee Contributions within the meaning of this Code Section 7.472(o)(5)(B) for Plan Years beginning prior to January 1, 1989. Furthermore, the determination of whether the $5,000 (or, if applicable, $3,500) threshold has been exceeded is generally based on the value of the Vested benefit as of the Valuation Date preceding the date of the distribution. However, if the "lookback rule" applies, the applicable threshold is deemed to be exceeded if the Vested benefit exceeded the applicable threshold at the time of any prior distribution. The "lookback rule" generally applies to all distributions made prior to March 22, 1999. With respect to distributions made on or after March 22, 1999, the "lookback rule" applies if either (1) the provisions of Section 6.12 do not apply or (2) a Participant has begun to receive distributions pursuant to an optional form of benefit under which at least one scheduled periodic distribution has not yet been made, and if the value of a Terminated the Participant's Vested benefit, determined at the time of the first distribution under that optional form of benefit is zeroexceeded the applicable threshold. However, the Terminated Participant shall be deemed Plan does not fail to have received a distribution satisfy the requirements of this paragraph if, prior to the adoption of this Prototype Plan, the "lookback rule" was applied to all distributions. Notwithstanding the preceding, the "lookback rule" will not apply to any distributions made after the effective date of any Regulations that repeal the "lookback rule" for distributions that are not already exempt from such Vested benefitrules.
(b) The Vested portion of any Participant's Account for any Participant who terminated employment prior to January 1, 1995 shall be a percentage of the total amount credited to his such Participant's Account determined on the basis of the Participant's number of Years of Service (or Periods of Service if the Elapsed Time Method is elected) according to the following vesting schedule specified in the Adoption Agreement. However, a Participant's entire interest in the Plan shall be non-forfeitable upon the Participant's Normal Retirement Age (if the Participant is employed by the Employer on or after such date).
(c) For any Top Heavy Plan Year, the minimum top heavy vesting schedule elected by the Employer in the Adoption Agreement will automatically apply to the Plan. The minimum top heavy vesting schedule applies to all benefits within the meaning of Code Section 411(a)(7) except those attributable to Employee contributions, including benefits accrued before the effective date of Code Section 416 and benefits accrued before the Plan became top heavy. Further, no decrease in a Participant's Vested percentage shall occur in the event the Plan's status as top heavy changes for any Plan Year. However, this Section does not apply to the account balances of any Employee who does not have an Hour of Service after the Plan has initially become top heavy and the Vested percentage of such Employee's Participant's Account shall be determined without regard to this Section 6.4(c). If in any subsequent Plan Year the Plan ceases to be a Top Heavy Plan, then unless a specific Plan amendment is made to provide otherwise, the Administrator will continue to use the vesting schedule in effect while the Plan was a Top Heavy Plan.
(d) Notwithstanding the vesting schedule above, upon the complete discontinuance of the Employer's contributions to the Plan (if this is a profit sharing plan) or upon any full or partial termination of the Plan, all amounts then credited to the account of any affected Participant shall become 100% Vested and shall not thereafter be subject to Forfeiture.
(e) If this is an amended or restated Plan, then notwithstanding the vesting schedule specified in the Adoption Agreement, the Vested percentage of a Participant's Account shall not be less than the Vested percentage attained as of the later of the effective date or adoption date of this amendment and restatement. The computation of a Participant's nonforfeitable percentage of such Participant's interest in the Plan shall not be reduced as the result of any direct or indirect amendment to this Article, or due to changes in the Plan's status as a Top Heavy Plan.
(f) If the Plan's vesting schedule is amended, or if the Plan is amended in any way that directly or indirectly affects the computation of the Participant's nonforfeitable percentage or if the Plan is deemed amended by an automatic change to a top heavy vesting schedule: Vesting Schedule , then each Participant with at least three (3) Years of Service Percentage Less than 2 0 % 2 20 % 3 40 % 4 60 % 5 80 % 6 100 %(or Periods of Service if the Elapsed Time Method is elected) as of the expiration date of the election period may elect to have such Participant's nonforfeitable percentage computed under the Plan without regard to such amendment or change. If a Participant fails to make such election, then such Participant shall be subject to the new vesting schedule. The Participant's election period shall commence on the adoption date of the amendment and shall end sixty (60) days after the latest of:
(1) the adoption date of the amendment,
(2) the effective date of the amendment, or
(3) the date the Participant receives written notice of the amendment from the Employer or Administrator.
(g) In determining Years of Service or Periods of Service for purposes of vesting under the Plan, Years of Service or Periods of Service shall be excluded as elected in the Adoption Agreement.
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