Common use of Earnings Adjustment Methods Clause in Contracts

Earnings Adjustment Methods. (i) The earnings rate generally is based on the investment results that would have applied to the corrective contribution if the failure had not occurred. (ii) Insofar as SEP assets are held in IRAs, there is no earnings rate under the SEP as a whole. If the Plan Sponsor is unable to determine what the actual investment results would have been, a reasonable interest rate may be used.

Earnings Adjustment Methods. (i) The earnings rate generally is based on the investment results that would have applied to the corrective contribution if the failure had not occurred. (ii) Insofar as SEP and SIMPLE IRA Plan assets are held in IRAs, there is no earnings rate under the SEP or SIMPLE IRA Plan as a whole. If the Plan Sponsor is unable to determine what the actual investment results would have been, a reasonable interest rate may be used.