Employer Nonelective Clause Samples
The Employer Nonelective clause defines the employer's obligation to make contributions to an employee benefit plan, such as a retirement plan, regardless of whether employees make their own contributions. Typically, this means the employer will contribute a fixed percentage or dollar amount to eligible employees' accounts each year, independent of employee participation. This clause ensures that employees receive a guaranteed benefit from the employer, promoting retirement savings and providing a predictable incentive for employee retention.
Employer Nonelective a. o o o The first day of the Plan Year and the first day of 7th month of the Plan Year. b. ý ý o The first day of each quarter of the Plan Year. c. o o o The first day of each month of the Plan Year. d. o o o The first day of the Plan Year. [If #7.a. or #7.b. above is checked for the same type of contribution as checked here, see the restrictions in Section 1.5(b) of the BPD.] e. o o o The first day of the Plan Year and the date which is six months after the completion of the requirements elected in Part 1, #5 above. f. o o o The date the conditions in Part 1, #5 above are satisfied. [This f. should be checked for a particular type of contribution only if #7.c above is also checked for that type of contribution.] Part 3—Compensation Definitions (See Sections 22.102 and 22.197 of the BPD)
Employer Nonelective a. o o Reallocate as additional Employer Nonelective Contributions using the allocation method specified in Part 4C, #21 of this Agreement. If no allocation method is specified, use the Pro Rata Allocation Method under Part 4C, #21.a. of this Agreement. b. o o Reallocate as additional Employer Matching Contributions using the discretionary allocation method in Part 4B, #16.b. of this Agreement. c. ý o Reduce the: [Check one or both.] ý(a) Employer Matching Contributions o(b) Employer Nonelective Contributions the Employer would otherwise make for the Plan Year in which the forfeitures are allocated. [Note: If both (a) and (b) are checked, the Employer may adjust its contribution deposits in any manner, provided the total Employer Matching Contributions and Employer Nonelective Contributions (as applicable) properly take into account the forfeitures used to reduce such contributions for that Plan Year.] ý49. Payment of Plan expenses. Forfeitures are first used to pay Plan expenses for the Plan Year in which the forfeitures are to be allocated. (See Section 5.5(c) of the BPD.) Any remaining forfeitures are allocated as provided in #48 above. o50.
Employer Nonelective a. o o o The next following Entry Date (as defined in #8 below) b. ý ý o The Entry Date (as defined in #8 below) coinciding with or next following the completion of the age and service conditions. c. N/A o o The nearest Entry Date (as defined in #8 below). d. N/A o o The preceding Entry Date (as defined in #8 below). e. o o o The date the age and service conditions are satisfied. [Also check #8.f. below for the same type of contribution(s) checked here.]
Employer Nonelective a. o o Full and immediate vesting. b. o o 7-year graded vesting schedule. c. o o 6-year graded vesting schedule. d. o o 5-year cliff vesting schedule. e. o o 3-year cliff vesting schedule. f. ý o Modified vesting schedule: (1) 20% after 1 Year of Service (2) 40% after 2 Years of Service (3) 60% after 3 Years of Service (4) 80% after 4 Years of Service (5) 100% after 5 Years of Service (6) 100% after 6 Years of Service, and (7) 100% after 7 Years of Service.