Common use of FORFEITURE ADJUSTMENTS Clause in Contracts

FORFEITURE ADJUSTMENTS. Contribution amounts forfeited by death or turnover shall be reallocated at the end of each plan year (on or after June 1st) among the then remaining employee accounts. This redistribution shall occur in a manner similar to that used initially in determining the present value calculations. Those who will not share in the reallocation include those who forfeited their accounts in the same year, those who previously forfeited their accounts, or those who terminated employment in or before the year of the reallocated forfeiture. If an employee dies before eligibility for retirement, his or her contribution is included in the next year’s forfeiture adjustments. If an employee dies after eligibility for retirement, the account balance is distributed to his or her identified beneficiaries or estate.