Common use of Fresh Start Rule Clause in Contracts

Fresh Start Rule. The formula with wear-away and formula with extended wear-away Fresh-Start rules below take into account an Employee's past service in determining the Employee's benefit accruals under the Plan: either of these Fresh-Start rules may cause the Plan to fail to satisfy the safe harbor for past service in section 1.401(a)(4)-5(a)(3) of the Income Tax Regulations. The Accrued Benefit of each Participant in the Fresh-Start Group under the Plan will be equal to: ( ) 1. Formula with wear-away -- the greater of: (a) the Participant's Frozen Accrued Benefit, if any, and (b) the Participant's Accrued Benefit determined with respect to the current benefit formula as applied to the Participant's total years of Service under the Plan. ( ) 2. Formula without wear-away -- the sum of: (a) the Participant's Frozen Accrued Benefit, if any, and (b) the Participant's Accrued Benefit determined with respect to the current benefit formula as applied to the Participant's years of Service beginning after the Fresh-Start Date. If, however, the Participant's benefit under the Plan is accrued under the fractional accrual rule or the 3 percent accrual rule, or if this Plan satisfies the safe harbor for insurance contract plans in Income Tax Regulations section 1.401(a)(4)-3(b)(7), this formula without wear-away will not apply, and the Participant's Accrued Benefit will be determined in accordance with the formula with wear-away above. ( ) 3. Formula with extended wear-away -- the greater of the Accrued Benefit determined for the Participant under the formula with wear-away or the formula without wear-away above. If, however, the Participant's benefit under the Plan is accrued under the 3 percent accrual rule, the formula with extended wear-away will not apply, and the Participant's Accrued Benefit will be determined in accordance with the formula with wear-away above. Definition of Fresh-Start Group. The Fresh-Start Group consists of all Participants who have Accrued Benefits as of the Fresh- Start Date and have at least one Hour of Service with the Employer after that date. However, if designated below, the Fresh-Start Group shall be limited to:

Fresh Start Rule. The formula with wear-away and formula with extended wear-away Fresh-Start rules below take into account an Employee's past service in determining the Employee's benefit accruals under the Plan: either of these Fresh-Start rules may cause the Plan to fail to satisfy the safe harbor for past service in section 1.401(a)(4)-5(a)(3) of the Income Tax Regulations. The Accrued Benefit of each Participant in the Fresh-Start Group under the Plan will be equal to: ( ) 1. Formula with wear-away -- the greater of: (a) the Participant's Frozen Accrued Benefit, if any, and (b) the Participant's Accrued Benefit determined with respect to the current benefit formula as applied to the Participant's total years of Service under the Plan. ( ) 2. Formula without wear-away -- the sum of: (a) the Participant's Frozen Accrued Benefit, if any, and (b) the Participant's Accrued Benefit determined with respect to the current benefit formula as applied to the Participant's years of Service beginning after the Fresh-Start Date. If, however, the Participant's benefit under the Plan is accrued under the fractional accrual rule or the 3 percent accrual rule, rule or if this Plan satisfies the safe harbor for insurance contract plans in Income Tax Regulations section 1.401(a)(4)-3(b)(7), this formula without wear-away will not apply, and the Participant's Accrued Benefit accrued benefit will be determined in accordance with the formula with wear-away above. ( ) 3. Formula with extended wear-away -- the greater of the Accrued Benefit accrued benefit determined for the Participant under the formula with wear-away or the formula without wear-away above. If, however, the Participant's benefit under the Plan is accrued under the 3 percent accrual rule, rule the formula with extended wear-away will not apply, and the Participant's Accrued Benefit will be determined in accordance with the formula with wear-away above. Definition of Fresh-Start Group. The Fresh-Start Group consists of all Participants who have Accrued Benefits as of the Fresh- Fresh-Start Date and have at least one Hour of Service with the Employer after that date. However, if designated below, the Fresh-Start Group shall be limited to: