Common use of Grouping Method Clause in Contracts

Grouping Method. Pursuant to Plan Section 4.3(b)(3)(vi), the classifications are (select a. or b.): a. [ ] Each Participant constitutes a separate classification. b. [ ] Define each classification and specify the method of allocating the contribution among the members of each classification. (NOTE: The classifications specified below must be clearly defined in a manner that will not violate the definitely determinable allocation requirement. The design of the groups cannot be such that the only NHCEs benefiting under the Plan are those with the lowest amount of compensation and/or the shortest periods of service and who may represent the minimum number of these employees necessary to satisfy coverage under Code Section 410(b)): Classification A shall consist of: . The allocation method will be: [ ] pro-rata based on Compensation or [ ] equal dollar amounts (per capita). Classification B shall consist of: . The allocation method will be: [ ] pro-rata based on Compensation or [ ] equal dollar amounts (per capita). Classification C shall consist of: . The allocation method will be: [ ] pro-rata based on Compensation or [ ] equal dollar amounts (per capita). Classification D shall consist of: . The allocation method will be: [ ] pro-rata based on Compensation or [ ] equal dollar amounts (per capita). Additional Classifications: (specify the classifications and which of the above allocation methods (pro-rata or per capita) will be used for each classification).