Common use of Narrow Participation Retirement Fund Clause in Contracts

Narrow Participation Retirement Fund. A fund established in India to provide retirement, disability, or death benefits to beneficiaries that are current or former employees (or persons designated by such employees) of one or more employers in consideration for services rendered, provided that: 1. The fund has fewer than 50 participants; 2. The fund is sponsored by one or more employers that are not Investment Entities or Passive NFFEs; 3. The employee and employer contributions to the fund (other than transfers of assets from treaty-qualified retirement funds described in paragraph A of this section or retirement and pension accounts described in subparagraph A(1) of section V of this Annex II) are limited by reference to earned income and compensation of the employee, respectively; 4. Participants that are not residents of India are not entitled to more than 20 percent of the fund’s assets; and 5. The fund is subject to government regulation and provides annual information reporting about its beneficiaries to the relevant tax authorities in India.

Narrow Participation Retirement Fund. A fund established in India to provide retirement, disability, or death benefits to beneficiaries that are current or former employees (or persons designated by such employees) of one or more employers in consideration for services rendered, provided that: 1. The fund has fewer than 50 participants; 2. The fund is sponsored by one or more employers that are not Investment Entities or Passive NFFEs; 3. The employee and employer contributions to the fund (other than transfers of assets from treaty-qualified retirement funds described in paragraph A of this section or retirement and pension accounts described in subparagraph A(1) of section V of this Annex II) are limited by reference to earned income and compensation of the employee, respectively; 4. Participants that are not residents of India are not entitled to more than 20 percent of the fund’s 's assets; and 5. The fund is subject to government regulation and provides annual information reporting about its beneficiaries to the relevant tax authorities in India.

Narrow Participation Retirement Fund. A fund established in India to provide retirement, disability, or death benefits to beneficiaries that are current or former employees (or persons designated by such employees) of one or more employers in consideration for services rendered, provided that: 1. The fund has fewer than 50 participants; 2. The fund is sponsored by one or more employers that are not Investment Entities or Passive NFFEs; 3. The employee and employer contributions to the fund (other than transfers of assets from treaty-treaty- qualified retirement funds described in paragraph A of this section or retirement and pension accounts described in subparagraph A(1) of section V of this Annex II) are limited by reference to earned income and compensation of the employee, respectively; 4. Participants that are not residents of India are not entitled to more than 20 percent of the fund’s 's assets; and 5. The fund is subject to government regulation and provides annual information reporting about its beneficiaries to the relevant tax authorities in India.