Common use of One Year Holdout Rule Clause in Contracts

One Year Holdout Rule. If the Sponsoring Employer elects the One Year Holdout Rule in the Adoption Agreement, any Year(s) of Service completed prior to an Employee’s Break(s) in Service will not be counted in determining an Employee’s Vesting Interest in the Participant’s Account balance until the Employee satisfies the One Year Holdout Rule. If the Employee satisfies the One Year Holdout Rule, then the Employee’s Year(s) of Service for Vesting purposes will include Year(s) of Service that were completed prior to an Employee’s Break(s) in Service, retroactively to the first day of the Vesting Computation Period in which the Employee completes one (1) Year of Service. Furthermore, if the Sponsoring Employer has elected the Rule of Parity in the Adoption Agreement (in addition to the One Year Holdout Rule), then the recognition of any Year(s) of Service that were completed prior to an Employee’s Break(s) in Service will be subject to both the One Year Holdout Rule and the Rule of Parity.

One Year Holdout Rule. If the Sponsoring Employer elects the One Year Holdout Rule in the Adoption Agreement, any Year(s) of Service completed prior to an Employee’s Break(s) in Service will not be counted in determining an Employee’s Vesting Interest in the Participant’s Account balance for benefit accrual or allocation purposes until the Employee satisfies the One Year Holdout Rule. If the Employee satisfies the One Year Holdout Rule, then the Employee’s Year(s) of Service for Vesting benefit accrual or allocation purposes will include Year(s) of Service that were completed prior to an Employee’s Break(s) in Service, retroactively to the first day of the Vesting Computation Period Plan Year in which the Employee completes one (1) Year of Service. Furthermore, if the Sponsoring Employer has elected the Rule of Parity in the Adoption Agreement (in addition to the One Year Holdout Rule), then the recognition of any Year(s) of Service that were completed prior to an Employee’s Break(s) in Service will be subject to both the One Year Holdout Rule and the Rule of Parity.