Permissible Methods of Allocation Clause Samples
The Permissible Methods of Allocation clause defines the acceptable ways in which resources, costs, or responsibilities may be distributed among parties under the agreement. Typically, this clause outlines specific formulas, procedures, or criteria that must be followed when allocating items such as expenses, profits, or liabilities, and may reference industry standards or agreed-upon methodologies. Its core practical function is to ensure transparency and fairness in the allocation process, reducing the risk of disputes by clearly specifying how allocations are to be made.
Permissible Methods of Allocation. The Administrator may elect to make the allocation from one of the following allocation methods: (A) pro-rata based on the Compensation of each Eligible Participant; (B) pro-rata based on the Compensation of each Eligible Participant starting with the Eligible Participant with the lowest amount of Compensation and working up until the ADP Test or the ACP Test is satisfied; (C) per capita to each Eligible Participant; or (D) per capita based on the Compensation of each Eligible Participant starting with the Eligible Participant with the lowest amount of Compensation and working up until the ADP Test or the ACP Test is satisfied.
Permissible Methods of Allocation. The Administrator may elect to make the allocation from one of the following allocation methods: (A) pro-rata based on the Compensation of each Eligible Participant; (B) pro-rata based on the Compensation of each Eligible Participant starting with the Eligible Participant with the lowest amount of Compensation and working up until the ADP Test or the ACP Test is satisfied; (C) pro-rata based on the Elective Deferrals of each Eligible Participant starting with the Eligible Participant with the lowest amount of Elective Deferrals and working up until the ADP Test or the ACP Test is satisfied; (D) per capita to each Eligible Participant; (E) per capita based on the Compensation of each Eligible Participant starting with the Eligible Participant with the lowest amount of Compensation and working up until the ADP Test or the ACP Test is satisfied; or (F) per capita based on the Elective Deferrals of each Eligible Participant starting with the Eligible Participant with the lowest amount of Elective Deferrals and working up until the ADP Test or the ACP Test is satisfied.
Permissible Methods of Allocation. Any allocation of Qualified Matching Contributions to an Eligible Participant who is described in subparagraph (1) above will be made using one of the methods described in subparagraphs (2)(A) through (F) below. However, the actual method used for a particular Plan Year will be the method set forth in subparagraph (3) below.