Qualified Replacement Plan Sample Clauses
A Qualified Replacement Plan clause defines the requirements and standards that any new or substitute plan must meet to be considered an acceptable replacement for an existing plan, typically in the context of employee benefits or retirement plans. This clause ensures that if the original plan is terminated or amended, any replacement must provide benefits and features that are at least equivalent to those of the original, often referencing compliance with specific legal or regulatory criteria. Its core function is to protect participants by guaranteeing continuity and adequacy of benefits, thereby preventing a reduction in value or coverage due to plan changes.
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Qualified Replacement Plan. The Employer may establish or maintain this Plan as a qualified replacement plan as described in Code §4980 under which the Plan may receive a transfer from a terminating qualified plan the Employer also maintains. The Plan Administrator will credit the transferred amounts to a suspense account under the Plan and thereafter the Plan Administrator will allocate the transferred amounts under this Section 3.04(G) in the same manner as the Plan Administrator allocates Employer nonelective contributions, unless the Employer specifies in an Addendum to its Adoption Agreement: (1) to apply such transferred amounts to the Plan’s administrative expenses; or (2) if the Plan includes a 401(k) arrangement, the Employer in its Addendum designates such transferred amounts as matching contributions.
Qualified Replacement Plan. The Employer may establish or maintain this Plan as a qualified replacement plan as described in Code §4980 under which the Plan may receive a Transfer from a terminating qualified plan the Employer also maintains. The Plan Administrator will credit the transferred amounts to a suspense account under the Plan and thereafter the Plan Administrator will allocate the transferred amounts under this Section 3.04(D) in the same manner as the Plan Administrator allocates Employer Nonelective Contributions.