Common use of Rule of Parity-Vesting Clause in Contracts

Rule of Parity-Vesting. The Employer may elect in its Adoption Agreement to apply the “rule of parity” under Code §411(a)(6)(D) for purposes of determining vesting Years of Service. Under the rule of parity, the Plan Administrator excludes a Participant’s Years of Service before a Break in Service if: (a) the number of the Participant’s consecutive Breaks in Service equals or exceeds 5; and (b) the Participant is 0% Vested in his/her Account Balance derived from Employer contributions at the time he/she has the Breaks in Service.

Rule of Parity-Vesting. The Employer may elect in its Adoption Agreement may elect to apply the “"rule of parity” " under Code §411(a)(6)(D) for purposes of determining vesting Years of Service. Under the rule of parity, the Plan Administrator excludes a Participant’s 's Years of Service before a Break in Service if: (a1) the number of the Participant’s 's consecutive Breaks in Service equals or exceeds 5; and (b2) the Participant is 0% Vested in his/her Account Balance derived from Employer contributions (as described under Section 5.04(C)(1)) at the time he/she has the Breaks in Service.

Rule of Parity-Vesting. The Employer may elect in its Adoption Agreement to apply the “"rule of parity” " under Code §411(a)(6)(D) for purposes of determining vesting Years of Service. Under the rule of parity, the Plan Administrator excludes a Participant’s 's Years of Service before a Break in Service if: (a) the number of the Participant’s 's consecutive Breaks in Service equals or exceeds 5; and (b) the Participant is 0% Vested in his/her Account Balance derived from Employer contributions at the time he/she has the Breaks in Service.