Common use of Rule of Parity Clause in Contracts

Rule of Parity. If the Sponsoring Employer elects the Rule of Parity in the Adoption Agreement, any Period of Service completed prior to an Employee’s Break(s) in Service will not be counted for purposes of determining an Employee’s Vesting Interest in the Participant’s Account balance if that Period of Service is disregarded pursuant to the Rule of Parity. If such former Employee’s Period of Service is disregarded under the Rule of Parity, then the reemployed Employee will be treated as a new Employee for purposes of determining an Employee’s Vesting Interest in the Participant’s Account balance as of the Employee’s Reemployment Commencement Date.

Rule of Parity. If the Sponsoring Employer elects the Rule of Parity in the Adoption Agreement, any Period of Service completed prior to an Employee’s Break(s) in Service will not be counted for purposes of in determining an Employee’s Vesting Interest in the Participant’s Account balance if that Period of Service is disregarded pursuant to the Rule of Parity. If such former Employee’s Period of Service is disregarded under the Rule of Parity, then the reemployed Employee will be treated as a new Employee for purposes of determining an Employee’s Vesting Interest in the Participant’s Account balance as of the Employee’s Reemployment Commencement Date.