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, then any Year(s) of Service that were 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 those Year(s) of Service are disregarded pursuant to the Rule of Parity. If such former Employee’s Year(s) of Service are disregarded under the Rule of Parity and the Sponsoring Employer elects in the Adoption Agreement that the Vesting Computation Period is based on an Employee’s 12-month employment year, then the Employee’s Vesting Computation Period will commence on the Employee’s Reemployment Commencement Date (and subsequent Vesting Computation Periods will commence on anniversaries of the Employee’s Reemployment Commencement Date). If such former Employee’s Year(s) of Service are not disregarded under the Rule of Parity, then the Vesting Computation Periods will remain unchanged.

Rule of Parity. If the Sponsoring Employer elects the Rule of Parity in the Adoption Agreement, then any Year(s) of Service that were 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 those Year(s) of Service are disregarded pursuant to the Rule of Parity. If such former Employee’s Year(s) of Service are disregarded under the Rule of Parity and the Sponsoring Employer elects in the Adoption Agreement that the Vesting Computation Period is based on an Employee’s 12-month employment year, then the Employee’s Vesting Computation Period will commence on the Employee’s Reemployment Commencement Date (and subsequent Vesting Computation Periods will commence on anniversaries of the Employee’s Reemployment Commencement Date). If such former Employee’s Year(s) of Service are not disregarded under the Rule of Parity, then the Vesting Computation Periods will remain unchanged.