Common use of Timing of Salary Reduction Elections Clause in Contracts

Timing of Salary Reduction Elections. a For a calendar year, an eligible employee may make or modify a salary reduction election during the 60-day period immediately preceding January 1 of that year. However, of for the year in which the employee becomes eligible to make salary reduction contributions, the period during which the employee may make or modify the election is a 60-day period that includes either the date the employee becomes eligible or the day before. b In addition to the election in 2a, eligible employees may make salary reduction elections or modify prior elections _______________ (If the Employer chooses this option, insert a period or periods (e.g. semi- annually, quarterly, monthly, or daily) that will apply uniformly to all eligible employees.) c No salary reduction election may apply to compensation that an employee received, or had a right to immediately receive, before execution of the salary reduction election.