TOP HEAVY PLAN REQUIREMENTS Clause Samples
The Top Heavy Plan Requirements clause sets out specific rules that apply to retirement plans when a significant portion of the plan's assets are held by key employees, typically owners or high-ranking executives. In practice, if a plan is determined to be 'top heavy,' it must meet additional minimum contribution and vesting standards to ensure that non-key employees receive fair benefits. This clause is essential for maintaining compliance with tax laws and for protecting the interests of all employees by preventing disproportionate benefits to key personnel.
TOP HEAVY PLAN REQUIREMENTS. For any Top Heavy Plan Year, the Plan shall provide the special vesting requirements of Code Section 416(b) pursuant to Section 6.4 of the Plan and the special minimum allocation requirements of Code Section 416(c) pursuant to Section 4.4 of the Plan.
TOP HEAVY PLAN REQUIREMENTS. (a) For any “Top Heavy Plan year”, the following provisions shall apply notwithstanding any other provision in this Plan to the contrary:
1. Any person who is a participant in this Plan in any year in which it shall be a “Top Heavy Plan” shall have his or her benefits vested in accordance with the following schedules: twenty percent (20%) after two (2) years of service; forty percent (40%) after three (3) years of service; sixty percent (60%) after four (4) years of service; eighty percent (80%) after five (5) years of service; and one hundred percent (100%) after six (6) years of service. Effective January 1, 1989, there shall be no decrease in a participant’s nonforfeitable percentage in the event the Plan’s status as top heavy changes for any year. Further, if the vesting schedule shifts in and out of the above schedule for any year because the Plan’s top heavy status changes, such shift shall be considered an amendment of the vesting schedule. If this occurs, each participant with at least three (3) years of service with the Company may elect to have his nonforfeitable percentage determined without regard to the shift. The election period will begin with the date the deemed amendment is made and shall end on the later of:
A. Sixty (60) days after the deemed amendment is adopted;
B. Sixty (60) days after the deemed amendment is effective; or
C. Sixty (60) days after the participant is issued written notice of the deemed amendment by the Administrative Committee.
2. Notwithstanding anything in this plan to the contrary, for any Top Heavy Plan Year, the Company shall make a minimum contribution for each non-key employee equal to three percent (3%) of such non-key employee’s salary, which shall be invested and accounted for in Fund III.
3. For any year in which this Plan is top heavy, each non-key employee will receive a minimum contribu-tion if the non-key employee has not separated from service at the end of the top heavy year, regard-less of whether the non-key employee has less than one thousand (1,000) hours of service in such year. Furthermore, such non-key employee shall receive such minimum contribution regardless of his or her level of compensation, and regardless of whether he or she declines to make a mandatory personal contribution. No such minimum contribution made by the Company pursuant to these top heavy provisions shall be subject to forfeiture if a non-key employee withdraws his or her mandatory contributions.
4. Notwithstanding the foreg...
TOP HEAVY PLAN REQUIREMENTS. Notwithstanding anything in this Plan to the contrary, for any Top Heavy Plan Year, the Plan shall provide the special vesting requirements of Code Section 416(b) pursuant to Section 6.4 of the Plan and the special minimum allocation requirements of Code Section 416(c) pursuant to Section 4.3(f) of the Plan. Except as otherwise provided in the Plan, the minimum allocation shall be an Employer Non-Elective Contribution and, if no vesting schedule has been selected in the Adoption Agreement, shall be subject to the 6 Year Graded vesting schedule described in the Adoption Agreement.
TOP HEAVY PLAN REQUIREMENTS. This Article contains the rules for determining whether the Plan is a Top-Heavy Plan and the consequences of having a Top-Heavy Plan. Part 6 of the Agreement provides for elections relating to the vesting schedule for a Top-Heavy Plan. Part 13 of the Agreement allows the Employer to elect to satisfy the Top-Heavy Plan allocation requirements under another plan.
TOP HEAVY PLAN REQUIREMENTS. Notwithstanding any other provisions of the Plan to the contrary, if the Plan is a Top‑Heavy Plan for any Plan Year, the Plan shall then satisfy the following requirements for such Plan Year:
(a) The minimum vesting requirements as set forth in Section 15.4.
(b) The minimum contribution requirement as set forth in Section 15.5.
TOP HEAVY PLAN REQUIREMENTS. (a) For any Top Heavy Plan Year, the Plan shall provide the following:
(i) the minimum vesting requirements set forth in Adoption Agreements Section 13.01(1) if a Standardized Plan, or Adoption Agreement Section 13.01(2) if a Non-Standardized Plan;
(ii) the minimum contribution requirements set forth in Section 4.02 of the Plan; and
(iii) the special Compensation limitations applicable to Top Heavy Plan Years set forth in Section 2.08 of the Plan.
(b) Once a Plan has become a top Heavy Plan, if the Employer so Specifies in Section 6.01(b) of Adoption Agreement, the Requirement for Top Heavy Plans described in Section 6.01(a) shall be applicable in all subsequent Plan years, regardless of whether such years are Top Heavy plan years.
(c) In the case of a nonstandardized Plan, once a Plan has become a Top Heavy plan, the vesting requirements described in Section 13.01 (2) of the Adoption Agreement shall be applicable to all subsequent Plan Years, regardless of whether such years are Top Heavy Plan years. If the Plan is or become a Top Heavy Plan in any Plan Year beginning after December 31, 1983, the provision of this Article VI will supersede any conflicting provision in the Plan or Adoption Agreement. The top heavy minimum vesting schedule applies to all benefits within the meaning of Code Section 411(a) (7) except those attributable to Employee contributions, including benefits accrued before the effective date of Section 416 of the Code and benefits accrued before the plan became top heavy. Further, no reduction in vested benefits may occur in the event the plan's status as top heavy changes for any Plan Year. However, this Section does not apply to the Account balances of any Employee who does not have an Hour of Service after the Plan has initially become top heavy and such Employee's Account balance attributable to Employer contribution and forfeitures will be determined without regard to this Section.
TOP HEAVY PLAN REQUIREMENTS. (a) For any “Top Heavy Plan Year”, the following provisions shall apply notwithstanding any other provision in this Plan to the contrary:
1. Any person who is a participant in the Plan in any year in which it shall be a ’Top Heavy Plan’ shall be one hundred percent (100%) vested as provided in Section 7.1. Effective January 1, 1989, there shall be no decrease in a participant’s nonforfeitable percentage in the event the Plan’s status as top heavy changes for any year. Further, if the vesting schedule shifts in and out of the above schedule for any year because the Plan’s top heavy status changes, such shift shall be considered an amendment of the vesting schedule. If this occurs, each participant with at least three (3) years of service with the Company may elect to have his or her nonforfeitable percentage determined without regard to the shift. The election period will begin with the date the deemed amendment is made and shall end on the later of:
A. Sixty (60) days after the deemed amendment is adopted;
B. Sixty (60) days after the deemed amendment is effective; or
TOP HEAVY PLAN REQUIREMENTS. 16.1 In General 85 16.2 Top-Heavy Plan Consequences 85
(a) Minimum allocation for Non-Key Employees 85 (b) Special Top-Heavy Vesting Rules 87
TOP HEAVY PLAN REQUIREMENTS. Notwithstanding anything in this Plan to the contrary, for any Top-Heavy Plan Year, the Plan shall provide the special vesting requirements of Code §416(b) pursuant to Section 6.4 of the Plan and the special minimum allocation requirements of Code §416(c) pursuant to Section 4.3(f) of the Plan. Except as otherwise provided in the Plan, the minimum allocation shall be an Employer Nonelective Contribution and, if no vesting schedule has been selected in the Adoption Agreement or the selection is invalid, shall be subject to the 6 Year Graded vesting schedule described in the Adoption Agreement. Notwithstanding the above, the Top-Heavy Plan Year requirements of this Article and Code §416 shall not apply in any Plan Year in which the Plan consists solely of a cash or deferred arrangement which meets the requirements of Code §401(k)(12) or §401(k)(13) and matching contributions meet the requirements of Code §401(m)(11) or §401(m)(12).
TOP HEAVY PLAN REQUIREMENTS. For any Plan Year for which this Plan is a Top-Heavy Plan, as defined in Section B.3 of Appendix B, attached hereto, and 103 104 despite any other provisions of this Plan to the contrary, this Plan will be subject to the provisions of Appendix B.