Common use of Unit Benefit Clause in Contracts

Unit Benefit. NOTE: In order to be a design-based safe harbor plan under the Code §401(a)(4) Regulations, if a Unit Benefit formula is used and the Accrued Benefit is calculated using a fractional accrual method or the Plan is a fully insured Code §412(e)(3) (formerly Code §412(i)) Plan, then the maximum number of years of Credited Service may not be less than 25.

Unit Benefit. NOTE: In order to be a design-based safe harbor plan under the Code §Section 401(a)(4) Regulations, if a Unit Benefit formula is used and the Accrued Benefit is calculated using a fractional accrual method or the Plan is a fully insured Code §412(e)(3) (formerly Code §Section 412(i)) Plan, then the maximum number of years of Credited Service may not be less than 25.