Common use of Back-DROP Clause in Contracts

Back-DROP. Back-DROP may be employed up to five years, upon reaching 30 years of service. i. Any employee whose Back- DROP period includes years of service less than 30 will incur a 2% accrual rate penalty for each of those years. ii. The interest rate for the Back-DROP is the actual rate of return of the Plan; provided however, in no year will the employee earn less than 0%, and in no year will the employee earn more than 10% regardless of the actual rate of return of the Plan.

Back-DROP. Back-DROP may be employed up to five years, upon reaching 30 years of service. i. Any employee whose Back- Back-DROP period includes years of service less than 30 will incur a 2% accrual rate penalty for each of those years. ii. The interest rate for the Back-DROP is the actual rate of return of the Plan; provided however, in no year will the employee earn less than 0%, and in no year will the employee earn more than 10% regardless of the actual rate of return of the Plan.