Consistency Rule Clause Samples
The Consistency Rule clause establishes that, in the event of any conflict or inconsistency between different parts of a contract or between the contract and its attachments, a predetermined order of precedence will be used to resolve the discrepancy. Typically, this means that the main body of the agreement will take priority over schedules, exhibits, or other referenced documents. By clearly specifying which document or section prevails, the clause ensures that the parties have a clear method for interpreting the contract, thereby reducing ambiguity and preventing disputes over conflicting terms.
Consistency Rule a. Application to accident or health coverage and group-term life insurance. An election change satisfies the requirements of this subsection B with respect to accident or health coverage or group-term life insurance only if the election change is on account of and corresponds with a change in status that affects eligibility for coverage under specific Benefit. A change in status that affects eligibility under a Benefit includes a change in status that results in an increase or decrease in the number of a Participant’s family members or dependents who may benefit from coverage under the Benefit. The consistency rule shall be applied in a manner consistent with Treasury Regulation Section 1.125-4.
Consistency Rule. Equivalent Accrual Rates must be determined in a consistent manner for all Employees for the Plan Year. The same measurement periods and standard interest rates must be used, and any available options must be applied consistently if at all.
Consistency Rule. Aggregate Normal Allocation Rates must be determined in a consistent manner for all employees for the Plan Year. The same measurement periods and interest rates must be used, and any available options must be applied consistently, if at all, for the entire combination of defined benefit and defined contribution plan(s). Options that are not permitted to be used under Regulation §1.401(a)(4)–8 in cross-testing a defined contribution plan or a defined benefit plan (such as measurement periods that include future periods, non-standard interest rates, the option to disregard compensation adjustments described in §1.401(a)(4)–13(d), or the option to disregard Plan provisions providing for actuarial increases after normal retirement age under Regulation §1.401(a)(4)–3(f)(3)) may not be used in testing a combination of defined benefit and defined contribution plan(s) on either a benefits or contributions basis, because their use would inevitably result in inconsistent determinations under the defined contribution and defined benefit plan(s).
Consistency Rule. Election changes must satisfy the Treasury regulations' consistency rules. The consistency rules found at Treasury Regulation 1.125-4 require that election changes must be on account of and correspond with a change in status that affects eligibility for coverage under an employer's plan. Additionally, specific rules apply to benefits such as Group Term Life insurance, DCAP benefits, events such as divorce, death, dependents ceasing to be eligible and a gain of eligibility under a family member's plan. This Plan will comply with the rules as they apply to the permitted election changes described in this document. For example, if the participant's change in status event is a dependent ceasing to be eligible for health plan coverage, the participant may be permitted to change her election to discontinue coverage for that dependent. However, the participant could not use this event to justify dropping coverage for her spouse or some other dependent, because there is no connection between the change in status event and these types of changes.