Common use of Defined Contribution Plan Clause in Contracts

Defined Contribution Plan. Employees hired on or after the effective date of the MERS Defined Contribution (“DC”) Plan for this bargaining unit shall participate in that plan. The Employer shall contribute seven percent (7%) of a participating employee's gross wages to the DC Plan. A participating employee shall be required to contribute three percent (3%) of gross wages to the DC Plan. A participating employee may also voluntarily contribute additional amounts on an after-tax basis to his or her individual account in the reserve for the DC Plan for any plan year in any amount to the extent allowed by federal law and subject to procedures established by MERS.