Initial Plan Year Clause Samples
The Initial Plan Year clause defines the specific 12-month period during which a plan, such as an employee benefit or retirement plan, first becomes effective and operational. Typically, this clause specifies the exact start and end dates of the plan's inaugural year, which may or may not align with the calendar year. By clearly establishing the timeframe for the plan's initial coverage and administration, this clause ensures all parties understand when obligations and benefits commence, thereby preventing confusion and disputes regarding eligibility or compliance in the plan's first year.
Initial Plan Year. (i) Salary Deferrals will be available beginning in 2002 and to be effective must be made by an Eligible Employee by executing and delivering to the Corporation a Salary Deferral Agreement by December 31, 2001. The Salary Deferral Agreement shall apply to Compensation earned by the Eligible Employee in the payroll periods beginning after December 31, 2001.
(ii) An election to become a Member and authorize a Bonus Deferral to be effective for a 2001 Bonus (payable in 2002) must be made by an Eligible Employee, by executing and delivering to the Corporation, an irrevocable Bonus Deferral Agreement by December 31, 2001.
(iii) An election to become a Member and authorize a Long-Term Incentive Deferral to be effective for cycle eight (8) payments ending on December 31, 2002 payable in 2003 must be made by the Eligible Employee by executing and delivering to the Corporation an irrevocable Long-term Incentive Deferral Agreement as provided in Section 2.02(b)(iii).
(iv) Stock Option Deferral will be available beginning in 2003 and to be effective must be made by an Eligible Employee by executing and delivering to the Corporation a Stock Option Deferral Agreement as provided in Section 2.02(b)(iv). Table of Contents
Initial Plan Year. If this Plan is a newly established plan (other than a successor plan within the meaning of Regulation §1.401(k)–2(c)(2)(iii)), then the Plan Year may be less than 12 months, provided that the Plan Year is at least 3 months long (or, in the case of a newly established Employer that establishes the Plan as soon as administratively feasible after the employer comes into existence, a shorter period). Similarly, a cash or deferred arrangement may be added to an existing profit sharing, stock bonus, or pre-ERISA money purchase pension plan for the first time during that Plan Year, provided that (A) the Plan is not a successor plan; and (B) the cash or deferred arrangement is made effective no later than 3 months prior to the end of the Plan Year.
Initial Plan Year. A Participant who fails to complete and provide his or her election form to the Plan Administrator on or before the specified due date for the initial Plan Year in which he or she became a Participant, shall be deemed to have elected only the default Benefit Options (if any) pursuant to Section 3.02. The Participant shall also be deemed to have agreed to a reduction in his or her Compensation for the Plan Year in an amount equal to the Participant’s share of the cost of the Benefit Options he or she is deemed to have elected for the Plan Year.