Common use of Leased Employee Clause in Contracts

Leased Employee. Any person who, in accordance with an agreement between the recipient and any other person (“leasing organization”) has performed services for the Plan Sponsor (or for the recipient and related persons determined in accordance with Code §414(n)(6)) on a substantially full-time basis for a period of at least one year, and such services are performed under the primary direction or control of the service recipient. Contributions or benefits provided to a Leased Employee by the leasing organization that are attributable to services performed for the recipient Plan Sponsor will be treated as provided by the recipient Plan Sponsor. (a) Such employee is covered by a tax-qualified money purchase pension plan providing: (i) A non-integrated employer contribution rate of at least 10% of compensation (as defined in Code §415(c)(3), but including amounts contributed by the employer under a salary-reduction agreement that are excludible from the employee’s gross income under Code §§125, 132(f), 402(e)(3), 402(h)(1)(B), or 403(b)); (ii) Immediate participation; and (iii) Full and immediate vesting; and (b) Leased Employees do not constitute more than 20% of all Non-Highly Compensated Employees (excluding Leased Employees) of all Affiliates (including affiliates within the meaning of Code §144(a)(3).