Minimum Allocation Gateway Clause Samples
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Minimum Allocation Gateway. Any allocation of contributions under either the Participant Group Allocation Method or the Age Weighted Allocation Formula must satisfy the minimum allocation gateway: Each eligible NHCE must have an allocation rate that is not less than the lesser of 5%, or one-third of the allocation rate of the HCE with the highest allocation rate. An allocation rate is the amount of contributions allocated to an Employee for a year, expressed as a percentage of Compensation, as defined in section 14.39 of the Plan.
Minimum Allocation Gateway. Each eligible Non-Highly Compensated Employee has an allocation rate that is equal to the lesser of five percent (5%) of the Employee’s Compensation (as defined in paragraph 1.17), or one-third of the allocation rate of the Highly Compensated Employee with the highest allocation rate. The allocation rate for each group of Highly Compensated Employees will be as stated in an addendum to the Adoption Agreement.
Minimum Allocation Gateway. Any allocation of Contributions under either the Participant Group Allocation Method or the Age Weighted Allocation Method must satisfy the minimum allocation gateway. Each eligible Non-Highly Compensated Employee has an allocation rate that is equal to the lesser of five percent (5%) of the Employee’s Compensation (as defined in paragraph 1.16), or one-third of the allocation rate of the Highly Compensated Employee with the highest allocation rate. An allocation rate is the amount of Contributions allocated to an Employee for a year, expressed as a percentage of Compensation. The allocation rate for each group of Highly Compensated Employees will be as stated in an addendum to the Adoption Agreement.