Other Simplifying Assumptions Clause Samples
The "Other Simplifying Assumptions" clause establishes that certain assumptions are made to streamline the interpretation or application of the agreement. In practice, this clause may specify that minor details, exceptions, or complexities are disregarded to focus on the main terms, or that certain standard conditions are presumed unless otherwise stated. Its core function is to reduce ambiguity and administrative burden by clarifying that the agreement should be read with these simplifications in mind, thereby preventing disputes over minor or technical issues.
Other Simplifying Assumptions. For administrative convenience, the earnings rate applicable to the corrective contribution or allocation for a valuation period with respect to any investment fund may be assumed to be the actual earnings rate for the plan's investments in that fund during that valuation period. For example, the earnings rate may be determined without regard to any special investment provisions that vary according to the size of the fund. Further, the earnings rate applicable to the corrective contribution or allocation for a portion of a valuation period may be a pro rata portion of the earnings rate for the entire valuation period, unless the application of this rule would result in either a significant understatement or overstatement of the actual earnings during that portion of the valuation period.
Other Simplifying Assumptions. For administrative convenience, the earnings rate applicable to the corrective contribu- tion or allocation for a valuation period with respect to any investment fund may be assumed to be the actual earnings rate for the plan’s investments in that fund dur- ing that valuation period. For example, the earnings rate may be determined without regard to any special investment provi- sions that vary according to the size of the fund. Further, the earnings rate applicable to the corrective contribution or allocation for a portion of a valuation period may be a pro rata portion of the earnings rate for the entire valuation period, unless the applica- tion of this rule would result in either a sig- nificant understatement or overstatement of the actual earnings during that portion of the valuation period.