Pairing Requirements Clause Samples

Pairing Requirements. If an Employer adopts two or more defined contribution plans by executing Adoption Agreements pursuant to this Plan or another prototype plan for which the Mass Submitter is the same, the following provisions shall apply: (a) Only one of the Adoption Agreements may provide for permitted disparity by integration with Social Security. (b) For each Plan Year in which the paired plans are top-heavy the Employer shall provide a minimum contribution equal to three (3%) percent of Compensation for each Non-Key Employee (i) under the paired plan designated by the Employer in the Adoption Agreement if the plans benefit the same Participants, or in the case of a plan subject to Code Section 401(k) or 401(m), the same Participants are eligible to make elective deferrals or employee contributions, or (ii) under both paired plans if the plans benefit the same participants. Note: The same eligibility requirements in Section A of the Adoption Agreement must be selected. (c) In any Plan Year in which the paired plans are top-heavy, i.e. the top-heavy ratio exceeds sixty (60%) percent, the denominators of the defined benefit fraction and defined contribution fraction in Section 3.2.1(d) shall be computed by multiplying the dollar limitation by 1.0 instead of by 1.25.