Common use of Regular Method Clause in Contracts

Regular Method. (This method must be selected if Section A.1.55(A) is checked). In order for a Participant to have a Year of Service for Benefit Accrual for any Plan Year, the Participant must complete the number of Hours of Service indicated (check either (a) and fill in blank or (b)): (a) The number of Hours of Service which must be completed with the Employer in order for a Participant to have a Year of Service for Benefit Accrual is [ 200 ] (fill in blank but not to exceed 1,000 Hours of Service). (b) The number of Hours of Service which must be completed with the Employer in order for a Participant to have a Year of Service for Benefit Accrual for a Plan Year is 501 if the Participant is not an active Employee on the last day of the Plan Year; if the Participant is an active Employee on the last day of the Plan Year, only one Hour of Service with the Employer must be completed in order for the Participant to have a Year of Service for Benefit Accrual for such Plan Year. NOTE: UNDER PROPOSED TREAS. REG. SS.SS. 1.410(B) AND 1.401(A)(26), IT MAY BE ▇▇▇▇▇SARY TO PROVIDE THAT NO MORE THAN 501 HOURS OF SERVICE ARE REQUIRED FOR A YEAR OF SERVICE FOR BENEFIT ACCRUAL FOR ANY PARTICIPANT WHO HAS TERMINATED EMPLOYMENT AND IS NOT AN ACTIVE EMPLOYEE ON THE LAST DAY OF THE PLAN YEAR AND THAT NO MORE THAN ONE HOUR OF SERVICE IS REQUIRED FOR A YEAR OF SERVICE FOR BENEFIT ACCRUAL FOR ANY PARTICIPANT WHO IS AN ACTIVE EMPLOYEE ON THE LAST DAY OF THE PLAN YEAR. (PROPOSED TREAS. REG. SS.SS. 1.410(B)-3(C) AND 1.401(A)(26)-3(B)(8)).

Regular Method. (This method must be selected if Section A.1.55(A) is checked). In order for a Participant to have a Year of Service for Benefit Accrual for any Plan Year, the Participant must complete the number of Hours of Service indicated (check either (a) and fill in blank or (b)): (a) The number of Hours of Service which must be completed with the Employer in order for a Participant to have a Year of Service for Benefit Accrual is [ 200 ] (fill in blank but not to exceed 1,000 Hours of Service). (b) The number of Hours of Service which must be completed with the Employer in order for a Participant to have a Year of Service for Benefit Accrual for a Plan Year is 501 if the Participant is not an active Employee on the last day of the Plan Year; if the Participant is an active Employee on the last day of the Plan Year, only one Hour of Service with the Employer must be completed in order for the Participant to have a Year of Service for Benefit Accrual for such Plan Year. NOTE: UNDER PROPOSED TREAS. REG. SS.SS. 1.410(BSECTION 1.410(b) AND 1.401(A)(261.401(a)(26), IT MAY BE ▇▇▇▇▇SARY NECESSARY TO PROVIDE THAT NO MORE THAN 501 HOURS OF SERVICE ARE REQUIRED FOR A YEAR OF SERVICE FOR BENEFIT ACCRUAL FOR ANY PARTICIPANT WHO HAS TERMINATED EMPLOYMENT AND IS NOT AN ACTIVE EMPLOYEE ON THE LAST DAY OF THE PLAN YEAR AND THAT NO MORE THAN ONE HOUR OF SERVICE IS REQUIRED FOR A YEAR OF SERVICE FOR BENEFIT ACCRUAL FOR ANY PARTICIPANT WHO IS AN ACTIVE EMPLOYEE ON THE LAST DAY OF THE PLAN YEAR. (PROPOSED TREAS. REG. SS.SS. 1.410(B)-3(CSECTION 1.410(b)-3(c) AND 1.401(A)(26)-3(B)(81.401(a)(26)-3(b)(8)).