Common use of Rule of Parity Clause in Contracts

Rule of Parity. If the Sponsoring Employer elects the Rule of Parity in the Adoption Agreement, any Year(s) of Service completed prior to an Employee’s Break(s) in Service will not be counted in determining an Employee’s eligibility to participate in the Plan if those Year(s) of Service are disregarded pursuant to the Rule of Parity. If such former Employee’s Year(s) of Service are disregarded under the Rule of Parity, then (A) the reemployed Employee will be treated as a new Employee for purposes of Section 2.1 and (B) the Employee’s Eligibility Computation Period will commence on the Employee’s Reemployment Commencement Date and subsequent Eligibility Computation Periods will be based upon the provisions of the definition of Eligibility Computation Period (with the Reemployment Commencement Date substituted for the Employment Commencement Date, if applicable). If such former Employee’s Year(s) of Service are not disregarded under the Rule of Parity, then the reemployed Employee will reenter the Plan as of the Employee’s Reemployment Commencement Date.

Rule of Parity. If the Sponsoring Employer elects the Rule of Parity in the Adoption Agreement, any Year(s) of Service completed prior to an Employee’s Break(s) in Service will not be counted in determining an Employee’s eligibility to participate in the Plan if those Year(s) of Service are disregarded pursuant to the Rule of Parity. If such former Employee’s Year(s) of Service are disregarded under the Rule of Parity, then (A) the reemployed Employee will be treated as a new Employee for purposes of Section 2.1 and (B) the Employee’s Eligibility Computation Period will commence on the Employee’s Reemployment Commencement Date and subsequent Eligibility Computation Periods will be based upon the provisions of the definition of Eligibility Computation Period (with the Reemployment Commencement Date substituted for the Employment Commencement Date, if applicable). If the Employee has not satisfied the eligibility requirements in Section 2.1 as of the Employee’s Reemployment Commencement Date and such former Employee’s Year(s) of Service are not disregarded under the Rule of Parity, then the Eligibility Computation Periods will remain unchanged. If the Employee has satisfied the eligibility requirements in Section 2.1 as of the Employee’s Reemployment Commencement Date and such former Employee’s Year(s) of Service are not disregarded under the Rule of Parity, the reemployed Employee will reenter enter the Plan as of the Employee’s Reemployment Commencement Date.