Common use of Testing Method Clause in Contracts

Testing Method. This Plan has used the Current Year Testing Method since its inception. If the Administrative Committee decides to change this testing method to the Prior Year Testing Method, it will do so in the form of an amendment to this Plan document. This Plan is permitted to change from the Current Year Testing Method to the Prior Year Testing method only in the following circumstances: (i) The Plan is not the result of the aggregation of two or more plans, and the Current Year Testing Method was used in the Plan for each of the five Plan years preceding the Plan Year of the change (or if lesser, the number of Plan Years the Plan has been in existence, including years in which the Plan was a portion of another plan). (ii) The Plan is the result of the aggregation of two or more plans, and for each of the plans that are being aggregated (the aggregating plans), the Current Year Testing method was used for each of the five Plan Years preceding the Plan year of the change (or if lesser, the number of Plan Years since that aggregating plan has been in existence, including years in which the aggregating plan was a portion of another plan). (iii) A transaction described in Code Section 410(b)(6)(C)(i) and §1.410(b)-2(f) occurs and – (A) As a result of the transaction, the Employer maintains both a plan using the prior year testing method and a plan using the current year testing method; and (B) The change from the current year testing method to the prior year testing method occurs within the transition period described in Code Section 410(b)(6)(C)(ii). All determinations under this Section 12.2 shall comply with Code Section 401(k) and the regulations thereunder which are applicable with respect to the then existing provisions of Code Section 401(k). In the event of any conflict, the rules of such Code Section and regulations shall control.