Common use of Waiver of Participation Clause in Contracts

Waiver of Participation. A Plan established under a standardized Adoption Agreement may not permit an otherwise eligible Employee or Participant to elect not to participate in the Plan. A Plan established under a Nonstandardized Adoption Agreement may treat Employees who waive participation in the Plan as a nondiscriminatory class of Employees who are ineligible to participate therein by making the proper designation in the Adoption Agreement. Waivers of Plan participation must not constitute cash or deferred arrangements [within the meaning of Code Section 401(k)] or they shall be ineffective. A waiver shall not be considered a cash or deferred arrangement if it is irrevocable, applies to all Plans maintained by the Employer, and is made prior to the date on which the Employee is first eligible to participate in the Plan of the Employer. The Plan Administrator shall establish uniform and nondiscriminatory procedures as it deems necessary to carry out this provision including, but not limited to, rules prescribing the timing and filing of elections not to participate. The Plan Administrator shall determine the propriety of any such waiver. An Employee or Participant continues to earn credit for each Year of Service for eligibility or vesting purposes he or she completes and his or her account (if any) will share in the gains or losses of the Plan during the periods he or she elects not to participate.

Waiver of Participation. A Plan established under a standardized Adoption Agreement may not permit an otherwise eligible Employee or Participant to elect not to participate in the Plan. A Plan established under a Nonstandardized nonstandardized Adoption Agreement may treat Employees who waive participation in the Plan as a nondiscriminatory class of Employees who are ineligible to participate therein by making the proper designation in the Adoption Agreement. Waivers of Plan participation must not constitute cash or deferred arrangements [within the meaning of Code Section 401(k)] or they shall be ineffective. A waiver shall not be considered a cash or deferred arrangement if it is irrevocable, applies to all Plans maintained by the Employer, and is made prior to the date on which the Employee is first eligible to participate in the Plan of the Employer. The Plan Administrator shall establish uniform and nondiscriminatory procedures as it deems necessary to carry out this provision including, but not limited to, rules prescribing the timing and filing of elections not to participate. The Plan Administrator shall determine the propriety of any such waiver. An Employee or Participant continues to earn credit for each Year of Service for eligibility or vesting purposes he or she completes and his or her account (if any) will share in the gains or losses of the Plan during the periods he or she elects not to participate.