Exclusive use of assets of fund; vesting; forfeitures; highly compensated participants.
(a) Fund assets may not be diverted. The assets of the fund shall be held for the exclusive benefit of the employees who are or become participants of the fund and their beneficiaries. It shall not be possible for any part of the corpus or income of the fund to be used for or diverted to, purposes other than the exclusive benefit of such participants or their beneficiaries, whether by operation or natural termination of the fund, by power of revocation or amendment, by the happening of a contingency, by collateral arrangement or by other means.
(b) Vesting. The retirement benefit earned by a participant shall be fully vested no later than the date he or she becomes eligible for a normal service retirement benefit. Benefits of affected participants shall also become vested, to the extent funded, upon the termination or partial termination of the fund or the complete discontinuance of contributions to the fund.
(c) Forfeitures may not increase benefits. Forfeitures resulting from a termination of employment or a withdrawal of a participant's own contributions may not be used to increase benefits to remaining participants. This shall not preclude an increase in benefits by amendment to the benefit formula made possible by favorable investment results or for any other reason.
(d) Any other provision hereof to the contrary notwithstanding, in the event of a termination of this plan, the benefit of any highly compensated participant or former participant is limited to a benefit that is nondiscriminatory under Section 401(a)(4) of the Internal Revenue Code. Benefits distributed to any participant who was one of the 25 most highly compensated active and former highly compensated employees are restricted such that the annual payments are no greater than an amount equal to the payment that would be made on behalf of the participant under a single life annuity that is the actuarial equivalent of the sum of the participant's accrued benefit and the participant's other benefits under the plan. The preceding paragraph shall not apply if:
(1) After payment of the benefit to a participant described in that paragraph, the value of plan assets equals or exceeds 110 percent of the value of the current liabilities, as defined in Section 412(1)(7) of the Internal Revenue Code.
(2) The value of the benefits for a participant described in that paragraph is less than one percent of the value of current liabilities.
(e) For purposes of this subsection, benefit includes loans in excess of the amount set forth in Section 72(p)(2)(A) of the Internal Revenue Code, any periodic income, any withdrawal values payable to a living participant any death benefits not provided for by insurance on the participants life.
(Act 2002-298, p. 815, §31; Act 2002-304, p. 841, §31.)
Exclusive use of assets of fund; vesting; forfeitures; highly compensated participants.
(a) Fund assets may not be diverted. The assets of the fund shall be held for the exclusive benefit of the employees who are or become participants of the fund and their beneficiaries. It shall not be possible for any part of the corpus or income of the fund to be used for or diverted to, purposes other than the exclusive benefit of such participants or their beneficiaries, whether by operation or natural termination of the fund, by power of revocation or amendment, by the happening of a contingency, by collateral arrangement or by other means.
(b) Vesting. The retirement benefit earned by a participant shall be fully vested no later than the date he or she becomes eligible for a normal service retirement benefit. Benefits of affected participants shall also become vested, to the extent funded, upon the termination or partial termination of the fund or the complete discontinuance of contributions to the fund.
(c) Forfeitures may not increase benefits. Forfeitures resulting from a termination of employment or a withdrawal of a participant's own contributions may not be used to increase benefits to remaining participants. This shall not preclude an increase in benefits by amendment to the benefit formula made possible by favorable investment results or for any other reason.
(d) Any other provision hereof to the contrary notwithstanding, in the event of a termination of this plan, the benefit of any highly compensated participant or former participant is limited to a benefit that is nondiscriminatory under Section 401(a)(4) of the Internal Revenue Code. Benefits distributed to any participant who was one of the 25 most highly compensated active and former highly compensated employees are restricted such that the annual payments are no greater than an amount equal to the payment that would be made on behalf of the participant under a single life annuity that is the actuarial equivalent of the sum of the participant's accrued benefit and the participant's other benefits under the plan. The preceding paragraph shall not apply if:
(1) After payment of the benefit to a participant described in that paragraph, the value of plan assets equals or exceeds 110 percent of the value of the current liabilities, as defined in Section 412(1)(7) of the Internal Revenue Code.
(2) The value of the benefits for a participant described in that paragraph is less than one percent of the value of current liabilities.
(e) For purposes of this subsection, benefit includes loans in excess of the amount set forth in Section 72(p)(2)(A) of the Internal Revenue Code, any periodic income, any withdrawal values payable to a living participant any death benefits not provided for by insurance on the participants life.
(Act 2002-298, p. 815, §31; Act 2002-304, p. 841, §31.)
Exclusive use of assets of fund; vesting; forfeitures; highly compensated participants.
(a) Fund assets may not be diverted. The assets of the fund shall be held for the exclusive benefit of the employees who are or become participants of the fund and their beneficiaries. It shall not be possible for any part of the corpus or income of the fund to be used for or diverted to, purposes other than the exclusive benefit of such participants or their beneficiaries, whether by operation or natural termination of the fund, by power of revocation or amendment, by the happening of a contingency, by collateral arrangement or by other means.
(b) Vesting. The retirement benefit earned by a participant shall be fully vested no later than the date he or she becomes eligible for a normal service retirement benefit. Benefits of affected participants shall also become vested, to the extent funded, upon the termination or partial termination of the fund or the complete discontinuance of contributions to the fund.
(c) Forfeitures may not increase benefits. Forfeitures resulting from a termination of employment or a withdrawal of a participant's own contributions may not be used to increase benefits to remaining participants. This shall not preclude an increase in benefits by amendment to the benefit formula made possible by favorable investment results or for any other reason.
(d) Any other provision hereof to the contrary notwithstanding, in the event of a termination of this plan, the benefit of any highly compensated participant or former participant is limited to a benefit that is nondiscriminatory under Section 401(a)(4) of the Internal Revenue Code. Benefits distributed to any participant who was one of the 25 most highly compensated active and former highly compensated employees are restricted such that the annual payments are no greater than an amount equal to the payment that would be made on behalf of the participant under a single life annuity that is the actuarial equivalent of the sum of the participant's accrued benefit and the participant's other benefits under the plan. The preceding paragraph shall not apply if:
(1) After payment of the benefit to a participant described in that paragraph, the value of plan assets equals or exceeds 110 percent of the value of the current liabilities, as defined in Section 412(1)(7) of the Internal Revenue Code.
(2) The value of the benefits for a participant described in that paragraph is less than one percent of the value of current liabilities.
(e) For purposes of this subsection, benefit includes loans in excess of the amount set forth in Section 72(p)(2)(A) of the Internal Revenue Code, any periodic income, any withdrawal values payable to a living participant any death benefits not provided for by insurance on the participants life.
(Act 2002-298, p. 815, §31; Act 2002-304, p. 841, §31.)
