Correction Methods Clause Samples
The Correction Methods clause outlines the procedures and options available for rectifying errors, defects, or non-conformities in goods, services, or deliverables under a contract. Typically, this clause specifies the steps a party must take to notify the other of an issue, the timeframe for making corrections, and the acceptable methods for remedying the problem, such as repair, replacement, or re-performance. By establishing clear processes for addressing and resolving mistakes, the clause ensures that quality standards are maintained and helps prevent disputes over how errors should be handled.
Correction Methods. (a) VCS Correction Method. Appendix A, section .03 sets forth the VCS correction method for a failure to satisfy the actual deferral percentage ("ADP"), actual contribution percentage ("ACP"), or multiple use test set forth in □□ 401(k)(3), 401(m)(2), and 401(m)(9), respectively.
(b) One-to-One Correction Method.
Correction Methods. (i) VCS Correction Method. Appendix A, section .08 sets forth the VCS correction method for correcting the failure to satisfy the § 415(c) limits on annual additions.
Correction Methods. (i) Appendix A Correction Method. Appendix A, section .08 sets forth the correction method for correcting the failure to satisfy the § 415(c) limits on annual additions.
Correction Methods. (a) Appendix A Correction Method. Appendix A, section .03 sets forth a correction method for a failure to satisfy the actual deferral percentage ("ADP"), actual contribution percentage ("ACP"), or, for plan years beginning on or before December 31, 2001, multiple use test set forth in §§ 401(k)(3), 401(m)(2), and 401(m)(9), respectively.
(b) One-to-One Correction Method.
Correction Methods. (i) SVP Correction Method. Appendix A, section .05 sets forth the SVP correction method for correcting the exclusion of an eligible employee. In the case of a defined contribution plan, the SVP correction method is to make a contribution on behalf of the excluded employee. Section 2.02(2)(a)(ii) below clarifies the SVP correction method in the case of a profit-sharing or stock bonus plan that provides for nonelective contributions (within the meaning of § 1.401(k)-1(g)(10)).
Correction Methods. (a) SVP Correction Method. Appendix A, section .03 sets forth the SVP correction method for a failure to satisfy the actual deferral percentage ("ADP"), actual contribution percentage ("ACP"), or multiple use test set forth in §§ 401(k)(3), 401(m)(2), and 401(m)(9), respectively.
(b) One-to-One Correction Method.
Correction Methods. (i) Appendix A Correction Method. Appendix A, section .05 sets forth the correction method for correcting the failure to make a contribution on behalf of the employees improperly excluded from a defined contribution plan or to provide benefit accruals for the employees improperly excluded from a defined benefit plan. In the case of a defined contribution plan, the correction method is to make a contribution on behalf of the excluded employee. Section 2.02(2)(a)(ii) below clarifies the correction method in the case of a profit-sharing or stock bonus plan that provides for nonelective contributions (within the meaning of §1.401(k)-6 and formerly 1.401(k)- 1(g)(10)).
Correction Methods. (a) Contri- bution Correction Method. A failure in a defined contribution plan to apply the proper vesting percentage to an employ- ee’s account balance that results in forfei- ture of too large a portion of the employ- ee’s account balance may be corrected using the contribution correction method set forth in this paragraph. The employer makes a corrective contribution on behalf of the employee whose account balance was improperly forfeited in an amount equal to the improper forfeiture. The cor- rective contribution is adjusted for earn- ings. If, as a result of the improper forfei- ture, an amount was improperly allocated to the account balance of another employee, no reduction is made to the account balance of that employee. (See Example 11.)
Correction Methods. (i) VCSAppendix A Correction Method. Appendix A, section .08 sets forth theVCS correction method for correcting the failure to satisfy the § 415(c) limits on annual additions.
Correction Methods. (i) SVP Cor- rection Method. Appendix A, section .05 sets forth the SVP correction method for correcting the exclusion of an eligible em- ployee. In the case of a defined contribu- tion plan, the SVP correction method is to make a contribution on behalf of the ex- cluded employee. Section 2.02(2)(a)(ii) below clarifies the SVP correction method in the case of a profit-sharing or stock bonus plan that provides for non- elective contributions (within the mean- ing of § 1.401(k)–1(g)(10)).