Common use of Methods of Allocation Clause in Contracts

Methods of Allocation. The Plan Administration Committee will allocate net income, gain or loss to Participant Accounts in accordance with the daily valuation method, balance forward method, weighted average method, or other method the Plan Administration Committee elects from time to time. The Plan Administration Committee may elect alternative methods of allocation under which the Plan Administration Committee will allocate the net income, gain or loss to the different Account types which the Plan Administration Committee maintains under the Plan. If the Plan Administration Committee elects to apply a weighted average allocation method, the Plan Administration Committee will treat a weighted portion of the applicable contributions as if includible in the Participant’s Account as of the beginning of the valuation period. The weighted portion is a fraction, the numerator of which is the number of months in the valuation period, excluding each month in the valuation period which begins prior to the contribution date of the applicable contributions, and the denominator of which is the number of months in the valuation period. The Plan Administration Committee may elect to substitute a weighting period other than months for purposes of this weighted average allocation. If the Plan Administration Committee elects to apply the daily valuation method, the Plan Administration Committee will allocate the net income, gain or loss on each day of the Plan Year for which Plan assets are valued on an established market. If the Plan Administration Committee elects to apply the balance forward method, the Plan Administration Committee first will adjust the Participant Accounts, as those Accounts stood at the beginning of the current valuation period, by reducing the Accounts for any Forfeitures arising under the Plan, for amounts charged during the valuation period to the Accounts in accordance with Section 9.13 (relating to distributions) and for insurance premiums and for the cash value of incidental benefit insurance contracts, if applicable to the Accounts. The Plan Administration Committee then, subject to the restoration allocation requirements of the Plan, will allocate the net income, gain or loss pro rata to the adjusted Participant Accounts. The allocable net income, gain or loss is the net income (or net loss), including the increase or decrease in the fair market value of assets, since the last valuation date.