Common use of Minimum Contribution Requirement Clause in Contracts

Minimum Contribution Requirement. If the Plan is a Top‑Heavy Plan for any Plan Year: (a) Each Non‑Key Employee who is eligible to share in any Employer Contribution for such Plan Year (or who would have been eligible to share in any such Employer Contribution if a Before‑Tax Contribution had been made for him during such Plan Year) shall be entitled to receive an allocation of such Employer Contribution, which is at least equal to three percent (3%) of his Compensation for such Plan Year. (b) The three percent (3%) minimum contribution requirement under paragraph (a) above for a Non‑Key Employee shall be increased to four percent (4%) if the Employer maintains a Defined Benefit Plan that does not cover such Non‑Key Employee. (c) The percentage minimum contribution requirement set forth in paragraphs (a) and (b) above with respect to a Plan Year shall not exceed the percentage at which Employer Contributions are made (or required to be made) under the Plan for such Plan Year for the Key Employee for whom such percentage is the highest for such Year. (d) The percentage minimum contribution requirement set forth in paragraphs (b) and (c) above may also be reduced or eliminated in accordance with Section 15.6(2). (e) For the purpose of paragraph (a) above, contributions taken into account shall include like contributions under all other Defined Contribution Plans in the Required Aggregation Group, excluding any such plan in the Required Aggregation Group if that plan enables a Defined Benefit Plan in such Required Aggregation Group to meet the requirements of section 401(a)(4) or section 410 of the Code. (f) For the purpose of this Section, the term “Employer Contributions” shall include Before-Tax Contributions and Matching Employer Contributions made for an Employee; provided, however, that Matching Employer Contributions taken into account in satisfying the percentage minimum contribution requirement set forth in paragraphs (a) and (b) above shall be treated as matching contributions for purposes of the actual contribution percentage test and other requirements of section 401(m) of the Code.

Minimum Contribution Requirement. If Except as hereinafter provided, for each Plan Year in which the Plan is a Top‑Heavy Plan for any Plan Year: (a) Each Non‑Key Employee Top Heavy, the Employer shall contribute, on behalf of each Participant who is eligible a Non-Key Employee, an amount, which when added to share in any the forfeitures allocated to such Participant's Account shall be equal to the lesser of 3% of such Participant's Compensation or, if the Employer does not maintain a defined benefit plan which designates this Plan to satisfy Section 401 of the Code, the percentage of such Participant's Compensation which is equal to the largest percentage determined by dividing the Employer's Contribution for and forfeitures allocated to the Account of each Key Employee by the first Two Hundred Thousand Dollars ($200,000.00) of such Plan Year Key Employee's Compensation. For purposes of the preceding sentence, a Participant's Compensation shall mean the first Two Hundred Thousand Dollars ($200,000,.00) (or who such greater amount as may be prescribed by the Secretary pursuant to Section 401(a)(17) of the Code) of his or her Compensation as defined in Section 8.5(a). The minimum contribution shall be made even though, under other Plan provisions, the Participant would have been eligible to share in any such Employer Contribution if a Before‑Tax Contribution had been made for him during such Plan Year) shall not otherwise be entitled to receive an allocation, or would have received a lesser allocation for the Plan Year because of such (i) the Participant's failure to complete 1,000 Hours of service (or any equivalent provided in the Plan), or (ii) the Participant's failure to make mandatory contributions to the Plan, or (iii) compensation less than a stated amount. The provisions of this Section shall not apply to any Participant who was not employed by the Employer Contributionon the last day of the Plan Year. Neither Elective Deferrals nor Matching Contributions may be taken into account for the purpose of satisfying the minimum Top Heavy contribution requirement. The provisions of this Section shall not apply to any Participant to the extent the Participant is covered under any other plan or plans of the Employer and the Employer has provided in the Adoption Agreement that the minimum allocation or benefit requirement applicable to Top Heavy plans will be met in the other plan or plans. In addition, for each Plan Year commencing before January 1, 1992, in which the paired plans are Top Heavy, the Employer shall provide a minimum contribution as prescribed in this Section for each Non-Key Employee who is at least equal entitled to a minimum contribution under both paired defined contribution #001 and #002, or #003 and #004. If the Employer maintains a Top Heavy Qualified defined benefit pension plan in addition to this Plan, Non-Key Employees covered under both the defined benefit pension plan and this Plan shall receive a Top Heavy minimum benefit exclusively under the defined benefit plan. If the Plan is included in a Required Aggregation Group or a Permissive Aggregation Group which includes a qualified defined benefit plan and the Top Heavy Ratio does not exceed 90%, in computing the denominators of the defined benefit and defined contribution fractions for purposes of applying the limitation on Annual Additions set forth in ARTICLE 8 a factor of 1.0 shall be used in lieu of 1.25 unless each Non-Key Employee who is entitled to a Top Heavy minimum contribution or benefit receives an increased minimum contribution or benefit. The increased contribution or benefit shall be (i) in the case of a Non-Key Employee entitled to an additional minimum benefit under a defined benefit plan, the lesser of three percent (3%) per year of his Compensation for such Plan Year. (b) The three service with the Employer or thirty percent (330%), and (ii) in the case of a Non-Key Employee who is entitled to a minimum contribution requirement under paragraph (a) above for a Non‑Key Employee shall be increased to this Plan, four percent (4%) if the Employer maintains a Defined Benefit Plan that does not cover such Non‑Key Employeeof Compensation. (c) The percentage minimum contribution requirement set forth in paragraphs (a) and (b) above with respect to a Plan Year shall not exceed the percentage at which Employer Contributions are made (or required to be made) under the Plan for such Plan Year for the Key Employee for whom such percentage is the highest for such Year. (d) The percentage minimum contribution requirement set forth in paragraphs (b) and (c) above may also be reduced or eliminated in accordance with Section 15.6(2). (e) For the purpose of paragraph (a) above, contributions taken into account shall include like contributions under all other Defined Contribution Plans in the Required Aggregation Group, excluding any such plan in the Required Aggregation Group if that plan enables a Defined Benefit Plan in such Required Aggregation Group to meet the requirements of section 401(a)(4) or section 410 of the Code. (f) For the purpose of this Section, the term “Employer Contributions” shall include Before-Tax Contributions and Matching Employer Contributions made for an Employee; provided, however, that Matching Employer Contributions taken into account in satisfying the percentage minimum contribution requirement set forth in paragraphs (a) and (b) above shall be treated as matching contributions for purposes of the actual contribution percentage test and other requirements of section 401(m) of the Code.