Common use of Rule of Parity Clause in Contracts

Rule of Parity. If the Sponsoring Employer elects the Rule of Parity in the Adoption Agreement, any Period of Service completed prior to an Employee’s Break(s) in Service will not be counted in determining an Employee’s eligibility to participate in the Plan if that Period of Service is disregarded under the Rule of Parity. If such former Employee’s Period of Service is disregarded under the Rule of Parity, then the reemployed Employee will be treated as a new Employee for purposes of Section 2.1 as of the Employee’s Reemployment Commencement Date. If such former Employee’s Period of Service is not disregarded under the Rule of Parity, then the reemployed Employee will reenter the Plan as of the Employee’s Reemployment Commencement Date.