Common use of Top Heavy Minimum Allocation Clause in Contracts

Top Heavy Minimum Allocation. In any Top Heavy Plan Year in which a Key Employee receives an allocation of Employer contributions (including Elective Deferrals and/or Qualified Matching Contributions) or Forfeitures, each Employee who is described in paragraph (a) below will receive the Top Heavy benefit required under the provisions of Code Section 416, such benefit to be determined in accordance with the following provisions: (a) PARTICIPANTS WHO MUST RECEIVE THE TOP HEAVY MINIMUM ALLOCATION: For each Plan Year in which a Top Heavy contribution is required, the Top Heavy Minimum Allocation (or such lesser amount as may be permitted under paragraph (b) below) will be made for each Participant who is a Non-Key Employee and is employed by an Employer on the last day of the Plan Year and is in an eligible class of Employees as described in Section 2.1, even if such Participant (1) fails to complete any minimum Hours of Service or Period of Service required to receive an allocation of Employer contributions or Forfeitures for the Plan Year; (2) fails to make elective contributions to the Plan in the case of a cash or deferred arrangement; (3) receives Compensation that is less than a stated amount; or (4) declines to make a mandatory Employee contribution to the Plan.