VESTING PROVISIONS 52. Designation of vesting computation period

Statement of Requirement: Code § 411(a)(5)(A); DOL Reg. § 2530.200b-4

(Note to reviewer: The following sample plan provisions may be used as alternatives, depending on whether vesting crediting is measured on the basis of the plan year or anniversaries of employment.)

Sample Plan Language:

Provision #1

For purposes of computing an employee's nonforfeitable right to the account balance derived from employer contributions, years of service and breaks in service will be measured by the plan year.

Provision #2

For purposes of determining years of service and breaks in service for purposes of computing an employee's nonforfeitable right to the account balance derived from employer contributions, the 12-consecutive month period will commence on the date the

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employee first performs an hour of service and each subsequent 12-consecutive month period will commence on the anniversary of such date.