Article I, Section 3
Section 3. Break in Service.
- Between January 1, 1974 and December 31, 1985. Between
January 1, 1974 and December 31, 1985, a Participant shall incur a “Break
in Service” when the number of consecutive Plan Years during which the Participant
fails to complete a Qualified Year equals or exceeds the greater of (i) three
or (ii) the number of the Participant’s Qualified Years. In such event the
Break in Service occurs on the last day of the Plan Year in which the conditions
set forth in the preceding sentence are met, provided, however, it shall not
commence prior to January 1, 1974. This provision shall be applicable to any
Break in Service even though it began prior to January 1, 1976, unless there
is a subsequent Qualified Year completed prior to January 1, 1977. A Participant
may have a Break in Service even though he has never earned a Qualified Year
and may have two or more consecutive Breaks in Service if there are no intervening
Qualified Years. For all purposes, any Qualified Years ignored under a prior
application of this section or a predecessor section shall remain ignored
hereunder.
- On and After January 1, 1986. Beginning January 1, 1986,
a Participant shall incur a “Break in Service” when the number of consecutive
Plan Years during which the Participant fails to complete a Qualified Year
equals or exceeds the greater of (i) five or (ii) the number of the Participant’s
Qualified Years. In such event the Break in Service occurs on the last day
of the Plan Year in which the conditions set forth in the preceding sentence
are met. This subsection shall be applicable to any Break in Service even
though it began prior to January 1, 1986. A Participant may have a Break in
Service even though he has never earned a Qualified Year and may have two
or more consecutive Breaks in Service if there are no intervening Qualified
Years. For all purposes, any Qualified Years ignored under a prior application
of this section or a predecessor section shall remain ignored hereunder.
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- Exception to Break in Service. For Plan Years beginning
on or after January 1, 1986, a Participant shall be entitled to a grace
period if his failure to complete a Qualified Year is on account of parental
leave. If the Participant already has a Qualified Year in the Plan Year
during which his absence on account of parental leave commences, such
Participant shall be entitled to a grace period for the immediately following
Plan Year. A Participant shall be deemed to be on parental leave if the
Participant is unable to work in covered employment by reason of the pregnancy
of the Participant, by reason of the birth of a child of the Participant,
by reason of the placement of a child in connection with the adoption
of the child by the Participant, or for purposes of caring for the child
of the Participant during the period immediately following the birth or
placement for adoption, including time involved for a trial period prior
to adoption.
- For Plan Years beginning on or after January 1, 1991,
a Participant shall be entitled to a grace period if his failure to earn
a Qualified Year is on account of “disability.” For this purpose, a Participant
shall be considered to be on “disability” only if the Participant is entitled
to Social Security Disability benefits under Title II of the Social Security
Act for at least one month during the year.
- This clause (3) only applies to a Participant who (A)
is employed by an Employer covered by the Family and Medical Leave Act
of 1993 (“FMLA”), (B) takes a leave covered by the FMLA on or after February
5, 1994, (C) is an “eligible employee,” within the meaning of the FMLA,
and (D) returns to the employment of the Employer at the end of such leave
unless such failure to return to work is due to continuation, recurrence
or onset of a serious health condition or for reasons beyond the Participant’s
control. If a Participant is described in the preceding sentence, the
Participant shall be entitled to a grace period if his failure to earn
a Qualified Year is on account of the FMLA leave.
- A grace period, as described above, shall not add to
the Qualified Years of a Participant. Rather, it is a period which is
to be disregarded in determining whether a Participant has incurred a
Break in Service.
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