AFTER ATTAINING
AGE 55.
The determination of who is a former Highly Compensated Employee is based on the
rules applicable to determining Highly Compensated Employee status as in effect
for that determination year, in accordance with Section 1.414(q)-1T, A-4 for the
Temporary Income Tax Regulations and Notice 97-75, or later guidance under the
Code.
In determining whether an Employee is a Highly Compensated Employee for years
beginning in 1997, the amendments to Section 414(q) of the Code are treated as
having been in effect for years beginning in 1996.
7
HOUR OF SERVICE.
(1)
GENERAL RULE.
(A)
AN "HOUR OF SERVICE" IS EACH HOUR FOR WHICH AN
EMPLOYEE IS, DIRECTLY OR INDIRECTLY, PAID (OR ENTITLED TO PAYMENT) BY AN
EMPLOYER FOR ANY REASON INCLUDING EACH HOUR FOR WHICH BACK PAY, IRRESPECTIVE OF
MITIGATION OF DAMAGES, HAS BEEN EITHER AWARDED OR AGREED TO BY AN EMPLOYER.
A
BACK PAY HOUR OF SERVICE SHALL BE ALLOCATED TO THE PERIOD OR PERIODS TO WHICH
THE AWARD OR AGREEMENT PERTAINS UNLESS THE EMPLOYEE HAS OTHERWISE RECEIVED
CREDIT FOR AN HOUR OF SERVICE FOR THE SAME PERIOD.
(B)
ANY HOUR FOR WHICH THE EMPLOYEE IS BEING
DIRECTLY OR INDIRECTLY PAID AT MORE THAN THE EMPLOYEE'S REGULAR RATE OF PAY
SHALL BE COUNTED AS ONE HOUR OF SERVICE.
(C)
THE HOURS OF SERVICE OF AN EMPLOYEE WHO IS
PAID BY AN EMPLOYER FOR REASONS OTHER THAN FOR THE PERFORMANCE OF DUTIES SHALL
BE DETERMINED IN ACCORDANCE WITH SECTIONS 2530.200B-2(B) OF THE DEPARTMENT OF
LABOR REGULATIONS WHICH IS HEREBY INCORPORATED BY REFERENCE.
HOWEVER NO MORE
THAN 501 HOURS OF SERVICE SHALL BE CREDITED TO AN EMPLOYEE FOR ANY SINGLE
CONTINUOUS PERIOD DURING WHICH THE EMPLOYEE PERFORMS NO DUTIES, NO HOURS OF
SERVICE SHALL BE CREDITED TO AN EMPLOYEE FOR A PAYMENT MADE OR DUE UNDER A PLAN
MAINTAINED SOLELY FOR THE PURPOSE OF COMPLYING WITH WORKER'S COMPENSATION,
UNEMPLOYMENT COMPENSATION OR DISABILITY INSURANCE LAWS, NO HOURS OF SERVICE
SHALL BE CREDITED FOR A PAYMENT WHICH SOLELY REIMBURSES AN EMPLOYEE FOR MEDICAL
OR MEDICALLY RELATED EXPENSES INCURRED BY THE EMPLOYEE, AND AN HOUR OF SERVICE
SHALL NOT BE CREDITED TO AN EMPLOYEE UNDER THIS SUBPARAGRAPH (C) IF IT HAS
ALREADY BEEN CREDITED TO SUCH EMPLOYEE PURSUANT TO ANOTHER PROVISION OF THIS
DEFINITION.
(D)
HOURS OF SERVICE OF AN EMPLOYEE SHALL BE
CREDITED TO COMPUTATION PERIODS IN ACCORDANCE WITH SECTIONS 2530.200B-2(C) OF
THE DEPARTMENT OF LABOR REGULATIONS WHICH IS HEREBY INCORPORATED BY REFERENCE.
(E)
FOR PURPOSES OF DETERMINING HOURS OF SERVICE
BEFORE THE DATE ERISA BECAME APPLICABLE TO THE PLAN, AN EMPLOYER MAY USE
WHATEVER RECORDS ARE REASONABLY AVAILABLE TO THE EMPLOYER AND MAY MAKE SUCH
CALCULATIONS AS ARE NECESSARY TO DETERMINE THE APPROXIMATE NUMBER OF SUCH HOURS
OF SERVICE.
(2)
EXCEPTION:
BREAK IN SERVICE.
FOR PLAN
YEARS BEGINNING ON OR AFTER JANUARY 1, 1985, IN THE CASE OF EACH INDIVIDUAL WHO
IS ABSENT FROM SERVICE WITH THE EMPLOYER FOR ANY PERIOD BY REASON OF THE
PREGNANCY OF THE INDIVIDUAL, BY REASON OF THE BIRTH OF A CHILD FOR