are among the highest paid
20%, determined by excluding the following employees (unless the Plan Sponsor
elects to include any of such groups): (i) employees who have not completed six
months of service; (ii) employees who normally work less than 17-1/2 hours per
week; (iii) employees who normally work not more than six months a year; (iv)
employees who are included in a unit of employees covered by
8
a collective bargaining agreement, except as otherwise provided in the
regulations; (v) employees who have not attained the age of 21; and (vi)
employees who are nonresident aliens and receive no U.S.-source earned income
from the Employer.
For purposes of this Section, "Compensation" means Compensation as that term is
defined in Section 5.4(d)(ii) of the Plan, which for Plan Years beginning after
December 31, 1997, includes Elective Contributions (as defined in that Section).
A Highly Compensated former employee is based on the rules applicable to
determining Highly Compensated employee status as in effect for that
determination year, in accordance with temporary Treasury Regulations section
1.414(q)-1T, A-4 and IRS Notice 97-45.
A Highly Compensated former employee includes any Employee who separated from
service (or was deemed to have separated) prior to the determination year,
performs no service for the Employer during the determination year, and was a
highly compensated active employee for either the separation year or any
determination year ending on or after the Employee's 55th birthday.
§ 2.19
HOUR OF SERVICE
"Hour of Service"
means:
(A)
EACH HOUR FOR WHICH AN EMPLOYEE IS PAID, OR ENTITLED TO PAYMENT,
FOR THE PERFORMANCE OF DUTIES FOR THE EMPLOYER.
THESE HOURS WILL BE CREDITED TO
THE EMPLOYEE FOR THE COMPUTATION PERIOD IN WHICH THE DUTIES ARE PERFORMED;
(B)
EACH HOUR FOR WHICH AN EMPLOYEE IS PAID, OR ENTITLED TO PAYMENT,
BY THE EMPLOYER ON ACCOUNT OF A PERIOD OF TIME DURING WHICH NO DUTIES ARE
PERFORMED (IRRESPECTIVE OF WHETHER THE EMPLOYMENT RELATIONSHIP HAS TERMINATED)
DUE TO VACATION, HOLIDAY, ILLNESS, INCAPACITY (INCLUDING DISABILITY), LAYOFF,
JURY DUTY, MILITARY DUTY OR LEAVE OF ABSENCE WITH PAY.
NO MORE THAN 501 HOURS
OF SERVICE WILL BE CREDITED UNDER THIS SUBSECTION (B) FOR ANY SINGLE CONTINUOUS
PERIOD (WHETHER OR NOT SUCH PERIOD OCCURS IN A SINGLE COMPUTATION PERIOD).
HOURS UNDER THIS SUBSECTION (B) WILL BE CALCULATED AND CREDITED PURSUANT TO
SECTION 2530.200B-2 OF THE DEPARTMENT OF LABOR REGULATIONS WHICH IS INCORPORATED
HEREIN BY THIS REFERENCE; AND
(C)
EACH HOUR FOR WHICH BACK PAY, IRRESPECTIVE OF MITIGATION OF
DAMAGES, IS EITHER AWARDED OR AGREED TO BY THE EMPLOYER.
THE SAME HOURS OF
SERVICE WILL NOT BE CREDITED BOTH UNDER SUBSECTION (A) OR SUBSECTION (B), AS THE
CASE MAY BE, AND UNDER THIS SUBSECTION (C).
THESE HOURS WILL BE CREDITED TO THE
EMPLOYEE FOR THE COMPUTATION PERIODS TO WHICH THE AWARD OR AGREEMENT PERTAINS
RATHER THAN THE COMPUTATION PERIOD IN WHICH THE AWARD, AGREEMENT OR PAYMENT IS
MADE; AND
Hours of Service will be credited for employment with other members of an
affiliated service group (under IRC section 414(m)),