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Profit Sharing PlanHome > Human Resources > Compensation & Benefits |
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Properties of this Profit Sharing Plan |
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MS-Word format (.doc) |
23 pages |
11,519 words |
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Document Content |
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1. PURPOSE AND DEFINITIONS
1.1. Purpose
1.2. Definitions
1.3. Construction
2. SERVICE CREDIT AND PARTICIPATION
2.1. Hour of Service
2.2. Service
2.3. Break in Service
2.4. Loss of Service
2.5. Multiple Trades and Businesses
2.6. Participation Originating Under This Plan
2.7. Cessation of Participation Service and Reentry
3. CONTRIBUTIONS
3.1. Contributions by Employer
3.2. Member Voluntary Contributions
3.3. Member Voluntary Contributions (Alternate)
4. INDIVIDUAL ACCOUNTS AND ALLOCATIONS
4.1. Establishment of Individual Accounts
4.2. Allocation of Employer Contributions
4.3. Allocation of Gains and Losses
4.4. Allocation of Forfeitures
4.5. Notification to Members
5. RETIREMENT
5.1. Benefit
6. DEATH
6.1. Designation of Beneficiary
6.2. Benefit
6.3. No Beneficiary
7. DISABILITY
7.1. Benefit
8. TERMINATION OF EMPLOYMENT, AND FORFEITURES
8.1. Eligibility
8.2. Benefit
8.3. Forfeitures
8.4. Early Retirement
9. DISTRIBUTION NOTICES AND METHODS OF PAYMENT
9.1. Notice to Trustee
9.2. Subsequent Notices
9.3. Time and Methods of Payment
9.4. Limitations on Payment
9.5. Minority or Disability Payments
10. SPECIAL GOVERNMENTAL REQUIREMENTS
10.1. Limit on Annual Additions Under [CODE SECTION]
10.2. Top-Heavy Restrictions
11. ADMINISTRATION
11.1. Appointment of Committee
11.2. Committee Powers and Duties
11.3. Claims Procedure
11.4. Committee Procedures
11.5. Authorization of Benefit Payments
11.6. Payment of Expenses
11.7. Unclaimed Benefits
12. TRUST FUND
12.1. Establishment of Trust Fund
12.2. Payment of Contributions to Trust Fund
13. AMENDMENTS
13.1. Right to Amend
14. WITHDRAWAL AND TERMINATION
14.1. Transfers of Plan Assets and Plan Mergers
14.2. Plan Termination
14.3. Suspension and Discontinuance of Contributions and Plan Termination
14.4. Liquidation of Trust Fund
15. GENERAL PROVISIONS
15.1. Non-guarantee of Employment
15.2. Manner of Payment
15.3. Non-alienation of Benefits
15.4. Amounts Returnable to the Employer
15.5. Governing Law |
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Document Description:
A Profit Sharing plan, also known as a Deferred Profit-Sharing Plan (DPSP), is an agreement under which an employee is offered a share of the company’s profits. This agreement is one of the most detailed on the market; the 23 pages of this template contain the conditions, clauses and provisions that are legally required for both parties to enter into such an agreement.
A Profit Sharing Plan is an extremely effective incentive plan that encourages employees to work together, focus on profitability and feel a sense of ownership and commitment to achieving organizational goals. As the labor market becomes more competitive, these plans serve as effective hiring and retention tools.
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