Avoiding A Permanent Break In Service

This plan has two break in service rules that may help you avoid a permanent break in service:

Five Year Rule

You can avoid a permanent break in service if you have at least 500 hours of covered service in a plan year before incurring five consecutive one-year breaks in service. For example, if you have four consecutive one-year breaks in service (years in which you worked less than 500 covered hours), you must have at least 500 covered hours in the fifth year to avoid a permanent break in service. Reinstatement is retroactive to your first year out but does not include permanently forfeited service. The five year rule became effective January 1, 1986.

For additional information about the five year rule, please see Article 3.5.2.

Rule of Parity

You can avoid a permanent break in service if you have at least 500 hours of covered service in a plan year before the number of consecutive one-year breaks equals your accumulated credited future service. For example, if you have seven years of credited future service and then incur six consecutive one-year breaks in service, you must have at least 500 covered hours in the seventh year to avoid a permanent break in service. Reinstatement is retroactive to your first year out but does not include permanently forfeited service. This example and the rule of parity in general apply to the ten-year vesting rule. The rule of parity became effective January 1, 1976.

For additional information about the rule of parity, please see Article 3.5.1.