(a) A ``bona fide thrift or savings plan'' for the purpose of
section 7(e)(3)(b) of the Act is required to meet all the standards set
forth in paragraphs (b) through (f) of this section and must not contain
the disqualifying provisions set forth in Sec. 547.2.
(b) The thrift or savings plan constitutes a definite program or
arrangement in writing, adopted by the employer or by contract as a
result of collective bargaining and communicated or made available to
the employees, which is established and maintained, in good faith, for
the purpose of encouraging voluntary thrift or savings by employees by
providing an incentive to employees to accumulate regularly and retain
cash savings for a reasonable period of time or to save through the
regular purchase of public or private securities.
(c) The plan specifically shall set forth the category or categories
of employees participating and the basis of their eligibility.
Eligibility may not be based on such factors as hours of work,
production, or efficiency of the employees' Provided, however, That
hours of work may be used to determine eligibility of part-time or
casual employees.
(d) The amount any employee may save under the plan shall be
specified in the plan or determined in accordance with a definite
formula specified in the plan, which formula may be based on one or more
factors such as the straight-time earnings or total earnings, base rate
of pay, or length of service of the employee.
(e) The employer's total contribution in any year may not exceed 15
percent of the participating employees' total earnings during that year.
In addition, the employer's total contribution in any year may not
exceed the total amount saved or invested by the participating employees
during that year: Provided, however, That a plan permitting a greater
contribution may be submitted to the Administrator and approved by him
as a ``bona fide thrift or savings plan'' within the meaning of section
7(e)(3)(b) of the Act if:
(1) The plan meets all the other standards of this section;
(2) The plan contains none of the disqualifying factors enumerated
in Sec. 547.2;
(3) The employer's contribution is based to a substantial degree
upon retention of savings; and
(4) The amount of the employer's contribution bears a reasonable
relationship to the amount of savings retained and the period of
retention.
(f) The employer's contributions shall be apportioned among the
individual employees in accordance with a definite formula or method of
calculation specified in the plan, which formula or method of
calculation is based on the amount saved or the length of time the
individual employee retains his savings or investment in the plan:
Provided, That no employee's share determined in accordance with the
plan may be diminished because of any other remuneration received by
him.
(Approved by the Office of Management and Budget under control number
1215-0119)
[19 FR 4864, Aug. 3, 1954, as amended at 47 FR 145, Jan. 5, 1982]
