HomeMy WebLinkAbout1423 i
~[i _
t
230 sac; 081
ARTICLE VI - LIMITATIONS ON BENEFITS t;
6.1 ANNUAL BENEFIT.
(a) Maximum Annual Benefit. Subject to exceptions below,
the "annual benefit" payable under this Plan shall not exceed
the lesser of: (1) 680,475 or (2) 1004 of the Participant's
average compensation for the three consecutive years of par-
ticipation in the Plan in which he received the highest aggregate
compensation from the Employer. (Participants previously
separated from service shall have their average compensation for
the purpose of (2) adjusted to reflect changes in the cost of
living with regulations of the Secretary of.Treasury providing
for such change.) In the case of a benefit beginning before age
55, the 680,475 limitation (but not the 1004 of compensation
limitation) shall be actuarially reduced. For the purpose of
the maximum limitation of this Article all defined benefit plans
maintained by the Employer shall be viewed as a single plan.
The "annual benefit" means the benefit payable in the form of a
straight life annuity with no ancillary benefit.
(b) Secondary Maximum Annual Benefit. If a Retired Participant
has less than 10 Years of Service, or a part thereof, with the
Employer, the maximum annual benefit payable to the Retired Par-
ticipant shall be reduced by multiplying such maximum "annual
benefit" by the fraction, the numerator of which is the number
of Years of Service, or part thereof, with the Employer and
the denominator of which is ten (10).
(c) The maximum benefit stated in subparagraph (a) above
shall be increased as permitted by the Internal Revenue Service
Regulations to reflect cost of living adjustments.
(d) Exception Benefit. This Plan may pay an "annual benefit"
to any Retired Participant which shall exceed 1004 of such Par-
ticipant's average compensation (6.1(a) above), provided the
"annual benefit" shall not be in excess of 610,000 for the current
Plan Year and for all other prior Plan Years; and provided the
Participant shall not be or have been at any time considered as
an active Participant in any defined contribution plan maintained
j by the Employer.
(e) Multiple Plan Reduction. If an Employee is a Participant
in one or more defined benefit plans and one or more defined con-
tribution plans maintained by the Employer, the sum of his defined
benefit fraction and his defined contribution fraction shall not
exceed 1.4 for any year. The defined benefit plan fraction for
any Plan Year is a fraction (a) the numerator of which is the pro-
jected annual benefit of the Participant under the Plan (determined
as of the close of the Plan Year), and (b) the denominator of which
is the maximum benefit allowable under Section 415(b) of the Code.
~ The defined contribution fraction for any Plan Year is a.fraction
~ (a) the numerator of which is the sum of the annual additions to
the Participant's account as of the close of the Plan Year and (b)
the denominator of which is the sum of the maximum amount of
annual additions to such account which could have been made
under Section 415(c) of the Code for such Plan Year and for each
prior Year of Service.
(f) Excessive Benefit. If the sum of the defined benefit
-23-
~,~,~i 230 P~c~ 081
I enJK.l t ~ ~~CC~