Article IV, Section 17 see Amendment I
see Amendment III
see Amendment XVII
Section 17. Compensation Limitations.
- In addition to any other applicable limitations which may
be set forth in the Plan and notwithstanding any other contrary provisions
of the Plan, compensation taken into account under the Plan for any Plan Year
for the purpose of calculating a Participant’s accrued benefit (including
the right to any optional benefit provided under the Plan) shall not exceed
(1) the $200,000 limit as set forth in Section 401(a)(17) of the Code for
any Plan Year commencing after December 31, 1988 and (2) for Plan Years beginning
on and after January 1, 1997, the $150,000 limit as set forth in Section 401(a)(17)
of the Code. The amounts set forth in clauses (1) and (2) of the preceding
sentence shall be adjusted for changes in the cost of living as provided in
Sections 401(a)(17) and 415(d) of the Code. To the extent required by Section
401(a)(17), the foregoing limit shall be applied to family members in the
aggregate; provided, however, that such aggregation shall not be required
on and after January 1, 1997. The foregoing limit shall be applied on an Employer-by-Employer
basis. In addition, the foregoing compensation limits shall be applied by
ignoring the contributions received by the Plan on behalf of the Participant
(attributable to employment during such Plan Year to the extent determinable)
in excess of the applicable compensation limit for that year multiplied by
the applicable contribution percentage.
- For purposes of calculating benefits accrued prior to 1994,
the Plan shall apply the foregoing rules in good faith as follows: (i) the
benefit increases effective prior to 1993 for Participants retiring prior
to 1993 shall be computed by applying the increased benefit percentage to
all the contributions paid on behalf of the Participant as of December 31,
1988 and (ii) for purposes of applying these rules to Participants retiring
on or after January 1, 1993 (excluding benefit increases after that date),
compensation for all years prior to 1994 shall be limited by the adjusted
limit in effect for the 1993 Plan Year.
- Subject to subsection (b) above, the compensation limit
under this Section 17 shall be implemented so that the benefit of each Participant
(whose benefit is limited by the compensation limit) on or after January 1,
1989 and January 1, 1997, respectively (the “applicable effective date”) equals
the sum of (i) his accrued benefit as of the last day before the applicable
effective date frozen in accordance with Treasury Regulation Section 1.401(a)(4)-13
and (ii) his accrued benefits with respect to service after the applicable
effective date and subject to the compensation limit in effect after the applicable
effective date. Notwithstanding the foregoing sentence and subject to subsection
(b), if the Plan benefit formula is ever amended to increase the percentage
set forth in Article IV, Section 1 and/or Article V, Section 1, then such
benefit increase shall be treated as if it were the addition of a second benefit
formula and shall not be implemented by use of any fresh start rules pursuant
to Section 401(a)(17) of the Code.
- This subsection (d) addresses implementation of the compensation
limit under this Section 17 with respect to the new subsidized early retirement
factors set forth in Article IV, Section 2. The early retirement benefit of
a Participant whose benefit is limited by the compensation limit shall be
calculated by breaking the Participant’s normal retirement benefit into two
components as follows: (1) that portion of the total normal retirement benefit
payable by looking solely at the compensation limit in effect on and after
January 1, 1997 (including application of a limit of $160,000 (per Employer)
to years prior to that date) and (2) the remaining portion of the entire normal
retirement benefit as limited by this Section 17. The early retirement benefit
shall equal the sum of (i) the first component described above, reduced by
the factors in Article IV, Section 2, plus (ii) the second component described
above, reduced by ˝ of 1% for each month the Participant is younger than age
65 for commencement prior to the Participant’s attainment of age 65.
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