Pension Plan Document PDF (355 KB)

    

Article IV, Section 17

Section 17. Compensation Limitations.

1. 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) for the 1989-1996 Plan Years, the $200,000 limit as set forth in Section 401(a)(17) of the Code; (2) for the 1997-2001 Plan Years, the $150,000 limit as set forth in Section 401(a)(17) of the Code (without taking into account the changes to Section 401(a)(17) of the Code contained in Public Law 107-16); (3) for Plan Years beginning January 1, 2002 and January 1, 2003, $170,000; (4) for Plan Years beginning January 1, 2004, January 1, 2005 and January 1, 2006, $205,000; and (5) for Plan Years beginning on or after January 1, 2007, $225,000. The amounts set forth in clauses (1) and (2), but not clauses (3), (4), and (5), of the preceding sentence shall be adjusted, on a prospective basis, for changes as provided in Sections 401(a)(17) and 415(d) of the Code. To the extent required by Section 401(a)(17), prior to January 1, 1997, the foregoing limit shall be applied to family members in the aggregate. 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 Plan Year multiplied by the applicable contribution percentage.
   
   
2. 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.
   
   
3. 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.
   
   
4. This subsection (d) addresses implementation of the compensation limit under this Section 17 with respect to the subsidized early retirement factors set forth in Article IV, Section 2 that became effective on January 1, 1996, and those that became effective January 1, 2000. With respect to the 1996 increase, 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 ½ of 1% for each month the Participant is younger than age 65 for commencement prior to the Participant's attainment of age 65. Identical rules shall be applied in the case of the 2000 increases.