Age Weighted Allocation Method -. If the Age Weighted Allocation method is elected in the Adoption Agreement, the total Employer Contribution will be allocated to each Eligible Employee such that the equivalent benefit accrual rate for each Participant is identical. The equivalent benefit accrual rate is the annual annuity commencing at the Participant’s testing age, expressed as a percentage of the Participant’s Compensation as defined in Part 1 Article II of the Plan which is provided from the allocation of Employer Contributions and Forfeitures for the Plan Year, using standardized actuarial assumptions that satisfy section 1.401(a)(4)-12 of the Income Tax Regulations. The Employee’s testing age is the later of Normal Retirement Age, or the Employee’s current age. For any Plan Year in which the Employer intends to rely on Treasury Regulation section 1.401(a)(4)-8 (cross testing) in satisfying Code section 401(a)(4), each Non-Highly Compensated Employee entitled to receive a Non-Elective Contribution under this Section 2.3.1 or under Section 2.9.3 shall receive a minimum allocation equal to the lesser of (a) one-third (1/3) of the highest allocation rate (as a percentage of Compensation) of any Highly Compensated Employee applied to his Compensation, as defined in Part I, Article II, or (b) five (5%) percent of his compensation as defined in Subsection 3.2.5(a)(iii). Compensation for a Participant’s initial year of participation shall be measured either over the period starting from his Entry Date or over the twelve (12) month period ending in the initial year of participation, as elected in the Adoption Agreement under the Compensation Computation Period. If a defined benefit plan sponsored by the Employer is aggregated with this Plan for purposes of satisfying Code section 410(b) and the Employer intends to rely on Treasury Regulations section 1.401(a)(4)-9, then each Non-Highly Compensated Employee entitled to an allocation shall receive an allocation such that his aggregate normal allocation rate equals the lesser of (a) one-third (1/3) of the highest aggregate normal allocation rate (as a percentage of Compensation) of any Highly Compensated Employee or (b) five (5%) percent of his compensation as defined in Subsection 3.2.5(a)(iii); provided, if the highest aggregate normal allocation rate of any Highly Compensated Employee exceeds twenty-five percent (25%), each Non-Highly Compensated Employee shall receive six percent (6%) of his Compensation, if the highest aggregate normal allocation rate of any Highly Compensated Employee exceeds thirty percent (30%), each Non- Highly Compensated Employee shall receive seven percent (7%) of his Compensation, and if the highest aggregate normal allocation rate exceeds thirty-five percent (35%), each Non-Highly Compensated Employee shall receive seven and one-half percent (7.5%) of his Compensation. In the event that the Plan is Top-Heavy for a Plan Year, any Non-Highly Compensated Employee eligible for a Minimum Top-Heavy Allocation in Subsection 2.6.1(a) shall receive an allocation equal to the greater of the Minimum Top-Heavy Allocation or the amount determined above. The Employer may elect to satisfy this Paragraph in this Plan or another plan of the Employer. Short Form Standardized Adoption Agreement. The Compensation Computation Period for a Participant’s initial Plan Year of Participation shall be Compensation from the Participant’s Entry Date.
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Age Weighted Allocation Method -. If the Age Weighted Allocation method is elected in the Adoption Agreement, the total Employer Contribution will be allocated to each Eligible Employee such that the equivalent benefit accrual rate for each Participant is identical. The equivalent benefit accrual rate is the annual annuity commencing at the Participant’s testing age, expressed as a percentage of the Participant’s Compensation as defined in Part 1 Article II of the Plan which is provided from the allocation of Employer Contributions and Forfeitures for the Plan Year, using standardized actuarial assumptions that satisfy section 1.401(a)(4)-12 of the Income Tax Regulations. The Employee’s testing age is the later of Normal Retirement Age, or the Employee’s current age. For any Plan Year in which the Employer intends to rely on Treasury Regulation Regulations section 1.401(a)(4)-8 (cross testing) in satisfying Code section 401(a)(4), each Non-Highly Compensated Employee entitled to receive a Non-Elective Contribution under this Section 2.3.1 Subsection 2.3.2(a) or under Section 2.9.3 shall receive a minimum allocation equal to the lesser of (a) one-third (1/3) of the highest allocation rate (as a percentage of Compensation) of any Highly Compensated Employee applied to his Compensation, as defined in Part I, Article II, or (b) five percent (5%) percent of his compensation as defined in Subsection 3.2.5(a)(iii). Compensation for a Participant’s initial year of participation shall be measured either over the period starting from his Entry Date or over the twelve (12) month period ending in the initial year of participation, as elected in the Adoption Agreement under the Compensation Computation Period. If a defined benefit plan sponsored by the Employer is aggregated with this Plan for purposes of satisfying Code section 410(b) and the Employer intends to rely on Treasury Regulations Regulation section 1.401(a)(4)-9, then each Non-Highly Compensated Employee entitled to an allocation shall receive an allocation such that his aggregate normal allocation rate equals the lesser of (a) one-third (1/3) of the highest aggregate normal allocation rate (as a percentage of Compensation) of any Highly Compensated Employee or (b) five percent (5%) percent of his compensation as defined in Subsection 3.2.5(a)(iii); provided, if the highest aggregate normal allocation rate of any Highly Compensated Employee exceeds twenty-five percent (25%), each Non-Highly Compensated Employee shall receive six percent (6%) of his Compensation, if the highest aggregate normal allocation rate of any Highly Compensated Employee exceeds thirty percent (30%), each Non- Highly Compensated Employee shall receive seven percent (7%) of his Compensation, and if the highest aggregate normal allocation rate exceeds thirty-five percent (35%), each Non-Highly Compensated Employee shall receive seven and one-half percent (7.5%) of his Compensation. In the event that the Plan is Top-Heavy for a Plan Year, any Non-Highly Compensated Employee eligible for a Minimum Top-Heavy Allocation in Subsection 2.6.1(a) shall receive an allocation equal to the greater of the Minimum Top-Heavy Allocation or the amount determined above. The Employer may elect to satisfy this Paragraph in this Plan or another plan of the Employer. Short Form Standardized Adoption Agreement. The Compensation Computation Period for a Participant’s initial Plan Year of Participation shall be Compensation from the Participant’s Entry Date.
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