Common use of Defined Benefit Fraction Clause in Contracts

Defined Benefit Fraction. A fraction the numerator of which is the projected annual benefit of the Participant under all qualified defined benefit Plans of Company (determined as of the close of the Limitation Year), and the denominator of which is the lesser of: (1) the product of 1.25 multiplied by the dollar limitation in effect for defined benefit plans under Internal Revenue Code Section 415(b)(1)(A) for such year, or (2) the product of 1.4 multiplied by the percentage of the Participant's high three (3) consecutive years compensation which may be taken into account under Internal Revenue Code Section 415(b)(1)(B) with respect to such Participant under the Plan for such year. Notwithstanding the foregoing, for any Top-Heavy Plan Year, 1.0 shall be substituted for 1.25 above if any Non-Key Employee Participant eligible for an accrual of benefits who does not have either an allocation of Company contributions or forfeitures to a defined contribution plan of at least 7.5 percent of Compensation for such year or an accrued benefit in a defined benefit plan in which he participates of not less than the 3% minimum benefit as provided in Internal Revenue Code Section 416(h)(2)(A) (ii)(I) (but not both). However, for any Plan Year in which this Plan is a Super Top-Heavy Plan, 1.0 shall be substituted for 1.25 in any event.