Common use of Employer and Employee Contributions Clause in Contracts

Employer and Employee Contributions. A. Types of Contributions 1. Employer Discretionary Contributions [] Not provided. [] An amount fixed by appropriate action of the Employer. [] ________________% of Compensation of Participants for the Plan Year (not to exceed 15%). Employer Discretionary Contributions [] shall; [] shall not be integrated with Social Security. a. [] The Permitted Disparity Percentage shall be _________________%. b. [] The Permitted Disparity Percentage shall be determined annually by appropriate action of the Employer. c. [] The Integration Level shall be: [] The Taxable Wage Base [] $__________________ (a dollar amount less than the Taxable Wage Base). [] ________________% (not to exceed 100%) of the Taxable Wage Base. Note: If a Plan Year has fewer than twelve (12) months and Compensation is limited to compensation paid during the Plan Year, the Integration Level shall be prorated in accordance with IRS Regulation Section 1.401(1)-2(d)(5). The Permitted Disparity Percentage cannot exceed the lesser of: (i) the rate at which Employer contributions are allocated to the account of Employees with respect to the Compensation of Employees at or below the integration level (expressed as a percentage of Compensation), or (ii) the greater of 5.7% or the tax rate under section 3111(a) of the Code attributable to the old age insurance portion of the Old Age, Survivors and Disability Income provisions of the Social Security Act (as in effect on the first day of the Plan Year). If the Integration Level selected above is other than the Taxable Wage Base ("TWB"), the 5.7% factor in the preceding sentence must be replaced by the applicable percentage determined from the following table. If the Integration Level is: more than but not more than The Applicable Factor is $0 X* 5.7% X* 80% of TWB 4.3% 80% of TWB Y** 5.4% *X = the greater of $10,000 or 20% of TWB **Y = any amount more than 80% of TWB, but less than 100% of TWB