Fractional Rule Clause Samples

Fractional Rule. A Participant's Accrued Benefit at any time equals the product of the Normal Retirement Benefit multiplied by a fraction, the numerator of which is the number of Years of Credited Service at such time, and the denominator of which is the number Years of Credited Service the Participant would have at Normal Retirement Age. ------------------------------------------------------------------------------- ARTICLE VI -- Calculation of Benefits Page 28 Basic Plan Document #03 - Defined Benefit ----------------------------------------- If the number of Years of Credited Service required for full benefit at retirement in Section III.B.2. of the Adoption Agreement is less than 25 years or if no reduction applies, then in applying the fractional method, the denominator in the fraction shall be the greater of 25 or the number of years of Credited Service the Participant would have at Normal Retirement Age. When determining the Accrued Benefit, the Normal Retirement Benefit is the monthly benefit to which the Participant would be entitled if he continued to earn annually until such Normal Retirement Age the same rate of Compensation upon which his normal retirement benefit would be computed. This rate of Compensation is computed on the basis of Compensation taken into account under the Plan, (but not to exceed the ten years of service immediately preceding the determination).