Common use of Highly Compensated Clause in Contracts

Highly Compensated. An employee or Participant shall be “Highly Compensated” for any Plan Year if the employee or Participant: a. is a five percent (5%) owner of an Employer or a Related Company at any time during that year or the prior Plan Year; or b. for the preceding Plan Year, received Compensation in excess of $120,000 (indexed for cost-of-living adjustments under Code Section 415(d)).

Highly Compensated. An employee or Participant shall be “Highly Compensated” for any Plan Year if the employee or Participanthe: a. (a) is a five 5 percent (5%) owner of an Employer or a Related Company at any time during that year or the prior Plan Year; or b. (b) for the preceding Plan Year, received Compensation in excess of $120,000 80,000 (indexed for cost-of-living adjustments under Code Section 415(d)) of the Code).