Common use of Integration Level Clause in Contracts

Integration Level. Unless selected otherwise in the Adoption Agreement, the Integration Level shall be the taxable wage base. The Integration Level is the dollar amount at or below which the rate of contributions or benefits (expressed as a percentage of Plan Compensation) is less than the rate of contributions above that dollar amount. The term “Integration Level” only applies if the Plan is integrated with Social Security. If an integrated Employer Profit Sharing or Money Purchase Contribution is made for a Short Plan Year (as defined in Section 3.1.9), the Integration Level used for purposes of determining and allocating such contribution shall equal the otherwise applicable Integration Level multiplied by a fraction, the numerator of which is the number of months in the Plan Year and the denominator of which is 12.