Common use of Plan Amendment Clause in Contracts

Plan Amendment. A plan may be amended to provide reasonable annual cost-of-living increases to retired par- ticipants: Provided, That (1) Any such increase shall be for a period and amount determined by the sponsor’s board of directors, but in no event shall it exceed the annual in- crease in the Consumer Price Index published by the Bureau of Labor Sta- tistics; and (2) No increase shall be granted un- less: (i) Anticipated charges to net income for future periods have first been found by such board of directors to be reason- able and are documented by appro- priate resolution and supporting anal- ysis; and (ii) The increase will not reduce the State savings association’s regulatory capital below its regulatory capital re- quirement.

Plan Amendment. A plan may be amended to provide reasonable annual cost-of-living increases to retired par- ticipants: Provided, That (1) Any such increase shall be for a period and amount determined by the sponsor’s board of directors, but in no event shall it exceed the annual in- crease in the Consumer Price Index published by the Bureau of Labor Sta- tistics; and (2) No increase shall be granted un- less: (i) Anticipated charges to net income for future periods have first been found by such board of directors to be reason- able and are documented by appro- priate resolution and supporting anal- ysis; and (ii) The increase will not reduce the State savings association’s regulatory capital below its regulatory capital re- quirementrequirement.