Unit Benefit Clause Samples
Unit Benefit. NOTE: In order to be a design-based safe harbor plan under the Code §401(a)(4) Regulations, if a Unit Benefit formula is used and the Accrued Benefit is calculated using a fractional accrual method or the Plan is a fully insured Code §412(e)(3) (formerly Code §412(i)) Plan, then the maximum number of years of Credited Service may not be less than 25.
Unit Benefit. ☐ h.1. % of the Participant’s Average Annual/Monthly Compensation multiplied by the Participant’s Years of Credited Service, limited to a maximum of .
Unit Benefit. The Employer may elect under Part 4, #13.a.(2) of the Agreement or under Part 4, #13.a.(3) of the Nonstandardized Agreement to apply a Unit Benefit formula that provides a Stated Benefit equal to a specified percentage of Average Compensation multiplied by the Participant’s Years of Participation with the Employer. The Employer may elect to limit the Years of Participation taken into account under a Unit Benefit formula, however, the Plan must take into account all Years of Participation up to at least 25 years. If the Employer elects a tiered formula under Part 4, #13.a.(3) of the Nonstandardized Agreement, the highest benefit percentage for any Participant with less than 33 Years of Participation cannot be more than one-third larger than the lowest benefit percentage for any Participant with less than 33 Years of Participation. This requirement is satisfied if the percentage under Part 4, #13.a.(3)(a) applies to all Years of Participation up to at least 33. If the percentage under Part 4, #13.a.(3)(a) applies to Years of Participation less than 33, this paragraph will be satisfied if the total Years of Participation taken into account under Part 4, #13.a.(3)(b) and Part 4, #13.a.(3)(d) is not less than 33 and the percentage designated in Part 4, #13.a.(3)(c) is not less than P1(25-Y)/(33-Y) and is not greater than P1(44-Y)/(33-Y), where P1 is the percentage under Part 4, #13.a.(3)(a) and Y is the number of Years of Participation to which the percentage under Part 4, #13.a.(3)(a) applies. If the total Years of Participation taken into account under Part 4, #13.a.(3)(b) and Part 4, #13.a.(3)(d) is less than 33, a similar calculation applies to any percentage designated in Part 4, #13.a.(3)(e).
Unit Benefit. The Employer will provide a life annuity commencing at Age 65 equal to the sum of (1) and (2) minus (3).
1. 25% (base benefit percentage) times Average Annual Compensation up to the integration level times each Year of o Participation ý Service (if applicable, limited to a maximum of 25 years) plus a benefit equal to 1.85% (excess benefit percentage—not to exceed the base benefit percentage by more than the maximum excess allowance) times Average Annual Compensation in excess of the integration level times each year of credited Service. The maximum number of years of credited Service during which permitted disparity is taken into account under this paragraph will be 25 (may not exceed 35, and, if benefits after the latest Fresh-Start Date are determined under the fractional accrual rule in paragraph 1.1 of Basic Plan Document #02 or the Plan satisfies Code Section 411(b)(1)(F), may not be less than 25). The number of years of credited Service taken into account under the paragraph above for any Participant will not exceed the Participant's cumulative permitted disparity limit. The Participant's cumulative permitted disparity limit is equal to 35 minus the number of years credited to the Participant for purposes of the benefit formula or the accrual method under the Plan under one or more qualified plans or Simplified Employee Pension Plans (whether or not terminated) ever maintained by the Employer, other than years for which a Participant earned a year of credited Service under the formula above. For purposes of determining the Participant's cumulative permitted disparity limit, all years ending in the same calendar year are treated as the same year. If the Participant's cumulative permitted disparity limit is less than the period specified in the paragraph above, then for years after the Participant reaches the cumulative permitted disparity limit and through the end of the period specified in the above paragraph, the Participant's benefit will be equal to the excess benefit percentage, or, if the Participant's benefit after the latest Fresh-Start Date is not accrued under the fractional rule and the Plan does not satisfy Code Section 411(b)(1)(F), 1331/3% of the base benefit percentage, if lesser, times Average Annual Compensation.
2. (not to exceed the lesser of (A) the excess benefit percentage, or (B) 133% of the base benefit percentage), times Average Annual Compensation for each Year of [ ] Participation [ ] Service after the number of years taken ...