Statutory Earning definition
Statutory Earning means the wages, salaries, and other amounts paid in respect of an Employee for services actually rendered to the Company or a Non-participating Company, including by way of example, overtime, bonuses and commissions, but excluding deferred compensation (except in the Plan Year in which such compensation is includible in the Employee's gross income), income from stock options and other distributions which receive special tax benefits under the Code. For purposes of determining Highly Compensated Employees under paragraph 2.22, and key employees under paragraph 4.16, Statutory Earnings shall include Deferred Cash Contributions and amounts contributed on a Member's behalf on a salary reduction basis to a cafeteria plan under Section 125 of the Code. For all other purposes, each Plan Year the Plan Administrator may direct that Statutory Earnings shall include Deferred Cash Contributions and amounts contributed on a Member's behalf on a salary reduction basis to a cafeteria plan under Section 125 of the Code. For Plan Years beginning after 1988, Statutory Earnings shall not exceed the Annual Dollar Limit, provided that such limit shall not be applied in determining Highly Compensated Employees under paragraph 2.22. The Annual Dollar Limit applies to the aggregate Statutory Earnings paid to a Highly Compensated Employee referred to in paragraph 2.22, his spouse and his lineal descendants who have not attained age 19 before the close of the Plan Year. If, as a result of the application of the family aggregation rule, the Annual Dollar Limit is exceeded, then the Limit shall be pro-rated among the affected individuals in proportion to each such individual's Statutory Earnings as determined under this paragraph 2.43 prior to the application of the Limit. Effective 1/1/89.