(A) For each participant and former participant, the Committee shall maintain or cause to be maintained an account and a participant account (if applicable).
(B) (1)
Notwithstanding anything contained in this Plan to the contrary, in no event shall any annual addition to an account plus the participant account and to any other defined contribution plan maintained by any participating employer or affiliate exceed in any plan year the lesser of:
(a) The greater of:
1. Thirty thousand dollars; or
2. Twenty-five percent of the dollar limitation in effect under I.R.C. § 415(b)(1)(A).
(b) Twenty-five percent of the participant’s total compensation as defined under I.R.C. § 415(c)(3).
(2) (a) The term ANNUAL ADDITION under this section shall mean for any plan year the sum of:
1. Participating employer or affiliate contributions, including those made pursuant to § 31.026(B);
2. The amount of the participant’s nondeductible contributions; and
3. Forfeitures.
(b) If the annual addition exceeds the above limitations before applying the corresponding limitations in any other defined contribution plan maintained by a participating employer or affiliate, such excess shall be returned to the affected participant.
(C) As of any trust fund valuation date, the Committee shall cause the Trustee to value all trust assets at fair market value according to the provisions, if any, of the trust. The increase or decrease in the fair market value of the assets on the trust fund valuation date, as compared to the previous trust fund valuation date, adjusted for any contributions thereto and any distributions or withdrawals therefrom since such previous trust fund valuation date shall be allocated proportionately among the accounts and participant accounts, based upon their balances as of the previous trust fund valuation date, adjusted for any subsequent contributions thereto and distributions or withdrawals therefrom. To the extent subfunds have been established pursuant to § 31.027(D), valuations and allocations shall be made on a subfund by subfund basis in the manner described above based upon each account’s and participant account’s interest, if any, in the subfund.
(D) Nothing contained herein shall be deemed to give any participant, former participant or beneficiary any interest in any specific part of the trust fund or any interest other than his or her right to receive benefits in accordance with the provisions of § 31.030.
(E) (1) (a) Notwithstanding the foregoing, if a participant is also a participant in one or more defined benefit plans maintained by a participating employer or affiliate, the sum of the defined benefit plan fraction and defined contribution plan fraction for any plan year may not exceed 1.0.
(b) The defined benefit plan fraction for any plan year is a fraction:
1. The numerator of which is the projected annual benefit of the participant under any qualified defined benefit plan(s) maintained by a participating employer or affiliate (determined as of the close of the plan year); and
2. The denominator of which is the lesser of:
a. The product of 1.25 multiplied by the maximum dollar limitation in effect under I.R.C. § 415(b)(1)(A) for such plan year; or
b. The product of 1.4 multiplied by the amount which may be taken into account under I.R.C. § 415(b)(1)(B) for such plan year.
(2) The defined contribution plan fraction for any plan year is a fraction:
(a) The numerator of which is the sum of the “annual additions” for such participant for the current plan year and all prior plan years; and
(b) The denominator of which is the sum of the lesser of the following amounts determined for such plan year and each prior plan year of service with a participating employer or affiliate:
1. The product of 1.25 multiplied by the dollar limitation in effect under I.R.C. § 415(c)(1)(A) for such plan year (determined without regard to I.R.C. § 415(c)(6)); or
2. The product of 1.4 multiplied by the amount which may be taken into account under I.R.C. § 415(c)(1)(B) for such plan year.
(3) If the sum of the defined benefit plan fraction and the defined contribution plan fraction shall exceed 1.0 in any plan year for any participant in this plan, then before giving effect to any similar limitation in a defined benefit plan maintained by a participating employer or affiliate, the participant shall receive a return of his or her contributions made pursuant to § 31.026(B) to the extent necessary so that the sum of both fractions shall equal 1.0.
(F) (1) (a) The Committee shall ensure that the special discrimination test described in this section is satisfied with respect to contributions made during a plan year.
(b) Under the special discrimination test, the actual deferral percentage for the group of all eligible highly compensated employees for the plan year may not exceed the greater of either:
1. The actual deferral percentage for the group of all other eligible employees for the plan year multiplied by 1.5; or
2. The actual deferral percentage for the group of all other eligible employees for the plan year multiplied by 2.5, provided that the actual deferral percentage for the group of eligible highly compensated employees does not exceed the actual deferral percentage for the group of all other eligible employees by more than three percentage points for the plan year.
(c) For plan years beginning on or after January 1, 1989, the reference to 1.5 in subparagraph (F)(1)(b)2. above shall be changed to 1.25 and the references to 2.5 and 3 percentage points in subparagraph (F)(1)(b)2. above shall be changed to 2.0 and 2 percentage points respectively.
(2) Any contributions for highly compensated employees required to be reduced by reason of paragraph (F)(1)(a) for a plan year (and any income attributable thereto) shall be:
(a) Determined as to each highly compensated employee, to the extent necessary, in descending order of each such highly compensated employee’s actual deferral percentage (i.e., the highly compensated employee’s contributions for the plan year divided by his or her compensation for such period) beginning with the highest such percentage;
(b) Deducted from such highly compensated employee’s participant account (and from such participant account’s interest, if any, in each subfund and the remaining trust fund on a pro rata basis); and
(c) Distributed to each affected highly compensated employee within two and one-half months after the close of such plan year.
(3) The following definitions apply for purposes of this paragraph (F):
ACTUAL DEFERRAL PERCENTAGE, as applied to any group of eligible employees for a plan year, shall mean the average of the ratios, calculated separately for each eligible employee in the group, of the amount of contributions to the plan by such eligible employee for the plan year, to the eligible employee’s compensation for such plan year. For purposes of paragraph (F)(2) above and this subparagraph (C)(1) with respect to plan years beginning on or after January 1, 1989, the term COMPENSATION shall mean an employee’s total compensation while eligible to make elective contributions hereunder within the meaning of I.R.C. § 415(c)(3), increased by his or her elective contributions made hereunder.
HIGHLY COMPENSATED EMPLOYEE.
1. a. When used in reference to an eligible employee for a plan year beginning before January 1, 1989, means that the compensation such employee receives during the plan year is more than the compensation received by two-thirds of all other eligible employees during such plan year. For plan years beginning on or after January 1, 1989, HIGHLY COMPENSATED EMPLOYEE, when used in reference to an employee for the current plan year, means an employee who, during the preceding plan year:
i. Received compensation from all participating employers and affiliates in excess of $75,000 (as adjusted for inflation); and
ii. Received compensation from all participating employers and affiliates in excess of $50,000 (as adjusted for inflation) and was a member of the group consisting of the highest paid 20% of all employees of all participating employers and affiliates when ranked on the basis of compensation.
b. For purposes of determining the members of such group, employees who have not completed at least six months of service with a participating employer or affiliate, who normally complete less than 17.5 hours of service per week or six months of service with a participating employer or affiliate per plan year, who have not attained at least age 21, who are included in a unit of employees covered by a collective bargaining agreement (except to the extent provided in regulations) or who are nonresident aliens and receive no earned income (within the meaning of I.R.C. § 911(d)(2)) from any participating employer or affiliate which constitutes income from sources within the United States (within the meaning of I.R.C. § 861(a)(3)) shall be disregarded; or
c. Was among the 50 highest paid officers of all participating employers and affiliates when ranked on the basis of compensation having compensation (while an officer) of more than $45,000 (as adjusted for inflation); provided, however, that no more than 10% of all employees of all participating employers and affiliates shall be treated as highly compensated employees pursuant to this paragraph (F)(3)(b)1.c. For plan years beginning on or after January 1, 1989, an employee will also be treated as a highly compensated employee if during the current plan year, such employee is described in paragraphs (F)(b)1.a., (F)(b)1.b. or (F)(b)1.c. above and is a member of the group consisting of the 100 employees paid the greatest compensation during such plan year. For purposes of this paragraph (F)(3)(b)1., the term COMPENSATION shall have the meaning given to such term by I.R.C. § 415(c)(3), increased by any elective contributions made hereunder.
2. For plan years beginning on or after January 1, 1989, a former employee who was a highly compensated employee when he or she separated from service with all participating employers and affiliates or at any time after attaining age 55 shall be treated as a highly compensated employee hereunder to the extent required by I.R.C. § 414(q)(9). Moreover, for plan years beginning on or after January 1, 1989, for purposes of applying this paragraph (F) and any other provision hereunder to the extent required under I.R.C. § 414(q)(6), if any individual is the spouse, lineal ascendant or descendant or the spouse of any lineal ascendant or descendant of a member of the group consisting of the ten highly compensated employees paid the greatest compensation during the plan year or the immediately preceding plan year, then:
a. Such individual shall not be considered a separate employee; and
b. Any compensation paid to such individual and any contributions made on behalf of such individual hereunder shall be treated as if it were paid to or contributed on behalf of such highly compensated employee.
(G) In no event shall the amount contributed by a participant pursuant to § 31.026(B) (or the predecessor of such provision) during a taxable year of such participant exceed $7,000 (as such amount may be adjusted annually by the Secretary in accordance with I.R.C. § 415(d)). The amount of any contributions by a participant in excess of such limitation in any taxable year of the participant (plus any income allocable thereto) shall be distributed to such participant no later than the first April 15 following the close of such taxable year.
(Ord. MET 88-24, passed 6-10-1988; Ord. MET 89-2, passed 1-13-1989)