(A) Notwithstanding anything to the contrary herein, the “actual deferral percent age” (defined below) for any plan year for “highly compensated” (defined below) eligible employees shall not exceed the greater of paragraphs (A)(1) or (A)(2) below where:
(1) Is the “actual deferral percentage” for the plan year for all other eligible employees multiplied by one and one-half; and
(2) Is the “actual deferral percentage” for the plan year for all other eligible employees multiplied by two and one-half; provided, however, that the “actual deferral percentage” for the plan year for the “highly compensated” eligible employees does not exceed the “actual deferral percentage” for the plan year for all other eligible employees by more than three percentage points.
(B) If neither of the tests set forth in paragraphs (A)(1) or (A)(2) above is satisfied for a plan year, then:
(1) Salary reduction elections for such plan year by participants who are “highly compensated” shall be valid only to the extent permitted by either of the tests set forth in paragraphs (A)(1) or (A)(2) above and salary deferral contributions for participants who are “highly compensated” shall be reduced proportionately to the extent necessary to comply with either of the tests set forth in paragraphs (A)(1) or (A)(2) above; and
(2) Salary reduction elections entered into by all participants who are not “highly compensated” shall be valid and salary deferral contributions on behalf of such participants shall not be changed.
(C) Alternatively, salary deferral contributions shall be subject to such other restrictions as may be adopted, from time to time, by the Committee, in its discretion, so as to maintain the plan’s compliance with the anti-discrimination standards set forth in this section.
(D) For purposes of this section, the following words and phrases shall have the meanings stated below:
ACTUAL DEFERRAL PERCENTAGE. When used in reference to the group of “highly compensated” eligible employees or the group of all other eligible employees for a plan year, means the average of the ratios, calculated separately for each employee in such group, of the amount of the salary deferral contributions made under the plan on behalf of each such employee for such plan year, to the employee’s compensation for such plan year.
HIGHLY COMPENSATED. When used in reference to an eligible employee for a plan year, means that the compensation such employee receives during such plan year is more than the compensation received by two-thirds of all other eligible employees during such plan year.
(Ord. MET 86-13, passed 5-30-1986)