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Annuity Plan

Benefit Limitations

Maximum Annual Additions

  1. General Rule.
    1. Notwithstanding anything contained in this Section to the contrary, the total Annual Additions allocated to any Participant’s Individual Account during any Fiscal Year shall not exceed the limitations of Section 415 of the Internal Revenue Code of 1986, as amended from time to time, as follows:
      1. $30,000 or, if greater, 25% of the dollar limit in effect for the year for defined benefit plans under Code subsection 415(b)(1)(A).
      2. 25 percent of the Participant’s average Compensation in the period of three consecutive calendar years in which his Compensation was the highest. For this purpose, Compensation shall be considered zero in the absence of reliable information confirming a Participant’s Compensation. Information on Participants’ Compensation furnished to the Plan administrator by a Contributing Employer shall be deemed reliable. In addition, the Plan administrator may rely on information on Compensation furnished by a Participant or Beneficiary if, in the Plan administrator’s judgment, the information is reliable.
      The $30,000 limit in paragraph (a), above, shall be increased in accordance with IRS rulings and regulations under Internal Revenue Code §415(d).

      For the purpose of paragraph (b), “Compensation” means amounts defined in Internal Revenue Code §3401(a) for purposes of federal income tax withholding at the source determined without regard to limitations relating to the nature or location of employment, plus all other payments for which the employer is required to furnish the employee a written statement under Internal Revenue Code §6041(d), §6051(a)(3), or §6052. Notwithstanding the foregoing, for Fiscal Years beginning after December 31, 1997, an Employee’s compensation shall include an elective deferral (as defined under Code §402(g)(3)), and any amount which is contributed or deferred by the Employer at the election of the Employee and which, by reason of Code §§125 or 457, is not includible in the gross income of the Employee.
    2. “Annual Addition,” with respect to a Participant for a Fiscal year, means the sum of the following amounts credited to the Participant’s account(s), if any, under any other defined contribution plan(s) maintained by the Employer:
      1. The Participant’s share of the Contributions made by the Employer under the defined contribution plan(s) for the Fiscal Year.
      2. The Participant’s share of the forfeitures for the Fiscal Year, under the defined contribution plan(s); and
      3. The Participant’s Employee contributions made during the Fiscal Year to the defined contribution plan(s).
      Annual Additions shall not include any Employer Contribution, forfeiture or Employee contribution, including, without limitations, a “deductible employee contribution” within the meaning of §72(o)(5) of the Internal Revenue Code that may be disregarded under §415(c) of the Code for purposes of determining the “annual addition” thereunder. 
  2. Plan Aggregation
    1. In applying the limits of this Section, the benefits of and contributions to all other retirement plans sponsored by the Employer or any Affiliate shall be taken into consideration, except for multiemployer plans. For this purpose, an Employer means an employer which maintains this Plan, and all members of a controlled group of corporations (as defined in section 414(b) of the Internal Revenue Code as modified by section 414(h)), all commonly controlled trades or businesses (as defined in section 414(c) as modified by section 415(h) or affiliated service groups (as defined in section 414(m)) of which the employer maintains this Plan is a part.
    2. For Fiscal Years beginning before 2000 and except as noted in paragraph (1), above, if a Participant is covered under one or more defined contribution plans sponsored by the Employer or any Affiliate, the combined benefits and annual additions under all such defined benefit and defined contribution plans shall not exceed the applicable combined plan limits under Internal Revenue §415(e) and the rules and regulations thereunder. If necessary to observe these limits, benefits under any other defined benefit plans will be reduced before benefits under this Plan, but benefits under this Plan will be reduced to the extent necessary if benefits under the other plans cannot be reduced.
  3. Limitation Year. The annual limits of this Section shall be applied on a calendar year basis.
  4. Interpretation or Definition of Other Terms. The term “Affiliate,” and all terms used in this Section and not otherwise expressly defined in the Plan, shall be defined, interpreted and applied as prescribed in Internal Revenue Code §415 and the rules and regulations and rulings issued thereunder.

References to specific section(s) of the Plan can be found in the Official Plan Document under Plan Documents on this website.

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