Common use of Alternative Adjustment Clause in Contracts

Alternative Adjustment. In lieu of applying the old compensation fraction or new compensation fraction described in section 5.9(l), if the Employer elects, a Participant's adjusted Accrued Benefit will be determined by substituting the Participant's Compensation (as defined in section of the Plan) for the current Plan Year determined under the same Compensation formula and underlying definition of Compensation used to determine the Frozen Accrued Benefit of each Participant in the Fresh-Start group. If elected by the Employer in the Adoption Agreement, the Frozen Accrued Benefit of each section 401(a)(17) Participant in the Fresh-Start group will be adjusted in accordance with the following method: Section 401(A)(17) Participants Who Are OBRA '93 Section 401(A)(17) Participants Only: (1) Determine the Frozen Accrued Benefit of each OBRA '93 section 401(a)(17) Participant as of the last day of the Plan Year beginning before January 1, 1994. (2) Adjust the amount in step 1 by multiplying it by the following fraction (not less than 1). The numerator of the fraction is the average compensation of the OBRA '93 section 401(a)(17) employee determined for the current year (as limited by section 401(a)(17)), using the same definition and Compensation formula in effect as of the last day of the last Plan Year beginning before January 1, 1994. The denominator of the fraction is the Participant's Average Compensation for the last day of the last Plan Year beginning before January 1, 1994. Using the definition and Compensation formula in effect as of the last day of the last Plan Year beginning before January 1, 1994. Section 401(A)(17) Participants Who Are Both TRA '86 Section 401(A)(17) Participants and OBRA '93 Section 401(A)(17) Participants: (1) Determine each TRA '86 section 401(a)(17) Participant's Frozen Accrued Benefit as of the last day of the last Plan Year beginning before January 1, 1989. (2) Adjust the amount in step 1 up through the last day of the last Plan Year beginning before the first Plan Year beginning on or after January 1, 1994, by multiplying it by the following fraction (not less than 1). The numerator of the fraction is the TRA '86 section 401(a)