ANNUAL ANNUITY EQUIVALENT Clause Samples
The Annual Annuity Equivalent clause defines how a lump sum payment is converted into an equivalent annual payment over a specified period. Typically, this involves applying a standard formula or interest rate to determine what fixed yearly amount would be financially equivalent to a one-time sum, often used in pension or settlement agreements. This clause ensures consistency and fairness in calculating recurring payments, making it easier to compare different payment structures and facilitating clear financial planning for both parties.
ANNUAL ANNUITY EQUIVALENT for a 401(k) plan or other defined contribution plan shall be equal to the annual benefit that would be payable pursuant to a single life annuity with equal annual payments, commencing on the Normal Retirement Age and continuing for the Executive's life, that could be purchased with the amount assumed to be available for such purchase pursuant to this Section 1.
ANNUAL ANNUITY EQUIVALENT. 2 1.4. BENEFICIARY......................................................... 2 1.5. CALENDAR YEAR....................................................... 2 1.6.
ANNUAL ANNUITY EQUIVALENT for the Company’s defined contribution plans shall be equal to the annual benefit payable from a single life annuity on the Executive’s life as of the time for which the value is to be calculated, which value shall be determined on the basis of the discount rates, mortality tables and other assumptions expressed in Section 417(e) of the Code. For purposes of this Section 1.3, the amount available to invest in said annuity shall be deemed to be the total of: (i) all amounts actually contributed by the Company as matching contributions to the defined contribution plan on the Executive’s behalf, plus (ii) earnings on those matching contributions. Such earnings shall be deemed to be equal to the amount which would have been earned if the balance in the account (including amounts deemed to have been earned thereon pursuant to this Section 1.3) had been invested at the ten year average of the ten (10) year Treasury Bond rate (5.917%). Nothing in this Section 1.3 shall require the Executive to actually purchase an annuity or to actually surrender any life insurance contract at retirement.
ANNUAL ANNUITY EQUIVALENT. (a) for the Pension Plan shall be equal to the annual benefit payable under the Pension Plan if all Pension Plan benefits were being paid as a single life annuity; and (b) for a defined contribution plan shall be equal to the annual benefit payable from a single life annuity on the Executive's life from a company holding at least an AA rating from ▇▇▇▇▇'▇, Standard & Poor's or an equivalent rating service. For purposes of this section, the amount available to invest in said annuity shall be assumed to be the total of the employer's matching contributions to the defined contribution plan on the Executive's behalf, calculated as all amounts actually contributed by the employer as matching contributions to the defined contribution plan plus earnings.
ANNUAL ANNUITY EQUIVALENT. 1.6. BENEFICIARY