Common use of Covered Compensation Clause in Contracts

Covered Compensation. A Participant’s Covered Compensation for a Plan Year is the average (without indexing) of the Taxable Wage Bases in effect for each calendar year in the thirty-five (35) year period ending with the calendar year in which the Participant attains (or will attain) social security retirement age. In determining a Participant’s Covered Compensation for a Plan Year, the Taxable Wage Base in effect for the current Plan Year and any subsequent Plan Year will be assumed to be the same as the taxable wage base in effect as of the beginning of the Plan Year for which the determination is being made. Covered Compensation will be determined for the year designated by the Employer in Section III(C) of the Target Benefit Plan Adoption Agreement. A Participant’s Covered Compensation for a Plan Year before the end of the thirty-five (35) year period ending with the last day of the calendar year in which the Participant attains social security retirement age is the Taxable Wage Base in effect as of the beginning of the Plan Year. A Participant’s Covered Compensation for a Plan Year after such thirty-five (35) year period is the Participant’s Covered Compensation for the Plan Year during which the thirty-five (35) year period ends.