Common use of Defined Benefit Clause in Contracts

Defined Benefit. Fraction -- A fraction, the numerator of which is the sum of a Participant's Projected Annual Benefits under all the qualified defined benefit plans whether or not terminated) maintained by the Employer determined at the end of the Limitation Year, and the denominator of which is the lesser of (i) one hundred and twenty-five percent (125%) of the dollar limitation for such Limitation Year under Code Sections 415(b) and (d) (or such higher amount determined by the Commissioner of Internal Revenue applicable to the calendar year with which or within which the Limitation Year ends) or (ii) one hundred and forty percent (140%) of the Participant's average Compensation (or Earned Income) for the three highest consecutive calendar years of service during which the Participant was in the Plan including any adjustments under Code Section 415(b). Notwithstanding the above, if the Participant was a Participant as of the first limitation year beginning after December 31, 1986 in one or more defined benefit plans maintained by the Employer which were in existence on May 6, 1986, the denominator of this fraction will not be less than the product of 1.25 times the sum of the annual benefits under such plans which the Participant had accrued as of the close of the last Limitation Year beginning after January 1, 1987, disregarding any changes in the terms and conditions of the Plan after May 5, 1986. The preceding sentence applies only if the defined benefit plans individually and in the aggregate satisfied the requirements of Code Section 415 for all Limitation Years beginning before January 1, 1987.

Defined Benefit. Fraction -- Fraction--A fraction, the numerator of which is the sum of a Participant's Projected Annual Benefits under all the qualified defined benefit plans whether or not terminated) maintained by the Employer determined at the end of the Limitation Year, and the denominator of which is the lesser of (i) one hundred and twenty-five percent (125%) of the dollar limitation for such Limitation Year under Code Sections 415(b) and (d) (or such higher amount determined by the Commissioner of Internal Revenue applicable to the calendar year with which or within which the Limitation Year ends) or (ii) one hundred and forty percent (140%) of the Participant's average Compensation (or Earned Income) for the three highest consecutive calendar years of service during which the Participant was in the Plan including any adjustments under Code Section 415(b). Notwithstanding the above, if the Participant was a Participant as of the first limitation year beginning after December 31, 1986 in one or more defined benefit plans maintained by the Employer which were in existence on May 6, 1986, the denominator of this fraction will not be less than the product of 1.25 times the sum of the annual benefits under such plans which the Participant had accrued as of the close of the last Limitation Year beginning after January 1, 1987, disregarding any changes in the terms and conditions of the Plan after May 5, 1986. The preceding sentence applies only if the defined benefit plans individually and in the aggregate satisfied the requirements of Code Section 415 for all Limitation Years beginning before January 1, 1987.

Defined Benefit. Fraction -- A FRACTION shall mean a fraction, the numerator of which is the sum of a the Participant's Projected Annual Benefits projected annual benefit under all the qualified defined benefit plans (whether or not terminated) maintained by the Employer determined at the end of the Limitation YearEmployer, and the denominator of which is the lesser of (i) one hundred and twenty-five percent (125%) of the dollar limitation in effect for such the Limitation Year under Code Sections section 415(b) and (d) (of the Code or such higher amount determined by the Commissioner of Internal Revenue applicable to the calendar year with which or within which the Limitation Year ends) or (ii) one hundred and forty percent (140%) of the Participant's average Highest Average Compensation (or Earned Income) for the three highest consecutive calendar years of service during which the Participant was in the Plan including any adjustments under Code Section section 415(b)) of the Code. Notwithstanding the above, if the Participant was a Participant as of the first limitation year day of the first Limitation Year beginning after December 31, 1986 1986, in one or more defined benefit plans maintained by the Employer which were in existence on May 6, 1986, the denominator of this fraction will not be less than the product 125% of 1.25 times the sum of the annual benefits under such plans which the Participant had accrued as of the close of the last Limitation Year beginning after before January 1, 1987, disregarding any changes in the terms and conditions of the Plan after May 5, 1986. The preceding sentence applies only if the defined benefit plans individually and in the aggregate satisfied the requirements of section 415 of the Code Section 415 for all Limitation Years beginning before January 1, 1987.