Final Average Monthly Compensation Clause Samples

Final Average Monthly Compensation. One and three quarters percent (1 ¾%) of the participant’s five (5) years average monthly compensation for the five (5) highest of his or her last ten (10) qualifying twelve (12) Accounting Month periods offset by one and one half percent (1 ½%) of the estimated “Primary Insurance Amount” determined under the Federal Social Security Act for each year that the participant contributed to the Plan, including those years for which past service was credited. The maximum offset is fifty percent (50%) of the estimated monthly “Primary Insurance Amount” benefit. Benefits payable under this formula will be in accordance with applicable Internal Revenue Service Code provisions and regulations and other applicable legal requirements as may be issued.