Common use of Frozen Accrued Benefit Clause in Contracts

Frozen Accrued Benefit. A Participant's Frozen Accrued Benefit is the amount of the Participant's Accrued Benefit determined in accordance with the provisions of the Plan applicable in the year containing the latest Fresh-Start Date, determined as if the Participant terminated employment with the Employer as of the latest Fresh-Start Date, (or the date the Participant actually terminated employment with the Employer, if earlier), without regard to any amendment made to the Plan after that date other than amendments recognized as effective as of or before the date under section 401(b) of the Code or section 1.401(a)(4)-11(g) of the regulations. If the Participant has not had a Fresh-Start Date, the Participant's Frozen Accrued Benefit will be zero. If, as of the Participant's latest Fresh-Start Date, the amount of a Participant's Frozen Accrued Benefit was limited by the application of section 415 of the Code, the Participant's Frozen Accrued Benefit will be increased for years after the latest Fresh-Start Date to the extent permitted under section 415(d)(l) of the Code. In addition, the Frozen Accrued Benefit of a Participant whose Frozen Accrued Benefit includes the Top-Heavy minimum benefits provided in section 15.3 of the Plan, will be increased to the extent necessary to comply with the average compensation requirement of section 416(c)(l)(D)(i) of the Code. If: (l) the Plan's Standard Form of Retirement Income in effect on the Participant's latest Fresh-Start Date is not the same as the Standard Form of Retirement Income under the Plan after the Participant's latest Fresh-Start Date and/or (2) the Normal Retirement Age for any Participant on that date was greater than the Normal Retirement Age for that Participant under the Plan after such latest Fresh-Start Date, the Frozen Accrued Stated Benefit will be expressed as an actuarially equivalent benefit in the Standard Form of Retirement Income under the Plan after the latest Fresh-Start Date, commencing at the Participant's Normal Retirement Age under the Plan in effect after the latest Fresh-Start Date. If the Plan provides a new optional form of benefit with respect to a Participant's Frozen Accrued Benefit, such new optional form of benefit will be provided with respect to each Participant's entire Accrued Benefit (i.e., Accrued both before and after the Fresh-Start Date). In addition, if this Plan is a unit credit plan, with respect to plan years beginning after the latest Fresh-Start Date, the current benefit formula will provide each Participant in the Fresh-Start group a benefit of not less than .5% of the Participant's average annual Compensation times the participant's years of Service after the latest Fresh-Start Date. If this is a flat benefit plan, then, with respect to Plan Years beginning after the Plan's latest Fresh-Start Date, the current benefit formula will provide each Participant a benefit of not less than 25% of the Participant's average annual Compensation. If a participant will have less than 50 years of Service after the latest Fresh-Start Date through the year the Participant attains Normal Retirement Age (or current age, if later), then such minimum percentage will be reduced by multiplying it by the following ratio: Participant's years of Service after the latest Fresh-Start Date 50 Definition of Fresh-Start Date. Fresh-Start Date generally means the last day of a Plan Year preceding a Plan Year for which any amendment of the Plan that directly or indirectly affects the amount of a Participant's benefit determined under the current benefit formula (such as an amendment to the definition of Compensation used in the current benefit formula or a change in the Normal Retirement Age of the Plan) is made effective. However, if under the Adoption Agreement the Fresh-Start group is limited to an acquired group of employees, or a group of employees with a Frozen Accrued Benefit attributable to assets and liabilities transferred to the Plan, the Fresh Start Date will be the date designated in the Adoption Agreement. If this Plan has had a Fresh-Start for all Participants, and in a subsequent Plan Year is aggregated for purposes of section 401(a)(4) of the Code with another Plan that did not make the same Fresh-Start, this Plan will have a Fresh-Start on the last day of the Plan Year preceding the Plan Year during which the plans are first aggregated.