Highest Contribution Rate Clause Samples
The Highest Contribution Rate clause sets a maximum limit on the percentage or amount that a party is required to contribute, typically in the context of insurance, retirement plans, or joint ventures. In practice, this clause ensures that no party is obligated to contribute more than the specified highest rate, regardless of circumstances such as increased costs or additional funding needs. By establishing a clear cap on contributions, the clause protects parties from unexpected financial burdens and provides predictability in budgeting and risk allocation.
Highest Contribution Rate. The Plan Administrator will determine the Highest Contribution Rate under Section 10.06(E) by reference to the Key Employees and their allocations in the separate plan of that Participating Employer;
Highest Contribution Rate. Highest Contribution Rate means for any Key Employee, all Employer Contributions (including Elective Deferrals, but not including Employer contributions to Social Security and not including Catch-Up Deferrals) and forfeitures allocated to the Participant's Account for the Plan Year, divided by his/her Compensation for the entire Plan Year. To determine a Key Employee's contribution rate, the Plan Administrator must treat all qualified top-heavy Defined Contribution Plans maintained by the Employer (or by any Related Employer) as a single plan.