Maximum and Minimum Deferrals Clause Samples
The Maximum and Minimum Deferrals clause sets clear boundaries on the amount or duration that payments, obligations, or benefits can be postponed under an agreement. In practice, this clause specifies the upper and lower limits for deferral periods or amounts, ensuring that neither party can defer more or less than the agreed thresholds. For example, it may state that payments can be deferred for no more than 12 months, or that at least a certain minimum amount must be paid even if a deferral is exercised. The core function of this clause is to provide predictability and prevent abuse by establishing fair and transparent limits on deferrals, thereby protecting the interests of both parties.
Maximum and Minimum Deferrals. A Participant may elect to defer up to 50% of his Compensation (other than a bonus described in section 1.10(a)(iii)) and up to 75% of a bonus described in section 1.10(a)(iii). The minimum deferral that a Participant may elect, for both this Plan and the Savings Plan combined, is 6% of his Compensation. If the Participant does not elect the minimum deferral from a bonus described in section 1.10(a)(iii) (in his June election), he cannot make any deferrals from his regular pay during the next regular-pay deferral election (in December).
Maximum and Minimum Deferrals. A Participant may elect to defer up to 75% of his Cash-Incentive Bonus and up to 50% of his other Compensation. The Committee may establish a minimum dollar amount or percentage of Compensation that a Participant may elect to defer.