Common use of Maximum Disparity Rate Clause in Contracts

Maximum Disparity Rate. (a) If the Definite Integrated Contribution Formula is selected by the Employer under Section 3.04(a) above, the Maximum Disparity Rate is equal to the lesser of: (i) 5.7%; or (ii) the applicable percentage determined in accordance with Table I below. If the Integration Level is more than But not more than the applicable percentage is: $0 X* 5.7% X* of Taxable Wage Base 80% of Taxable Wage Base 4.3% 80% of Taxable Wage Base Y** 5.4% Equal to the Taxable Wage Base N/A 5.7% *X = the greater of $10,000 or 20% of the Taxable Wage Base. **Y = any amount more than 80% of the Taxable Wage Base but less than 100% of the Taxable Wage Base. (b) If the Discretionary Integrated Contribution Formula is selected by the Employer under Section 3.04(b) above, the Maximum Disparity Rate is equal to the lesser of: (i) 2.7%; or (ii) the applicable percentage determined in accordance with Table II below: If the Integration Level is more than But not more than the applicable percentage is: $0 X* 2.7% X* of Taxable Wage Base 80% of Taxable Wage Base 1.3% 80% of Taxable Wage Base Y** 2.4% Equal to the Taxable Wage Base N/A 2.7% *X = the greater of $10,000 or 20% of the Taxable Wage Base **Y = any amount more than 80% of the Taxable Wage Base but less than 100% of the Taxable Wage Base. (c) In no event can the amount allocated to each participant's IRA exceed the lesser of 25% of the participant's compensation or $40,000, as adjusted under Code § 415(d). For purposes of the 25% limitation described in the preceding sentence, a participant's compensation does not include any elective deferral described in Code § 402(g)(3) or any amount that is contributed by the employer at the election of the employee and that is not includible in the gross income of the employee under Code §§ 125, 132(f)(4) or 457.

Maximum Disparity Rate. (a) If the Definite Integrated Contribution Formula is selected by the Employer under Section 3.04(a) above, the Maximum Disparity Rate is equal to the lesser of: (i) 5.7%; or (ii) the applicable percentage determined in accordance with Table I below. If the Integration Level is more than But not more than the applicable percentage is: $0 X* 5.7% X* of Taxable Wage Base 80% of Taxable Wage Base 4.3% 80% of Taxable Wage Base Y** 5.4% Equal to the Taxable Wage Base N/A 5.7% *X = the greater of $10,000 or 20% of the Taxable Wage Base. **Y = any amount more than 80% of the Taxable Wage Base but less than 100% of the Taxable Wage Base. (b) If the Discretionary Integrated Contribution Formula is selected by the Employer under Section 3.04(b) above, the Maximum Disparity Rate is equal to the lesser of: (i) 2.7%; or (ii) the applicable percentage determined in accordance with Table II below: If the Integration Level is more than But not more than the applicable percentage is: $0 X* 2.7% X* of Taxable Wage Base 80% of Taxable Wage Base 1.3% 80% of Taxable Wage Base Y** 2.4% Equal to the Taxable Wage Base N/A 2.7% *X = the greater of $10,000 or 20% of the Taxable Wage Base **Y = any amount more than 80% of the Taxable Wage Base but less than 100% of the Taxable Wage Base. (c) In no event can the amount allocated to each participant's IRA XXX exceed the lesser of 25% of the participant's compensation or $40,000, as adjusted under Code § 415(d). For purposes of the 25% limitation described in the preceding sentence, a participant's compensation does not include any elective deferral described in Code § 402(g)(3) or any amount that is contributed by the employer at the election of the employee and that is not includible in the gross income of the employee under Code §§ 125, 132(f)(4) or 457.