Common use of Maximum Retirement Benefit Clause in Contracts

Maximum Retirement Benefit. (a) The Annual Benefit otherwise payable to a Participant at any time will not exceed the Maximum Permissible Amount. If the benefit the Participant would otherwise accrue in a Limitation Year would produce an Annual Benefit in excess of the Maximum Permissible Amount, the rate of accrual will be reduced so that the Annual Benefit will equal the Maximum Permissible Amount. This limitation is deemed satisfied if the Annual Benefit payable to a Participant is not more than one thousand dollars ($1,000) multiplied by the Participant's number of years of Service or parts thereof (not to exceed then (10)) with the Employer and the Employer has not at any time maintained a defined contribution plan, a welfare benefit plan as defined in section 419(e) of the Code, or an individual medical account as defined in section 415(1)(2) of the Code maintained by the Employer, or a simplified Employee pension, as defined in section 408(k) of the Code, maintained by the Employer, in which such Participant participated.