Common use of Reduction of Contributions and Benefits Clause in Contracts

Reduction of Contributions and Benefits. The Clerk may reject any election and reduce the amount the contributions or nontaxable benefits to the extent the Clerk deems necessary to assure that the Plan does not discriminate in favor of Highly Compensated Members in violation of Code Section 125 or any other applicable provision of law or to prevent taxation of Key Employees under the provisions of Code Section 125(b) (2). Any rejection of elections or any reduction of contributions or benefits shall be made by the Clerk on a reasonable and nondiscriminatory basis. Contributions which may not be paid out because of benefit reductions imposed by this Section 9.01 shall be forfeited.