Common use of Salary Deferral Clause in Contracts

Salary Deferral. (i) In each year of membership in the Plan preceding the year of leave, an Employee will be paid a reduced percentage of both the regular grid salary and any applicable allowances, up to a maximum of six (6) years. No more than 33 1/3% of the Employees salary may be deferred in any one calendar year. The remaining percentage will be retained by the Employer and deposited at interest in an individual trust account for the Employee, and all remaining monies will be paid to the Employee in the year of leave. (ii) The calculation of interest under the terms of this plan shall be done in accordance with the practice of the Financial Institutions with which the Employer deals on a day-to-day basis. The trust account so established shall be at the optimum rate obtainable. The Employee shall have access to the monies in the accrued interest account less any appropriate deductions for income tax purposes. (iii) While an Employee is enrolled in the Plan and not on leave, any benefit tied to salary level shall be structured according to the salary the Employee would have received had the Employee not been enrolled in the plan.

Salary Deferral. (i) In each year of membership in the Plan preceding the year of leave, an Employee will be paid a reduced percentage of both the regular grid salary and any applicable allowances, up to a maximum of six (6) years. No more than 33 1/3% of the Employees Employee’s salary may be deferred in any one calendar year. The remaining percentage will be retained by the Employer and deposited at interest in an individual trust account for the Employee, and all remaining monies will be paid to the Employee in the year of leave. (ii) The calculation of interest under the terms of this plan shall be done in accordance with the practice of the Financial Institutions with which the Employer deals on a day-to-day basis. The trust account so established shall be at the optimum rate obtainable. The Employee shall have access to the monies in the accrued interest account less any appropriate deductions for income tax purposes. (iii) While an Employee is enrolled in the Plan and not on leave, any benefit tied to salary level shall be structured according to the salary the Employee would have received had the Employee not been enrolled in the plan.