Common use of Unit Credit Clause in Contracts

Unit Credit. Each Participant's Stated Benefit is equal to _____% of Average Annual Compensation multiplied by the Participant's years of projected participating up to a maximum of ______ (no less than 25), payable annually as a straight life annuity beginning at Normal Retirement Age. The first day of the first Plan Year taken into account under this Stated Benefit formula will be ________. ( ) Step Rate Each Participant's Stated Benefit will be payable annually as a straight life annuity beginning at Normal Retirement Age, in an amount equal to _____percent of Average Annual Compensation (R1) per year for the first _____years of the Participant's years of projected participation (y) and ____percent (R2) of Average Annual Compensation per year for the next _____years of the Participant's years of projected participation (such that the total years of projected participation taken into account under R1 and R2 is not less than 33). If y is less that 33, R2 will be not less than: (R1) - (25 - y) _______________ 33 - y (but in no case less than 0), and not greater than: (R1) (44 - y). _____________ 33 - y For purposes of determining a Participant's Stated Benefit, a Participant's years of projected participation under the Plan is the sum of (1) and (2), where (1) is the number of years during which the Participant benefited under this Plan beginning with the latest of: (a) the first Plan Year in which the Participant benefited under the Plan, (b) the first Plan Year taken into account in the Stated Benefit formula, and (c) any Plan Year immediately following a Plan Year in which the Plan did not satisfy the safe harbor for target benefit plans in Regulations Section 1.401(a)(4)-8(b)(3), and ending with the last day of the current Plan Year, and (2) is the number of years, if any, subsequent to the current Plan Year through the end of the Plan Year in which the Participant attains Normal Retirement Age. For purposes of this definition of Years of Projected Participation, if this Plan is a prior safe harbor plan, the Plan is deemed to satisfy the safe harbor for target benefit plans in Regulations Section 1.401(a)(4)-8(b)(3) and a Participant is treated as benefiting under the Plan in any Plan Year beginning prior to January 1, 1994. A prior safe harbor plan is a plan that (1) was adopted and in effect on September 19, 1991, (2) which on that date contained a stated benefit formula that took into account service prior to that date, and (3) satisfied the applicable nondiscrimination requirements for target benefit plans for those prior years. For purposes of determining whether a plan satisfies the applicable nondiscrimination requirements for target benefit plans for Plan Years beginning before January 1, 1994, no amendments after September 19, 1991, other than amendments necessary to satisfy Section 401(l) of the Code, will be taken into account.