§ 154-93. Limitation on amount.

(a)

Basic limitation. Notwithstanding any provision of the plan and trust to the contrary, in no event shall the amount of a participant's annual retirement income, calculated as a single life annuity, exceed the lesser of:

(i)

$90,000.00, adjusted as of the first day of each limitation year to the dollar limitation determined by the Commissioner of Internal Revenue pursuant to regulations issued by the Secretary of the Treasury under the authority granted him by section 415(d) of the code as provided below (the "maximum permissible dollar amount"), or

(ii)

100 percent of such participant's average annual compensation (as defined in section 415(c)(3) of the code), including overtime and bonuses, for the three consecutive limitation years during which he was a participant in the plan and trust and during which his compensation was the highest.

The provisions of subsection 5.1(a)(ii) shall become inapplicable as of the first limitation year commencing after December 31, 1994.

As of January 1 as of each calendar year, the dollar limitation as determined by the Commissioner of Internal Revenue for that calendar year will become effective as the maximum permissible dollar amount of the plan and trust for that calendar year. The maximum permissible dollar amount applies to limitation years ending with or within that calendar year. The dollar limitation applicable to participants who have commenced receiving their benefits under the plan and trust shall be adjusted annually to reflect any changes to the maximum permissible dollar amount.

Contributions made by the employer pursuant to subsection 6.1(b) shall be considered part of the employer provided benefit subject to the limitations of this subsection 5.1(a). Employee contributions for credit for prior service with certain other employers shall be subject to the rules of section 5.2. Employee contributions not made pursuant to subsection 6.1(b) and not made for credit for prior service with certain other employers shall be converted to an annual benefit amount pursuant to section 411(c)(2)(B) of the code and shall be subtracted from the total annual plan benefit subject to the limitations of this subsection 5.1(a), provided that such contributions shall be considered to be a separate defined contribution plan maintained by the employer and subject to the limitations of section 415(c) of the code and subsection 5.1(e) of the Plan.

(b)

Exception to basic limitation. If the annual retirement income benefit payable to a participant under the plan and trust and all other defined benefit plans of the employer does not exceed $10,000.00 for the limitation year with respect to which the determination is being made or any prior limitation year, and the employer has not at any time maintained a defined contribution plan in which the participant participated, the limitation otherwise imposed by subsection 5.1(a) shall not apply.

(c)

Reduction for less than ten years of participation. If a participant has completed less than ten years of participation in the plan and trust as of the date such participant begins to receive retirement income benefits, the maximum permissible dollar amount shall be adjusted by multiplying such limitation by a fraction, the numerator of which is the number of the participant's years of participation as of such date (and any fraction thereof) and the denominator of which is ten. The foregoing reduction shall not apply to either (i) disability retirement benefits received by a Participant pursuant to section 4.4 of the plan or (ii) the death benefit received by the beneficiary of a participant pursuant to section 4.11 of the Plan.

(d)

Actuarial adjustment when benefits commence before age 62 or after age 65. In any case in which a participant's annual retirement income benefit commences before the attainment of age 62, the maximum permissible dollar amount for such participant for the limitation year in which such benefit commences, as determined under subsection 5.1(a), shall be reduced so that the Maximum permissible dollar amount is the actuarial equivalent of the maximum permissible dollar amount that would be applicable if the retirement income benefit had commenced at age 62. If such benefit commences on or after age 55, the maximum permissible dollar amount shall not be reduced below $75,000.00, and if the benefit commences before age 55, the maximum permissible dollar amount shall not be reduced below the actuarial equivalent of the $75,000.00 limitation for age 55. In making such actuarial reduction, an interest rate assumption of five percent shall be used. In any case in which a participant's annual retirement income benefit commences after the attainment of age 65, the maximum permissible dollar amount determined under subsection 5.1(a) for such Limitation year shall be actuarially increased so that it is the actuarial equivalent of an annual retirement income benefit in the amount of such maximum permissible dollar amount commencing at age 65. In making such actuarial increase, an interest rate assumption of five percent shall be used. For distributions commencing after January 1, 2000, the actuarial adjustments to the maximum permissible dollar amount described in this section 5.1(d) shall be computed on the basis of the mortality table prescribed by Revenue Ruling 95-6, 1995-1 C.B. 80, or any successor revenue ruling, notice or other guidance provided by the Commissioner of Internal Revenue that establishes a replacement mortality table pursuant to section 415(b)(2)(E)(v) of the code. In any case in which a participant's annual retirement income benefit commences between the ages of 62 and 65, no actuarial adjustment shall be made to the maximum permissible dollar amount pursuant to this section 5.1(d).

Notwithstanding the foregoing, the maximum permissible dollar amount shall not be reduced by reason of the commencement of annual retirement income benefits before age 62 for (i) a peace officer with 15 years of full-time service (including military service) at retirement, (ii) disability retirement benefits paid to a participant pursuant to section 4.4 of the Plan or (iii) the death benefit paid to the beneficiary of a participant pursuant to section 4.11 of the Plan.

(e)

Limitation applicable to multiple plans. If the employer maintains any other defined benefit or defined contribution plan qualified under section 401(a) or 403 of the code, the benefits under the plan and each such other plan will not exceed the limits set forth in section 415(e) of the code. In the event the restrictions of this subsection 5.1(e) would apply, the board of trustees shall coordinate with the trustee, plan administrator or other appropriate party with respect to such plan or plans as to which contributions shall be limited or benefits shall be restricted and shall first reduce benefits as necessary under any defined benefit plan or plans, then shall reduce contributions under any money purchase pension plan or plans and then shall reduce contributions under any profit-sharing plan or plans (with such reductions being applied pro rata if there is more than one of such types of plans). The provisions of this subsection 5.1(e) will become inapplicable as of the first limitation year commencing after December 31, 1999.

(f)

Compensation and limitation year. For purpose of the limitations of this section 5.1, compensation shall have the meaning set for in section 415(c)(3) of the code and Treasury Regulation section 1.415-2(d) and shall not include any contributions made by the employer pursuant to subsection 6.1(b). The term "limitation year" shall mean, in the case of the plan and trust, the plan year, and in the case of any other plan referred to in this section 5.1, the limitation year for such plan as provided in section 415 of the code.

(g)

Plan limit. Notwithstanding any provision of the plan and trust to the contrary, in no event shall the amount of a participant's annual retirement benefit at the time of commencement exceed 75 percent of such participant's final average monthly earnings, provided, however, that a participant's benefit may be increased thereafter by cost-of-living adjustments provided under the plan.

(91-RC-669, § 5.1, 12-18-91; 92-RM-443, §§ 1—7, 9-2-92; 00-1471, § 5, 12-20-00)