$20,000
X
$25,000
or
$2,000
$250,00 These contributions will vest (your ownership rights) in accordance with the vesting schedule. (See the question “What is my vested interest in my account?” found in the Article of this SPD entitled “Retirement Benefits” for an explanation of your ownership rights.) In addition to our contributions made to your account, your account will be credited annually with a share of the investment earnings or losses of the trust fund. What compensation is used to determine my Plan benefits? For the purposes of the Plan, compensation has a special meaning. Compensation is generally defined as your total compensation that is subject to income tax, that is, all of your compensation paid to you by us during a Plan Year. However, the following adjustments to Compensation will be made by: • including your salary reduction contributions to any plan or arrangement maintained by your Employer. • including Compensation paid during the Plan Year while you are not a Participant in the component of the Plan for which Compensation is being used. • effective for Plan Years beginning on and after July 1, 2007, including the following amounts (to the extent they would otherwise be taken into account under the definition of Compensation above) that are paid after you terminate employment with the Employer, provided the payments are made within the later of 2 1/2 months after you terminate employment or the end of the year that includes the date of the your termination of employment. Any other payment that is made after termination of employment is not treated as Compensation. • Compensation will include compensation for services performed during your regular working hours, or compensation for services outside your regular working hours (such as overtime or shift differential), commissions, bonuses, or other similar payments; and payments that would have been made to you had you continued employment. • Compensation will include amounts paid for unused accrued bona fide sick, vacation or other leave, if such amounts would have been included in Compensation had they been paid prior to your termination of employment and you would have been able to use the leave if employment had continued. • Compensation will include nonqualified unfunded deferred Compensation if the payment is includible in gross income and would have been paid to you had you continued employment. Is there a limit on the amount of compensation which can be considered? The Plan, by law, cannot recognize annual compensation in excess of a certain dollar limit. The limit for the Plan Year beginning in 2009 is $245,000. After 2009, the dollar limit may increase for cost- of-living adjustments. Is there a limit on how much can be contributed to my account each year? Generally, the law imposes a maximum limit on the amount of contributions you may receive under the Plan. This limit applies to all contributions we make on your behalf and any other amounts allocated to any of your accounts during the Plan Year, excluding earnings. Beginning in 2009, this
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