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5.5 Maximum Allowable Benefit
Notwithstanding
any other provision of the Plan, the pension payable under the Plan when expressed
in the form of a straight life annuity, may never exceed any applicable limitation
imposed by Section 415 of the Internal Revenue Code. Section 415 of the Code
is hereby incorporated by reference.
As
of January 1 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 for that Calendar Year. The maximum
permissible dollar amount for a Calendar Year applies to limitation years ending
with or within that Calendar Year.
If the retirement
benefit is any form other than a straight life annuity, the benefit shall be
adjusted to the actuarial equivalent of a straight life annuity beginning at
the same age for purposes of applying the limitations on benefits described
above to the annual benefit of the Participant. In determining the actuarial
equivalence of different forms of benefit payments, the interest rate assumption
shall be five percent (5%).
For any year before
July 1, 1992, the limitations prescribed by Section 415 of the Internal Revenue
Code as in effect before enactment of the Tax Equity and Fiscal Responsibility
Act of 1982 shall apply, and no pension earned under this Plan prior to 1986
shall be reduced on account of the provisions of this Section if it would have
satisfied those limitations under that prior law.
