Defined Contribution Plan Document

ARTICLE IX
GENERAL PROVISIONS

Section 9: Limitation on Contributions and Annual Additions.

  1. The amount of annual additions which may be credited to a Participant's account during any limitation year shall in no event exceed the lesser of:
    1. Thirty-Five thousand dollars ($35,000.00) or, if greater, one-fourth of the dollar limitation in effect under Section 415(d) of the Code as in effect for the limitation year; or
    2. Twenty-five percent (25%) of the Participant's compensation for the Plan Year.
    However, for limitation years beginning after December 31, 1994, the annual contribution limit to the Southern California IBEW-NECA Defined Contribution Plan for a Participant shall not be affected by the annual contributions to the Southern California IBEW-NECA Pension Plan.

  2. Commencing January 1, 2002, the amount of annual additions which may be credited to a Participant's account during any limitation year shall in no event exceed the lesser of:
    1. Forty thousand dollars ($40,000.00) or, if greater, onefourth of the dollar limitation in effect under Section 415(d) of the Code as in effect for the limitation year; or
    2. One hundred percent (100%) of the Participant's compensation for the Plan Year.

      The compensation limitation referred to above shall not apply to any contribution for medical benefits (within the meaning of Section 401(h) or Section 419A(f)(2) of the Code) which is otherwise treated as an annual addition under Section 419A(d)(3) of the Code. If the Employer contribution that would otherwise be contributed or allocated to the Participant's account would cause the annual additions for the limitation year to exceed the maximum permissible amount, the amount contributed or allocated shall be reduced so that the annual additions for the limitation year shall equal the maximum permissible amount. For these purposes, the maximum permissible amount is the maximum annual additions permitted on behalf of a Participant. However, for limitation years beginning after December 31, 1994, the annual contribution limit to the Southern California IBEW-NECA Defined Contribution Plan for a participant shall not be affected by the annual contributions to the Southern California IBEW-NECA Pension Plan.
  3. Definition of Annual Addition

    The term "annual additions" shall mean the sum of the following amounts credited to a Participant's Account for the limitation year:
    1. Employer contributions;
    2. Forfeitures;
    3. Excess contributions and excess aggregate contributions; and
    4. Amounts allocated to an individual medical account, as defined in Section 415(1)(2) of the Code, which is part of a pension or annuity plan maintained by the Employer and amounts derived from contributions paid or accrued after December 31, 1985, in taxable years ending after such date, which are attributable to post-retirement medical benefits, allocated to the separate accounts of a key employee, as defined in Section 419A(d)(3) of the Code, under a welfare benefit fund as defined in Section 419(e) of the Code, maintained by the Employer.