Annual benefit. A retirement benefit under the Plan which is
payable annually in the form of a straight life annuity. Except as
provided below, a benefit payable in a form other than a straight
life annuity must be adjusted to an actuarial equivalent straight
life annuity before applying the limitations of this Section 9.1.
For limitation years beginning before January 1, 1995, such actuarially
equivalent straight life annuity is equal to the greater of the annuity
benefit computed using the interest rate specified in the Plan for
adjusting benefits in the same form or five percent (5%). For limitation
years beginning after December 31, 1994, the actuarially equivalent
straight life annuity is equal to the greater of the annuity benefit
computed using the interest rate and mortality table (or other tabular
factor) specified in the Plan for adjusting benefits in the same form,
and the annuity benefit computed using a five percent (5%) interest
rate assumption and the "applicable mortality table", as defined below.
In determining the actuarially equivalent straight life annuity for
a benefit form other than a nondecreasing annuity payable for a period
of not less than the life of the Participant (or, in the case of a
qualified pre-retirement survivor annuity, the life of the surviving
spouse), or decreases during the life of the Participant merely because
of (A) the death of the survivor annuitant (but only if the reduction
is not below fifty percent (50%) of the annual benefit payable before
the death of the survivor annuitant), or (B) the cessation or reduction
of Social Security supplements of qualified disability payments (as
defined in Section 401(a)(11) of the Code), "the applicable interest
rate", as defined below, will be substituted for "a five percent (5%)
interest rate assumption" in the preceding sentence.
For purposes of this Section 9.1(b)(1), the term "applicable
interest rate" means the annual rate of interest on 30-year Treasury
securities for the calendar month that is three (3) months preceding
the first day of the Plan Year in which the distribution occurs. The
"applicable interest rate" shall remain constant for year.
For purposes of this Section 9.1(b)(1), the term "applicable
mortality table" means the table prescribed by the Secretary of the
Treasury. Such table shall be based on the prevailing commissioner's
standard table, as described in Section 807(d)(5)(A) of the Code,
used to determine reserves for group annuity contracts issued on the
dates as of which the present value is being determined (without regard
to any other subparagraphs of Section 807(d)(5) of the Code). The
applicable mortality table is based upon a fixed blend of fifty percent
(50%) of the male mortality rates and fifty percent (50%) of the female
mortality rates from the 1983 Group Annuity Mortality Table, which
mortality table is set forth in Internal Revenue Service Revenue Ruling
95-6. Notwithstanding the foregoing, effective December 31, 2002,
for purposes of this Section 9.1(b)(1), the term "applicable mortality
table" means the mortality table based upon a fixed blend of fifty
(50%) percent of the unloaded male mortality rates and fifty (50%)
percent of the unloaded female mortality rates underlying the 1994
Group Annuity Reserving Table, projected to 2002, which mortality
table is set forth in Internal Revenue Ruling 2001-62.
The annual benefit does not include any benefits attributable
to Employee contributions or rollover contributions, or the assets
transferred from a qualified plan that was not maintained by the Employer.
No actuarial adjustment to the benefit is required for (A) the value
of a qualified joint and survivor annuity, (B) benefits that are not
directly related to retirement benefits (such as qualified disability
benefits, pre-retirement death benefits, and post-retirement medical
benefits), and (C) the value of post-retirement cost-of-living increases
made in accordance with Section 415(d) of the Code and Section 1.415-3(c)(2)(iii)
of the Income Tax Regulations.