H.1 Benefit Service After June 30, 2006
For Contributions required for your Covered Employment during the Plan Year from July 1, 2006 through June 30, 2007, you earn a Straight Life Annuity payment at Normal Retirement Age based on an accrual rate of 2.0% for those Contributions. You earn a Straight Life Annuity payment at Normal Retirement Age for Contributions made on your Covered Employment after June 30, 2007 at an accrual rate for this period of 1.0% of your Contributions.
During Plan Year 2007, Gary’s employer contributed $10,000 to the Plan on his behalf. In Plan Year 2008, Gary’s employer contributes another $12,000 to the Plan on his behalf.
Gary’s benefit from these Contributions is computed as follows:
$10,000 x 2.0% = $200
$12,000 x 1.0% = $120
TOTAL = $320 monthly benefit at Normal Retirement Age for Contributions after June 30, 2006