Board of Visitors minutes :: November 8, 1996 :: University of Virginia Library

"Compensation" is solely the base salary to be paid to the Participant during the Plan Year, i.e., the nine-month academic year salary for those Participants with academic year assignments or the twelve-month salary for those Participants with twelve-month assignments, and does not include any other form of compensation a Participant may receive during the Plan Year including, but not limited to, overtime, summer wages and special payments.

(b) Participants on Educational Leave of Absence

"Compensation" for a Participant who is on an Educational Leave of Absence shall be the Compensation described in (a) above when the Participant went out on leave.

"Compensation" for a Participant who is in Phased Retirement shall be what the Compensation would have been under (a) above if the Participant were working full time as determined by the Administrator in its sole and absolute discretion.

(d) Limitation

In addition to other applicable limitations set forth in the Plan and notwithstanding any other provision of the Plan to the contrary, for Employees who become Participants in Plan Years beginning on or after January 1, 1996, the annual compensation taken into account under the Plan shall not exceed the dollar limitation of Code section 401(a)(17), which is incorporated herein by reference, as adjusted from time to time.

1.6 Educational Leave of Absence

A leave of absence by a Participant that is determined by the University to have an "educational purpose" as that term is defined in the Faculty Handbook of the University.

1.7 Eligible Employee

An Employee who is a member of the General Faculty of the University, as that term is described in the Faculty Handbook of the University, except if the Employee is one of the following types of faculty members:

(a) a visiting faculty member, as that designation is determined by the University at the commencement of employment;

(b) a part-time faculty member, as that status may determined by the Employer from time to time; and

1.8 Employee

Any individual on the payroll of the Employer whose wages from the Employer are subject to withholding for the purposes of Federal income taxes and the Federal Insurance Contributions Act and any Leased Employee of the Employer.

1.9 Employer

The University.

1.10 Former Participant

Any individual who is no longer a Participant but who continues to have an Accumulation Account.

1.11 415 Compensation

A Participant's wages, salaries, fees for professional service and other amounts of personal services actually rendered in the course of employment with an Employer maintaining the Plan (including, but not limited to, sales commissions, compensation for services on the basis of a percentage of profits, commissions on insurance premiums, tips and bonuses and in the case of a Participant who is an Employee within the meaning of Code Section 401(c)(1) and the regulations thereunder, the Participant's earned income (as described in Code Section 401(c)(2) and the regulations thereunder)) paid or accrued during the Limitation Year. It shall exclude: (1)(A) contributions made by the Employer to a plan of deferred compensation sponsored by the Employer to the extent that, before the application of the Code Section 415 limitations to the Plan, the contributions are not includable in the gross income of the Employee for the taxable year in which contributed, (B) Employer contributions made on behalf of an Employee to a simplified employee pension plan described in Code Section 408(k) to the extent such contributions are deductible by the Employee under Code Section 219(a), (C) any distributions from a plan of deferred compensation sponsored by the Employer regardless of whether such amounts are includable in the gross income of the Employee when distributed except any amounts received by an Employee pursuant to an unfunded non-qualified plan of the Employee's Employer to the extent such amounts are includable in the gross income of the Employee; (2) amounts realized from the exercise of a non-qualified stock option or when restricted stock (or property) held by an Employee either becomes freely transferrable or is no longer subject to a substantial risk of forfeiture; (3) amounts realized from the sale, exchange or other disposition of stock acquired under a qualified stock option; and (4) other amounts which receive special tax benefits, such as premiums for group term life insurance (but only to the extent that the premiums are not includable in the gross income of the Employee). Notwithstanding the foregoing, commencing on January 1, 1998, the exclusion described in (1)(A) above shall no longer apply nor shall contributions under a Code Section 125 plan be excluded.

1.12 Joint and Survivor Annuity

An immediate monthly annuity for the life of the Participant with a survivor annuity for the life of the Participant's designated beneficiary that is not less than 50% and not more than 100% of the amount of the annuity that is payable during the joint lives of the Participant and the designated beneficiary. The percentages of the survivor annuity under the Plan shall be 50%, 75%, and 100%. The annuity shall be equal to the amount of benefit that can be purchased with the portion of the Participant's Accumulation Account that has been allocated to the Trust. Notwithstanding the foregoing, any amount to be distributed each year, and the times those amounts are paid, must satisfy the incidental death benefit requirements specified in Code Section 401(a)(9)(G) and the regulations thereunder.

1.13 Leased Employee

Any individual who is a leased employee within the meaning of Code Section 414(n)(2). Such individuals shall not be permitted to participate in the Plan.

1.14 Life Annuity

An immediate monthly annuity solely for the life of the recipient. The annuity shall be equal to the amount of benefit that can be purchased with the portion of the Participant's Accumulation Account that has been allocated to the Trust.

1.15 Limitation Year

The Plan Year.

1.16 Participant

Any Employee who has commenced participation in the Plan in accordance with the provisions of Section 2 of the Plan.

1.17 Phased Retirement

The Phased Retirement Option of the University's Incentive Retirement Program.

1.18 Plan

The Defined Contribution Retirement Plan for the General Faculty of the University of Virginia as set forth in this document and as amended from time to time.

1.19 Plan Year

The twelve (12) month period commencing each January 1.

1.20 Trust

The Trust for the Defined Contribution Retirement Plan for the General Faculty of the University of Virginia, created by the Trust Agreement entered into pursuant to Section 10 between the University and the Trustees.

1.21 Trustees

The persons and/or bank or trust company which are named as Trustees in the Trust Agreement described in Section 10.1.

1.22 University

The University of Virginia.

1.23 Valuation Date

The date during the Plan Year the portion of the assets of a Participant's or Former Participant's Accumulation Account allocated to the Trust is valued. Such dates shall be March 31, June 30, September 30 and December 31 of each Plan Year and any other day the Administrator, in its sole and absolute discretion, has determined it is feasible to determine the value.

1.24 VRS

The Virginia Retirement System.