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

In the case of a Participant who commenced participation in the Plan before January 1, 1991 and who has had uninterrupted participation since, the University shall contribute to such Participant's Accumulation Account for the Plan Year an amount equal to the greater of:

(I) 10.4% of Compensation, or

(II) 11.5% of Compensation with a maximum of $100,000 taken into consideration when calculating the contribution herein.

(b) Participants Who Commenced Participation On or After January 1, 1991

In the case of a Participant who commenced participation in the Plan on or after January 1, 1991, the University shall contribute to such Participant's Accumulation Account for the Plan Year an amount equal to 10.4% of Compensation.

The University shall continue to make a contribution under this Section 3.1 on behalf of a Participant who is on an Educational Leave of Absence subject to the limitation described in Section 3.3.

(d) Timing of Contributions

Timing of the contributions described in (a) - (c) above shall be determined by the Administrator in its sole and absolute discretion.

3.2 Transfer Contributions

The Plan shall receive only transfers of accrued benefits from the VRS on behalf of a Participant. It shall accept no other transfers or rollovers of any kind.

The Administrator shall allocate the transferred amounts described in the preceding paragraph among the various investment vehicles permitted under the Plan pursuant to Section 5. The Participant shall provide such instructions in writing on a form prescribed by the Administrator.

3.3 Annual Limitation on Contributions

(a) Defined Contribution Limit

In no event shall a Participant's University contribution under Section 3.1 above for any Limitation Year exceed the lesser of:

(I) $30,000, as adjusted under Code Section 415(c)(1)(A); or

(II) twenty-five percent (25%) of the Participant's 415 Compensation.

For Participants who are on an Educational Leave of Absence or in Phased Retirement, to the extent the Administrator prevents the University from making a

contribution on behalf of such a Participant under Section 3.1 that would cause the limit under this Section 3.3(a) to be exceeded for the Participant, such uncontributed amount shall be added to the contributions described in Section 3.1 for the Participant in future Plan Years not to exceed the limit described herein in any one of those future Plan Years.

(b) Participation In More Than One Plan

If the University maintains another qualified defined contribution plan, as defined in Code Section 414(i), for Employees, some or all of whom may be Participants in this Plan, then any such Participant's Annual Additions in the other Plan shall be aggregated with the Participant's Annual Additions derived from this Plan for purposes of the limitation in Section 3.3(a) above.

If the limitation in Section 3.3(a) is exceeded, the excess amounts in the Participant's Accumulation Account shall be used to reduce the University's contribution for the next Limitation Year (and succeeding Limitation Years, as necessary) for that Participant. However, if that Participant is not covered by the Plan as of the end of a Limitation Year, then the excess amounts must be held unallocated in a suspense account for the Limitation Year and allocated and reallocated in the next Limitation Year to all of the remaining Participants in the Plan in proportion to what each Participant's Compensation for the Plan Year bears to the Compensation for all such Participants for the Plan Year. In no case may excess amounts be distributed to Participants or Former Participants.

(d) No Exceeding 415 Limit

In no event shall the amount of any benefit or annuity determined under this Plan Section 3 exceed the maximum benefit permitted under Code Section 415.