Section 1. Except to the extent a Participant’s benefits are suspended in accordance…

suspension of benefits rules in section ____ of the Plan, the amount of any form of benefit under the terms of this Plan will be the Actuarial Equivalent of the Participant’s Accrued Benefit in the normal form commencing at Normal Retirement Age. However, in the case of benefits payable with respect to a Cash Balance Formula, the amount of any form of benefit under the terms of this Plan will be the Actuarial Equivalent of the Participant’s Hypothetical Account Balance as of the Participant’s annuity starting date, unless otherwise elected in section ___ of the Adoption Agreement. Notwithstanding the previous sentence, in the case of a Participant who retires after Normal Retirement Date (to the extent the Participant’s benefits are not suspended as described earlier in this paragraph), the benefit will be no less than the Actuarial Equivalent of the Participant’s Accrued Benefit.

(Note to reviewer: The first blank in the preceding paragraph should be filled in with the section number of the plan corresponding to LRM #55. The second blank should be filled in with the section number corresponding to section A of the sample adoption agreement language below.)

Actuarial Equivalence will be determined on the basis of the interest rate and mortality table specified in the Adoption Agreement. In the case of a Plan that provides for the disparity permitted under Code § IRC 401(l), if benefits commence to a Participant at an age other than Normal Retirement Age, the Participant’s benefit will be adjusted in accordance with section _____ of the Plan.

(Note to reviewer: The blank should be filled in with the plan section number corresponding to LRM #27B. References to permitted disparity under Code § IRC 401(l) and the adjustments under LRM #27B do not apply to Cash Balance Formulas.)

Notwithstanding the preceding paragraph, for purposes of determining the amount of a distribution in a form other than an annual benefit that is non-decreasing for the life of the

263 | Defined Benefit Plan LRM Package 08/2020 06/2026

Participant or, in the case of a qualified preretirement survivor, the life of the Participant’s spouse; or that decreases during the life of the Participant merely because of the death of the surviving annuitant (but only if the reduction is to a level not below 50% of the annual benefit payable before the death of the surviving annuitant) or merely because of the cessation or reduction of Social Security supplements or qualified disability payments, actuarial equivalence will be determined on the basis of the applicable mortality table and applicable interest rate under Code § IRC 417(e)(3), if it produces a benefit greater than that determined under the preceding paragraph. This paragraph shall not apply with respect to benefits attributable to a Cash Balance Formula, except:

(a) To the extent elected in section ___ of the Adoption Agreement, or

(Note to reviewer: The blank above should be filled in with the section of the Adoption Agreement corresponding to section A of the sample adoption agreement language below.)

(b) For plan years that begin on or after January 1, 2016 if the Cash Balance Formula is not a lump-sum based formula as defined in Treas. Reg. § 1.411(a)(13)-1(d)(3), taking into account the additional requirements for lump-sum based plans in that section for plan years that begin on or after the effective date specified in Treas. Reg. § 1.411(a)(13)1(e)(2) (ii)(A) or Treas. Reg. § 1.411(a)(13)-1(e)(2)(ii)(B) as applicable (generally, for plan years beginning on or after January 1, 2017, or as late as January 1, 2019 for certain collectively bargained plans).

For plan years beginning on or after January 1, 2016, if the plan provides for both a Cash Balance Formula and a formula that is not a Cash Balance Formula:

(a) If the participant’s accrued benefit equals the greater of the accrued benefit under the Cash Balance Formula and the accrued benefit under the non-Cash Balance Formula, the participant’s lump sum payment must be no less than the greater of (1) the Hypothetical Account Balance as of the annuity starting date or (2) the present value of the accrued benefit determined under the non-Cash Balance Formula using the applicable interest and mortality rates under Code § IRC 417(e)(3).

(b) If the participant’s accrued benefit equals the sum of the accrued benefit under the Cash Balance Formula and the accrued benefit under the non-Cash Balance Formula, the participant’s lump sum payment must be no less than the sum of (1) the Hypothetical Account Balance as of the annuity starting date and (2) the present value of the accrued benefit determined under the non-Cash Balance Formula using the applicable interest and mortality rates under Code § IRC 417(e)(3).

(c) If the participant’s accrued benefit equals the lesser of the accrued benefit under the Cash Balance Formula and the accrued benefit under the non-Cash Balance Formula, the participant’s lump sum payment must be no less than the lesser of (1) the Hypothetical Account Balance as of the annuity starting date or (2) the present value of the accrued benefit determined under the non-Cash Balance Formula using the applicable interest and mortality rates under Code § IRC 417(e)(3).

The provisions in this section 1 will not apply to the extent they would cause the Plan to fail to satisfy the requirements of section ____ or ____ of the Plan.

(Note to reviewer: The blanks above should be filled in with the plan section numbers

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corresponding to LRM #40 and LRM #103.)