How is Compensation defined in the Plan?

“Compensation” means, subject to the remaining provisions of this Section 2.13, total remuneration paid by an Employer for the Employee’s services and reported on Form W-2 before deduction for elective contributions subject to Code Sections 401(k), 403(b), 125 (including “deemed 125 compensation” as defined in Revenue Ruling 2002-27), 132(f)(4) or 402(h)(1)(B)).

Compensation includes amounts received as a “housing or parsonage allowance” which qualify for exclusion from gross income under Code Section 107. In the case of a Participant who is a minister and who is provided with the free use of a parsonage, housing or parsonage allowance will be deemed to be the fair rental value of the parsonage as determined by the Employer for purposes of determining Plan contributions.

Compensation excludes:

(a) any severance pay whether paid before or after termination of employment,

(b) additional benefits not paid in cash (other than amounts related to parsonage as described above),

(c) amounts paid after a Participant’s Severance from Employment, except for the following amounts that are paid by the later of 2-½ months after the Participant’s Severance from Employment or the end of the Plan Year that includes the date of the Participant’s Severance from Employment:

     (1) payment of regular compensation for services during the Participant’s regular working hours, or compensation for services outside the Participant’s regular working hours (such as overtime or shift differential), commissions, bonuses, or other similar payments, and, absent a Severance from Employment, the payments would have been paid to the Participant while the Participant continued in employment with the Employer; and

     (2) payment for unused accrued bona fide sick, vacation, or other leave that the Participant would have been able to use if employment had continued;

(d) amounts paid to compensate ministers for amounts owed under the Self-Employment Contributions Act,

(e) the value of any Employer-paid insurance premiums imputed as taxable income to the Employee,

(f) amounts paid to compensate the Employee for federal and state income taxes owed on Employer-provided benefits for a partner or same-sex Spouse;

(g) reimbursements for moving expenses (taxable or non-taxable);

(h) reimbursements for travel expenses (taxable or non-taxable); and

(i) health insurance stipends.

Notwithstanding the foregoing, Compensation of an ordained, commissioned or licensed Unitarian Universalist minister who is self-employed as defined in Code Section 401(c)(1) means net earnings from self-employment related to the Unitarian Universalist ministry. Net earnings shall be determined without regard to items not included in gross income and the deductions allocable to such items.

For any Plan Year, the annual Compensation of each Participant taken into account in allocating Retirement Contributions and Matching Contributions shall not exceed $345,000 , as adjusted for cost-of-living increases in accordance with Code Section 401(a)(17)(B) for periods after January 1, 2024. Notwithstanding the foregoing, a Participant may make Elective Deferrals with respect to Compensation which exceeds the Plan Year compensation limitation, provided such Elective Deferrals otherwise satisfy the limit described in Section 8.2 and other applicable Plan limitations.

Compensation shall include only that compensation which is actually paid to the Employee during the applicable Plan Year and, with respect to any contribution for which the Employee is not eligible for the entire Plan Year, that portion of the Plan Year during which such Employee is eligible to receive such contribution.