4.38.118(B) Highly compensated employee.
"Highly compensated employee" shall mean any employee who performs services for the employer during the plan year and who received compensation from the employer during the look-back year in excess of $80,000 (as adjusted pursuant to Code Section 415(d)); and was in the top paid group of employees for the look-back year.
A. For the purposes of this section:
1. The term "compensation" shall have the meaning given such term by Code Section 415(c)(3); provided, however, that compensation shall include amounts that the participant elects to defer under Section 125, 402(e)3, 402h(1)(B), 403(b), or 457(b) of the Code and certain contributions described in Section 414(h)(2) of the Code that are picked up by the employing unit and treated as employer contributions and, effective for plan years beginning on and after January 1, 2001, shall also include any amount that is not included in the participant’s taxable gross income pursuant to Section 132(f) of the Code.
2. The term "look-back year" shall mean the 12 consecutive month period immediately preceding the plan year.
3. The term "top paid group" shall mean the top 20% of active employees ranked on the basis of compensation received from the employer during the plan year. Employers aggregated under Code Section 414(b), (c), (m), (n), or (o) shall be treated as a single employer. The determination of who is a highly compensated employee, including the determination of the identity of the employees in the top paid group and the compensation that is considered, will be made in accordance with Code Section 414(q) and the regulations thereunder, except as specifically provided to the contrary in Code Section 401(a)(17). (Ord. 6748-NS § 1, 2003)