2.13  Current Year Rate

 

"Current Year Rate" means, as of January 1 of any year, the investment return of the Pension Fund, based on the average annual realized income and realized and unrealized gains and losses as reported by the Plan Trustee during the first 5 Plan Years of the preceding 6 Plan Years.  For greater certainty, prior to January 1, 2001, "Current Year Rate" means the rate earned by the Company on its life insurance and annuity funds during the preceding calendar year, excluding the effect of the Company's investment in its subsidiaries.

 

2.13A  Current Year Rate for Indexing

 

"Current Year Rate for Indexing" means, as of January 1 of any year, the investment return on the Pension Fund, based on the average annual realized income and realized and unrealized gains and losses as reported by the Plan Trustee during the first 15 Plan Years of the preceding 16 Plan Years.  For greater certainty, prior to January 1, 2001, "Current Year Rate for Indexing" means the rate earned by the Company on its life insurance and annuity funds during the preceding calendar year, excluding the effect of the Company's investment in its subsidiaries and, on and after January 1, 2001 and prior to January 1,2003, "Current Year Rate for Indexing" means the investment return on the Pension Fund, as of January 1 of any year in such period, based on the average annual realized income and realized and unrealized gains and losses as reported by the Plan Trustee during the first 5 years of the preceding 6 Plan Years.

 

6.02  Amount of Increases

 

The increase to annual pensions made pursuant to Section 6.01 above effective any January 1 shall equal (a) minus (b) below where:

 

(a)                 is the Member’s or Field Management Member’s annual pension at his or her Pension Commencement Date multiplied by the lesser of:

 

(i)                   the cumulative return based on the excess of the Current Year Rate for Indexing over 4% for each year measured from the Member’s or Field Management Member’s Pension Commencement Date to January 1 of the Plan Year, calculated to the nearest second decimal place; and

(ii)                 the cumulative Consumer Price Index Rate measured from the Member’s or Field Management Member’s Pension Commencement Date to January 1 of the Plan Year, calculated to the nearest second decimal place;

 

and

 

(b)                 is the Member’s or Field Management Member’s annual pension as at December 31 of the previous Plan Year.

 

In no event shall the adjustment on any January 1 decrease the Member’s or Field Management Member’s pension below the amount of the annual pension payable on December 31 of the immediately preceding year.