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beginning before January 1, 1987, and disregarding any changes in the terms and conditions of the plan made after May 5, I986, but using the Code §415 limitation applicable to the first limitation year beginning on or after January 1, 1987. 6. Highest Average Compensation: The term highest average compensation means a member's average Code §415 compensation for the three consecutive years of service or 1-year periods of service with the employer that produces the highest average. If a member has separated from service, the member's highest average compensation will be automatically adjusted by multiplying such compensation by the cost of living adjustment factor prescribed by the Secretary of the Treasury under Code §415(d) in such manner as the Secretary may prescribe. The adjusted compensation amount will apply to limitation years ending with or within the calendar year of the date of the adjustment. a' 7. Maximum Permissible Amount: The term maximum permissible amount means the lesser of the defined benefit dollar limitation or the defined benefit compensation limitation (both adjusted where required, as provided in (1) and, if applicable, in (2) or(3) below). (a) Service Adjustment: If the member has fewer than 10 years of participation in the plan, the defined benefit dollar limitation shall be multiplied by a fraction, (i) the numerator of which is the number of years (or part thereof) of participation in the plan and (ii) the denominator of which is 10. In the case of a member in a non-multi- employer plan who has fewer than 10 years of service with the employer, the defined benefit compensation limitation shall be multiplied by a fraction, (i) the numerator of which is the number of years (or part thereof) of service with the employer and(ii)the denominator of which is 10. (b) Adjustment For Benefits Commencing Prior to Age 62: For limitation years prior to July 1, 2007, if the benefit of a member begins prior to age 62, the defined benefit dollar limitation applicable to the member at such earlier age is an annual benefit payable in the form of a straight life annuity beginning at the earlier age that is the actuarial equivalent of the defined benefit dollar limitation applicable to the member at age 62 (adjusted under (a) above, if required). The defined benefit dollar limitation applicable at an age prior to age 62 is determined as the lesser of (i) the actuarial equivalent (at such age) of the defined benefit dollar limitation computed using the interest rate and Restated Police Pension Plan—City of University City Page 27