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employer (regardless of whether a defined contribution plan was maintained by the employer). (a) Determination Of Maximum Aggregate Amount: The maximum aggregate amount set forth in paragraph (e) in any limitation year is the lesser of(A) 125% of the dollar limitation under Code §415(c)(1)(A) after adjustment under Code §415(d), or (B) 35% of the member's compensation for such year. (b) No Re-Computation Required For Pre-1987 Annual Additions: The annual addition for any limitation year beginning before January 1, 1987, will not be recomputed to treat all employee contributions as annual additions. (c) Transition Rule: If the employee was a member in the plan on the first day of the first limitation year beginning after December 31, 1986, in one or more defined contribution plans maintained by the employer which were in existence on May 6, 1986, the numerator of this fraction will be adjusted if the sum of this fraction and the defined benefit fraction would otherwise exceed 1.0 under the terms of this plan. Under the adjustment, an amount equal to the product of(A) the excess of the sum of the fractions over 1.0 times (B) the denominator of this fraction, will be permanently subtracted from the numerator of this fraction. The adjustment is calculated using the fractions as they would be computed as of the end of the last limitation years beginning before January 1, 1987, and disregarding any changes in the terms and conditions of the plan made after May 5, 1986, 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. Restated Nonuniformed Pension Plan—City of University City Page 24