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contributions to a simplified employee pension plan to the extent such contributions are deductible by the Employee, or any distributions from a plan of deferred compensation; (2) amounts realized from a non-qualified stock option, or when restricted stock or property held by the employee either becomes freely transferable or is no longer subject to a substantial risk of forfeiture; (3) amounts realized from the sale, exchange or other disposition of stock acquired under a qualified stock option; and (4) other amounts which receive special tax benefits, or contributions made by an employer (whether or not under a salary reduction agreement) towards the purchase of an annuity described in Code §403(b) (whether or not the amounts are excludible from an employee's gross income). (b) For Limitation Years beginning on or after January 1, 1998, Code §415 Compensation will include any elective deferrals as defined in Code §402(g)(3), and any amounts contributed or deferred at the election of the Employee that were not includible in the gross income by reason of Code §I25 or §457. Code §415 Compensation will also include elective amounts that are not includible in the gross income of the Employee by reason of Code §132(0(4) for Limitation Years beginning on or after January 1, 2001. (c) For limitation years beginning on or after July 1, 2007, compensation for a limitation year shall also include compensation paid by the later of 2 '/z months after an employee's severance from employment with the employer maintaining the plan or the end of the limitation year that includes the date of the employee's severance from employment with the employer maintaining the plan, if the payment is regular compensation for services during the employee's regular working hours, or compensation for services outside the employee'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 employee while the employee continued in employment with the employer. "Compensation" means the Code §3401 Compensation that is actually paid in gross income during the calendar month (or, for a month which began on or after January 1, 1992, actually paid or made available). The term Code §3401 Compensation means wages within the meaning of Code §3401(a) that are actually paid or made available in gross income for the purposes of income tax withholding at the source but determined without regard to any rules under Code §3401 that limit the remuneration included in wages based on the nature or location of the employment or the services performed. (a) Partial Month Compensation: If a Member is employed for less than a full calendar month used for determining compensation or average compensation, compensation for such partial month shall be counted (without annualizing). Restated Nonuniformed Pension Plan—City of University City Page 4