Common use of SERP Benefit Clause in Contracts

SERP Benefit. The Executive’s SERP Benefit shall be the benefit obtained by taking the gross benefit determined under this Section 1.2 (the “Pre-Adjustment SERP Benefit”), offsetting the resulting amount by the Executive’s Pension Plan Offset as described in Section 1.3, and adjusting the resulting benefit pursuant to Section 1.4. The Executive’s Pre-Adjustment SERP Benefit is a life annuity for the life of the Executive commencing on the first day of the month following his 62nd birthday, with the annual annuity amount being determined as three percent (3%) of his Average Annual Compensation multiplied by his Years of Service. In no event shall the Executive’s Pre-Adjustment SERP Benefit exceed 50% of his Average Annual Compensation.