This excerpt taken from the PNC 10-Q filed May 9, 2007.
CONTRIBUTION AND INTEREST CREDITS
4.1 Accounts. The Administrator shall establish an Account on behalf of each Participant which shall be credited or debited, as the case maybe, with Contribution Credits pursuant to Section 4.2, Interest Credits as provided in Section 4.3, and payments pursuant to Article V. Each such Account shall consist of such subaccounts as are necessary or desirable to the Administrator for the convenient administration of the Plan. The Accounts and subaccounts shall be bookkeeping reserve accounts only and shall not require segregation of any funds of the Sponsor or the Employer or provide any Participant with any rights to any assets of the Sponsor or the Employer, except, to the extent applicable, as a general creditor thereof. Neither a Participant nor a Participants Beneficiary shall have any right to receive payment of any amount credited to the Participants Account except as expressly provided in Article V of this Plan.
4.2 Contribution Credits.
(a) As of the last day of each calendar year beginning on or after January 1, 1994, the Account of each Participant under this Plan shall be credited with Contribution Credits in an amount equal to the difference between (i) the aggregate amount credited to the Participants account under the Cash Balance Plan for such calendar year pursuant to Sections 4.2(b) and (c) thereof, and (ii) the aggregate amount that would have been credited to the Participants account under the Cash Balance Plan for such calendar year pursuant to Sections 4.2(b) and (c) thereof if the provisions of such Sections 4.2(b) and (c) were applied using the Participants Compensation as defined in this Plan.
(b) In the event that a Participants benefit payments under the Cash Balance Plan are required to be limited because of the application of Section 415 of the Code, then, if such benefit limitation has not already been provided for by this Plan, an amount equal to the actuarial equivalent of such benefit limitation shall be added to the Participants Account and shall be treated as a Contribution Credit.
4.3 Interest Credits.
(a) As of each Valuation Date (and such other dates as the Administrator, in its sole and absolute discretion, may determine), the Account of each Participant shall be credited with interest (Interest Credits) at the per annum rate equal to the average of the value of interest rates on 52-week U.S. Treasury Bills, determined as of the first day of each calendar month in the preceding calendar year, compounded annually, with respect to all amounts credited to the Participants Account; provided, however, that in no event
shall the Interest Credits be less than 4% or more than 12% per annum (compounded annually, as provided above). For purposes of this Section 4.3, the value of the interest rate on a U.S. Treasury Bill as of a particular date shall equal the average auction rate for the week in which the date falls, as reported in the Federal Reserve Bulletin.
(b) The Interest Credit under this Section 4.3 for any Valuation Date shall be determined prior to crediting a Participants Account with any amount determined under Section 4.2 with respect to such calendar year and shall be based on the balance of the Participants Account as of the immediately preceding Valuation Date, with appropriate adjustments for payments made therefrom since such Valuation Date. Notwithstanding anything in the Plan to the contrary, in the event that the balance of a Participants Account shall be distributed prior to the last day of a calendar year (as of which the interest would ordinarily be credited), the Interest Credit otherwise allocable to such Participants Account for such year shall be prorated, based upon the number of complete calendar months which have elapsed from the first day of such calendar year to the date of distribution.
4.4 Vesting. Each Participant shall be at all times fully vested in and have a nonforfeitable right to the aggregate amount credited to the Participants Account.