§ 26103 Earnings Credit Calculation

• •The law lets a board decide to give extra money (called 'additional earnings credit') to workers and bosses in a plan.
• •This extra money is a percentage that the board picks for one year at a time.
• •The extra money gets added to everyone's account on a specific date chosen by the board.
• •This rule started in 1996.

Imagine you work at a company, and every year, the company adds extra money to your savings account based on how well the company did.

The board (the people in charge) decides to give an extra 3% to everyone’s account this year. So, if you had $100 in your account, you’d get $3 more on the date they pick.