to the extent such deferrals do not exceed the percentage specified by the plan (not less than 5 percent) of the employee's compensation, or (B) a defined benefit plan— (i) with respect to which the accrued benefit of the employee derived from employer contributions, when expressed as an annual retirement benefit, is not less than the product of— (I) the lesser of 2 percent multiplied by the employee’s years of service (determined under the rules of paragraphs (4), (5), and (6) of section 411(a)) with the employer or 20 percent, multiplied by (II) the employee’s final average pay, or (ii) which is an applicable defined benefit plan (as defined in section 411(a)(13)(B))— (I) which meets the interest credit requirements of section 411(b)(5)(B)(i) with respect to the plan year, and (II) under which the employee receives a pay credit for the plan year which is not less than 5 percent of compensation. (3) Definitions and special rules For purposes of this subsection— (A) Eligible retirement plan The term eligible retirement plan has the meaning given such term by section 402(c)(8)(B), except that in the case of an account or annuity described in clause (i) or (ii) thereof, such term shall only include an account or annuity which is a simplified employee pension (as defined in section 408(k)). (B) Final average pay For purposes of paragraph (2)(B)(i)(II), final average pay shall be determined using the period of consecutive years (not exceeding five) during which the employee had the greatest compensation from the taxpayer. (C) Alternative plan designs The Secretary may prescribe regulations for a taxpayer to meet the requirements of this subsection through a combination of defined contribution plans or defined benefit plans described in paragraph (1) or through a combination of both such types of plans. (D) Plans must meet requirements without taking into account Social Security and similar contributions and benefits A rule similar to the rule of section 416(e) shall apply. (d) Qualified wages and compensation For