Pension Summary Plan Description

H.3 Benefit Service After June 30, 1997 and Before July 1, 2003

You earn a Straight Life Annuity monthly payment at Normal Retirement Age for Contributions made on your Covered Employment after June 30, 1997. The accrual rate for that period is equal to 2.5% of those Contributions. However, for Contributions during the period from July 1, 2000 to June 30, 2002 (Plan Years 2001 and 2002), the accrual rate was 3.0% of Contributions. These years are commonly referred to as the "bonus years."

EXAMPLE:

John worked 4,000 Covered Hours in Plan Years 1998 to 2000, worked 4,000 Covered Hours in Plan Years 2001 to 2002, and 2,000 Covered Hours in Plan Year 2003. The Collective Bargaining Agreement required John's employer to contribute $3.00 per hour for those hours. John's monthly benefit for those hours is computed as follows:

2.5% Accrual Rate
Plan Years 1998-2000 $3.00 x 4,000 x 2.5% = $300
Plan Year 2003 $3.00 x 2,000 x 2.5% = $150
Bonus 3% Accrual Rate
Plan Years 2001-2002 $3.00 x 4,000 x 3.0% = $360
    -------
$810

As shown, John earned a benefit of $810 per month at Normal Retirement Age based on his Contributions after June 30, 1997 and before July 1, 2003.