Pacific Maritime Association

INDUSTRY BENEFITS ILWU-PMA Pension Plan RETIREES BY YEAR Year Normal Early Disability Total 2003 166309 57532 2004 98162 34294 2005 848038 202 2006 102196 43341 2007 91102 32225 20081395525 219 2009 231202 45478 2010 134100 52286 20111325242 226 2012 139154 38331 This table shows the number of longshore, clerk and foreman retirees by calendar year. Normal includes those retiring at or after age 65, normal retirement age; Early, those retiring at ages 55-64; and Disability, those retiring on a disability pension. PENSION BENEFITS FOR NORMAL RETIREMENT (the following benefits were effective July 1, 2012) Retirement Date Before 7/81 7/81-6/84 7/84-6/87 7/87-6/93 7/93-6/99 7/99-6/02 7/02-6/08 7/08-6/11 7/11-6/12 7/12-6/13 Max Yrs. of Svc. 25 30 33 35 35 35 35 37 37 37 Rate Per Max. Mo. Mo/Yr. Benefit $89 $2,225 $89 $2,670 $89 $2,937 $89 $3,115 $92 $3,220 $100 $3,500 $150 $5,250 $150$5,550 $160$5,920 $170$6,290 This table shows maximum pension benefits by retirement date. Also shown are the maximum years of service which may be credited toward benefit accrual and the benefit rate per month per year of credited service by retirement date. FRACTIONAL BENEFIT ACCRUAL Credited Annual Hours Monthly Benefit Accrued 1,300 1,250 1,200 1,150 1,100 1,050 1,000 950 900 850 800 $170.00 $163.46 $156.92 $150.38 $143.85 $137.31 $130.77 $124.23 $117.69 $111.15 $104.62 This table shows examples of monthly benefit accruals for the credited annual hours between 800 and 1,300.���The example is based on the monthly normal retirement rate effective on or after July 1, 2012. A minimum of 800 credited hours per payroll year is required to earn a qualifying year of service for vesting and eligibility. 40 2012 ANNUAL REPORT The ���Normal Retirement Date��� is age 65 or the fifth anniversary of the date of participation, whichever is later. Reduced retirement benefits are payable for Early Retirement as early as age 55 with 13 years of service. Effective July 1, 2012, the rate of pension benefit accrual for longshore employees retiring on or after July 1, 2012, was $170 per month per year of qualifying service. This rate provides a maximum monthly pension benefit of $6,290 for a participant with 37 or more years of qualifying service retiring at age 62 or later. For those with at least 13 years of qualifying service taking early retirement between ages 55 and 62, the benefit is reduced for each year before age 62 (5% or fraction thereof for each year). A $500 monthly ���bridge��� supplement is paid, until Social Security Retirement age, for those who retire at age 62 with at least 25 years of service. For those taking an early retirement between the ages of 55 and 62, this ���bridge��� supplement is reduced by an amount determined by the retiree���s exact age (in years and months) at retirement. During the 2008 bargaining, several improvements were agreed to, including a $30 increase in the rate of pension accrual per year of service, which became effective beginning July 1, 2011, in increments of $10 over the final three years of the contract. In addition, beginning July 1, 2008, maximum pension benefits are based on 37 years of service at retirement. Prior to July 1, 2008, 35 years of service was the recognized maximum. Surviving spouses and dependent child survivors of plan participants who die after July 1, 2008, receive a benefit equal to 75% of the amount per month per qualifying year of service that would have been received by the longshoreman were he still alive. Two early retirement windows beginning in 2009 and in 2012 were also agreed to, along with certain other enhanced benefits, rights and features. Disability pensions have no minimum age but do require a minimum of 13 years of service. The monthly benefit is the same amount as the Normal Retirement Benefit (with no reduction for its early commencement) except that no supplement is payable. Effective July 1, 2008, all surviving spouses of actives who retired prior to July 1, 2008, receive up to a maximum of 65% of the pensioner���s basic pension benefit (excluding any supplement). Effective with the 1994 payroll year, a year of service for benefit accrual is established when a registered participant is paid or is credited with 1,300 hours. Creditable hours include work, travel, and vacation hours, as well as equated hours for PGP, paid holidays, and unemployment insurance payments. A participant who is credited with fewer than 1,300 hours but at least 800 hours in any payroll year will earn a fraction of a year of service for benefit accrual determined by dividing the number of credited hours by 1,300. Years of Service credited prior to 1994 are not subject to reduction in benefit accrual based on hours credited. A minimum of 800 credited hours per payroll year is required to earn a qualifying year of service for vesting and eligibility. A participant is vested after five qualifying years of service or, if earlier, at normal retirement date. The Plan Trustees have adopted the Cliff Vesting option. Benefits are 100% vested after five qualifying years of service. If a participant leaves the plan prior to the vesting date, no partial benefits are received. Once vested, a participant���s earned qualifying years of service remain credited for life. The Plan is non-contributory for the participants and is completely funded by employer contributions.

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