Service Center Training: Plan Provisions BizCo Pension Plan Service Center Training: Plan Provisions Presented by Month YYYY

History of Plan

Terminology Actuarial Equivalent: Two benefits that are Actuarial Equivalent have the same value, on the basis of actuarial factors set forth in the Plan.  Alternate Payee: Former spouse of a plan participant who is receiving a pension benefit due to a Qualified Domestic Relations Order (QDRO). Cost of Living Adjustment (COLA): A yearly adjustment to a retiree's pension based on the cost of living  Deferred Vested Pension (DVP): When a Participant’s pension benefit is deferred to a future date instead of commencing receipt of the pension benefit upon termination of employment. Final Average Compensation (FAC): Means the average annual compensation paid to a Participant during the 60 consecutive calendar months for which compensation is the highest within the last 120 consecutive calendar months immediately preceding the date employment ends. Vesting Service: Vesting refers to your ownership of your pension benefit. Periods of Service are considered in determining whether or not the Participant is entitled to vested benefit. ....

ESS Access Actives Deferred Vesteds Retirees

BizCo Pension Service Center Pension Benefits

Plan Highlights Frozen to new entrants after 12/31/2010 Everyone can commence as early as age 55 100% vested after 5 years of Vesting Service Lump Sum offered to participants who terminated after 12/31/1999 Covers both union and non-union participants

Eligibility / Participation Employees hired 1/1/2011 and after are not eligible to participate in the pension plan. Participation Criteria Salaried employees only hourly employees are not eligible One year of eligibility service Must be 21 years of age or older Hired on or before 12/31/2010 ! Closed to new entrants.

Service Eligibility Service Used to determine eligibility to participate in the Plan Counted from the date employee begins employment. Vesting Service Counted from the date employee begins employment 100% vested after five years of vesting service 100% vested if termination occurs after normal retirement age Benefit Service Benefit service will begin on Participation date (so no time before age 21 is included) 35 year limit when calculating benefits

Pension Compensation Compensation generally includes the following: Wages, salaries and other income for services (base pay) 401(k) deductions H&W contributions Compensation does not include: Deferred Compensation – Contributions or Withdrawals Severance pay in excess of regular base salary in last year of employment

Formulas Effective 1/1/2001, a Cash Balance formula for determining benefits was adopted for the non-union Plan. The Cash Balance formula consists of two primary components: Pay Credits: generally credited to your cash balance account at the end of each Plan Year Your Eligible Pay x 3% Pay Factor = Pay Credit Interest Credits: an interest credit of 4% to be applied to the cash balance account at the end of each year Cash balance account x 4% Interest Factor = Interest Credit Supplemental Pay Credits: may also be eligible for a supplemental pay credit if the pay was above the Social Security Wage Base (SSWB)

Non-Qualified Plan Eligibility Any participant in the BizCo plan whose benefit is limited by: Pay in excess of the pay limits (Section 401(a)(17), or Benefits in excess of the Section 415 Limits, or Deferred Compensation that was excluded from the qualified plan calculations Benefit Uses the same formulas as the qualified plan, but includes: FICA taxes… Will be owed on the present value of the BEP benefit at termination Will be calculated at time of commencement Are withheld from payments until amount is completed (participants do not write checks for taxes)

Non-Qualified Plan (continued) Forms of Payment 100% Joint and Survivor Annuity Mandatory for Married Participants Spouse as survivor Single Life Annuity Mandatory for Single participants Less than $5,000 is a cashout Commencement Date Payments will begin within 60 days following termination date

Normal Retirement Eligibility Benefit Commencement Date Normal Retirement Age (NRA) is 65 Benefit The Accrued Benefit Commencement Date Benefits are payable the 1st of the month following the later of: Normal retirement age The 10th anniversary of the year of participation Termination of employment

Early Retirement Eligibility Reductions Age 55 and 10 Years of Service at termination Reductions The Normal Retirement Benefit is reduced by 5/12 of 1% (5% reduction per year) for each completed calendar month the Retirement Allowance commences prior to the Normal Retirement Date.

Late Retirement Eligibility Benefit Commencement Date Continued employment beyond Normal Retirement Date Benefit The greater of 1 and 2, where: The benefit calculated at Late Retirement Date instead of the Normal Retirement Date The Accrued Benefit calculated at Normal Retirement Date, actuarially increased to the Late Retirement Date Commencement Date Benefits will be postponed as long as the participant continues to work for the Company full time. Payment must be made by the later of, date of term or; April 1 following age 70½

Deferred Vested (DV) Retirement Eligibility First of the month coincident with or next following the date a participant attains age 55 and has at least 10 years of Continuous Service Age Reduction 65 100% 64 90% 63 80% 62 72% 61 65% 60 59% 59 53% 58 48% 57 44% 56 40% 55 37%

Pre-Retirement Death Benefit Active Participants Eligibility A pre-retirement death benefit is payable to the participant’s spouse if a vested participant dies and had not started receiving retirement benefits. Benefit Participant’s surviving spouse receives the 50% portion of the 50% Joint and Survivor Annuity Commencement Date If the participant dies on or after their Early Retirement Date, the spouse can commence as soon as the 1st of the month following the Date of Death, or defer until any date up to and including the participants NRD If the participant dies before their Early Retirement Date, the spouse can commence as soon as the 1st of the month following the participants Early Retirement Date, or defer until any date up to an including the participants NRD

Pre-Retirement Death Benefit Deferred Vested Participants Eligibility A pre-retirement death benefit is payable to the participant’s spouse if a vested participant dies and had not started receiving retirement benefits. Benefit Participant’s surviving spouse receives the 50% portion of the 50% Joint and Survivor Annuity Commencement Date If the participant dies on or after their Early Retirement Date, the spouse can commence as soon as the 1st of the month following the Date of Death, or defer until any date up to and including the participants NRD If the participant dies before their Early Retirement Date, the spouse can commence as soon as the 1st of the month following the participants Early Retirement Date, or defer until any date up to an including the participants NRD

Disability Retirement Benefit Eligibility Age 50 with 15 Years of Service Also must qualify for disability benefits under the Social Security Act Benefit Optional forms of payment are the same as those available at any commencement date

BizCo Pension Service Center Forms of Payment These numbers will be updated quarterly, according to General Counsel data. Map slide – we’re big, offices all over, global provider (speaking points to the IT folks that don’t know the TW brand)

Forms of Payment Normal Forms of Payment Optional Forms of Payment Unmarried Normal Form: Single Life Annuity Married Normal Form: Qualified Joint and 50% Survivor Annuity Optional Forms of Payment Single Life Annuity 10 Year Certain & Life Annuity 50% Joint & Survivor Annuity 66-2/3% Joint & Survivor Annuity 75% Joint & Survivor Annuity 100% Joint & Survivor Annuity

Mandatory Lump Sum Cashout If the present value of the accrued benefit at termination is less than or equal to $5,000, the benefit will be paid as a single lump sum payment. Processing of rollovers: If a rollover is elected, the check is made payable to the financial institution for the benefit of the participant If the present value is between $1,000 and $5,000 and the participant does not make an election for a cash payout or a rollover, an IRA account is set up for participant with BizCo.

BizCo Pension Service Center Other Noteworthy Items…

Qualified Pre-Retirement Survivor Annuity (QPSA) If a vested participant (active or inactive) dies prior to benefit commencement date, the surviving spouse is eligible for a benefit This benefit is free of charge while participant is an active employee Deferred vested participants are charged for this coverage if they terminated after 1/1/1988

Cost of Living Adjustment (COLA) Determined each Plan year = percentage change in the Consumer Price Index (CPI) for the 12 month period ending on October 31 of the year prior to the current Plan year Plan Year COLA % 2008 2.20% 2009 2010 1.71% 2011 0.61% 2012 2.10%

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