1818 Society Annual Meeting Pension Administration October 22, 2008 Kerry Mack

2 SRP Statistics (as of September 30, 2008) Active Participants 13,434 Net Plan 10,559 Total Retirees 7,598 RetiredParticipants6,282 Gross Plan 2,875 Beneficiaries (spouse & children) 861 Deferred455 HQ6,146 CO4,413

3 Age Distribution of Retirees Age Distribution of Retiree Age Distribution of Retiree Number of Number of Participants Participants Age Less than 50 4 Age 50 – Age 60 – 69 3,000 Age 70 – 79 1,664 Age 80 – Age 90 and Over Total Retirees 6,282

4 Age Distribution of Active Staff Age Distribution of Active Participants Age Distribution of Active Participants Gross Plan Net Plan Age Age ,163 4,163 Age ,062 3,512 3,512 Age 50 – 59 1,563 1,725 1,725 Age 60 and over Total2,87510,559

5 June 2008 Amendments to the Net Plan Lump sum distributions after 10 yearsLump sum distributions after 10 years Reduction of early retirement factor from 5% to 3%Reduction of early retirement factor from 5% to 3% Voluntary Savings Component can stay in plan until full amount of Cash Balance is withdrawn or annuity commences rather than paid on terminationVoluntary Savings Component can stay in plan until full amount of Cash Balance is withdrawn or annuity commences rather than paid on termination Lump Sum distributions can be split into two currencies rather than all in one currencyLump Sum distributions can be split into two currencies rather than all in one currency

6 Currency Election Gross Plan Provisions Currency other than USD can be elected if it is the currency of the country of primary residence. Currency other than USD can be elected if it is the currency of the country of primary residence. If less than 18 months from retirement, must provide documentary evidence of establishing residencyIf less than 18 months from retirement, must provide documentary evidence of establishing residency If more than 18 months, must provide documentary evidence that it has been primary residence for at least 12 monthsIf more than 18 months, must provide documentary evidence that it has been primary residence for at least 12 months Can elect to have some or all of the pension paid in the selected currency Can elect to have some or all of the pension paid in the selected currency Increments of 25% (25%, 50%, 75%, 100%)Increments of 25% (25%, 50%, 75%, 100%) Can increase the Non-USD percentage but not the USD percentageCan increase the Non-USD percentage but not the USD percentage Cannot change currency unless principal residence changed and maintained for 12 monthsCannot change currency unless principal residence changed and maintained for 12 months Exchange rate is the 60 month average as of date pension starts (regardless of when election made) Exchange rate is the 60 month average as of date pension starts (regardless of when election made) Cost of living adjustment for each currency is based on rate of inflation for the country of that currency Cost of living adjustment for each currency is based on rate of inflation for the country of that currency

7 Currency Election Net Plan Provisions Pension is normally denominated in currency of final salary Pension is normally denominated in currency of final salary Any currency can be selected Any currency can be selected No proof or residency requiredNo proof or residency required Pension must be all be paid in one currencyPension must be all be paid in one currency Two types of currency election Two types of currency election Revocable currency electionRevocable currency election Pension is still denominated in currency of final salary Pension is still denominated in currency of final salary Monthly pension payments converted into currency of choice at prevailing market rate at the time of payment Monthly pension payments converted into currency of choice at prevailing market rate at the time of payment Must continue to receive that currency for 12 months before changing again Must continue to receive that currency for 12 months before changing again Annual Cost of Living Adjustment based on rate of inflation in country of base currency (currency of final salary) Annual Cost of Living Adjustment based on rate of inflation in country of base currency (currency of final salary) Irrevocable currency electionIrrevocable currency election Pension converted into currency of choice using prevailing market rate at the time of the election Pension converted into currency of choice using prevailing market rate at the time of the election Pension will be paid in that currency for the life of the participant and any survivor annuity (no opportunity to change currency again). Pension will be paid in that currency for the life of the participant and any survivor annuity (no opportunity to change currency again). Annual Cost of Living Adjustment based on rate of inflation in country of the currency elected Annual Cost of Living Adjustment based on rate of inflation in country of the currency elected

8 Pension Payroll YearUSD Other Currencies New Currency Elections Total Non-USD Payments ,358,454 27,485,777 27,485, ,495,513 33,626, ,609,279 40,362, ,028,135 50,714, YTD ,579,580 49,578,597 49,578,

9 Life Certificates Life Certificates will be mailed out in the last week of January Life Certificates will be mailed out in the last week of January You must sign the Life Certificate and have your signature witnessed by a non-family member You must sign the Life Certificate and have your signature witnessed by a non-family member Your duly completed Life Certificate must reach our office by April 30, 2009 Your duly completed Life Certificate must reach our office by April 30, 2009 Non-receipt of your Life Certificate will result in the suspension of your pension due at the end of May Non-receipt of your Life Certificate will result in the suspension of your pension due at the end of May

10 Life Certificates FV = P(1+r/n) nt FV = P(1+r/n) nt FV = 0.42 (1+.011/365) 90 FV = 0.42 (1+.011/365) 90 FV = FV = Interest earned =.0011 Interest earned =.0011

11 In Closing I advise you to go on living – solely to enrage those who are paying your annuities. It is the only pleasure I have left. Voltaire (in retirement)