Indexation of Pension Benefits

Pension benefits payable under the Plan are indexed to increases in the CPI as follows:

For employees who retired prior to January 1, 1989:

• pension benefits indexed annually at 75%xCPI – 2%
  
  For employees who retire on or after January 1, 1989
  
  
• pension benefits accrued for service prior to January 1, 1987 are indexed annually at 75%xCPI – 2%
  
  
• pension benefits accrued for service on or after January 1, 1987 are indexed annually at 75%xCPI – 1%
  
  
• Benefits are indexed starting from the date of vested termination or from the date of retirement. Any indexation increases are implemented as of April 1 of each year.

Disability Benefits and Retirement

If a member became totally and permanently disabled as defined in the Plan before December 31, 1999 and is in receipt of disability income benefits under the Disability Income Plan of the Company, he will continue to accrue benefits under this Plan up to December 31, 1999 using the earnings related formula in effect at the date the member became disabled, with the level of earnings at that time.

If a member became totally and permanently disabled before March 31, 1998 (or, if the member has 10 or more years of continuous service and became totally and permanently disabled on or after March 31, 1998 and prior to December 31, 1999) and subsequently recovers from his disability to the extent that he no longer qualifies for benefits under the Disability Income Plan, but is still unable to return to work with the Company, he may retire early under the Plan. If the member has not attained age 55, the applicable early retirement reduction factor will be the tabular factor in the Plan assuming the member is age 55. No supplemental benefit is payable where early disability retirement occurs prior to the earlier of age 55 or 30 years of continuous service.