Defined-Benefit Corporate Pension Plan

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DEFINED BENEFIT CORPORATE PENSION PLAN

The retirement benefits of employees are based on a formula that calculates the contributions needed to meet the defined benefit, taking into consideration the duration of employment, salary history, the employee’s life expectancy and normal retirement age, possible changes to interest rates, annual retirement benefit amount and the potential for employee turnover.

When participating in this plan, the employer promises to pay employees a specific benefit for life, beginning at retirement. The benefit is calculated in advance, using a formula based on age, earnings and years of service. The employer is responsible for making all decisions regarding the fund.