Retirement Benefit Calculation

Promised Benefit - Your retirement benefit is based on your age, credited service and annual earnings. The current definition of the promised benefit is commonly referred to as a "Career Average Defined Benefit" plan. The formula is equal to 1.75% of gross earnings.

Target Benefit (known as the Update Formula) - In order to maintain current earnings status, the Trustees periodically provide updates to the determination of average annual earnings which provides a "Final Average Defined Benefit". The current formula is 3 years Average Annual Earnings* to 31/12/2007 multiplied by 1.75% multiplied by your credited years of service to 31/12/2007 plus 1.75% multiplied by your gross pensionable earnings for each credited year of service after 31/12/2007.

The Target Benefit calculation is used only if it improves your accrued benefit. If the Target Benefit does not improve your benefit than the Promised Benefit Formula will be used.

To be eligible for the Update Formula you must be an Active or Retired Participant on the date the Update Formula was approved. The current approved date is January 1, 2008.

Credited Years included in the Pension Calculation

Credited Years of Service include:

Membership Service	Is your years of employment after January 1,1975 and includes any "Credited Supplemental Service" you may have purchased with Supplemental Contributions and "Purchased Service Credits" you may have purchased for years you had a shortfall of days of pay since January 1, 1995. Membership service starts from your date of participation in the Plan.
Past Service	If you were employed on January 1, 1975 (the date Telecommunication Workers Pension Plan was established) and had years of employment prior to this date you may be eligible for years of "Past Service".

Earnings used for Retirement Benefit Calculation

Annual Earnings are your gross pensionable earnings in a year.

Average Annual Earnings are used for the purpose of updating your benefit. The "Updating Formula" is the process of bringing forward the 3 years of Average Earnings to produce a benefit based on final earnings. This is determined by taking the 3 final years earnings and adding them together and dividing by 3. If your 3 year Average daily rate x 260.89 is less than the 3 year Average Annual earnings then the 3 year Average Daily Rate will be used. For members who work less than 250 days Average Annualized Earnings are substituted for Average Earnings.

*Note: For the purpose of updating your Average Annual Earnings are subject to a maximum of your daily rate multiplied by 260.89

Amount Payable from Plan at Retirement

The amount of your retirement benefit is calculated as:

a) Supplemental Pension Plan Benefit (before January 1, 1975)

25% of your total required contributions made to the Supplemental Pension Plan before January 1, 1975; plus

b) Past Service or Former Plan Benefit

the larger of (i) and (ii) below:

i) 1.75% of Average Annual Earnings at December 31, 2007 times the number of years of Past Service;

ii) the participant's Former Plan benefit; plus

c) Membership Service up to December 31, 2007

1.75% of Average Annual Earnings at December 31, 2007 times your Membership Service; plus

d) Membership Service after December 31, 2007

1.75% of your Annual Earnings received during each year.

The following example illustrates how the Normal Form of Retirement Benefit is calculated and projected to Normal Retirement Age:

Supplemental Pension Plan Contributions (pre-1975)	$ 400.00
Past Service	3 years
Membership Service up to December 31, 2007:	25 years
Average Annual Earnings at December 31, 2007:	$ 50,000.00
Annual Earnings for 2008:	$ 52,000.00
Current age:	60 years
Normal Retirement age:	65 years
25% x $400 =	$ 100.00
1.75% x $50,000.00 x 3 years =	$ 2,625.00
1.75% x $50,000.00 x 25 years =	$ 21,875.00
1.75% x $52,000 x 5 years =	$ 4,550.00

Total Annual Retirement Benefit payable at age 65
under the Normal Form of Retirement Benefit	$ 29,150.00
or Monthly	$ 2,429.17

This example is based on:

• Continuous active participation in the Plan up to age 65
• Annual Earnings continuing at the 2008 rate
• No future updates for Average Annual Earnings