Contract, Table of Contents

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Letter of Understanding / 1 / 2 / 3 / 4 / 5 / 6 / 7 / 8 / 9 / 10 / 11 / 12 / 13 / 14 / 15 / 16 /

LOCAL 300 / MOLSON Vancouver 2006-2012 Contract
Please read the disclaimer.

APPENDIX "B"
MEMORANDUM ON PENSIONS

1. Introduction
   With respect to benefits up to and including December 31, 1967 under the Company Plan as now constituted, there is to be no change but Credited Service after that date will count for qualification purposes. The main provisions of the Plan, established at January 1, 1968 and including amendments through to and including April 20, 2012 are summarized below. The provisions of the formal Plan document apply in case of conflict with this summary.

2. Eligibility
   Employees shall become members of the plan on the earliest of:
   1. the first of the month following the month in which they attain benefit service,
      
      or

   2. the first of the month following the month in which they have achieved two consecutive calendar years of employment in each of which such Employee earned at least 35% of the YMPE.

   Seasonal employees shall become members of the plan on the first day of the month following the month in which both of the following conditions are fulfilled:

   1. the completion of 24 months of uninterrupted continues service - for this purpose, periods of layoff for lack of work which do not exceed six months shall not be considered an interruption of continuous service, and
      
      
   2. the completion of two consecutive calendar years of employment in each of which such Seasonal employee earned at least 35% of the YMPE.

3. Contributions
   Members do not contribute to the Plan.

4. Credited Service
   Credited Service prior to January 1, 1968, shall be calculated as outlined in the Plan document.

   Credited Service on or after January 1, 1968, shall be computed for each calendar year on the basis of one-tenth of a year for each 180 hours actually worked or for which wages have been paid. It is understood that wages shall mean actual earnings for work performed, vacation pay, payment for any leave of absence such as, for example, payment of statutory Holidays, and any period for which an Employee is absent from work and in receipt of Workers' Compensation or Weekly Indemnity payments. Credited Service in any calendar year shall not exceed one year and shall be calculated to the nearest one-tenth of a year.

   In no event shall a Member’s Credited Service exceed 30 years.
   
   For purposes of determining the Accrued Retirement Pension, Credited Service earned by a Member while a Seasonal employee on or after April 21, 2002 shall be Seasonal Credited Service and all other Credited Service earned by the Member shall be Regular Credited Service.

5. Accrued Retirement Pension
   A Member's Accrued Retirement Pension under the Plan is a monthly amount, subject to adjustment under section 9 and 12, equal to the sum of:
   
   
   1. the Member's Regular Credited Service multiplied by the applicable lifetime benefit rate per year of Regular Credited Service, as described in the following table, and
      
      
   2. the Member's Seasonal Credited Service multiplied by the applicable lifetime benefit rate per year of Seasonal Credited Service, as described in the following table.

   Defined Benefit Pension Plan – Benefit levels per year of Regular Credited Service Plan (these pension levels are indexed):

   
   For retirements, deaths,           Applicable Lifetime     Applicable Lifetime
   or termination of                  Benefit Rate per        Benefit Rate per
   employment that occur              year of Regular         year of Seasonal 
   in the period:                     Credited Service        Credited Service
   
   April 21, 2006 to April 21, 2007         $85.00                  $57.75
   April 21, 2007 to April 21, 2008         $85.00                  $57.75
   April 21, 2008 to April 21, 2009         $85.00                  $57.75
   April 21, 2009 to April 21, 2010         $85.00                  $85.00
   April 21, 2010 to April 21, 2011         $85.00                  $85.00
   April 21, 2011 to April 21, 2012         $85.00                  $85.00
   

6. Full Accrued Retirement
   1. Normal Retirement - Normal Retirement date is the first day of the month coincident with or next following age 65.

      On retirement at or after Normal Retirement date, the Member shall be entitled to a pension from the Plan, subject to adjustment under sections 9 and 12, equal to his/her Accrued Retirement Pension as determined at the date of retirement.

   2. Special Early Retirement - A Member who attains age 60 and completes 30 years of Credited and elects to retire during the term of this collective agreement, shall be entitled to a pension from the Plan, subject to adjustment under Section 9 and 12, equal to his/her Accrued Retirement Pension as determined at the date of retirement. He/she shall also be entitled to a temporary monthly pension from the Plan payable to Normal Retirement date (or until death of the Member, if earlier), equal to the Member’s Credited Service multiplied by $15.07. This temporary monthly pension is not subject to adjustment under section 12.

   3. OVER THIRTY OPTION - SPECIAL RETIREMENTS
      
      It is understood and agreed between the parties that the enhanced pension benefits negotiated in this Article are based on and in lieu of wage increases in the 1997 of this Collective Agreement. This Letter sets out a special bonus payable outside of the pension plan applicable to certain employees who will have greater than 30 years of pensionable service and who will retire between the ages of 55 and 60.
      
      An employee who has attained age 55 and retires on or before his/her 60th birthday, will be eligible for a cash bonus of $5,000 for each year of pensionable service in excess of 30 years. The bonus will be prorated for partial years of pensionable service and will be paid upon retirement. An employee terminating prior to age 55 or retiring after his/her 60th birthday will not be eligible for any part of this bonus. Any new employees achieving benefit status (Member) after the date of ratification of this Collective Agreement will not be eligible for this bonus.

   4. 85 Point Retirement - A Member who retires from active employment and has attained age 55 and accumulated 85 points (age plus Credited Service) may elect 85 Point Retirement. Upon 85 Point Retirement the Member shall be entitled to a pension from the Plan, subject to adjustment under Section 9 and 12, equal to his/her Accrued Retirement Pension as determined at the date of retirement.

7. Early Retirement
   A Member who retires from active employment who is not eligible for Normal Retirement or 85 Point Retirement, and has attained age 55 and completed two years of Credited Service may elect Early Retirement. Upon Early Retirement the Member shall be entitled to a pension from the Plan, subject to adjustment under Section 9 and 12, equal to his/her Accrued Retirement Pension as determined at the date of retirement reduced by one-third of 1% for each month by which his/her Early Retirement date precedes his/her Normal Retirement date.

8. Partial Disability Retirement
   An active Member who has attained age 50, completed 10 years of service, becomes disabled to the extent that Molson Breweries agrees that the Member should retire, and is not eligible for payment under the Long Term Disability Plan, may elect Partial Disability Retirement. Upon Partial Disability Retirement the Member shall be entitled to receive a pension from the Plan, subject to adjustment under Section 9 and 12, equal to his/her Accrued Retirement Pension as determined at the commencement of disability.

9. Joint and Survivor Pension
   A Member who retires with an eligible spouse shall receive a joint and survivor pension unless the Member and spouse deliver to the Plan administrator a written waiver of such entitlement, in the prescribed form and within the 90 day period immediately preceding retirement.

   Unless the joint and survivor pension is waived, the Member's lifetime pension shall be reduced by 10% and, upon the Member's death, his/her spouse shall receive a pension equal to 60% of the lifetime pension being paid to the Member immediately prior to his/her death. Further, the lifetime pension shall be actuarially reduced to the extent the spouse is more than 10 years younger than the Member.

10. Benefits on Death before Retirement
    If an active Member dies having completed 10 years of continuous service, his/her eligible spouse shall receive an immediate pension from the Plan, subject to adjustment under Section 12, equal to 50% of the Member's Accrued Retirement Pension as determined at the date of the Member’s death. The value of the monthly pension payable to the spouse cannot be less than 60% of the value of the vested benefits earned in respect of service on or after December 31, 1992.

    In lieu of the monthly pension otherwise payable, an eligible spouse may elect to receive the commuted value of the pension as a lump sum payment.

    If an active Member dies on or after age 55, the Plan will assume the deceased member retired on his date of death.

11. Benefits on Death after Retirement
    If the joint and survivor pension outlined in section 9 is waived or if the Member does not have an eligible spouse at retirement, the Member's pension shall be payable during the Member's lifetime and shall cease upon his/her death. Upon retirement, the Member may elect an optional form of pension.

12. Escalation of Benefits
    For Members who retire on or after May 1, 1973, the Member’s pension shall be subject to an annual escalation. The escalation will be made on each January 1st following the Member’s actual retirement date, based on the increase in the national Consumer Price Index for the twelve month period ending the prior August 31st, to a maximum of 2%. For a Member who retires within the 6-month period prior to their first escalation, the 2% maximum shall be reduced to one-third of 1% for each month by which the Member’s actual retirement date precedes the date of the first escalation.

    Any pension payable to a spouse of a Member who retired on or after April 21, 1988 shall also be escalated, with the first increase occurring on the January 1st following the Member's death.

13. Termination of Employment (Vesting)
    Upon termination of employment prior to attaining age 55 but after completing the earlier of two years of Plan Membership or five years of continuous service, a Member shall be entitled to a pension from the Plan, subject to adjustment under Section 9 and 12, commencing on his/her Normal Retirement date and equal to his/her Accrued Retirement Pension as determined at the date of termination of employment.

14. Pension Advisory Committee
    In order to promote awareness and greater understanding of the plan amongst the membership, a Pension Advisory Committee will be established. This Committee will be made up of one active Plan Member and one retired Plan Member. Appointments to the Committee shall be made by the Union members of the Negotiating Committee.

    The Committee may review and provide advice on the financial, actuarial and administrative aspects of the plan and any other matters relating to the plan as requested by the employer or administrator.