Christian Schools International

Section 1 - Definitions

Wherever used herein, the following words and phrases shall have the respective meanings stated below unless a different meaning is plainly required by the context:

1.01 - Accrued Benefit means the amount of the annual pension payable in the form pursuant to Section 7.04 beginning at or after the Participant's Normal Retirement Date. The annual amount of the Accrued Benefit will equal (a) plus (b) as follows:

(a)

(i) the sum of:

(A) with respect to Vesting service completed prior to September 1, 1992, the sum of:

(1) $33 multiplied by the number of the Participant's years of Vesting Service, to the next highest 1/12th, credited for service prior to September 1, 1951; plus
(2) 66-2/3% of such participant's total contributions pursuant to Section 5.01 that have been made from September 1, 1951, through August 31, 1992: plus
(3) 2% of the amount accrued under the foregoing paragraph (2) as of August 31, 1983, multiplied by the number of the Participant's years of Vesting Service (without the adjustment described in Section 3.02), to the next highest 1/12th earned during the period from September 1, 1951, through August 31, 1983; plus
(4) 2% of the amount accrued under the foregoing paragraphs (2) and (3) as of August 31, 1985, multiplied by the number of the Participant's years of Vesting Service (without the adjustment described in Section 3.02) between September 1, 1983, and August 31, 1985, rounded to the next highest 1/12th; plus
(5) 2% of the amount accrued under the foregoing paragraphs (2), (3) and (4) as of August 31, 1987, multiplied by the number of the Participant's years of Vesting Service (without the adjustment described in Section 3.02) between September 1, 1985, and August 31, 1987, rounded to the next highest 1/12th; plus
(6) For a Participant who is an Employee as of September 1, 1990, 3% of the amount accrued under the foregoing paragraphs (2), (3), (4) and (5) as of August 31, 1990, multiplied by the number of the Participant's years of Vesting Service (without the adjustment described in Section 3.02) between September 1, 1987, and August 31, 1990, rounded to the next highest 1/12th; plus
(7) For a Participant who is an Employee as of September 1, 1992, the lesser of:

(aa) 66-2/3% of such Participant's total contributions pursuant to Section 5.01 that have been made from September 1, 1991, through August 31, 1992, multiplied by the number of the Participant's years of Vesting Service(without the adjustment described in Section 3.02) from September 1, 1951, through August 31, 1992, rounded to the next highest 1/12, minus the amount of pension benefit determined in the foregoing paragraphs (1) - (6) above, but not less than $0.00; and
(bb) the amount of pension benefit determined under the foregoing paragraphs (1) - (6) as of August 31, 1992, multiplied by 5%; plus

(B)

(ii) 1.84% of the Participant's Final Three Average Earnings multiplied by the Participant's Adjusted Credited Participating Service completed prior to September 1, 2010;

(b)

1.02 - Actuarially Equivalent means, with respect to two different forms of payment of benefits, equal monetary value on the date of determination. Equality in value shall be determined by the Actuary on the basis of actuarial table UP1994 projected to 2015 with a unisex blend of 45% male and 55% female rates and interest of 6.75% per annum, compounded annually, subject to any requirements of the Pension Benefits Act.

1.03 - Actuary means the individual actuary or firm of actuaries se who is, or one of whose employees is, a Fellow of the Canadian Institute of Actuaries, and who is selected by the Trustees to provide actuarial services in connection with the administration of the Plan.

1.04 - Additional Benefit is as defined in Section 4.07.

1.05 - Adjusted Credited Participating Service is as defined in Section 3.02.

1.06 - Alternative Spouse Pension is a pension payable to a qualifying Spouse on the death of a Participant in lieu of the Preretirement Surviving Spouse Benefit, and is equal to 60% of the pension the Participant would have received had the Participant retired immediately before his or her death and elected a pension payable in the normal form.

1.07 - Administrator means the Trustees.

1.08 - Beneficiary means the Participant's Surviving Spouse at the date of the Participant's death and the Surviving Spouse's estate with respect to any benefit due but not paid at the subsequent death of the Surviving Spouse. If the Participant did not have a Surviving Spouse at the time of death, if the Surviving Spuse has waived entitlement to the Pre-retirement Surviving Spouse Benefit as required under the Pension Benefits Act, or if the Participant's Surviving Spouse consents in writing to, and acknowledges the effect of, a designation of another Beneficiary, then "Beneficiary" means the first of the following classes of Persons in the order named with a living member on the respective dates that benefits are payable:

The Beneficiary designated by the Participant, as herein provided, in the proportions and in the order provided in the designation, or if no provision is made, in equal shares;
The Spouse to whom the Participant was married at the time of his or her death and the Spouse's estate with respect to any benefit due but not paid at the subsequent death of the Spouse;
The Participant's natural and adopted children in equal shares, provided that the then living issue of any deceased child shall take their parent's share by right of representation;
The Participant's parents, in equal shares;
The Participant's brothers and sisters, in equal shares.

1.09 - Board of Directors means the Board of Directors of CSI.

1.10 - Break in Service means a period of 12 consecutive months or longer commencing on the date of an Employee's Termination of Employment.

1.11 - CSI means Christian Schools International, a Michigan nonprofit corporation.

1.12 - Commuted Value means, in relation to benefits that a Person has a present or future entitlement to receive, a lump sum amount which is the actuarial present value of those benefits computed using rates of interest, the actuarial tables and other assumptions that are adopted by the Trustees on the recommendation of the Actuary for purposes of the Plan, subject to any requirements of the Pension Benefits Act and Income Tax Act.

1.13 - Compensation means amounts paid to an Employee by the Employer, in cash or cash equivalent, for personal services, which must be reported on Income Tax form T-4. The term does not include reimbursements, fringe benefit payments or amounts taxable to the Employee which are not direct salary or wages and includes severance payments up to a maximum of three months of salary.

1.14 - Continuous Service means a Participant's uninterrupted period of employment since the Participant's last date of hire by the Employer, including any period of temporary suspension of active employment.

1.15 - Contingent Annuitant means a Spouse, former Spouse or a "dependent" of the Participant as of the date of the Participant's death, as such latter term is defined in the Income Tax Act. "Dependent" includes:

a parent, grandparent or sibling;
a child or grandchild of the Participant who is:

18 years or younger;
In full-time attendance at school; or
mentally or physically infirm.

1.16 - Contribution Account is as defined in Section 5.04.

1.17 - Credited Interest means the "Credited Interest" included in a Participant's Contribution Account which shall be determined as follows:

No interest shall be credited for any period before September 1, 1963.
In respect of Participants who are employed by a Participating Employer at the end of the Plan Year, interest at one-half the rates hereinafter specified for each Plan Year, compounded annually, shall be credited at the end of each Plan Year on their contributions made during the Plan Year.
In respect of Participants who cease to accrue Credited Participating Service during a Plan Year and who elected to leave their benefit entitlement in the Plan, interest at one-half the rates hereinafter specified, compounded annually, shall be credited for the period during which Credited Participating Service is accruing, and interest at the rates hereinafter specified, in full, compounded annually, shall be credited for the remainder of the Plan Year.
Interest at the rates hereinafter specified, compounded annually, shall be credited on the balance of contributions in a Participant’s Contribution Account at the end of the previous Plan Year.

The crediting of interest will end on the first to occur of the following dates:

the first day of the month in which a refund of contributions is made;
the first day of the month in which the Participant's death occurs;
the date of commencement of the Participant's pension under the Plan.

The rate of interest shall be 2-1/2% per annum for all periods before September 1, 1968, 3-1/2% per annum for periods between September 1, 1968, and August 31, 1973, 4-1/2% per annum for periods between September 1, 1973, and August 31, 1977, 5% per annum during the period from September 1, 1977, through August 31, 1982. The rate of interest shall be 7-1/2% for the period September 1, 1982, through August 31, 1984, and 8% for the period September 1, 1984, through August 31, 1986. On and after September 1, 1986, the rate of interest shall be established from time to time by the Trustees and shall be not less than the minimum rate specified pursuant to the Pension Benefits Act. The interest rate established by the Trustees for a particular Plan Year or period of time shall continue until modified by further action of the Trustees. The interest rate established by the Trustees for a particular Plan Year shall not be reduced retroactively following the close of that Plan Year.

Credited Interest shall also mean interest on lump sum payments out of the Trust Fund, other than payments of Commuted Values, compounded annually and calculated from the date at which determination is required to the beginning of the calendar month of payment, or to such other date as may be required under the Pension Benefits Act, at the rate that is credited on Participant contributions as outlined above. Credited Interest means interest on the payment of a Commuted Value out of the Trust Fund compounded annually and calculated from the date at which the Commuted Value was determined to the beginning of the calendar month of payment, or to such other date as required under the Pension Benefits Act, at the same rate that was used to determine the Commuted Value, or at such other rate as may be required by the Pension Benefits Act.

1.18 - Credited Participating Service is as defined in Section 3.01, and, subject to the exceptions and limits set out in Section 3.01, means the periods during which the Participant was an active contributor to the Plan.

1.19 - Declaration of Trust means the Agreement and Declaration of Trust made as of September 1, 1972, as the same has been, and from time to time may be, amended. The Trust constitutes a part of the Plan.

1.20 - Disabled means having a disability throughout which the Participant is physically or mentally impaired so that the Participant is prevented from performing the duties of employment in which the Participant was engaged prior to the impairment and which is certified, in writing, by a medical doctor licensed to practice in Canada or where the Participant resides.

1.21 - Early Retirement Benefit is as defined in Section 6.02.

1.22 - Early Retirement Date means the first day of the month coincident with or next following the date the Participant actually retires, if the Participant retires after earning a Vested Percentage of 100% and not more than ten years prior to, but not later than, such Participant's Normal Retirement Date.

1.23 - Employee means any Person employed by one or more Participating Employers, as follows:

on a regular full-time salaried or hourly basis, or
on a regular part-time basis, provided such Person's Compensation is at least 35% of the Y.M.P.E. (25% if employed in Manitoba) in the year preceding his or her eligibility to participate in the Plan.

1.24 - Employer means CSI or any member of CSI in Canada.

1.25 - Final Average Earnings means either, as applicable,:

Final Three Year Average Earnings which means the average of a Participant's Compensation as follows:

in the event that a Participant has been a Participant for 3 full years or longer prior to the Participant's Termination of Employment, death or Retirement, whichever first occurs, the annual average of the Participant's Compensation while a Participant during the best 3 consecutive years out of the last 20 years with respect to the period ending not later than August 31, 2011; and
in the event that a Participant has been a Participant for less than 3 full years prior to the Participant's Termination of Employment, death or Retirement, whichever first occurs, the annual average of the Participant's Compensation during his or her entire period as a Participant but with respect to the period ending not later than August 31, 2011.
Notwithstanding the foregoing, in the event a Participant terminates employment prior to the end of the Plan Year, "Final Three Year Average Earnings" shall be determined as the greater of (i) and (ii) as follows:

(i) the annual average of the Participant's Compensation while a Participant during the 36 consecutive months of employment immediately preceding the Participant's Termination Date; and
(ii) the annual average of the Participant's Compensation while a Participant during the best 3 consecutive full Plan Years out of the last 20 years up to and including the Plan Year immediately prior to the Plan Year in which the Participant terminates, with respect to the period ending not later than August 31, 2011.

Notwithstanding the above, the Final Three Year Average Earnings of a Participant who is a Part-Time Employee will be determined based on Compensation which is annualized for each Plan Year of Part-Time employment, such that the Participant's Compensation is multiplied by the ratio of 1 to Credited Participating Service completed within such Plan Year as determined by the Participating Employer.

The Final Three Year Average Earnings of a Participant who takes a Maternity Leave or Parental Leave as provided in Section 3.04 and who continues to make contributions during such leave will be determined taking into account the Compensation that would have been paid during the leave had the Participant been actively at work during such period based on the level of Compensation in effect at the commencement of the leave.

The Final Three Year Average Earnings of a Participant who has a Break in Service and who elected to receive a deferred vested pension from the Plan at the time of Termination of Employment will be determined by ignoring the period of the Break in Service. Compensation paid prior to the Break in Service to such a Participant will be included in determining Final Average Earnings to the extent that the Participant has not been rehired for 3 full years. As a point of clarification, Final Three Year Average Earnings determined on this basis will be applied to determine the amount of pension payable for all years of service including service prior to the Break in Service; or

Final Five Year Average Earnings, which means the average of a Participant's Compensation, as follows:

in the event that a Participant has been a Participant for 5 full years or longer prior to the Participant's Termination of Employment, death or Retirement, whichever first occurs, the annual average of the Participant's Compensation while a Participant during the best 5 consecutive years out of the last 20 years with respect to the period ending not later than August 31, 2011; and
in the event that a Participant has been a Participant for less than 5 full years prior to the Participant's Termination of Employment, death or Retirement, whichever first occurs, the annual average of the Participant's Compensation during his or her entire period as a Participant but with respect to the period ending not later than August 31, 2011.
Notwithstanding the foregoing, in the event a Participant terminates employment prior to the end of the Plan Year, "Final Five Year Average Earnings" shall be determined as the greater of (i) and (ii) as follows:

(i)the annual average of the Participant's Compensation while a Participant during the 36 consecutive months of employment immediately preceding the Participant's Termination Date; and
(ii)the annual average of the Participant's Compensation while a Participant during the best 5 consecutive full Plan Years out of the last 20 years up to and including the Plan Year immediately prior to the Plan Year in which the Participant terminates, with respect to the period ending not later than August 31, 2011.

Notwithstanding the above, the Final Five Year Average Earnings of a Participant who is a Part-Time Employee will be determined based on Compensation which is annualized for each Plan Year of Part-Time employment, such that the Participant's Compensation is multiplied by the ratio of 1 to Credited Participating Service completed within such Plan Year as determined by the Participating Employer.

The Final Five Year Average Earnings of a Participant who takes a Maternity Leave or Parental Leave as provided in Section 3.04 and who continues to make contributions during such leave will be determined taking into account the Compensation that would have been paid during the leave had the Participant been actively at work during such period based on the level of Compensation in effect at the commencement of the leave.

The Final Five Year Average Earnings of a Participant who has a Break in Service and who elected to receive a deferred vested pension from the Plan at the time of Termination of Employment will be determined by ignoring the period of the Break in Service. Compensation paid prior to the Break in Service to such a Participant will be included in determining Final Average Earnings to the extent that the Participant has not been rehired for 5 full years. As a point of clarification, Final Five Year Average Earnings determined on this basis will be applied to determine the amount of pension payable for all years of service including service prior to the Break in Service.

1.26 - Former Plan means the Christian School Pension Plan under which Employees previously accrued benefits up to and including August 31, 1972.

1.27 - Income Tax Act means the Income Tax Act, Canada, and Regulations thereunder, as amended from time to time.

1.28 - Maternity Leave is as defined in Section 3.04.

1.29 - Minimum Benefit means the remaining balance in the Participant's Contribution Account, determined under Sections 5.04 and 5.05, upon the completion of all benefit payments to or with respect to the Participant under Sections 6.01, 6.02, 6.05 or Section 4, whichever applied including any supplement under Section 6.03. The Minimum Benefit shall be paid to the Participant's Beneficiary at the time and in the manner specified in Section 7.09.

1.30 - Normal Retirement Benefit is as defined in Section 6.01.

1.31 - Normal Retirement Date means the first date of the month coincident with or next following the date on which the Participant attains age sixty-five (65). For purposes of this definition, "Participant" includes a Participant who terminated prior to the effective date of this amendment with a Vested Benefit.

1.32 - Parental Leave is as defined in Section 3.04.

1.33 - Participant means an Employee of a Participating Employer who is eligible for participation in the Plan under the provisions of Section 2. The term "Participant" shall also include an individual whose employment has terminated but who retains a right to benefits under the Plan.

1.34 - Participating Employer means an Employer located in Canada which has notified CSI, including the Trustees, in a written agreement that it wishes to participate in the Plan and agrees to be bound by the provisions of the Plan and the Declaration of the Trust.

1.36 - Pension Benefits Act means the Pension Benefits Act of Ontario and Regulations thereunder, as amended from time to time, together with such other regulatory legislation as may be enacted by any provincial government designated under such Act, as having in force legislation substantially similar thereto, from the effective date of such designation.

1.35 - Part-Time Employee means an Employee who does not work on a regular full-time basis.

1.37 - Person means an individual, (committee, proprietorship, partnership, corporation, trust, estate, association, organization), or similar body or entity that is recognized by law as the subject of rights and duties.

1.39 - Plan Year means each 12-consecutive-month period beginning September 1 and ending August 31.

1.38 - Plan means the pension plan described in this instrument and known as "Canadian Christian School Pension Plan" as amended from time to time.

1.40 - Preretirement Surviving Spouse Benefit means, on and after September 1, 1986, the benefit payable to the Surviving Spouse of a Participant who dies within the period beginning on the date the Participant is first eligible for a Vested Benefit and ending on the date benefits payments to or with respect to the Participant begin under Section 6 (whether or not the Participant is employed by a Participating Employer at the time of death), and who is entitled to a Vested Percentage of 100%.

The Preretirement Surviving Spouse Benefit shall be payable in accordance with Sections 6.05 and 7.06.

1.41 - Regulations means Regulations issued by the Financial Services Commission of Ontario under the Pension Benefits Act or by Canada Revenue Agency under the Income Tax Act, as the context indicates.

1.42 - Retirement means Termination of Employment for any reason other than death, while a Participant is eligible for a Normal Retirement Benefit or an Early Retirement Benefit.

1.43 - Spouse means

for Participants in the Province of Ontario, either

a Person who is legally married to the Participant;
a Person of the opposite sex who is living with the Participant in a conjugal relationship,

continuously for a period of not less than three (3) years, or
in a relationship of some permanence, if they are the natural or adoptive parents of a child, both as defined in the Ontario Family Law Act, 1986; or

a Person of the same sex who is living with the Participant in a conjugal relationship,

continuously for a period of not less than three (3) years, or
of some permanence, if they are the natural or adoptive parents of a child, both as defined in the Ontario Family Law Act, 1986;

for Participants in the province of Alberta, either
- a Person who is legally married to the Participant and who has not been living separate and apart from the Participant for three (3) or more years, or
- if (i) does not apply, a Person who, immediately preceding the relevant time, has lived with the Participant in a conjugal relationship:
for Participants in the province of British Columbia, either

a Person who is married to the Participant and is not living separate and apart from the Participant, or
a Person who has lived and cohabited with the Participant in a marriage-like relationship for the two (2) year period immediately preceding the relevant time;

for Participants in the province of Prince Edward Island, either

a Person who is married to the Participant, or
a Person who is married to the Participant under a voidable marriage that has not been annulled, or
a Person who has, in good faith, gone through a form of marriage with the Participant that is void and has cohabited with the Participant within the twelve (12) month period immediately preceding the relevant date,
a Person who has lived with the Participant as husband and wife for at least three (3) years at the relevant date where neither party is married to another person; or
a Person of the same gender who has lived with the Participant for at least three (3) years at the relevant date where neither party is married to another person;

for Participants in the province of Saskatchewan, either

a Person who is married to a Participant or former Participant, or
if a Participant or former Participant is not married, a Person with whom he or she is cohabiting as spouses at the relevant time and for at least one year;

for Participants in the province of Manitoba, either
- a Person who is married to the Participant and is not living separate and apart from the Participant, or
- a Person of the opposite sex who has been publicly represented as the Participant's Spouse for at least three (3) years, if the Participant and that Person are prevented by law from marriage, or
- a Person of the opposite sex who has been publicly represented as the Participant's Spouse for at least one (1) year, if the Participant and that Person are not prevented by law from marrying, and who qualifies as a spouse or common-law partner under the Income Tax Act for purposes of registered pension plans.

1.44 - Supplemental Spouse Pension means the additional benefit payable to a Participant who has a Spouse and who is entitled to a Normal Retirement Benefit or an Early Retirement Benefit under Sections 6.01 and 6.02 respectively. Such Supplemental Spouse Pension shall be payable in accordance with Section 6.03.

1.46 - Surviving Spouse Annuity for a retired Participant who has a Spouse means equal monthly pension benefit payments in a reduced amount (compared with the amount of a Life, Guaranteed Ten (10) Years annuity) to the Participant for such Participant's lifetime and continuing payments to the Participant's Surviving Spouse for life of 60% (66-2/3% in Manitoba) of the reduced monthly amount paid to the Participant. The amount of the Surviving Spouse Annuity shall be such that the Commuted Value of the expected payments to the Participant and the Surviving Spouse is Actuarially Equivalent to the benefit otherwise payable thereunder (excluding the supplement under Section 6.03).

1.45 - Surviving Spouse means the Spouse of the Participant on the date the first monthly benefit is payable to the Participant. If the Participant dies before commencement of benefit payments hereunder, "Surviving Spouse" means the Participant's Spouse.

1.47 - Termination Date means the date a Participant's employment terminates for any reason.

1.48 - Termination of Employment is as defined in Section 4.03.

1.50 - Trustees/Trustee means, collectively, the members of the Canadian Christian School Pension Trust Fund Board of Trustees, who are appointed by the Board of Directors pursuant to the Declaration of Trust and the Plan, and are responsible for the management of the Trust Fund and the administration of the Plan. "Trustee" means any individual one of such Trustees.

1.49 - Transferred Participant means a Person who was an active Participant in this Plan (or the U.S. Plan) and who, after September 1, 1972, left the service of his or her Employer and entered the service of an Employer participating in the U.S. Plan (or this Plan), and became an active Participant in the latter Plan, provided that the Participant's transfer from one Employer to the other would not have constituted Termination of Employment under the provisions of Section 1.48 and 4.03, if both Employers had been participating in the same Plan.

1.51 - Trust Fund means the fund established under the Declaration of Trust, known as the "Canadian Christian School Pension Trust Fund," from which benefits under the Plan are to be paid.

1.52 - U.S. Plan means the Christian School Pension Plan in the United States of America.

1.53 - Vested Benefit means in respect of a Participant's Termination of Employment, prior to eligibility for an Early Retirement Benefit or Normal Retirement Benefit, and provided such Participant's Vested Percentage is 100%, an annual pension for life only in the amount of the Participant's Accrued Benefit plus lump sum Additional Benefit, if applicable.

In the event a Termination of Employment occurs in respect of a Participant who has not withdrawn or cashed out the Contribution Account prior to his or her Normal Retirement Date, but who has a Vested Percentage of "none", such Participant shall not be entitled to a Vested Benefit under the Plan.

1.55 - Vesting Service is as defined in Section 4.02.

1.54 - Vested Percentage is as defined in Section 4.01.

1.56 - Y.M.P.E. means the Year's Maximum Pensionable Earnings as defined under the Canada/Quebec Pension Plan.