Christian Schools International

Section 3 - Credited Service

3.01 - A Participant's Credited Participating Service is the total number of years (including fractions to the next highest 1/12th) of employment with one or more Participating Employers, during which he was a Participant in the Plan subject to the following conditions, adjustments and limitations:

A Participant earns Credited Participating Service only for periods during which he was an active contributor to the Plan.
Temporary absences arising from vacations or illness shall not reduce the length of Credited Participating Service, provided that the Trustees shall establish certain limits beyond which no further credit is granted in cases of extended disability.
The Credited Participating Service of any Participant who received a full refund of all contributions made by him to the Plan shall be cancelled as of the date of such refund.
Notwithstanding the above, with respect to a Part-Time Employee, Credited Participating Service is determined as described above for each Plan Year and then multiplied by the percentage of the Part-Time Employee's hours worked during each Plan Year to the number of hours regularly scheduled for a full-time Employee for a full Plan Year as determined by the Participating Employers.
The Credited Participating Service of any Participant granted with respect to a period represented by payment of severance in lieu of notice is limited to a period of three months.

With respect to a Participant who terminates employment, dies or retires, Credited Participating Service is determined as described in this Section 3.01 and is then adjusted to the percentage of a full Plan Year worked based upon the date of separation and, if applicable, a further adjustment for part-time employment as described above.

In respect of periods of absence before January 1, 1991, each period of Credited Participating Service granted in respect of temporary absences during which the Participant does not receive Compensation, is limited to a maximum full-time equivalent of two years. In respect of temporary periods of absence after December 31, 1990, the aggregate of Credited Participating Service granted in respect of temporary absences during which the Participant does not receive Compensation, including Maternity Leaves and Parental Leaves in accordance with Section 3.04, is limited to a maximum full-time equivalent of 5 years, plus an additional 3 years credited in respect of absences that occur within the twelve month period which commences at the time of birth or adoption of a child of the Participant.

The phrase, Credited Participating Service, when used in this Section 3.01, shall, in respect of any period of employment prior to September 1, 1972, of an individual who becomes a Participant on September 1, 1972, include any and all periods of participation in the Former Plan.

3.02 - A Participant's Adjusted Credited Participating Service is:

(a)

For Service prior to September 1, 2010

The number of years of such Participant's Credited Participating Service prior to September 1, 2010 minus,

(i) One-quarter multiplied by the number of years of such Participant's Credited Participating Service under the 3% Plan: and
(ii) One-half multiplied by the number of years of such Participant's Credited Participating Service after August 31, 2004 under the 2% Plan.

(b) For Service on and after September 1, 2010:

The number of years of such participant's Credited Participating Service on and after September 1, 2010, minus,

(i) 13/100ths multiplied by the number of years of such participant's Credited Participating Service under the 7.00% Plan; and
(ii) 31/100ths multiplied by the number of years of such participant's Credited Participating Service under the 5.55% Plan.

3.03 - Except as otherwise provided herein, a Participant's Credited Participating Service shall not include service during which the Participant or the Participant's Employer failed or refused to make the Employee contributions required under the Plan.

3.04 - For the purposes of the Plan, "Maternity Leave" means an unpaid pregnancy leave of absence of 17 weeks or less commencing no earlier than 17 weeks prior to the expected birth date. In the case of an Employee who is not entitled to a Parental Leave, however, the Maternity Leave will end not later than 6 weeks after the leave commences or the day that is 6 weeks after birth, still-birth or miscarriage, even if the total leave would then be greater than 17 weeks in length.

For the purposes of the Plan, "Parental Leave" means an unpaid parental leave of absence of 18 weeks or less commencing no more than 35 weeks following the birth date of the Employee's child or the coming of a child into the custody, care and control of the Employee for the first time.

A Participant who is on a Maternity Leave or Parental Leave, as determined by the Employer may elect in writing to continue to make contributions to the Plan during the period of the Maternity Leave or Parental Leave. If such a Participant elects not to continue making contributions during such leave, the Participant's contributions will cease at the commencement of such leave and no Credited Participating Service shall accrue during such leave. The accrual of the Participant's Credited Participating Service shall resume upon expiration of the Maternity Leave or Parental Leave provided such Participant returns to active service with the Employer immediately following the end of such leave.

If a Participant who is on a Maternity Leave or Parental Leave, as determined by the Employer, elects to continue making contributions to the Plan during such leave, the Participant's Credited Participating Service shall continue to accrue during the period of such leave, subject to the Income Tax Act limits outlined in Section 3.01. The Participant's contributions shall be made based on the Participant's annual rate of Compensation in effect at the commencement of such leave.

The period of a Participant's Maternity Leave or Parental Leave shall count as a period of employment with the Employer for the purpose of Vesting Service as determined in accordance with Section 4.02.

3.05 -

(a) Sabbatical Leaves of Absence
A Sabbatical Leave of Absence is an extended leave of up to one year granted in writing to a Participant by a Participating Employer. During such leave, the Participant either does not provide services to the Participating Employer or provides services on a reduced basis. Compensation is paid to the Participant during the leave. In the event that Compensation is reduced for a period of time either leading up to or following a Sabbatical Leave of Absence and the portion of Compensation not paid during such period is paid to the Participant during the Sabbatical Leave of Absence:

(i)

(ii)

(iii)

5 years of full-time equivalent Compensation; plus
the number of years of full-time equivalent Compensation in respect of periods of parenting to a maximum of 3 years.

(iv)

the period of the leave will be excluded from the 3 year period on which Final Three Year Average Earnings are to be based or from the 5 year period on which Final Five Year Average Earnings are based, as applicable; and
Compensation paid at the reduced level during the period leading up to the leave will be included at the full regular rate with no reduction in the determination of Final Average Earnings.

For further clarity, in the event that Compensation is reduced for a period of time leading up to a Sabbatical Leave of Absence and the portion of Compensation not paid during such period is paid to the Participant during the leave, even if the Participating Employer and the Participant make contributions to the Plan in respect of the portion of Compensation paid during the leave, the period of the Sabbatical Leave of Absence will not be included in the determination of Credited Participating Service.

Notwithstanding points (i) through (iv) noted above, in the event that the Participating Employer pays additional Compensation during the leave in addition to the portion of Compensation not paid for a period of time leading up to the Sabbatical Leave of Absence that is paid to the Participant during the leave:
(v) the Participant and the Participating Employer will continue to make contributions to the Plan during the leave based on the level of additional Compensation paid during the leave;
(vi) the period of the leave will be included in Credited Participating Service. If the additional Compensation is paid on a reduced basis during the leave, Credited Participating Service will be adjusted as provided under Section 3.01(d); and
(vii) in the event of Termination of Employment, death, Retirement or disability the Sabbatical Leave of Absence or within the three year period following the leave, the additional Compensation paid during the period of the leave will be included in the determination of Final Three Year Average Earnings or Final Five Year Average Earnings in accordance with Section 1.25.
In the event that Compensation is not reduced for a period of time either leading up to or following a Sabbatical Leave of Absence and the Participating Employer continues to pay Compensation to the Participant during the leave:
(viii) the Participant and the Participating Employer will continue to make contributions to the Plan during the leave based on the level of Compensation paid during the leave;
(ix) the period of the leave will be included in Credited Participating Service. If Compensation is paid on a reduced basis during the leave, Credited Participating Service will be adjusted as provided under Section 3.01(d); and
(x) in the event of Termination of Employment, death, Retirement or disability during the period of the Sabbatical Leave of Absence or within the three year or five year period following the leave, Compensation paid during the period of the leave will be included in the determination of Final Three Year Average Earnings or Final Five Year Average Earnings, as applicable, in accordance with Section 1.25.

(b) Teacher/Administrator Partnership Program Leave of Absence

A Teacher/Administrator Partnership Program Leave of Absence (TAPP Leave of Absence) is an extended leave granted through a program by the Board of Directors to a Participant who is employed by a Participating Employer as either a teacher or an administrator. During such TAPP Leave of Absence, the Participant does not provide services to the Participating Employer or provide services to the Participating Employer on a limited basis, and instead provides services to an approved organization.

If the Participant does not provide services to the Participating Employer during the TAPP Leave of Absence, Compensation will not be paid to the Participant by the Participating Employer during such period. Benefits earned by the Participant during such leave shall be based on the level of regular Compensation paid by the Participating Employer to the Participant and on his or her status as a regular full-time or Part-Time Employee in the 12 months immediately prior to the TAPP Leave of Absence.

If the Participant provides some services to the Participating Employer during the TAPP Leave of Absence, Compensation will be paid to the Participant by the Participating Employer commensurate with the services provided. Benefits earned by the Participant during such leave shall reflect services provided to both the Participating Employer and the approved organization but shall be equal to both the level of Compensation paid by the Participating Employer to the Participant and on his or her level of employment as a regular full-time or Part-Time Employee in the 12 months immediately prior to the TAPP Leave of Absence.

In respect of a TAPP Leave of Absence:

(i)

(ii)

(iii)

5 years of full-time equivalent Compensation; plus
the number of years of full-time equivalent Compensation in respect of periods of parenting to a maximum of 3 years;

(iv)