Christian Schools International

Section 8 - Benefits - General Provisions and Limitations

8.01 - The eligibility for, and amount of, a benefit provided herein for any Participant, Surviving Spouse or other Beneficiary, if any, shall be based upon the terms of the Plan in effect at the Participant's Termination Date and shall not be affected by any amendment which is effective thereafter unless retroactive effect is expressly stated in the amendment; provided, however, that benefit payments to a Participant, Surviving Spouse or other Beneficiary shall be paid in the form and at the time described in Section 7 for such payments. A Participant or Beneficiary shall not be eligible for more than one benefit under the Plan or payment of the benefit in more than one form hereunder, and the benefit provisions and forms of payment shall be mutually exclusive to that extent. The preceding sentence does not apply to the continuing benefit for a Surviving Spouse or other Contingent Annuitant, the Supplemental Spouse Pension, the disability benefit, the Minimum Benefit, all of which shall be paid as provided herein, or to receipt of a benefit as a Participant and a different benefit as the Beneficiary (including Surviving Spouse) of another Participant.

8.02 - Except as otherwise provided herein, when a Participant or other individual is permitted to make an election or a designation hereunder, the action by the Participant or other individual must be evidenced by a written instrument in the form approved by the Trustees. The written instrument must be signed and witnessed by at least one witness. The written instrument shall be effective only when delivered to the Trustees or to a Person designated by the Trustees. The written instrument shall be null and void if delivered after the occurrence of an intervening event, such as death, which would render the Participant or other individual unable to take the action intended in the instrument.

8.04 - If a pension benefit is less than 2% of the Y.M.P.E. per annum in the year of the Participant’s retirement, termination or death, or such other amount prescribed by the Pension Benefits Act, and subject to any other limits prescribed by applicable provincial pension legislation as outlined in Section 7.10, the pension benefit may be paid in a single lump sum cash payment in accordance with Section 7.10.

8.03 - Each Participant and Beneficiary will furnish the Trustees with information reasonably necessary for the proper administration of the Plan, including, without limitation, proof of age and a current mailing address. In the absence of this information, the Trustees may use and rely on information they deem reliable regardless of the source of the information. The Participant or Beneficiary shall be entitled to no greater benefits hereunder than the Participant or Beneficiary would be entitled to receive if the Trustees used the current information to determine the amount of the benefits.

The Trustees and each other Person responsible for the administration of the Plan and Trust shall be entitled to rely upon the address of the Participant or Beneficiary last furnished to the Trustees by the Participant or Beneficiary. If no such address has been furnished, the Trustees may rely upon the last known address shown on the records of the Employer.

8.05 - If the Trustees shall determine that any retired Participant or other Person to whom any benefit is payable is unable to care for his or her affairs because of illness, accident, minority, or other incapacity, any payment due (unless prior claim shall have been made by a duly qualified guardian, committee, or other legal representative) may be made to such retired Participant's or Person's Spouse, parent, brother or sister, or any other Person as the Trustees may determine. Any such payment shall be a payment for the account of such retired Participant or other Person entitled thereto and shall, to the extent thereof, be a complete discharge of any liability under the Plan to such Person.

8.06 -

Suspended Benefits
A normal, late or early retirement benefit which is being paid (or which would be payable if the Participant elected to retire) will be suspended and forfeited for each calendar month of each Plan Year during which the individual qualifies as an Employee with a Participating Employer.
Resumption of Payment
If benefit payments have been suspended, payments shall resume no later than the first day of the third calendar month after the calendar month in which the Participant ceases to be employed in service with an Employer. Benefits payable upon resumption shall be the same as the suspended benefit plus any additional benefit accrued during the period of re-employment. In no event shall a benefit be actuarially increased by reason of a period of suspension and forfeiture hereunder.
Notification
No payment shall be withheld by the Plan pursuant to this Section 8.06 unless the Administrator notifies the Participant by personal delivery or first class mail during the first calendar month or payroll period in which the Plan withholds payments that his or her benefits are suspended. Such notifications shall contain a description of the specific reasons why benefit payments are being suspended, a description of the Plan provisions relating to the suspension of payments and a copy of such provisions.
Amount Suspended

Life Annuity
With respect to benefits payable on a monthly basis for as long as life or lives continues, such as a single or a qualified joint and survivor annuity, an amount equal to the monthly benefit payments derived from Employer and Participant contributions.
Other Benefit Forms
With respect to benefits payable in a form other than the form described in (i) above, an amount of the benefit payments for a Plan Year in which the Participant is employed by an Employer, equal to the lesser of:

The amount of benefits which would have been payable to the Participant during the Plan Year if he had been receiving monthly benefits under the Plan since his actual retirement based on a single life annuity beginning at his actual retirement age; and
The actual amount paid or scheduled to be paid to the Participant for such month. Payments scheduled to be paid less frequently than monthly may be converted to monthly payments for purposes of the preceding sentence.

8.07 - If a Participant does not have a Spouse, the Participant may designate a Beneficiary by filing a signed designation in the form approved by the Trustees. The Participant may change or revoke the designation in the same manner by filing a new designation with the Trustees. The will of a Participant is not effective for this purpose.

If a Participant has a spouse, the Participant may not designate a Beneficiary other than his or her Spouse unless the Participant's Spouse consents in writing to, and acknowledges the effect of, the designation. The consent and acknowledgment must be witnessed by a Trustee, a Person designated by the Trustees for such purpose or a notary public, unless it is established that consent of a Spouse may not be obtained because the Spouse cannot be located. A Participant may not designate a different Beneficiary without a new consent by the Spouse. A Participant may designate the Spouse as a successor Beneficiary, without the Spouse's consent.

A Beneficiary designation by a Participant who has no Spouse will not be effective upon a subsequent marriage or spousal relationship unless the consent and acknowledgment of the Spouse is obtained. Consent by a Participant's Spouse shall be irrevocable. A consent and acknowledgment will be effective only with respect to the consenting Spouse and will not be effective with respect to a subsequent Spouse.

The Trustees shall determine the proper individual or individuals to whom payment should be made hereunder, and the decision of the Trustees shall be final and binding on all Persons.

If distribution is being made to a Beneficiary who dies prior to complete distribution, the remaining amount of the benefit shall be paid to the successor Beneficiary determined hereunder. If distribution is being made to more than one Beneficiary, distribution shall continue to the survivor or survivors of them, and any remaining amount in the account upon the death of the last survivor shall be paid to the successor Beneficiary determined hereunder.

If no Beneficiary, as defined in Section 1.08, exists hereunder on the date a distribution is payable, the entire balance remaining to be distributed shall be paid to the estate of the Participant, if then under the active administration of a probate court, or if not, to those Persons who would then take the Participant's personal property under the applicable intestate laws then in force and in the proportions provided therein, as though the Participant had died at such time.

8.08 - The annual pension payable to a Participant in a Plan Year may not exceed the following:

Pre-1992 Service Maximum Pension
The annual lifetime pension payable to a Participant under this Plan in respect of pensionable service prior to January 1, 1992, including a pension payable under any other registered pension plan sponsored by a Participating Employer and any pension payable to a Participant's Spouse or former Spouse in accordance with Section 8.09, at retirement, disability, termination of employment or termination of the Plan, shall not exceed the Member's years of pensionable service, prior to January 1, 1992, to a maximum of 35 years multiplied by the lesser of:

$1,722.22 or such greater amount permitted under the Income Tax Act; and
2% of the average of the Participant's best 3 consecutive years' Compensation.

Pre-1992 Service Maximum Value
The value of an annual pension benefit provided upon early retirement under this Plan in respect of pensionable service prior to January 1, 1992, shall not exceed the value of the maximum pension as set out in Section 8.08(a) payable at the earliest of age 60, Normal Retirement Date and the age at date of disability, in the form of a single life annuity guaranteed for 10 years.
Post-1991 Service Maximum Pension
The annual lifetime pension payable to a Participant, Participant's Spouse or a Participant's former Spouse in accordance with Section 8.09 under this Plan in respect of pensionable service after December 31, 1991, determined at the time of pension commencement shall not exceed the years of the Participant's pensionable service on and after January 1, 1992, multiplied by the lesser of:

$1,722.22 or such greater amount permitted under the Income Tax Act; and
2% of the average of the Participant's best 3 consecutive years' Compensation, reduced, if the pension commencement date precedes the earliest of the date on which:
the Participant will attain age 60;
the Participant's age plus Continuous Service (excluding any periods of lay-off and temporary suspension of employment) would have equaled 80;
the Participant would have completed 30 years of Continuous Service (excluding any periods of lay-off ot temporary suspension of employment); and
the Participant becomes totally and permanently disabled, as prescribed under the Income Tax Act, by 1/4 of 1% for each month by which the pension commencement date precedes that day.

For the purposes of this Section 8.08, the term "pensionable service" shall mean the Participant's period of employment with the Employer in respect of which lifetime retirement benefits are provided to the Participants under the Plan, subject to any restrictions on such periods as prescribed under the Income Tax Act.

8.09 - On the breakdown of a spousal relationship, the pension benefit credit may be partitioned between the Participant and the Spouse within the limits imposed by the legislation of the applicable province.

The term "pension benefit credit" means the Commuted Value of the Accrued Benefit and the Additional Benefit which have accrued during the period of the spousal relationship, as if the Participant had terminated employment as of the date of termination of the spousal relationship with the Spouse.

Where a Spouse becomes entitled to a portion of the pension benefit credit of the Participant, the Spouse may elect:

to receive a portion of the Participant's pension payments once they commence in accordance with the terms of the Plan; or
to transfer the portion of the pension benefit credit to which such Spouse is entitled to:

another registered pension plan in which the Spouse is a member or former member, provided the terms of the other pension plan permit such a transfer, or
to a Registered Retirement Savings Plan that is not capable of surrender, assignment or commutation.

8.10 - In no event shall the benefit accrued in a Plan Year, under Section 1.01, result in a pension adjustment (as defined under the Income Tax Act) in excess of the limits prescribed by the Income Tax Act.

8.11 - Where an amendment to the Plan results in a certifiable past service pension adjustment (as defined under the Income Tax Act) in respect of a Participant, the amendment shall not apply to such Participant prior to certification of the past service pension adjustment in accordance with the Income Tax Act.

8.12 - In the event of the payment or transfer of a lump sum from the Plan due to separation of employment, a pension adjustment reversal (as defined in the Income Tax Act) will be reported in respect of the former Participant, if any, as required under the Income Tax Act.