MEMORANDUM OF UNDERSTANDING
BY AND BETWEEN
IBEW LOCAL 46
REPRESENTING ELECTRONIC TECHNICIANS
AND
THE PORT OF SEATTLE

RE:  Adoption of Pacic Coast Pension Rehabilitation Schedule

The IBEW Pacic Coast Pension Fund, a supplemental pension of the Port of Seattle Electronic Technicians,
represented by Local 46, is in critical funding status. In accordance with The Pension Protection Act of 2006,
the Pension Fund actuary has developed a Rehabilitation Plan intended to enable the plan to cease being in
critical status by the end of the rehabilitation period. The rehabilitation plan contains three Rehabilitation Plan
Schedules for the Parties to choose the one that ts their needs. The Rehabilitation Plan Update dated August
2011 is incorporated by reference, and attached.

The Port of Seattle and Local 46 negotiated adoption of Alternative Schedule 2 in good faith and have agreed as
follows:

1.  As ofDecember 1, 2011, the parties agree to adopt the Schedule 2 of the Rehabilitation Plan.
2.  The Parties agree to share in the increased hourly pension contribution costs contained the Rehabilitation
Plan Schedule 2. The Port agrees to pay the increased hourly contribution cost of Schedule 2 beginning
December 1, 2011 and then the Port and the Union will share the increased hourly contribution costs on
June 1, 2012 as designated in paragraph three below.
3.  As of June 1, 2012, the Union agrees to an hourly wage deferral of thirty cents ($.30) to cover the
employee portion of the increased hourly pension contribution.
4.  If the rehabilitation plan is completed or modied so that the Port's pension contributions are restored
to current rates contained in the Collective Bargaining Agreement, fty cents ($.50) per hour
compensated, the employee portion, wage deferral of thirty cents ($.30), will be restored to the
employees hourly wage.
S.  This memorandum shall attach to the current Collective Bargaining Agreement between the P011 of
Seattle and IBEW Local 46 representing the Electronic Technicians, term June 1, 2011- May 31, 2014.
6.  The parties agree to open negotiations on all terms and conditions of this memorandum during
subsequent contract negotiations.

FOR IBEW LOCAL 46                 DATE

Virgil A. Hamilton, Business Manager

FOR THE PORT OF SEATTLE             DATE

Tay Yoshitani, CEO

IBEW PACIFIC COAST PENSION FUND
5 THIRD STREET, SUITE 525 ' SAN FRANCISCO, CA 9410343202
TELEPHONE (415) 8965742 ' (800) 257-1515 0 FAX (415) 896-0587

Rehabilitation Plan Update - August 2011

Introduction

The Pension Protection Act of 2006 ("PPA"),
as amended by the Worker, Retiree, and
Employer
Recovery Act of2008 ("WRERA") and the Preservation ofAccess to Care for Medicare
Beneciaries and Pension ReliefAct of 201 0 ("PRA"), requires the Trustees
of a multiemployer
pension plan that has been certied by the plan's actuary
as being in critical status to develop
a
Rehabilitation Plan that is intended to enable the plan to
cease to be in critical status by the end
of the plan's rehabilitation period. The Rehabilitation Plan
must be based on reasonably
anticipated experience and on reasonable actuarial assumptions. On June 29, 2009, the
I.B.E.W.
Pacic Coast Pension Fund ("Fund")
was certied by its actuary to be in critical status for
the
plan year beginning April 1, 2009. On July 8, 2009 the Trustees adopted
a Rehabilitation Plan.
On August 11, 2011 the Trustees updated that Rehabilitation Plan
to reflect actual experience.

This Rehabilitation Plan:

I.  Species the rehabilitation period and the expected
emergence date;

2.  Includes three schedules (Default Schedule plus two Alternative
Schedules) ofbenet
changes and non-benet contribution changes that Will be provided to the bargaining
parties, one of which must be implemented as part of future collective bargaining
agreements between local unions and contributing employers entered into
or renewed
after July 22, 2009;

3.  Provides annual standards for meeting the requirements of the Rehabilitation
Plan and
describes how the Rehabilitation Plan will be updated from time
to time; and

4.  Describes how the Default Schedule will be automatically implemented if
there is no
agreement between the bargaining parties in a timely manner.

Rehabilitation Period and Expected Emergence Date

Pursuant to Section 205 ofWRERA, the Trustees elected
on July 8, 2009 that the rehabilitation
period shall be 13 years long. The Trustees also determined, based
on information about the
expiration of the current collective bargaining agreements, that the Rehabilitation Period
will
begin on April l, 2010' The Fund is expected to emerge from critical status by April 1, 2023,
based on reasonable assumptions and implementation of this Rehabilitation
Plan.




"1-
Augusl 2011

Rehabilitation Plan Remedies and Schedules

Schedules

Attached to this document are the Default Schedule and two Alternative
Schedules under the
Rehabilitation Plan, which describe required supplemental non-benet
contributions and the
benet reductions that will be made upou each Schedule's implementation.
Notwithstanding the
following changes to the contribution schedules a prior schedule previously provided by
the
Trustees and relied upon by particular bargaining parties in
negotiating a collective bargaining
agreement shall continue to remain in effect without change for the duration of that collective
bargaining agreement. Nothing prevents such collective bargaining parties frOm
reopening their
existing collective bargaining agreement to adopt one of the following updated schedules
should
those collective bargaining parties wish to do
so. Any collective bargaining parties
negotiating a
successor collective bargaining agreement or new collective
bargaining agreement on and after.
the date of mailing of this notice must incorporate into that collective
bargaining agreement one
of the following updated schedules.

ImgIementatian oz Remedies andSchedules

The current monthly benefit 'of pensioners and beneciaries whose
annuity starting date is prior
to July 22, 2009 are not subject to reduction under this Rehabilitation
Plan. Benets for other
participants are determined as follows:

Except as provided under Special Rulesfor Application ofBenet Reductions, all
participants
who terminated or will terminate covered employment prior
to becoming covered by
a Schedule
in the Collective bargaining process, including those in
pay status who retired on or after July 22,
2009, shall have their benets determined based on the benet changes described
under the
Default Schedule upon implementation of the Default Schedule.
Except as provided below under
Special Rules for Application ofBenet Reductions upon implementation of the Default
Schedule the benet of a Participant who commenced benefits under
a Rule of 85 Pension
on or
after July 22, 2009 shall be reduced to the actuarial equivalent of
a Normal Retirement Benet.
These provisions shall take effect on the later of the date the
participant terminates covered
employment or the date that benets can be eliminated allowing for legally required
advance
notice.

The Default Schedule is implemented, except
as provided under the Special Rules for
Application of Benet Reductions, upon adoption of
any Schedule by the collective bargaining
parties but in no event later that 180 days following the expiration date of
a collective bargaining
agreement in effect as of April I, 2010 or such earlier date of implementation
as mandated by
applicable law or regulations.

For non-bargaining unit employees employed by employers who also
contribute on behalf of
bargaining unit employees the Schedule and implementation date is the
same as the Schedule and
rst implementation date for that employer's bargaining unit
employees. For non~bargaining unit
employees not employed by an employer that contributes pursuant to
a collective bargaining
agreement their implementation date is the earlier of the employer's adoption of
a Schedule or
180 days from April 1, 2010.



~2-
August 2011

Participants who work outside the jurisdiction of this Fund and have monies
sent to this Fund on
their behalf under a "money follows the man" reciprocity
agreement shall, for such time period,
be treated as not covered by a collective bargaining
agreement connected with this Fund and
therefore subject to the benet provisions of the Default Schedule.
Participants who work inside
the jurisdiction of this Fund and who have employer contributions
sent to an outside fund under
a
"money follows the man" reciprocity agreement shall have the rst dollar of each hourly
contribution (for contributions rates less than $3.00
per hour), all increased non-benefit
contributions under any Schedule and all employer surcharge contributions
remain in the
I.B.E.W. Pacic Coast Pension Fund for funding
purposes only. These contributions result in no
benet accruals for any Participant.

Special Rules {or Application at Benet Reductions

Those who had not commenced receipt of benets prior
to July 22, 2009 shall have their benets
calculated under the Default Schedule upon implementation unless:

> The participant immediately prior to retirement works
a minimum of435 hours in a Plan
Year (April 1, through March 3i) in Covered Employment under
a Collective Bargaining
Agreement that includes one of the Alternative Schedules subject to the conditions
described
in the sectionW or;

> The Participant worked a minimum of 435 hours in Covered
Employment during the April I,
2008 through March 3 l, 2009 Plan
year for an employer that adopts an Alternative Schedule
prior to the Participant's commencement of benets.

in either case, benefits shall be based upon the applicable Alternative Schedule
implemented by
the applicable Collective Bargaining Agreement.

Benets of a beneciary or alternative
payee with respect to a Participant or Retiree shall be
determined based upon the Schedule applicable to the benefits of the
Participant or Retiree to
' whom they relate.

Automatic Implementation at Detault Schedule

If a collective bargaining agreement providing for contributions under the
Plan that was in effect
on April I, 2010 expires, and aer receiving the Default and Alternative Schedules, the
bargaining parties fail to adopt an agreement with terms consistent with
any of those schedules,
the Default Schedule will be imposed, and the benets adjusted
accordingly, 180 days after the
date on which the collective bargaining agreement expires.

Annual Standards for Meeting the Rehabilitation Reguirements

Based on reasonable assumptions, the Fund is expected to
emerge from critical status by the Plan
Year beginning April 1, 2023. The Trustees recognize the possibility that actual experience
could
be less favorable than the reasonable assumptions. Therefore, the Trustees
are establishing the
following annual standards to reect possible actuarial losses and still keep the Fund
on target to
emerge from critical status by the end of the rehabilitation period.



.3-
August 2011

Credit Balance
Determination for Year         (Funding Deciency) Projected on
Beginning April 1:            March 31 of Followin Year":
201 l                             $24.4
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
* In millions.

Annual Updating of Rehabilitation Plan

Each year the Fund's actuary will review and certify the status of the Fund under PPA
funding
rules and whether, starting with the beginning of the rehabilitation period, the Fund is
making the
scheduled progress in meeting the requirements of the Rehabilitation Plan. If the Trustees
determine that it is necessary in light of updated information, they will revise the Rehabilitation
Plan and present updated schedules to the bargaining parties, which
may prescribe additional
benefit reductions or higher contribution rates.

Notwithstanding subsequent changes in benet and contribution schedules, 3 schedule provided
by the Trustees and relied upon by the bargaining parties in negotiating a collective bargaining
agreement shall remain in effect for the duration of that collective bargaining agreement.

However, a collective bargaining agreement that is renewed or extended will need to include
terms consistent with one of the schedules in effect at the time of the renewal
or extension.
mm

in the event that a particular Schedule is implemented for
an employer, and then another
Schedule is bargained as part of a subsequent negotiation, the Trustees
may develop a revised
contribution schedule for that particular situation.

If a participant changes employers and, as a result, becomes covered under
a different schedule,
benefits shall be determined as follows:



.4.                           August 2011

> If a participant who was covered by a particular Schedule subsequently becomes
covered
by another Schedule, benets accrued up to the date of change will be determined under
the rst Schedule and benets accruing after that date will be determined under the
second Schedule. Other plan features (e.g., disability benets, early retirement
benefits,
Rule of 85) will depend entirely on the Schedule applicable to the participant
at the time
of separation, death, or retirement.

Benet changes will become effective pursuant to the terms of this Rehabilitation Plan
as mm
as legally permissible alter the Rehabilitation Plan is adopted and are eXpected to be
permanent.

As required by the PPA, for benets commencing on or after July 22, 2009, the Social
Security
Level Income form ofpayment is no longer permitted.

Election of Pension Relief

Under the Preservation ofAccess to Care for Medicare Beneficiaries and Pension Relief
Act of
2010 (PRA), multiemployer plans that are certied by their actuaries to
pass a solvency test may
elect to take advantage of funding relief, in the form of certain changes made
to the minimum
funding requirements.

in order for a plan to qualify for this form of relief, its actuary must certify that the
plan is
projected to have sufcient funds to cover all benet payments and expenses for the extended
funding period permitted under the law. Based on the plan actuary's calculations, this Fund is
expected to qualify for the relief and the Board of Trustees plans to elect the following forms of
relief, to be reected in the nding standard account starting with the 2009 plan
year:

> As permitted under ERlSA Section 3D4(b)(8)(B) and lntemal Revenue Code Section
432(b)(8)(B) as amended by Section 211(a)(1) of the PRA, the Plan will adjust the
asset
value that is used for funding purposes to recognize the losses incurred in the Plan Year
ending March 3 l, 2009 over a ten-year smoothing period.

> As permitted under ERlSA Section 304(b)(8)(B) and internal Revenue Code Section
432(b)(8)(B) as amended by Section 21 1(a)(]) of the PRA, for the Plan Years beginning
April 1, 2009 and April 1, 2010, the actuarial value of assets will be no more than 130%
of the fair market value of assets.

These forms of funding reliefwere taken into account in developing the Rehabilitation Plan
described in this document. The election of funding reliefmeans that, in addition
to any other
restrictions on benet-increase amendments, for the 2010 and 201] Plan Years, the Plan
cannot
be amended to increase benefits unless there are new contributions to
pay for the increase and the
plan's projected credit balance and funded percentage for those two plan years
are reasonably
expected to be at least as high as if the benet increases had not been adopted.




-5-                           August 2011

By motion duly adopted, the Board of Trustees of the IBBW Pacic Coast Pension Trust Fund
on the 10'" day of August, 2011, hereby adopts this updated Rehabilitation Plan.
@4467 MZ/MChairman     Co-Chairman




45'
Augusl 2011

DEFAULT SCHEDULE FOR BENEFITS COMMENCING ON AND AFTER
JULY 22, 2009  '

Benet Changes

With respect to hours worked aer the date of implementation of this Schedule, the benet
accrual rate becomes the lesser of: i) 1.00% of contributiOns made on the participant's behalf,
or ii) 1.50% of contributions made on his/her behalf in excess of $1 .00
per hour. So, for
contributions above $3.00 per hour the rst approach is used, and for contributions below
$3.00 per hour the second approach is used. "Contributions" for this
purpose excludes any
contribution increases specically required by this Schedule.

The disability benet is eliminated for any participants who are not in
pay status as a
disabled participant as of July 22, 2009.

The 60~month guarantee period is eliminated with respect to benets not in
pay status as of
July 22, 2009.
The Pre~Retirement Death Benet is eliminated as of July 22, 2009.

All fonns of early subsidized retirement benets are eliminated for Participants not in
pay
status as of July 22, 2009. Such changes include:

o The Rule of 85 Pension is eliminated.

o The Early Retirement Pension is based on actuarial reductions from Normal Retirement
Age (age 63 in most cases).

The only forms of benet payment available to a retiring participant commencing
receipt of
benets on or alter July 22, 2009 shall be a single life annuity with no guarantee period, the
50% Husband-and-Wife Pension, and the 75% Husband-and-Wife Pension. The reduction
factors for the Husband-and-Wife payment forms will be adjusted so
as to be actuarially
equivalent to a single life annuity with no guarantee period.








-7-                           Augusl 2011

Contributions

Employer contribution rate leveis shalt increase as follows under this Schedule:

Required Contributiori Level*.


182%
Sept. 1,2015-Aug.31,20}6  "          185%
Sept. 1,2016~Aug.3i,2017
. .
188%

194%
Sept. 1, 2019 - Aug. 31, 2020 .        197%
Sept. 1, 2020 - Aug. 31, 2021               200%
Sept. l, 2021 - Aug. 31, 2022
Sept. 1, 2022 - March 3], 2023 
*  Shown as a percentage ofcontribution rate required under collective
bargaining agreement
in effect July 22, 2009 (excluding any surchargepayable in accordance with the Pension
Protection Act),

All additional contributions pursuant to this Schedule
over the amounts required under collective
bargaining agreements in effect as of July 22, 2009 shall be disregarded for
purposes of
determining participants' accrued and ancillary benets. Accrued and ancillary benets
are in no
fashion based upon the amount of increased employer contributions under the
foregoing
Schedule or any employer surcharge contributions payable by the employer. These
contributions
shall be utilized solely to improve the funding condition of the Plan and shall result in
no benet
accruals whatsoever.

If an existing agreement calls for different rates for apprentices
or other classicatious than the
journeyman rates Specied above, proportional off-benet contribution increases will be
required.





v8-
August 2011

ALTERNATIVE SCHEDULE 1

Benet Chan es

Benet accruals under a Collective Bargaining
Agreement after this Schedule is implemented
shall be determined disregarding
any contribution increases specically required under this
Schedule. The Level Income option is eliminated.
Except for the foregoing no other benet
accrual changes or reductions are provided for under this Schedule.

Contributions

Employer contribution rate levels shall increase as follows under this Schedule:

Sept. 1,2011 -Aug. 31,2012
Sept.l,2012-Aug.31,~2013
Sept. 1,2013~Aug.3l,2014" 
Sept. 1, 2014 - Aug. 31, 2015               238%
Sept. 1,2015-Aug.3],2016" 
Sept. l,2016Aug.3l,2017" 
Sept.l,20]7-Aug.31,2018
Sept. 1,2018-Aug.31,2019
ept. 1,2019-Aug.31,2020" 
Sept. 1, 2020 - Aug. 31, 2021
Sept. 1, 202] ~ Aug. 31, 2022               357%
Sept, 1, 2022 - March 3 l, 2023
*  Shown as a percentage ofcontribution rate required under collective
bargaining agreement
in effect July 22, 2009 (excluding
any surchargepayable in accordance with the Pension
Protection Act).

All additional contributions pursuant to this Schedule
over the amounts required under collective
bargaining agreements in effect as of July 22, 2009 shall be disregarded for
purposes of
determining participants' accrued and ancillary benets. Accrued and ancillary
benets are in no
fashiOn based upon the amount of increased employer contributions
under the foregoing
Schedule or any employer surcharge contributions
payable by the employer. These contributions
shall be utilized solely to improve the funding condition of the Plan
and shall result in
no benet
accruals whatsoever.

If an existing agreement calls for different
rates for apprentices or Other classications than
the
journeyman rates specied above, proportional ofbenet contribution increases
will be
required.


-9-
August 2011

ALTERNATIVE SCHEDULE 2

Benet Chan es

> With respect to hours worked after the date of implementation of this
Schedule, the benet
accrual rate becomes 1.25% of contributions made
on the participant's behalf.
"Contributions" for this purpose excludes any contribution increases
specically required by
this Schedule.

~ > The 60-month guarantee period is eliminated with respect to benets
not in pay status as of
July 22, 2009.
> The Prc-Retirement Death Benet is eliminated
as of July 22, 2009.

> The current early retirement reduction of2%
per year younger than 63 becomes 4% per year
younger as of July 22, 2009. However, the reduction factors under the Rule of 85 remain
unchanged.

> . The forms ofbenet payment available to a retiring participant commencing receipt of
benets on or after July 22, 2009 will remain the
same (except the Level Income option is
eliminated). However, the reduction factors for the Husband-and-Wife
payment forms will
be adjusted so as to be actuarially equivalent to
a single life annuity with no guarantee
period.

Contributions

Employer contribution rate levels shall increase as follows under this Schedule:

Time Period          Required Contribution Level* 
_ Sept. 1,2011-Aug.31,2012             181%
Sept. 2012 ~ Aug. 31, 2013              192%
Sept. 1, 2013 - Aug. 31, 2014
Sept. 1,2014-Aug. 31,2015
Sept. 1, 2015 - Aug. 31, 2016
Sept. 1, 2016 - Aug. 31, 2017
Sept. 1, 2017 - Aug. 31, 2018
Sept. 1, 2018 ~Aug. 31, 2019
Sept. 1, 2019 - Aug. 31, 2020
Sept. 1, 2020 - Aug. 31, 2021               281%
Sept. 1,2021 - Aug. 31, 2022
Sept. 1, 2022 ~ March 31, 2023
*  Shown as apercentage ofcontribution rate required under collective
bargaining agreement
in eect July 22, 2009 (excluding any surcharge payable in accordance with the
Pension
Prolecrion Act).

~10-                        August 2011

All additional contributions pursuant to this Schedule over the amounts required under collective
bargaining agreements in effect as of July 22, 2009 shall be disregarded for purposes of
determining participants' accrued benets. Accrued benets are in no fashion based
upon the
amount of increased employer contributions under the foregoing Schedule or
any employer
surcharge contributions payable by the employer. These contributions shall be utilized solely to
improve the funding condition of the Plan and shall result in no benet accruals whatsoever.

If an existing agreement calls for different rates for apprentices or other classications than the
journeyman rates specified above, proportional off-benet contribution increases will be
required.















-11-                        August 2011