Ha‘aheo 675

PENSION PLAN BENEFIT IMPROVEMENT - EFFECTIVE SEPTEMBER 1, 2026 AND PLAN CREDIT YEAR 2026

The Board of Trustees for the PAMCAH-UA Local 675 Pension Plan (the "Plan") is pleased to notify you that the benefit unit for the Plan Credit Year ending August 31, 2026 has been increased from the base amount of $75.00 to $120.00. As you know, each year, the Plan's Trustees consult with professional advisors who carefully monitor the Plan's current financial strength and future anticipated operating income and costs, to make a decision on whether an increase in the current minimum $75.00 benefit unit amount is appropriate. There are several major factors that the Trustees have considered this year:

1. The year-to-date investment returns have outperformed the assumed rate of return this year. A healthy Plan reserve is one of the important components the Trustees use in determining the annual benefit unit value. Please note that investment returns in future years may fluctuate significantly, and the Trustees are required to make prudent decisions in order to account for such fluctuations and to protect your earned benefits. The Trustees will continue to work closely with the Plan's investment consultant with the goal of maintaining a long-term rate of return that consistently outperforms the Plan's assumed rate of return.
2. The five-year Labor-Management Agreement negotiated by your Union and the Signatory Employers provides an increase to the future hourly pension contribution rate paid on your behalf by your employer. This increase delivers much needed income to the Plan which helps to both stabilize the Plan's reserves and fund future benefits.
3. The Trustees are focused on the future sustainability of the Plan and have made important plan design changes that reduce costs and are critical to protecting retiree benefits and active participants' earned benefits.

These factors have helped in reinforcing the Plan's financial strength and have allowed the Trustees to increase the benefit unit value to $120.00 for the Plan Credit Year ending August 31, 2026. The Trustees are committed to providing you with a combined industryleading retiree benefits package which includes Pension income, Annuity income, and Health & Welfare medical benefits.

This notice describes an increase to the pension benefit formula adopted by the Board of Trustees at its July 27, 2026 meeting, as described below. The change was made only after careful review of information pertaining to the ongoing funding of the Plan and the financing of the Plan's future obligations.