Dear Participant: We are pleased to present SUP Welfare Plan's Summary Plan Description describing the benefits provided by the SUP Welfare Plan. The Plan was established in accordance with Collective Bargaining Agreements between the Sailors' Union of the Pacific and participating employers.

The Plan Description furnishes a brief description of the benefits to which you and your family are entitled, the rules governing these benefits, and the procedures that should be followed when making a claim. This booklet includes certain information concerning the administration of the Plan as required by the Employee Retirement Income Security Act of 1974. We urge you and your family to read this booklet thoroughly so that you will be familiar with the benefits of the Plan. We are pleased to present this booklet describing the benefits provided by the SUP Welfare Plan.

Welfare Notes - April 2008

SUP Money Purchase Pension & SUP 401(k) Plans

Reminder of new funds and changes to the default fund
New funds are now available for your investments in the SUP Money Purchase Pension & SUP 401(k) Plans.

The following funds have been added to the existing fund line-up:

Dodge & Cox Stock Fund – DODFX
Dodge & Cox Balanced Fund – DODBX
T. Rowe Price Target Retirement Funds

Effective April 1, 2008, the default investment funds for both the SUP Money Purchase Pension & SUP 401(k) Plans have been changed. A default fund is the fund into which your contributions will automatically be directed if you do not make, or have not made, an investment selection. These T. Rowe Price Target Retirement Funds have been selected as the new default funds. These funds are designed to expose a younger investor to more risk and gradually reduce the portfolio risk as the investor ages. The specific T. Rowe Price Target Retirement Fund is selected for you based on your year of birth. The new default fund only applies to members who are not making, or have not made, an investment election previously.

Also please note, effective April 1, 2008 funds previously defaulted into the Stable Value Fund or the Columbia Cash Reserves will be gradually transferred to the new default investments. If you have specifically selected the Stable Value Fund or Columbia Cash Reserves for your investments, these investments will not be moved. The transfer process will move existing balances in twelve equal amounts over a 12-month period. The first transfer was completed on April 1, 2008. You may elect to stop this process at anytime and/or move any transferred balances back to the Stable Value Fund or Columbia Cash Reserves. To do so you may contact MasterPlan at 1-800-547-4334 and request that your future elections and existing balances be set to the Stable Value Fund (or any other mix of the available investments). You may also make changes directly on the web.

Michelle Chang – Administrator
Patty Martin
Michael Jacyna
Virginia Briggs
Berit Eriksson - Training Representative

SUP Welfare Plan

Phone Numbers: 415-778-5490 or 1-800-796-8003
Fax: 415-778-5495
Training Representative Terry O’Neill 415-957-1816
SIU-PD Pension 415-764-4987
SIU-PD Supplemental Benefits 415-764-4991