SUMMARY PLAN DESCRIPTION SAN DIEGO COUNTY REGIONAL AIRPORT AUTHORITY GENERAL MEMBER

SUMMARY PLAN DESCRIPTION SAN DIEGO COUNTY REGIONAL AIRPORT AUTHORITY GENERAL MEMBER

SUMMARY PLAN DESCRIPTION SAN DIEGO COUNTY REGIONAL AIRPORT AUTHORITY GENERAL MEMBER EFFECTIVE APRIL 2004 401 B Street, Suite 400 San Diego, CA 92101-4298 www.sdcers.org (619) 525-3600 or (800) 774-4977 Fax (619) 595-0513

MESSAGE FROM THE BOARD PRESIDENT Dear Members: I am pleased to present this 2004 Summary Plan Description (SPD) on behalf of the Board of Administration and staff of the San Diego City Employees Retirement System (SDCERS). On the following pages you will find information about the benefits that SDCERS offers, requirements for benefit eligibility, worksheets to determine contribution and benefit payment amounts, and much more. As a dedicated employee you are earning your right to a comprehensive retirement benefit through your employer. SDCERS is proud to administer those benefits and strives to help you understand the complexities of the system in order to make effective long term decisions regarding your financial future. As the President of your Retirement Board, I assure you that we will continue to prudently administer the Retirement System while ensuring the integrity and strength of the fund, for the benefit of all members. We are committed to providing you the best service possible, and we are available to consider any suggestions you may have to enhance and improve our services. Sincerely, Frederick W. Pierce, IV Retirement Board President April 12, 2004 i

CONTENTS Message from the Board President......................................... i Introduction.......................................................... 1 History of SDCERS..................................................... 2 Board of Administration................................................. 3 SDCERS Trust Fund..................................................... 4 Membership in SDCERS................................................. 5 Beneficiary Designation................................................. 6 Community Property Contributions to the Fund............................................... 7 Member Contribution Worksheet Service Credit......................................................... 9 Vesting Requirements Reciprocity.......................................................... 11 Blended Benefits...................................................... 11 Termination of Membership............................................. 12 Withdrawing Contributions Leaving Contributions on Account Service Retirement.................................................... 13 Retirement Allowance Calculation Worksheet Factor 1 Retirement Allowance Calculation Worksheet Factor 2 Retirement Allowance Calculation Worksheet Factor 3 Retirement Payment Options............................................ 27 Deferred Retirement Option Plan (DROP).................................. 29 Disability Retirement.................................................. 31 Disability Allowance Worksheet Industrial Disability Allowance Worksheet Non-Industrial Retirement Board Rules Regarding Disability Retirement Death Benefits....................................................... 35 Cost of Living Adjustment (COLA)........................................ 37 Supplemental Benefit (Thirteenth Check).................................. 37 Other Information.................................................... 38 Social Security Benefits Pre-Retirement Seminars Retirement Checklist................................................... 39 How to Get More Information........................................... 42 ii

INTRODUCTION This retirement benefit Summary Plan Description (SPD) is designed to provide basic information about the San Diego City Employees Retirement System (SDCERS), its benefits and services.* The scope of this handbook is limited to San Diego Regional Airport Authority Employees who are contributing members of SDCERS. Retirement information for other member groups is provided in separate Summary Plan Descriptions. Established in 1927 by the City of San Diego, SDCERS provides retirement, disability, and death benefits to its members in accordance with the California State Constitution Article XVI, Section 17; the San Diego City Charter Article IX, Section 149; and the San Diego County Regional Airport Authority Agreement and Retirement Plan Document. SDCERS is a defined benefit plan. Under a defined benefit plan, the benefit amount you receive when you retire is a guaranteed portion of your annual salary based on a formula established by the plan. SDCERS is responsible for providing the benefit as calculated by the formula. For SDCERS to be of maximum value to you, our member, we must continually work toward safeguarding and administering your rights and benefits as guaranteed by law. In return, we believe that you must have an understanding of your benefits under the system in order to make informed choices. SDCERS welcomes your comments and suggestions as essential to improving and strengthening the system as a whole. *The information in this handbook is intended to provide members with a current and accurate summary of their SDCERS benefits; however, it is not a legal document or a substitute for the law. The language used in this handbook is not intended to create a contract between the San Diego County Regional Airport Authority ("Airport") or SDCERS and any member, employee or beneficiary. The City Charter, the current agreement between the Airport and SDCERS, and the Retirement Plan for Airport employees govern your SDCERS benefits. Accordingly, if any information in this handbook conflicts with these documents, the Charter, the agreement between the Airport and SDCERS and the Airport Retirement Plan must prevail. 1

HISTORY OF SDCERS As early as 1911, the City of San Diego (City) had established separate retirement systems for its police and fire employees. In FY 1927, the City created SDCERS to administer retirement benefits for General Members. The police and fire systems were eventually merged and closed to new members in 1947. Police officers, firefighters and full-time lifeguards hired after 1947 were designated as Safety Members under SDCERS. In 1955, SDCERS was consolidated with the closed police and fire systems to create one unified system. In 1982, SDCERS City Plan was temporarily closed to new employees. City of San Diego General and Safety Members enrolled on or after September 3, 1982, became members of the 1981 Plan. On January 1, 1988, City Safety Members participating in the 1981 Plan were transferred to the SDCERS City Plan with certain disability exclusions, and given a blended benefit designation. Similarly, on July 1, 1989, all City General Members in the 1981 Plan were transferred to the SDCERS City Plan with the same disability exclusions and blended benefit designation. Effective July 1, 1991, credit for retirement service accrued by a member of the 1981 Plan became equivalent to SDCERS City Plan service for the purpose of benefit calculations. In 1963, the San Diego Unified Port District (Port) contracted with SDCERS to administer its employees retirement benefits. Likewise, in 2003 when the State of California established the San Diego County Regional Airport Authority (Airport) as a separate agency, SDCERS began administering benefits for Airport employees as well. SDCERS HISTORIC EVENT TIMETABLE 1911 1927 1947 1955 1963 Separate Police & Fire Systems are created General Retirement System (SDCERS) is created Fire & Police systems are merged & closed to new members. New members from this point on become Safety Members of SDCERS Closed Fire & Police systems merge with SDCERS San Diego Unified Port District employees become eligible for membership in SDCERS 1982 1988 1989 1991 2003 SDCERS temporarily closed to new City employees. 1981 Pension Plan in effect All City Safety Members hired after 9/3/82 are granted SDCERS benefits with certain disability exclusions City General Members hired after 9/3/82 are granted SDCERS benefits with certain disability exclusions Credit for retirement service accrued by a member of the City s 1981 Pension plan becomes equivalent to SDCERS service for the purpose of benefit calculations San Diego County Regional Airport Authority employees become eligible for membership in SDCERS 2

BOARD OF ADMINISTRATION SDCERS is governed by a 13-member Board of Administration that is responsible for prudently administering SDCERS benefits and overseeing the investment portfolio of the Retirement Trust Fund. Each month the Board meets to discuss and vote on all member requests for Service Retirements, Industrial and Non-Industrial Disability Retirements, Deferred Retirements, and Refunds of Contributions to members who have left City, Port or Airport employment. The Board is comprised of: Four members of the public, appointed by the Mayor and City Council; Six members of SDCERS, elected by their respective membership groups; and Three City of San Diego employees who hold positions requiring that they participate as Ex-Officio members. BOARD COMPOSITION Board Member Seat Citizen/Bank Officer Citizen Citizen Citizen General Representative General Representative General Representative Fire Safety Representative Police Safety Representative Retiree Representative City Manager City Auditor & Comptroller City Treasurer Method of Selection Appointed Appointed Appointed Appointed Elected Elected Elected Elected Elected Elected Ex-Officio Ex-Officio Ex-Officio Board members who are elected or appointed serve 6-year terms with no term limits. Ex-officio Board members serve for the duration of their respective positions with the City of San Diego. For a list of current Board members, visit our website at www.sdcers.org Are You Interested in Seeing Your Retirement Board in Action? All SDCERS members are encouraged to participate in electing their Board representatives and attending the monthly Board meetings. Meetings are typically held on the third Friday of each month at 1:30 p.m.* in the Board room at the retirement office located at 401 B Street, Suite 400, San Diego, CA 92101-4298. SDCERS Board meetings are open to the public and are wheelchair accessible. For more information about the meetings, please call SDCERS at (619) 525-3600 or toll free at (800) 774-4977. *Dates & times are subject to change. 3

SDCERS TRUST FUND The SDCERS Trust Fund was developed separate and apart from the City of San Diego s General Fund in accordance with San Diego City Charter section 145. The Fund combines contributions from members and plan sponsors (employers) and is invested in accordance with the Board-approved investment strategy. The Fund s primary purpose is to pay present and future benefits to SDCERS retirees and beneficiaries. The investment portfolio is governed by set guidelines to ensure the Trust Fund s financial soundness. The Fund is invested in fixed income assets (government and corporate bonds), equities (stocks) and real estate. Interest earnings and profits from the sale of securities assist in reducing the rate of employer and member contributions. The Retirement Trust Fund may only be used to carry out the Charter, Municipal Code and participating public agency plan document provisions governing SDCERS. For more information about the SDCERS Trust Fund, visit the SDCERS website at www.sdcers.org to view and download the Comprehensive Annual Financial Report (CAFR) and Popular Annual Financial Report (PAFR), or call SDCERS at (619) 525-3600 or toll free at (800) 774-4977 to request a copy. 4

MEMBERSHIP IN SDCERS Membership in SDCERS is mandatory upon employment for all full-time Airport employees. Hourly employees are not eligible for membership in SDCERS. While all eligible Airport employees are considered General Members, the Airport Membership has three specific groups: Standard Member Any full-time Airport employee who: Was hired by the Airport Authority on or after January 1, 2003 -OR- Was hired by the San Diego Unified Port District between January 1, 2002, and December 31, 2002, who subsequently moved to the Airport -AND- Is not an Andrecht-Covered or Executive Member, as described below. Andrecht-Covered Members Any member who: Was a San Diego Unified Port District employee on December 31, 2002, and Became an Airport Authority employee on January 1, 2003, and Was employed by the San Diego Unified Port District and contributing to SDCERS on January 1, 2002. Executive Members The Airport Authority s President & Chief Executive Officer, General Counsel, Chief Auditor and Vice Presidents; and members of the Airport Authority s executive committee appointed pursuant to section 170028 of the California Public Utilities Code. Each group is eligible for the same categories of benefits however, contribution offset rates and retirement factor choices may vary. You cannot belong to more than one plan or group at a time, although by changing employers or job classifications it is possible to belong to more than one plan or group over the span of your career. If you have had membership in more than one SDCERS plan or group, please see the Blended Benefits section of this Summary Plan Description. For information about other SDCERS plans, please contact SDCERS at (619) 525-3600 or visit our website at www.sdcers.org. 5

BENEFICIARY DESIGNATION When you join SDCERS you will be asked to name a beneficiary. A beneficiary is someone you choose to receive a lump sum or monthly payment of your retirement benefit (if eligible) or other SDCERS administered benefits available upon your death. A beneficiary can be a spouse, minor child, or any other person, estate or living trust you elect. When naming a beneficiary keep in mind that the rights of any surviving spouse or minor children may take precedence over any other named beneficiary. Throughout your career with the Airport, a marriage, death, dissolution of marriage (divorce), or the birth of a child may trigger the need for you to change your named beneficiary. It is very important that you keep your beneficiary designations up to date at all times. When you die, SDCERS will pay any applicable benefits to the individuals listed on the last beneficiary form received. To make a change to your beneficiary designation, simply fill out a Change of Beneficiary form and submit it to SDCERS as soon as possible. When you apply for retirement you will be asked to verify your most current beneficiary designation and will be given an opportunity to make changes. Please advise your beneficiary to contact SDCERS upon your death. Your beneficiary must submit an application to SDCERS, and a death certificate must be on file, before any benefits can be paid. Failure to file an application could result in the loss of valuable benefits. COMMUNITY PROPERTY IN CALIFORNIA You are not required to name your spouse as your beneficiary. However, if you are married at the time you retire, or if you were married at any time while you were contributing to SDCERS, your spouse or former spouse may have a community property interest in your retirement benefit and any continuance paid to your beneficiary. If you have questions regarding community property issues or designating a beneficiary, please contact SDCERS legal staff at (619) 525-3600 or (800) 774-4977 to request a Community Property handbook. 6

CONTRIBUTIONS TO THE FUND Contributions made to SDCERS come from two sources: 1) SDCERS Members (employees) 2) Plan Sponsor (employer) MEMBER CONTRIBUTIONS Member contributions are deducted automatically from your bi-weekly payroll on a pre-tax basis. Member contribution levels vary and are based on your age at the time you become a member of SDCERS. Members who join the System at a younger age will contribute less each pay period based on the assumption that they will contribute for a longer period of time. To verify your age at entry, you must furnish SDCERS with a copy of your birth certificate, or other proof of birth, within six months of joining SDCERS. This documentation becomes a permanent part of your retirement file. The following table shows the various contribution rates for all General Member age groups. To find your rate, simply determine your age on the birthday nearest the day that you became a member of SDCERS. GENERAL MEMBER CONTRIBUTION RATES* (effective 12/14/2001) Age First $400 Over $400 Age First $400 Over $400 Age First $400 Over $400 16-20 5.52% 8.28% 33 6.53% 9.79% 46 7.71% 11.56% 21 5.59% 8.38% 34 6.61% 9.91% 47 7.81% 11.71% 22 5.66% 8.49% 35 6.70% 10.05% 48 7.91% 11.86% 23 5.73% 8.60% 36 6.79% 10.18% 49 8.01% 12.01% 24 5.80% 8.70% 37 6.88% 10.32% 50 8.10% 12.15% 25 5.89% 8.83% 38 6.97% 10.45% 51 8.21% 12.32% 26 5.97% 8.95% 39 7.05% 10.58% 52 8.31% 12.47% 27 6.04% 9.06% 40 7.15% 10.72% 53 8.42% 12.63% 28 6.12% 9.18% 41 7.24% 10.86% 54 8.53% 12.79% 29 6.20% 9.30% 42 7.33% 10.99% 55 8.63% 12.95% 30 6.28% 9.42% 43 7.42% 11.13% 56 8.74% 13.11% 31 6.37% 9.55% 44 7.52% 11.28% 57+ 8.87% 13.31% 32 6.45% 9.67% 45 7.61% 11.42% PLAN SPONSOR / EMPLOYER OFFSET CONTRIBUTIONS Designated bargaining units have negotiated agreements with the Airport to minimize the impact of these Member Contribution Rates. Effective May 2003, the Airport agreed to pay an offset rate of 7% of the Standard and Andrecht-covered General Member Contribution Rate. For Executive General Members, the offset rate is 8.5%. This offset will minimize the actual contribution amount deducted from your bi-weekly paycheck. Complete the Contribution Rate Worksheet on the following page to determine your estimated bi-weekly contribution amount. *Contribution rates are set, and may be changed, by SDCERS for all Airport members. 7

PLAN SPONSOR CONTRIBUTIONS Each year the Airport pays into SDCERS, in the form of Plan Sponsor Contributions, an amount somewhat greater than the total amount employees contribute. The Plan Sponsor Contribution Rate is based upon recommendations made by SDCERS actuary and is contained in the Annual Valuation Report. WITHDRAWING CONTRIBUTIONS You may withdraw your contributions plus any accrued interest only when you leave Airport employment. Interest is credited annually to your account on June 30, based upon your account balance at that time. The interest rate is determined by the Retirement Board, and is subject to change. Withdrawals are made as a single lump sum payment and are generally processed within six weeks of your termination date. For more information, please contact SDCERS at (619) 525-3600 or toll free at (800) 774-4977. MEMBER CONTRIBUTION WORKSHEET Complete the following worksheet to determine your bi-weekly retirement payroll deduction amount: 1. Enter your bi-weekly salary (do not include overtime) $ 2. Subtract $183.98 from Line 1 $ 3. Using the Contribution Rate table on page 7: find your age at entry into SDCERS, and enter the contribution rate under the First $400 column % 4. Using the Contribution Rate table on page 7: find your age at entry into SDCERS, and enter the contribution rate under the Over $400 column % 5. Multiply $183.98 by Line 3 (Example: 183.98 x 6.53% = $12.02) $ 6. Multiply Line 2 by Line 4 (Example: 1816.02 x 9.79% = $177.79) $ 7. Add Lines 5 & 6 $ (This is the Total Employee Contribution Amount) 8. Enter Employer Offset Rate % (General Members enter 7% here. Executives enter 8.5%) 9. Multiply Line 1 by Line 8 (Example: 2000.00 x 7% = $140.00) $ (This is how much of your employee contribution the Port is making on your behalf) 10. Subtract Line 9 from Line 7 $ (This is your estimated bi-weekly payroll deduction amount) *This is not an official SDCERS calculation. If this estimate conflicts with the official bi-weekly payroll deduction calculation, the official calculation will govern. 8

SERVICE CREDIT Service Credit represents the amount of time you have earned in the retirement system as a contributing member of SDCERS. It is one of five variables used to determine the amount of your retirement benefit and is also used to determine your vesting status. The more Service Credit you have when you retire, the larger your retirement benefit will be. For each year of full-time employment that you work and contribute to SDCERS, you will receive one year of service credit. Credits earned for part-time status are proportionately awarded. If you work 20 hours a week (half-time) and contribute to SDCERS for a year, you would receive a half-year of service credit for that time period. VESTING REQUIREMENT An Airport employee must have at least 5 full years of service credit as a contributing member of SDCERS to be fully vested and eligible for retirement benefits upon meeting the age requirement. PURCHASING SERVICE CREDIT Service credit may be purchased for a variety of time periods related to your employment in which you were not making contributions to SDCERS. Members also have the opportunity to purchase up to 5 years of additional service credit unrelated to actual years worked. The five-year purchase can not be applied toward the vesting requirement for Airport employees. If you take any of the following types of leave while employed with the Port, you may qualify to purchase service credit for those time periods: Military leave Long Term Disability (LTD) Family and Medical Leave Act (FMLA) periods Any period before reinstatement following a termination appeal Previously refunded contributions. NOTE: If any of your service credit was accrued under a different SDCERS Plan, the percentage for that Plan would apply for that period of service credit. For more information contact SDCERS at (619) 525-3600 or toll free at (800) 774-4977 for an estimate. 9

COST TO PURCHASE SERVICE CREDIT The cost to purchase service credit (PSC) varies depending on the type of purchase you are making. The cost for most PSC types is based on a percentage of your salary at the time you submit your request to SDCERS. However, prices for purchasing military time are based on your salary at the time of the missed contributions, and the cost to purchase previously refunded contributions is limited to the amount of the refund plus interest. To determine if you qualify to purchase service credit, simply fill out a request form and return it to SDCERS. After receiving and evaluating your request, SDCERS will send a contract(s) to you specifying the time periods you are eligible to purchase and the total associated costs. Upon receipt of the contract(s) you may choose to purchase one or all of the available time periods or you may choose not to act on the contracts at all. The contracts are valid for 90 days following their date of issue. If you do not take action before the contracts expire, you will need to submit a new PSC request to SDCERS and wait for new contracts to be sent to you before making your purchase. If your salary has increased or the Board has increased the calculation factor, the cost of your PSC will increase. Payment for purchasing service credit, subject to applicable tax laws, can be made by: Lump sum, Pre or post-tax bi-weekly installment payments, A direct transfer from a deferred compensation plan* (cannot be used for the 5-year purchase), A direct transfer from a qualified individual retirement account (IRA), or A direct transfer from a qualified retirement plan approved by SDCERS. Payment for all PSC contracts must be completed before you retire or enter into the Deferred Retirement Option Plan (DROP). For additional information regarding purchasing service credit or PSC contracts, please contact SDCERS at (619) 525-3600 or toll free at (800) 774-4977, or visit our website at www.sdcers.org. * The Airport s Deferred Compensation 457 Plan does not allow plan-to-plan transfers of funds to pay for Purchase of Service Credits (PSC). Members with Deferred Compensation Plans from other employers (i.e. San Diego Unified Port District or City of San Diego) may be able to transfer those funds to pay for their PSC contracts, not to include the 5-year purchase. 10

RECIPROCITY Reciprocity is an agreement between the San Diego City Employees Retirement System and the California Public Employees Retirement System (CalPERS), to provide certain benefits to members who have been employed by two or more California public agencies that have reciprocity with CalPERS. If you have service credit in a reciprocal system, you may be eligible to combine that credit for the purpose of meeting the criteria for retirement from the Airport. You may also be eligible to use your age of entry from the first system to determine contribution rates for subsequent systems. Additionally, your high one-year salary from a reciprocal system may be used to calculate your SDCERS retirement benefit. To be eligible for reciprocity you must: Move to or from another reciprocal system within six months (or 90 days if your re-employment occurred before January 1, 1976); and Leave your contributions on deposit with the associated agency s system until you retire; and Retire from all reciprocal retirement systems simultaneously. Each system s membership and benefit rights and obligations will apply to the benefit you receive from that system. If you worked for a CalPERS-covered employer in the past and withdrew your CalPERS contributions, you may be able to redeposit your contributions and restore your CalPERS service credit. If you would like additional information regarding CalPERS-covered employment, contact CalPERS at (888) 225-7377. For additional information regarding reciprocity, contact SDCERS at (619) 525-3600 or toll free at (800)774-4977, or visit our website at www.sdcers.org. BLENDED BENEFITS Members who have established service credit in more than one SDCERS Plan (e.g., City of San Diego, San Diego Unified Port District) or more than one Plan group with the same employer (e.g., safety, general) may be entitled to a blended benefit. If you qualify for a blended benefit, SDCERS will combine your service credit in all Plans and groups to satisfy the vesting requirements for each. Your retirement allowance will be calculated separately for each Plan or group and then added together and distributed to you as a single check each month. For additional information regarding Blended Benefits, contact SDCERS at (619) 525-3600 or toll free at (800) 774-4977. 11

TERMINATION OF MEMBERSHIP Membership in SDCERS is mandatory for the duration of your employment with the Airport. Your membership terminates when you leave Airport employment. If you leave before meeting the age requirement for a service retirement, you may choose to take a refund of your contributions or if eligible, you may defer your retirement by leaving your contributions on account with SDCERS. WITHDRAWING CONTRIBUTIONS You may withdraw your contributions only when you leave Airport employment. Once you take a refund of your contributions, you will no longer be eligible for any benefits from SDCERS. Withdrawals are made as a single lump sum payment and are generally processed within six weeks of your termination date. If you have taken a refund after leaving the Airport and then return, you may be able to re-deposit your contributions. LEAVING CONTRIBUTIONS ON ACCOUNT You may choose to leave your contributions on account with SDCERS after leaving Airport employment if: You are deferring your retirement, or You have not met the vesting requirement for a Service Retirement but expect to return to Airport employment or go to work for a reciprocal agency in the future. If you have 20 or more years of service credit, you may defer your retirement until age 55 or later. If you have 5 or more years of service credit, you may defer your retirement until age 62 or later. If you have less than 5 years of service credit, you may leave your contributions on account and contact us at any time to request a refund if you do not return to Airport employment or go to work for a reciprocal agency. Contributions that you leave on account with SDCERS will continue to earn interest on the balance until you retire or take a refund. For more information about terminating your membership, please call SDCERS at (619) 525-3600 or toll free at (800) 774-4977. 12

SERVICE RETIREMENT Throughout your career with the Airport, you are required to make regular contributions to SDCERS toward a Service Retirement benefit.* This is one of the most significant benefits you can receive as a dedicated Airport employee. If you meet the eligibility requirements for this type of benefit you may receive a monthly allowance from the day you retire until the end of your life. Additionally, you may choose to leave a monthly continuance to a spouse or beneficiary, to be paid from the day you die until the end of his or her life. ELIGIBILITY To be eligible for a SDCERS Service Retirement as a General Member, you must meet the following minimum vesting and age requirements at the time you retire from the Airport: (1) Age 55 with 20 or more years of service credit, or (2) Age 62 with 5 or more years of service credit. The Airport has no mandatory retirement age. Once you meet the retirement eligibility requirements, it is solely within your discretion to decide when to retire. PAYMENT OF YOUR RETIREMENT BENEFIT SDCERS will begin paying your monthly retirement allowance to you on the last business day of the month after your official retirement date. For example, if you retire on March 15, 2004, your first retirement check will be mailed on April 30, 2004. Your monthly retirement benefit may include any or all of the following payments: Monthly Retirement Allowance COLA Adjustments Annual Supplemental Benefit DIRECT DEPOSIT As part of your retirement application process, you must sign up for direct deposit of your monthly retirement allowance into an account at the bank or financial institution of your choice. You will receive a check for your first retirement benefit payment. Your direct deposit will begin the following month. *The retirement benefits you receive are subject to the limitations in Sections 401(a)(17) and 415 of the Internal Revenue Code. Refer to San Diego County Regional Airport Authority Plan document, Division 10 for additional information. 13

CALCULATING YOUR SERVICE RETIREMENT ALLOWANCE Your Service Retirement allowance is based on the following variables: Age at Retirement Full age on your official date of retirement; Years of Service Credit Amount of time in which you were a contributing member of SDCERS, including time you have purchased; Final Compensation Your base salary or wages for the highest one-year period during which you were a contributing member of SDCERS; Retirement Factor A percentage of your final compensation based on your age at the time of retirement; and Retirement Choices available that determine the amount of your Payment Option retirement allowance and the continuance amount you leave to your beneficiary, if any. Standard Members who retire on or after April 1, 2004, will have their Service Retirement Allowance calculated using Factor 3 below. Andrecht-Covered Members who retire on or after April 1, 2004, will have their Service Retirement Allowance calculated using all three of the Retirement Factors below. The factor yielding the highest monthly allowance will be used. Factor 1 2% at age 55 and increasing to 2.55% at age 65, as shown in the Service Retirement Estimation Table 1, with an additional 10% added to your Final Compensation. Factor 2 2.25% at age 55 and increasing to 2.55% at age 65, as shown in the Service Retirement Estimation Table 2. Factor 3 2.5% at age 55 and increasing to 3% at age 60, as shown in the Service Retirement Estimation Table 3, not to exceed 90% of your Final Compensation. Executive Members who retire on or after April 1, 2004, will have their Service Retirement Allowance calculated using a factor of 3% at age 55 and older. To calculate an estimated monthly allowance for Standard or Andrecht-Covered members, use the corresponding calculation worksheets on the following pages. Executive Members can calculate their estimated benefit using Retirement Allowance Worksheet 3. Instead of using Estimation Table 3 to calculate line 4 of the worksheet, Executives should multiply their years of service credit by 3%. (The 90% cap does not apply to Executive Members) 14

15 THIS PAGE INTENTIONALLY LEFT BLANK

RETIREMENT ALLOWANCE WORKSHEET 1 Retirement Factor 1 Complete this worksheet to determine your estimated monthly retirement allowance using Retirement Factor 1. For Line 6, use Service Retirement Estimation Table 1 on the next page to determine your applicable retirement factor percentage.* Determine Final Compensation: A. Enter your Bi-weekly Salary.......................... $ B. Number of pay periods per year....................... 26 C. Multiply Line A by Line B to determine your Final Compensation $ Calculate Estimated Monthly Retirement Allowance Using Retirement Factor 1: 1. Enter your Final Compensation........................ $ 2. Multiply Line 1 by 10%................................ $ 3. Add Line 1 to Line 2 to find your Adjusted Final Compensation $ 4. Number of monthly payments per year................. 12 5. Divide Line 3 by Line 4 to determine your Average Monthly Salary............................. 6. Using Estimation Table 1, enter your retirement factor percentage found where your age at retirement and your years of service credit intersect........................ 7. Multiply Line 5 by Line 6 to determine your Monthly Retirement Allowance using Retirement Factor 1......... $ % $ ** **This is not an official SDCERS calculation. If this estimate conflicts with the official SDCERS retirement allowance calculation, SDCERS official calculation will govern. * The Service Retirement Estimation Tables assume you are selecting the Maximum Benefit as your retirement payment option. If you select another retirement payment option, your allowance will be reduced. For more information, please see the Retirement Payment Options section of this Summary Plan Description or call SDCERS at (619) 525-3600 or toll free (800) 774-4977. 16

SERVICE RETIREMENT ESTIMATION TABLE 1 Use with Retirement Calculation Factor 1 (Effective December 31, 2001 Maximum Benefit) YEARS OF SERVICE 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 AGE AT RETIREMENT 55 56 57 58 59 60 61 62 2.00% 2.00% 2.00% 2.00% 2.08% 2.16% 2.24% 2.31% 4.00% 4.00% 4.00% 4.00% 4.16% 4.32% 4.48% 4.62% 6.00% 6.00% 6.00% 6.00% 6.24% 6.48% 6.72% 6.93% 8.00% 8.00% 8.00% 8.00% 8.32% 8.64% 8.96% 9.24% 10.00% 10.00% 10.00% 10.00% 10.40% 10.80% 11.20% 11.55% 12.00% 12.00% 12.00% 12.00% 12.48% 12.96% 13.44% 13.86% 14.00% 14.00% 14.00% 14.00% 14.56% 15.12% 15.68% 16.17% 16.00% 16.00% 16.00% 16.00% 16.64% 17.28% 17.92% 18.48% 18.00% 18.00% 18.00% 18.00% 18.72% 19.44% 20.16% 20.79% 20.00% 20.00% 20.00% 20.00% 20.80% 21.60% 22.40% 23.10% 22.00% 22.00% 22.00% 22.00% 22.88% 23.76% 24.64% 25.41% 24.00% 24.00% 24.00% 24.00% 24.96% 25.92% 26.88% 27.72% 26.00% 26.00% 26.00% 26.00% 27.04% 28.08% 29.12% 30.03% 28.00% 28.00% 28.00% 28.00% 29.12% 30.24% 31.36% 32.34% 30.00% 30.00% 30.00% 30.00% 31.20% 32.40% 33.60% 34.65% 32.00% 32.00% 32.00% 32.00% 33.28% 34.56% 35.84% 36.96% 34.00% 34.00% 34.00% 34.00% 35.36% 36.72% 38.08% 39.27% 36.00% 36.00% 36.00% 36.00% 37.44% 38.88% 40.32% 41.58% 38.00% 38.00% 38.00% 38.00% 39.52% 41.04% 42.56% 43.89% 40.00% 40.00% 40.00% 40.00% 41.60% 43.20% 44.80% 46.20% 42.00% 42.00% 42.00% 42.00% 43.68% 45.36% 47.04% 48.51% 44.00% 44.00% 44.00% 44.00% 45.76% 47.52% 49.28% 50.82% 46.00% 46.00% 46.00% 46.00% 47.84% 49.68% 51.52% 53.13% 48.00% 48.00% 48.00% 48.00% 49.92% 51.84% 53.76% 55.44% 50.00% 50.00% 50.00% 50.00% 52.00% 54.00% 56.00% 57.75% 52.00% 52.00% 52.00% 52.00% 54.08% 56.16% 58.24% 60.06% 54.00% 54.00% 54.00% 54.00% 56.16% 58.32% 60.48% 62.37% 56.00% 56.00% 56.00% 56.00% 58.24% 60.48% 62.72% 64.68% 58.00% 58.00% 58.00% 58.00% 60.32% 62.64% 64.96% 66.99% 60.00% 60.00% 60.00% 60.00% 62.40% 64.80% 67.20% 69.30% 62.00% 62.00% 62.00% 62.00% 64.48% 66.96% 69.44% 71.61% 64.00% 64.00% 64.00% 64.00% 66.56% 69.12% 71.68% 73.92% 66.00% 66.00% 66.00% 66.00% 68.64% 71.28% 73.92% 76.23% 68.00% 68.00% 68.00% 68.00% 70.72% 73.44% 76.16% 78.54% 70.00% 70.00% 70.00% 70.00% 72.80% 75.60% 78.40% 80.85% 72.00% 72.00% 72.00% 72.00% 74.88% 77.76% 80.64% 83.16% 74.00% 74.00% 74.00% 74.00% 76.96% 79.92% 82.88% 85.47% 76.00% 76.00% 76.00% 76.00% 79.04% 82.08% 85.12% 87.78% 78.00% 78.00% 78.00% 78.00% 81.12% 84.24% 87.36% 90.09% 80.00% 80.00% 80.00% 80.00% 83.20% 86.40% 89.60% 92.40% 82.00% 82.00% 82.00% 82.00% 85.28% 88.56% 91.84% 94.71% 84.00% 84.00% 84.00% 84.00% 87.36% 90.72% 94.08% 97.02% 86.00% 86.00% 86.00% 86.00% 89.44% 92.88% 96.32% 99.33% 88.00% 88.00% 88.00% 88.00% 91.52% 95.04% 98.56% 101.64% 90.00% 90.00% 90.00% 90.00% 93.60% 97.20% 100.80% 103.95%

SERVICE RETIREMENT ESTIMATION TABLE 1 Use with Retirement Calculation Factor 1 (Effective December 31, 2001 Maximum Benefit) YEARS OF SERVICE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 18 AGE AT RETIREMENT 63 64 65 66 67 68 69 70 2.39% 2.47% 2.55% 2.55% 2.55% 2.55% 2.55% 2.55% 4.78% 4.94% 5.10% 5.10% 5.10% 5.10% 5.10% 5.10% 7.17% 7.41% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 9.56% 9.88% 10.20% 10.20% 10.20% 10.20% 10.20% 10.20% 11.95% 12.35% 12.75% 12.75% 12.75% 12.75% 12.75% 12.75% 14.34% 14.82% 15.30% 15.30% 15.30% 15.30% 15.30% 15.30% 16.73% 17.29% 17.85% 17.85% 17.85% 17.85% 17.85% 17.85% 19.12% 19.76% 20.40% 20.40% 20.40% 20.40% 20.40% 20.40% 21.51% 22.23% 22.95% 22.95% 22.95% 22.95% 22.95% 22.95% 23.90% 24.70% 25.50% 25.50% 25.50% 25.50% 25.50% 25.50% 26.29% 27.17% 28.05% 28.05% 28.05% 28.05% 28.05% 28.05% 28.68% 29.64% 30.60% 30.60% 30.60% 30.60% 30.60% 30.60% 31.07% 32.11% 33.15% 33.15% 33.15% 33.15% 33.15% 33.15% 33.46% 34.58% 35.70% 35.70% 35.70% 35.70% 35.70% 35.70% 35.85% 37.05% 38.25% 38.25% 38.25% 38.25% 38.25% 38.25% 38.24% 39.52% 40.80% 40.80% 40.80% 40.80% 40.80% 40.80% 40.63% 41.99% 43.35% 43.35% 43.35% 43.35% 43.35% 43.35% 43.02% 44.46% 45.90% 45.90% 45.90% 45.90% 45.90% 45.90% 45.41% 46.93% 48.45% 48.45% 48.45% 48.45% 48.45% 48.45% 47.80% 49.40% 51.00% 51.00% 51.00% 51.00% 51.00% 51.00% 50.19% 51.87% 53.55% 53.55% 53.55% 53.55% 53.55% 53.55% 52.58% 54.34% 56.10% 56.10% 56.10% 56.10% 56.10% 56.10% 54.97% 56.81% 58.65% 58.65% 58.65% 58.65% 58.65% 58.65% 57.36% 59.28% 61.20% 61.20% 61.20% 61.20% 61.20% 61.20% 59.75% 61.75% 63.75% 63.75% 63.75% 63.75% 63.75% 63.75% 62.14% 64.22% 66.30% 66.30% 66.30% 66.30% 66.30% 66.30% 64.53% 66.69% 68.85% 68.85% 68.85% 68.85% 68.85% 68.85% 66.92% 69.16% 71.40% 71.40% 71.40% 71.40% 71.40% 71.40% 69.31% 71.63% 73.95% 73.95% 73.95% 73.95% 73.95% 73.95% 71.70% 74.10% 76.50% 76.50% 76.50% 76.50% 76.50% 76.50% 74.09% 76.57% 79.05% 79.05% 79.05% 79.05% 79.05% 79.05% 76.48% 79.04% 81.60% 81.60% 81.60% 81.60% 81.60% 81.60% 78.87% 81.51% 84.15% 84.15% 84.15% 84.15% 84.15% 84.15% 81.26% 83.98% 86.70% 86.70% 86.70% 86.70% 86.70% 86.70% 83.65% 86.45% 89.25% 89.25% 89.25% 89.25% 89.25% 89.25% 86.04% 88.92% 91.80% 91.80% 91.80% 91.80% 91.80% 91.80% 88.43% 91.39% 94.35% 94.35% 94.35% 94.35% 94.35% 94.35% 90.82% 93.86% 96.90% 96.90% 96.90% 96.90% 96.90% 96.90% 93.21% 96.33% 99.45% 99.45% 99.45% 99.45% 99.45% 99.45% 95.60% 98.80% 102.00% 102.00% 102.00% 102.00% 102.00% 102.00% 97.99% 101.27% 104.55% 104.55% 104.55% 104.55% 104.55% 104.55% 100.38% 103.74% 107.10% 107.10% 107.10% 107.10% 107.10% 107.10% 102.77% 106.21% 109.65% 109.65% 109.65% 109.65% 109.65% 109.65% 105.16% 108.68% 112.20% 112.20% 112.20% 112.20% 112.20% 112.20% 107.55% 111.15% 114.75% 114.75% 114.75% 114.75% 114.75% 114.75%

19 THIS PAGE INTENTIONALLY LEFT BLANK

RETIREMENT ALLOWANCE WORKSHEET 2 Retirement Factor 2 Complete this worksheet to determine your estimated monthly retirement allowance using Retirement Factor 2. For Line 4, use Service Retirement Estimation Table 2 on the next page to determine your applicable retirement factor percentage.* Determine Final Compensation: A. Enter your Bi-weekly Salary.......................... $ B. Number of pay periods per year....................... 26 C. Multiply Line A by Line B to determine your Final Compensation $ Calculate Estimated Monthly Retirement Allowance Using Retirement Factor 2: 1. Enter your Final Compensation........................ $ 2. Number of monthly payments per year................. 12 3. Divide Line 1 by Line 2 to determine your Average Monthly Salary............................. 4. Using Estimation Table 2, enter your retirement factor percentage found where your age at retirement and your years of service credit intersect........................ 5. Multiply Line 3 by Line 4 to determine your Monthly Retirement Allowance using Retirement Factor 2......... $ % $ ** **This is not an official SDCERS calculation. If this estimate conflicts with the official SDCERS retirement allowance calculation, SDCERS official calculation will govern. * The Service Retirement Estimation Tables assume you are selecting the Maximum Benefit as your retirement payment option. If you select another retirement payment option, your allowance will be reduced. For more information, please see the Retirement Payment Options section of this Summary Plan Description or call SDCERS at (619) 525-3600 or toll free (800) 774-4977. 20

SERVICE RETIREMENT ESTIMATION TABLE 2 Use with Retirement Calculation Factor 2 (Effective January 1, 2002 Maximum Benefit) YEARS OF SERVICE 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 AGE AT RETIREMENT 55 56 57 58 59 60 61 62 2.25% 2.25% 2.25% 2.25% 2.25% 2.30% 2.35% 2.40% 4.50% 4.50% 4.50% 4.50% 4.50% 4.60% 4.70% 4.80% 6.75% 6.75% 6.75% 6.75% 6.75% 6.90% 7.05% 7.20% 9.00% 9.00% 9.00% 9.00% 9.00% 9.20% 9.40% 9.60% 11.25% 11.25% 11.25% 11.25% 11.25% 11.50% 11.75% 12.00% 13.50% 13.50% 13.50% 13.50% 13.50% 13.80% 14.10% 14.40% 15.75% 15.75% 15.75% 15.75% 15.75% 16.10% 16.45% 16.80% 18.00% 18.00% 18.00% 18.00% 18.00% 18.40% 18.80% 19.20% 20.25% 20.25% 20.25% 20.25% 20.25% 20.70% 21.15% 21.60% 22.50% 22.50% 22.50% 22.50% 22.50% 23.00% 23.50% 24.00% 24.75% 24.75% 24.75% 24.75% 24.75% 25.30% 25.85% 26.40% 27.00% 27.00% 27.00% 27.00% 27.00% 27.60% 28.20% 28.80% 29.25% 29.25% 29.25% 29.25% 29.25% 29.90% 30.55% 31.20% 31.50% 31.50% 31.50% 31.50% 31.50% 32.20% 32.90% 33.60% 33.75% 33.75% 33.75% 33.75% 33.75% 34.50% 35.25% 36.00% 36.00% 36.00% 36.00% 36.00% 36.00% 36.80% 37.60% 38.40% 38.25% 38.25% 38.25% 38.25% 38.25% 39.10% 39.95% 40.80% 40.50% 40.50% 40.50% 40.50% 40.50% 41.40% 42.30% 43.20% 42.75% 42.75% 42.75% 42.75% 42.75% 43.70% 44.65% 45.60% 45.00% 45.00% 45.00% 45.00% 45.00% 46.00% 47.00% 48.00% 47.25% 47.25% 47.25% 47.25% 47.25% 48.30% 49.35% 50.40% 49.50% 49.50% 49.50% 49.50% 49.50% 50.60% 51.70% 52.80% 51.75% 51.75% 51.75% 51.75% 51.75% 52.90% 54.05% 55.20% 54.00% 54.00% 54.00% 54.00% 54.00% 55.20% 56.40% 57.60% 56.25% 56.25% 56.25% 56.25% 56.25% 57.50% 58.75% 60.00% 58.50% 58.50% 58.50% 58.50% 58.50% 59.80% 61.10% 62.40% 60.75% 60.75% 60.75% 60.75% 60.75% 62.10% 63.45% 64.80% 63.00% 63.00% 63.00% 63.00% 63.00% 64.40% 65.80% 67.20% 65.25% 65.25% 65.25% 65.25% 65.25% 66.70% 68.15% 69.60% 67.50% 67.50% 67.50% 67.50% 67.50% 69.00% 70.50% 72.00% 69.75% 69.75% 69.75% 69.75% 69.75% 71.30% 72.85% 74.40% 72.00% 72.00% 72.00% 72.00% 72.00% 73.60% 75.20% 76.80% 74.25% 74.25% 74.25% 74.25% 74.25% 75.90% 77.55% 79.20% 76.50% 76.50% 76.50% 76.50% 76.50% 78.20% 79.90% 81.60% 78.75% 78.75% 78.75% 78.75% 78.75% 80.50% 82.25% 84.00% 81.00% 81.00% 81.00% 81.00% 81.00% 82.80% 84.60% 86.40% 83.25% 83.25% 83.25% 83.25% 83.25% 85.10% 86.95% 88.80% 85.50% 85.50% 85.50% 85.50% 85.50% 87.40% 89.30% 91.20% 87.75% 87.75% 87.75% 87.75% 87.75% 89.70% 91.65% 93.60% 90.00% 90.00% 90.00% 90.00% 90.00% 92.00% 94.00% 96.00% 92.25% 92.25% 92.25% 92.25% 92.25% 94.30% 96.35% 98.40% 94.50% 94.50% 94.50% 94.50% 94.50% 96.60% 98.70% 100.80% 96.75% 96.75% 96.75% 96.75% 96.75% 98.90% 101.05% 103.20% 99.00% 99.00% 99.00% 99.00% 99.00% 101.20% 103.40% 105.60% 101.25% 101.25% 101.25% 101.25% 101.25% 103.50% 105.75% 108.00%

SERVICE RETIREMENT ESTIMATION TABLE 2 Use with Retirement Calculation Factor 2 (Effective January 1, 2002 Maximum Benefit) YEARS OF SERVICE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 22 AGE AT RETIREMENT 63 64 65 66 67 68 69 70 2.45% 2.50% 2.55% 2.55% 2.55% 2.55% 2.55% 2.55% 4.90% 5.00% 5.10% 5.10% 5.10% 5.10% 5.10% 5.10% 7.35% 7.50% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 9.80% 10.00% 10.20% 10.20% 10.20% 10.20% 10.20% 10.20% 12.25% 12.50% 12.75% 12.75% 12.75% 12.75% 12.75% 12.75% 14.70% 15.00% 15.30% 15.30% 15.30% 15.30% 15.30% 15.30% 17.15% 17.50% 17.85% 17.85% 17.85% 17.85% 17.85% 17.85% 19.60% 20.00% 20.40% 20.40% 20.40% 20.40% 20.40% 20.40% 22.05% 22.50% 22.95% 22.95% 22.95% 22.95% 22.95% 22.95% 24.50% 25.00% 25.50% 25.50% 25.50% 25.50% 25.50% 25.50% 26.95% 27.50% 28.05% 28.05% 28.05% 28.05% 28.05% 28.05% 29.40% 30.00% 30.60% 30.60% 30.60% 30.60% 30.60% 30.60% 31.85% 32.50% 33.15% 33.15% 33.15% 33.15% 33.15% 33.15% 34.30% 35.00% 35.70% 35.70% 35.70% 35.70% 35.70% 35.70% 36.75% 37.50% 38.25% 38.25% 38.25% 38.25% 38.25% 38.25% 39.20% 40.00% 40.80% 40.80% 40.80% 40.80% 40.80% 40.80% 41.65% 42.50% 43.35% 43.35% 43.35% 43.35% 43.35% 43.35% 44.10% 45.00% 45.90% 45.90% 45.90% 45.90% 45.90% 45.90% 46.55% 47.50% 48.45% 48.45% 48.45% 48.45% 48.45% 48.45% 49.00% 50.00% 51.00% 51.00% 51.00% 51.00% 51.00% 51.00% 51.45% 52.50% 53.55% 53.55% 53.55% 53.55% 53.55% 53.55% 53.90% 55.00% 56.10% 56.10% 56.10% 56.10% 56.10% 56.10% 56.35% 57.50% 58.65% 58.65% 58.65% 58.65% 58.65% 58.65% 58.80% 60.00% 61.20% 61.20% 61.20% 61.20% 61.20% 61.20% 61.25% 62.50% 63.75% 63.75% 63.75% 63.75% 63.75% 63.75% 63.70% 65.00% 66.30% 66.30% 66.30% 66.30% 66.30% 66.30% 66.15% 67.50% 68.85% 68.85% 68.85% 68.85% 68.85% 68.85% 68.60% 70.00% 71.40% 71.40% 71.40% 71.40% 71.40% 71.40% 71.05% 72.50% 73.95% 73.95% 73.95% 73.95% 73.95% 73.95% 73.50% 75.00% 76.50% 76.50% 76.50% 76.50% 76.50% 76.50% 75.95% 77.50% 79.05% 79.05% 79.05% 79.05% 79.05% 79.05% 78.40% 80.00% 81.60% 81.60% 81.60% 81.60% 81.60% 81.60% 80.85% 82.50% 84.15% 84.15% 84.15% 84.15% 84.15% 84.15% 83.30% 85.00% 86.70% 86.70% 86.70% 86.70% 86.70% 86.70% 85.75% 87.50% 89.25% 89.25% 89.25% 89.25% 89.25% 89.25% 88.20% 90.00% 91.80% 91.80% 91.80% 91.80% 91.80% 91.80% 90.65% 92.50% 94.35% 94.35% 94.35% 94.35% 94.35% 94.35% 93.10% 95.00% 96.90% 96.90% 96.90% 96.90% 96.90% 96.90% 95.55% 97.50% 99.45% 99.45% 99.45% 99.45% 99.45% 99.45% 98.00% 100.00% 102.00% 102.00% 102.00% 102.00% 102.00% 102.00% 100.45% 102.50% 104.55% 104.55% 104.55% 104.55% 104.55% 104.55% 102.90% 105.00% 107.10% 107.10% 107.10% 107.10% 107.10% 107.10% 105.35% 107.50% 109.65% 109.65% 109.65% 109.65% 109.65% 109.65% 107.80% 110.00% 112.20% 112.20% 112.20% 112.20% 112.20% 112.20% 110.25% 112.50% 114.75% 114.75% 114.75% 114.75% 114.75% 114.75%

23 THIS PAGE INTENTIONALLY LEFT BLANK

RETIREMENT ALLOWANCE WORKSHEET 3 Retirement Factor 3 Complete this worksheet to determine your estimated monthly retirement allowance using Retirement Factor 3. For Line 4, use Service Retirement Estimation Table 3 on the next page to determine your applicable retirement factor percentage.* Determine Final Compensation: A. Enter your Bi-weekly Salary.......................... $ B. Number of pay periods per year....................... 26 C. Multiply Line A by Line B to determine your Final Compensation $ Calculate Estimated Monthly Retirement Allowance Using Retirement Factor 3: 1. Enter your Final Compensation........................ $ 2. Number of monthly payments per year................... 12 3. Divide Line 1 by Line 2 to determine your Average Monthly Salary............................. 4. Using Estimation Table 3, enter your retirement factor percentage found where your age at retirement and your years of service credit intersect........................ 5. Multiply Line 3 by Line 4 to determine your Monthly Retirement Allowance using Retirement Factor 3......... $ % $ ** 6. If line 5 is larger than line C, your Monthly Retirement Allowance will be capped at 90% of the amount on line C. If line 5 is smaller than line C, your Monthly Retirement Allowance will be the amount of line 5*. **This is not an official SDCERS calculation. If this estimate conflicts with the official SDCERS retirement allowance calculation, SDCERS official calculation will govern. * The Service Retirement Estimation Tables assume you are selecting the Maximum Benefit as your retirement payment option. If you select another retirement payment option, your allowance will be reduced. For more information, please see the Retirement Payment Options section of this Summary Plan Description or call SDCERS at (619) 525-3600 or toll free (800) 774-4977. 24

SERVICE RETIREMENT ESTIMATION TABLE 3 Use with Retirement Calculation Factor 3 (Effective April 1, 2004 Maximum Benefit) YEARS OF SERVICE 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 AGE AT RETIREMENT 55 56 57 58 59 60 61 62 2.50% 2.60% 2.70% 2.80% 2.90% 3.00% 3.00% 3.00% 5.00% 5.20% 5.40% 5.60% 5.80% 6.00% 6.00% 6.00% 7.50% 7.80% 8.10% 8.40% 8.70% 9.00% 9.00% 9.00% 10.00% 10.40% 10.80% 11.20% 11.60% 12.00% 12.00% 12.00% 12.50% 13.00% 13.50% 14.00% 14.50% 15.00% 15.00% 15.00% 15.00% 15.60% 16.20% 16.80% 17.40% 18.00% 18.00% 18.00% 17.50% 18.20% 18.90% 19.60% 20.30% 21.00% 21.00% 21.00% 20.00% 20.80% 21.60% 22.40% 23.20% 24.00% 24.00% 24.00% 22.50% 23.40% 24.30% 25.20% 26.10% 27.00% 27.00% 27.00% 25.00% 26.00% 27.00% 28.00% 29.00% 30.00% 30.00% 30.00% 27.50% 28.60% 29.70% 30.80% 31.90% 33.00% 33.00% 33.00% 30.00% 31.20% 32.40% 33.60% 34.80% 36.00% 36.00% 36.00% 32.50% 33.80% 35.10% 36.40% 37.70% 39.00% 39.00% 39.00% 35.00% 36.40% 37.80% 39.20% 40.60% 42.00% 42.00% 42.00% 37.50% 39.00% 40.50% 42.00% 43.50% 45.00% 45.00% 45.00% 40.00% 41.60% 43.20% 44.80% 46.40% 48.00% 48.00% 48.00% 42.50% 44.20% 45.90% 47.60% 49.30% 51.00% 51.00% 51.00% 45.00% 46.80% 48.60% 50.40% 52.20% 54.00% 54.00% 54.00% 47.50% 49.40% 51.30% 53.20% 55.10% 57.00% 57.00% 57.00% 50.00% 52.00% 54.00% 56.00% 58.00% 60.00% 60.00% 60.00% 52.50% 54.60% 56.70% 58.80% 60.90% 63.00% 63.00% 63.00% 55.00% 57.20% 59.40% 61.60% 63.80% 66.00% 66.00% 66.00% 57.50% 59.80% 62.10% 64.40% 66.70% 69.00% 69.00% 69.00% 60.00% 62.40% 64.80% 67.20% 69.60% 72.00% 72.00% 72.00% 62.50% 65.00% 67.50% 70.00% 72.50% 75.00% 75.00% 75.00% 65.00% 67.60% 70.20% 72.80% 75.40% 78.00% 78.00% 78.00% 67.50% 70.20% 72.90% 75.60% 78.30% 81.00% 81.00% 81.00% 70.00% 72.80% 75.60% 78.40% 81.20% 84.00% 84.00% 84.00% 72.50% 75.40% 78.30% 81.20% 84.10% 87.00% 87.00% 87.00% 75.00% 78.00% 81.00% 84.00% 87.00% 90.00% 90.00% 90.00% 77.50% 80.60% 83.70% 86.80% 89.90% 90.00% 90.00% 90.00% 80.00% 83.20% 86.40% 89.60% 90.00% 90.00% 90.00% 90.00% 82.50% 85.80% 89.10% 90.00% 90.00% 90.00% 90.00% 90.00% 85.00% 88.40% 90.00% 90.00% 90.00% 90.00% 90.00% 90.00% 87.50% 90.00% 90.00% 90.00% 90.00% 90.00% 90.00% 90.00%