...For Non-Represented Employees...

Q1. Why did the company choose to roll this out in September, given the plan doesn’t start until January 1, 2008?
A1. We needed to ensure we had adequate time to educate people on how the plan works and to get elections made and submitted prior to the start date?

Q2. How does this benefit me?
A2. You get to choose what benefit mix is best for you and if you choice less than the max you will receive an increase in wage rate. Even if you choose the max benefit, everyone will see an increase in total compensation; the online calculators will illustrate this.

Q3. How do I get to the online wage calculators?
A3. www.oakhanswers.com/wagecalcs.htm

Q4. How does the company benefit from this plan?
A4. We will have the ability to offer and pay for only the benefits that people need and want. If they need less then they will see more in their paychecks. This will help us reduce our cost and put us in a better place to recruit future employees.

Q5. This seems too good to be true, what’s the catch?
A5. No catch. We are trying to create a plan that gives you the choice based on the benefits you need and a plan that allows the company to only pay for benefits that people want. You get more choice and more total compensation value and the company gets lower costs due to not having to pay for benefits that are not used.

Q6. How will this affect me from a tax standpoint?
A6. If you elect to match the previous benefits, 6% pension and 2% healthcare, there is no effect on your taxable income accept for the impact of the increase in wages. Your contributions for benefits are deducted pretax so if you choose to receive less benefits and more wage, you will see additional taxable income because your taxable wage is higher.

Q7. Why are we giving this information to the union employees, it doesn’t apply to them?
A7. We want to be as transparent to our employees as possible, the union-free compensation plan is a major part of how we operate and we want the union employees to understand it. We don’t want any misinformation surrounding this new plan. Some of the union employees may have to make decisions to move under this plan if they take jobs at union-free facilities or as supervisors. Also, we stated in earlier communications that we are looking for more employee choice in our contract this time around and in our minds this is what employee choice looks like.

Q8. Is this the same thing you’re trying to get in the new union contract?
A8. We will propose a similar plan to the unions, what the final plan looks like will be subject to the negotiation process.

Q9. What is the deadline for my elections to be submitted?
A9. November 30, 2007

Q10. When and how often can I change my elections of healthcare and 401k contributions?
A10. The same rules apply to managing your new 401k (pension) as the old 401k. You will be able to update your investment mix as often as desired at www.pfc401k.com.

Q11. Can I have the 401k managed by the same people that managed the pension?
A11. Yes, you will have the choice of multiple mutual funds and the management group that managed the previous pension.

Q12. Can I still contribute to my current 401k and the new one or will they be combined if they are combined and what is the max I can contribute into a 401k?
A12. You can only contribute to 1 pretax 401k so the funds in your current 401k and your pension will be rolled into the single 401k effective 1/1/08. The max contribution you can make into a 401k is $15,500 annually unless you are 50 or over, then it is $20,500. This may change as this is a tax law not a company imposed limit.

Q13. How long will it take to roll my pension into the new 401k and when do I get control over that investment?
A13. You will have control over the funds invested into the new 401k from the moment they are invested on your behalf. The process for rolling over the old pension funds and the old 401k will start on 1/1/08 but can’t be finalized until the IRS signs off on it, this can take a year or longer. That money will continue to be managed as before within the old plans, any funds contributed after 1/1/08 will go into the new 401k.

Q14. Does this change affect the survivorship of my retirement money?
A14. No, your money is your money; it will have 100% survivorship just like the previous plan.

Q15. What happens to the last 2007 pension contribution to the 2007 pension plan?
A15. It is invested into the 2007 plan and will be rolled into the new plan.

Q16. I am not eligible for the current company pension until July 2008, when am I eligible for new 401k pension and when does the matching start?
A16. All full-time employees who are eligible for benefits who start with the company prior to October 31, 2007 will be eligible to contribute to the 401k pension on January 1, 2008 and will receive up to 6% matching unless the 7.5% applies. This is subject to the vesting rules.

Q17. How does the 401k vesting work?
A17. You are fully vested in your contributions. The vesting for the matching funds contributed into your 401k pension works the same as the previous pension plan, 0% under 1 year, 20% after 1 year, 40% after 2 years, 60% after 3 years and 80% after 4 years and 100% after 5 years. Vesting is calculated based on the date you are hired.

Q18. Will there be 401k matching for Casual employees?
A18. No, the 401k matching only applies to full time employees who are eligible for benefits.

Q19. How does the matching work if I contribute 16% into my 401k during the first 6 months of the year and 0% during the last 6 months?
A19. The company would match 6% or 7.5% dollar for dollar in the first 6 months and 0% during the last 6 months. You would be better off contributing 8% for the whole year so you would receive the maximum match for the year as well.

Q20. Does this change effect my Roth 401k options?
A20. No, it will not be effected in any way.

Q21. I received a form with the DVD from HR that had different dates on it for when I am eligible for 7.5% vs 6% match which is correct?
A20. We apologize for that, there was a typo in the form that went out with the DVD's. The date that is listed in this site is correct, if you started on or before 12/31/02 you are eligible for the 12.5% increase and 7.5$% match, if you started after 12/31/02 your eligible for 11% increase and 6% match.

Q22. Is the healthcare the same plan as we had before?
A21. Yes, you will also have an option for a high deductable plan that will reduce the amount you will have to pay if you elect it.

Q23. How often will you change the contribution amounts for healthcare?
A22. The coverage rules have not changed. As always, we will have an open enrollment period in the last quarter of the year. Any changes to your healthcare plan must be made at that time unless you have a qualified life event. Contact HR for qualified life events. Make sure that you make your elections within this period for 2008 because your elections determine your contribution percentage.

Q24. If I am off sick for a month do I lose my insurance coverage and do I have to pay a contribution while I am out?
A23. That depends, if your absence is due to a FMLA qualifying event you would not lose your coverage for 12 weeks. You would be required to pay the 1% or 2% of your previous year’s average weekly wages, this is the same number used to calculate your vacation payout.

Q25. Can I use my FSA Account to pay for my contribution for healthcare?
A24. No, your FSA funds can’t be used to buy an insurance plan. Since the FSA money and the healthcare deduction are both pretax there is no benefit to using the FSA money.

Q26. I am a participant in the managers profit sharing, do I pay 2% of that for healthcare?
A25. No, the 2% does not apply to the profit share payments.

Q27. Why have you eliminated sick pay?
A26. A small percentage or our employees actually received benefit from the last one, that didn’t seem equitable. The government is also making it very difficult to manage these types of plans. Again, we want you to have the choice of how you use the resource and everyone shares the benefit equally.

Q28. What am I supposed to do if I am sick, I can’t afford to take the time off?
A27. Based on your own needs you should manage the money that you earn as a sick benefit. If this is a concern you can purchase short term disability insurance or invest the additional money that you get for sick benefit for a rainy day.

Q29. What is the cost of the short term disability plan that is payroll deductable?
A28. That depends on many factors. Age, wage, and when you want it to kick in 1, 3, 7, or 14 days for example. You can contact our insurance agent, Van Winkle Agency 425-787-2400,to get a quote based on your personal criteria

The plan we currently offer as of 9/12/07 for a person 24-49 years old, starting after 14 day wait period, paying 60% of your wage for 26 weeks and is 38.88/ month. You would probably want a plan that kicks in after 1, 3 or even 7 days, Van Winkle Agency can quote your cost on that.

Remember the sick pay plan would have paid you max 24 days (30 if you were here over 10 years) the insurance plans typically pay you up to 26 weeks. That is a significantly larger benefit.

Q30. How does the sick pay change effect Salaried employees?
A29. This change does not affect salaried employees, they do not accrue sick pay and they are not getting an adjustment to their wage due to the elimination of this program. They will remain on the current sick policy for salaried employees. That is why there are separate wage calculators, one for hourly and one for salaried, based on when they started.

Q31. What is the 2/3rd rule for calculating my sick bank buyout?
A30. Your sick leave bank will be divided by 40. After taking into account full days, if the remainder is higher than .66 you will receive a full personal holiday for that time. For example if you have 142 hours in your bank you would receive 3 days, (142 / 40 = 3.55) or if you have 150 hours you would receive 4 days, (150 / 40 = 3.75).

Q32. what options do I have for liquidating my sick bank?
A31. you hav e2 options. Take all days (1 for 5)as additional personal holidays within 2008 or get paid out all days (1 for 5)in cash by 3/30/08. You must make your choice by 12/31/07 as to which option your taking..

Q33. Does this plan effect my vacation pay or Holidays?
A32. No they are same as before.