Ernst & Young Defined Benefit Retirement Planparticipants who accrued benefits under the Ernst & Young Defined Benefit Retirement Plan. If you are rehired as staff by EY, any unpaid

Ernst & Young DefinedBenefit Retirement Planand

Ernst & Young InactiveDefined Benefit RetirementPlan

January 2017

Contents

Introduction ................................................................................................................................. 1Terms .......................................................................................................................................... 2Eligibility, vesting and types of retirement ....................................................................................... 5

Eligibility ................................................................................................................................... 5Rehires ..................................................................................................................................... 5Vesting ..................................................................................................................................... 5Break-in-service ........................................................................................................................ 5Military service leave ................................................................................................................. 5Types of retirement benefit accruals ........................................................................................... 6Forms of retirement benefit payments......................................................................................... 6

Retirement benefit calculations: combined accrued benefit ............................................................... 8Your combined accrued benefit formula ...................................................................................... 8

Retirement benefit calculations: Part B – Cash Balance Benefit.......................................................... 9Cash Balance Formula ................................................................................................................ 9Annual Cash Balance Credits ...................................................................................................... 9Interest Credits ....................................................................................................................... 10Transitional Credits ................................................................................................................. 10

Retirement benefit calculations: Part A – Benefit ........................................................................... 11(1) FAC Benefit ........................................................................................................................ 11(2) Prior CB Benefit ................................................................................................................. 11(3) Minimum Flat Dollar Benefit ................................................................................................. 12Special rules for participants of Predecessor Plans ...................................................................... 12

Termination before retirement age ............................................................................................... 13Special vested benefits............................................................................................................. 13Deferred vested benefits........................................................................................................... 13

How your retirement benefit is paid .............................................................................................. 14Normal forms of payment ......................................................................................................... 14Optional forms of payment ....................................................................................................... 14Beneficiary designations .......................................................................................................... 14Lump-sum payment ................................................................................................................. 15How a lump-sum payment works ............................................................................................... 15Rollover into a Roth IRA ........................................................................................................... 16Written spousal consent ........................................................................................................... 16Recovery of overpayment......................................................................................................... 16

Survivor benefits, offset and special tax rules ................................................................................ 17Survivor benefits ..................................................................................................................... 17Offset for Arthur Young account balance ................................................................................... 17Special tax rules for lump-sum distributions ............................................................................... 18

Applying for benefits, loss of benefits and plan cost ....................................................................... 19Estimating your benefits........................................................................................................... 19Applying for your benefits ........................................................................................................ 19How you can lose your benefits ................................................................................................. 19Plan cost ................................................................................................................................. 19Plan interpretation................................................................................................................... 20Assignment of benefits............................................................................................................. 20Qualified Domestic Relations Order ........................................................................................... 20Top-heavy rules ....................................................................................................................... 20If the Plans are underfunded ..................................................................................................... 20Termination of the Plans .......................................................................................................... 20Plan termination insurance ....................................................................................................... 20How to request benefits ............................................................................................................ 21Statement of ERISA rights ........................................................................................................ 21Receive information about your plan benefits ............................................................................. 21Prudent actions by plan fiduciaries ............................................................................................ 21Enforce your rights .................................................................................................................. 21Assistance with your questions.................................................................................................. 21

The Employee Retirement Income Security Act of 1974 (ERISA) ..................................................... 22How to file a claim ................................................................................................................... 22Review of claim ....................................................................................................................... 23

Appendix A: Sample benefit calculations ....................................................................................... 24Normal retirement benefit ........................................................................................................ 24Early retirement benefit ............................................................................................................ 26Deferred vested benefit ............................................................................................................ 28

Appendix B — Social Security Covered Compensation ..................................................................... 31

Ernst & Young Defined Benefit Retirement PlanErnst & Young Inactive Defined Benefit Retirement Plan 1

Introduction

This document summarizes the benefits available to staffmembers of Ernst & Young US LLP (the Firm, itsparticipating joint ventures, participating affiliates, and itsparticipating subsidiaries under the Ernst & Young DefinedBenefit Retirement Plan and the Ernst & Young InactiveDefined Benefit Retirement Plan (the Plans).

Any reference to the Ernst & Young Defined BenefitRetirement Plan also includes benefits provided by theErnst & Young Inactive Defined Benefit Retirement Plan,where applicable. Benefits accrued under theErnst & Young Defined Benefit Retirement Plan aretransferred to the Ernst & Young Inactive Defined BenefitRetirement Plan upon the earlier of the date your monthlyannuity commences or at the expiration of six monthsfollowing the end of your employment with EY. Thistransfer has no impact on the amount of your benefitpayment. See the Plan documents for more information.

All references to EY in the document are to Ernst & YoungUS LLP, the client-serving firm located in the United States.

The term “staff members” in this document refers to all EYemployees, excluding partners/principals, interns, leasedemployees and inpatriates. If you are a partner/principal,you are not eligible for benefits under the Ernst & YoungDefined Benefit Retirement Plan. Please see theErnst & Young Partnership Defined Benefit RetirementPlan Summary Plan Description (SPD) for a description ofyour retirement benefits.

Complete information about the Plans is contained in thePlan documents maintained by EY. If a conflict existsbetween this summary and the Plan documents, the Plandocuments will govern. Questions may be directed toBenefits Express™ at+1 877 339 1239 or you may write tothe Retirement Plan Administrator, Ernst & Young LLP,200 Plaza Drive, Secaucus, NJ 07094.

For answers to questions regarding coverage and eligibility, access Benefits Express athttp://resources.hewitt.com/ey or call Benefits Express at +1 877 339 1239.

While the Firm intends to continue the Plans, the Firm reserves the right to amend or terminate the Plans at anytime without prior notice, in any manner, at any time and with respect to any class of individual.

2

Terms

Important terms used in this document are defined as follows:

Actuarial Equivalent: The method used to convert a benefitin one form of payment, such as a lump sum, into anotherform, such as a life annuity. The conversion is done in such away that, given a set of actuarial assumptions aboutmortality and interest, and reflecting the age of theparticipant, and beneficiary, if relevant, at the time ofcommencement, the two forms are expected to have anequivalent actuarial value. The assumptions used todetermine Actuarial Equivalent amounts differ, depending onthe form of payment you choose, your PensionCommencement Date, and your period of service.

Annual Cash Balance Credit: Also known as “pay credit,”this credit is a percentage of your Compensation earned onor after January 1, 2017, based on your Points (your age inwhole years and months plus your Years of Vesting Serviceas of the previous December 31 in whole years and months,in both cases with each full month counting as one-twelfth ofa point). The Annual Cash Balance Credit is added to yourCash Balance Account as of the end of the year, or as of thedate your employment terminates, if earlier.

Cash Balance Account: The notional account established forparticipants eligible for the Part B – Cash Balance Benefit.

Compensation: Compensation, while a staff member, iscalendar-year compensation, before deferrals, withholdings,and deductions, paid by the Firm, but does not includepayments of allowances, reimbursement of expenses,severance pay, pay for unused vacation days or bonuses andincentives made after terminating employment with theFirm. Compensation is determined without regard to anyreductions in Compensation elected under the Ernst & YoungRetirement Savings Plan and/or any pre-tax benefit plans.The Plans limit Compensation to the annual amountpermitted by the Internal Revenue Service (IRS), which is$270,000 for the 2017 calendar year. (This limit mayperiodically be adjusted by the IRS.)

Domestic Partner: The person to whom you designate asyour Domestic Partner. Please note that you must registeryour Domestic Partner with Benefits Express in order foryour Domestic Partner to receive survivor benefits. If youmarry or register a Domestic Partner with Benefits Express,your spouse automatically becomes your beneficiary and anyprior beneficiary designation is superseded. You may wantto review your beneficiary designations as any major lifeevents occur. The right to change the beneficiary is reservedto you at any time.

Ernst & Young Defined Benefit Retirement Plan: This is theplan in which your benefits accrue while you are an active EYemployee. If you terminate employment from EY and take alump sum within six months of that date, your benefit is alsopaid from this plan. However, if you elect to receive anannuity, or if you elect to defer commencement beyond sixmonths after severance of employment, your benefit and thecorresponding assets are transferred from this plan to theErnst & Young Inactive Defined Benefit Retirement Plan. Thistransfer has no impact on the amount of your benefitpayment.

Ernst & Young Inactive Defined Benefit Retirement Plan:This is the plan from which all benefits, except lump sumswithin six months of termination of employment, are paid toparticipants who accrued benefits under the Ernst & YoungDefined Benefit Retirement Plan. If you are rehired as staffby EY, any unpaid benefits and their associated assets aretransferred back to the Ernst & Young Defined BenefitRetirement Plan – although certain exceptions apply if youwere a Partner/Principal before rehire. Any transferbetween the Plans has no impact on the amount or paymentof your benefit.

Final Average Compensation: The average of yourCompensation for any five calendar years of the last 10calendar years of service ending before January 1, 2017,with the Firm that produce the highest average, subject toIRS limits.

Firm: The partnership known as Ernst & Young US LLP.

Interest Credit: For each Plan Year beginning on or afterJanuary 1, 2018, your Part B – Cash Balance Account will becredited with 4% interest annually. Your Cash BalanceAccount contributions must be aged one year before interestbegins accruing on those amounts. Interest will continue toaccrue until you commence your benefit or until the later ofreaching your normal retirement date or terminatingemployment. Each year’s accrual is credited to your accountas of the beginning of the next Plan Year or, if earlier, aprorated amount will be credited based on the date youleave the Firm, reach Normal Retirement Date, or commenceyour benefit. No interest will be credited after youcommence pension payments. If you work past your NormalRetirement Date, interest will be prorated through the lastfull month preceding your severance of employment.


Minimum Flat Dollar Benefit: (Applies to your Part A –Benefit only.) This minimum benefit, which is $3,800 peryear, accrues on a monthly basis (beginning January 1,2014) during the period you participate in theErnst & Young Defined Benefit Retirement Plan followingyour commencement of participation (up to a maximum ofthree years). Accruals under this formula were frozen as ofDecember 31, 2016.

Normal Retirement Date: The later of:

(1) The date you attain age 65; or

(2) The earlier of (i) the fifth anniversary of your date ofparticipation or (ii) the date you complete three Years ofVesting Service, if you are credited with one hour ofservice on or after January 1, 2017.

Part A – Benefit: The portion of your benefit accrued as ofDecember 31, 2016 based on the Final AverageCompensation formula (FAC Benefit) or minimum formulas(Prior CB Benefit or Minimum Flat Dollar Benefit) then ineffect. The benefit accrued at that point will remain thesame and will not increase or decrease, but may beadjusted if you commence payments before your NormalRetirement Date, and/or terminate employment before youare eligible for Early Retirement or Special Vesting.

Part B – Cash Balance Benefit: The portion of your benefitaccrued starting on January 1, 2017 under the Plans’ cashbalance formula.

Pension Commencement Date: Generally, the first day ofthe first period that an amount is payable under the Plans.Your Pension Commencement Date will be recalculated ifyou return to work at EY and your pension is suspendeduntil you again commence your pension. If you commencea disability pension, your Pension Commencement Date willbe the earlier of the first of the month following yourNormal Retirement Date or the date you commence yourpension due to disability.

Plan Year: The period commencing January 1 and endingDecember 31.

Points: The sum of your age and Vesting Service, both asof the end of the prior year, and both counted in wholeyears and whole months (each whole month counting asone-twelfth of a Point). Your Points determine the level ofAnnual Cash Balance Credits you can accrue during thecurrent year under Part B – Cash Balance Benefit.

Predecessor Plan(s): The Arthur Young Retirement Plan orthe Ernst & Whinney Defined Benefit Pension Plan.

Prior CB Benefit: (Applies to your Part A – Benefit only.) Ifyou were hired before January 1, 2014 and (i) became anactive participant after September 30, 1994 or (ii) onSeptember 30, 1994, you had been a participant duringthree or fewer plan years, this benefit produced a notionalbookkeeping “account” balance based on yourCompensation and years of service. Accruals under thisformula were frozen as of December 31, 2016.

Social Security Covered Compensation: (Applies to yourPart A – Benefit only.) Relates to your year of birth and it isdetermined annually by averaging the Social Security wagebases (the maximum amounts on which Social Securitytaxes are paid each year) for the 35-year period endingwith the year in which you reach your Social Securitynormal retirement age. For purposes of calculating SocialSecurity Covered Compensation, your Social Securitynormal retirement age is age 65 if you were born before1938, age 66 if you were born between 1938 and 1954;and age 67 if you were born after 1954. Appendix B showsthe IRS table in effect beginning on January 1, 2016, thelast year Social Security Covered Compensation was usedto calculate your benefit. This amount is frozen as ofDecember 31, 2016 and may not increase after this date.

Transition Points: The sum of your age and Years ofVesting Service, both determined on December 31, 2016,and both counted in whole years and whole months (eachwhole month counting as one-twelfth of a Point). YourTransition Points determine the level of Transitional Creditsyou can accrue between January 1, 2017 and December31, 2021 under Part B – Cash Balance Benefit.

Transitional Credit: If you have at least 10 Years ofVesting Service and 60 Transition Points, both as ofDecember 31, 2016, you are eligible for TransitionalCredits, which are contributed to the Plan only for years ofservice between January 1, 2017 and December 31, 2021.This credit is a fixed percentage of your Compensation onor after January 1, 2017 and on or before December 31,2021 based on your Transition Points. The TransitionalCredit is added to your Part B – Cash Balance Benefit at theend of the year, or as of the date you terminateemployment, if earlier.

Years of Vesting Service: Your eligibility for a Plan benefitis determined by your Years of Vesting Service. Your Yearsof Vesting Service are equal to the sum of:

(1) The total of your periods of service with the Firmcommencing with October 1, 1990 or, if later, your dateof hire (or rehire) with the Firm, excluding any period ofservice prior to your 18th birthday; plus

(2) The Years of Vesting Service you had under thePredecessor Plan(s) on September 30, 1990; plus

(3) The Years of Vesting Service you had under the KennethLeventhal & Company Tax Reduction & Profit Sharing Planon May 31, 1995, provided you were employed by EY onJune 1, 1995.

Your service will be aggregated on the basis that 12calendar months will equal one year and each additionalmonth will equal one-twelfth of a year, provided you workat least 15 days during the month.

If you were hired on or after January 1, 2017, VestingService credited after you incur five consecutive one-yearbreaks in service will be disregarded for determining yourPart B – Cash Balance Benefit earned before your break in

4

service if you were not yet vested when your severancefrom service occurred.

Years of Benefit Service: The total of your service with theFirm, commencing as of your date of hire, excluding anyinternship, completed as of December 31, 2016. Yourservice will be aggregated on the basis that 12 calendarmonths equal one year and each additional month willequal one-twelfth of a year. You will be credited with a fullmonth provided you worked at least 15 days of that month.Years of Benefit Service will not be credited for any periodof service after December 31, 2016 and is limited to 30years. Certain exceptions may apply if you were at least

age 40 with at least 15 years of Vesting Service at the timeyou incurred a permanent and total disability prior toJanuary 1, 2017. Your pension amount in thePart A – Benefit is determined by Years of Benefit Service.

Years of Eligibility Service: The total of your periods ofservice with the Firm, generally commencing with yourdate of hire, determine your Years of Eligibility Service.You will complete a Year of Eligibility Service once youhave been with the Firm a full 365 days.

Special rules may apply to participants from firmsmerged with or acquired by EY.


Eligibility, vesting and typesof retirement

EligibilityYou are eligible for the Plans on the earlier of:

• The January 1 or July 1 coinciding with or immediatelyfollowing the date you reach age 21 and complete oneyear of service, or

• The first day of the month after you reach age 35,regardless of service.

RehiresIf you are a former employee or former partner whoterminated employment while previously eligible for thePlans, and you are rehired as an employee on or afterJanuary 1, 2017, you are eligible for the Ernst & YoungDefined Benefit Retirement Plan on the date you arerehired.

Partner benefits for former partners rehired as employeeswill be transferred from the Ernst & Young Inactive DefinedBenefit Retirement Plan to the Ernst & Young PartnershipDefined Benefit Retirement Plan account. See theErnst & Young Partnership Defined Benefit Retirement PlanSPD if you earned a benefit as a partner.

VestingIf you are credited with an hour of service on or afterJanuary 1, 2017, you are vested in the Ernst & YoungDefined Benefit Retirement Plan after you complete threeYears of Vesting Service.

Vesting is important because it means you have a right to abenefit from the Plans even if you leave the Firm beforeretirement. If you terminate employment before vesting,your unvested benefit will be forfeited.

If your death occurs before you retire or after you leavethe Firm and you are vested, your spouse or registered

Domestic Partner continues to have a right to a benefitfrom the Plans.

Break-in-serviceIf your initial date of hire is on or after January 1, 2017,and you have less than three Years of Vesting service priorto your severance of employment and you incur a five-yearbreak-in-service, then service after your severance date isnot included as Years of Vesting Service for purposes ofdetermining your vested Cash Balance Benefit earnedbefore your break-in-service. Years of Vesting Serviceearned before your five-year break-in-service will beincluded for purposes of determining your vested CashBalance Benefit you earn after you are rehired. If you havea break-in-service of 12 months or less, you will be creditedwith Years of Eligibility and Vesting Service (but not Yearsof Benefit Service) for the entire period of your break. Ifyour break-in-service is more than 12 months, service fromall periods of employment only will be added to determineyour Years of Eligibility, Vesting, and Benefit Service.

Military service leaveIf you leave EY or its participating affiliates to serve in oneof the uniformed services of the United States and returnto EY or its participating affiliates following that service,you may be entitled to contributions and service creditunder the Plans for your period of qualified military service,as provided by the Uniformed Services Employment andReemployment Rights Act (the Act). Qualified militaryservice is service in the uniformed services for which youare entitled to reemployment rights under the Act. Formore information, you should contact Benefits Express.

6

Types of retirement benefit accrualsFor participants terminating employment on or afterJanuary 1, 2017, your retirement benefit may becomposed of two parts (see “Appendix A: Sample benefitcalculations” for examples):

• Part A – Benefit: The portion of your benefit accrued as ofDecember 31, 2016 based on the Final AverageCompensation formula (FAC Benefit) and minimumformulas (Prior CB Benefit or Minimum Flat Dollar Benefit)then in effect and fixed at that point. You will not accrueany Part A – Benefit after December 31, 2016.

• Part B – Cash Balance Benefit: The portion of your benefitaccrued for any service on or after January 1, 2017 underthe Plans’ Cash Balance formula.

For participants terminating employment beforeJanuary 1, 2017, only the Part A – Benefit applies. Forparticipants commencing service on or after January 1,2017, only the Part B – Cash Balance Benefit applies.

Forms of retirement benefit paymentsWhen you retire, if you elect to receive an annuity, theportion of that annuity that comes from Part B – CashBalance Benefit is always the Actuarial Equivalent of theCash Balance Account based on your age at the time yourbenefit commences. The portion of the annuity fromPart A – Benefit is based on a fixed formula and may bereduced if you elect a commencement age earlier than yourNormal Retirement Date, and/or terminate employmentwith EY before you are eligible for Early Retirement orSpecial Vesting (refer to the “Termination beforeretirement age” section below).

If you elect to receive payment of your retirement benefitin a single lump-sum payment, the portion of the benefitpayable from the Part B – Cash Balance Benefit is equal tothe value of your Cash Balance Account. The lump sumpayable from the Part A – Benefit (including the MinimumFlat Dollar Benefit, but not the Prior CB Benefit) is the lumpsum Actuarial Equivalent of the fixed formula annuitybased on your age at the time your benefit commences.The lump-sum payable from the Part A – Benefit that is aPrior CB Benefit is the balance in your Prior CB Benefitaccount as of the time you elect the lump sum.

Normal retirementYou will be eligible for your benefit upon the termination ofyour service with the Firm on or after your NormalRetirement Date (see the “Terms” section).

Early retirementIf you retire from the Firm after completing 30 Years ofVesting Service and reached age 55, you will be eligible foran early retirement benefit. You may receive yourunreduced Part A – Benefit commencing at age 60 or later,or you may elect to begin receiving a reduced benefit atany time prior to age 60. If you elect to begin receivingyour benefit prior to age 60, the monthly payment amountof your Part A – Benefit you would otherwise receive at age

60 will be reduced by 5% for each year (0.4167% for eachmonth) that your payments begin before age 60. Thisreduction is made to take into account the longer periodover which your benefit will be paid to you.

If you have completed 10 Years of Vesting Service andhave reached age 55 at the time your service with the Firmterminates, you may elect to receive a reduced earlyretirement benefit beginning at any time thereafter. Forthis purpose, the monthly payment amount of your Part A –Benefit you will receive at early retirement will be reducedby 5% for each year (0.4167% for each month) thatpayments are made before age 65. In certain cases, asdescribed in “How your retirement benefit is paid,” yourspouse’s consent may be required to begin your benefitbefore age 65.

After you are vested, your Part B – Cash Balance Benefit isalways payable as a lump sum or an Actuarially Equivalentannuity based on your Cash Balance Benefit Accountbalance on the date you commence monthly benefitpayments.

Disability retirementIf, while a staff member, you become permanently andtotally disabled after attaining age 40 and completing atleast 15 Years of Vesting Service, you will be eligible toreceive a disability retirement benefit commencing as ofthe first day of any subsequent month. However, if youelect to begin to receive a disability retirement benefit fromthe Plans while you are receiving benefits from the EYLong-Term Disability Plan (including the buy-up option),your long-term disability benefits will be reduced by theamount of the benefit you are receiving from theRetirement Plan.

Alternatively, you may continue to accrue benefits underthe Plans until the earlier of:

(1) The date your disability benefits under the EY Long-TermDisability Plan cease; and

(2) The first day of the month on which you commencepayments under this Plan.

While on disability, your benefits will accrue based on theCash Balance Benefit formula (if your disability started onor after January 1, 2017) and reflect your Compensationand Points in the year immediately preceding the year thatyou became disabled. If your disability began beforeJanuary 1, 2017, your benefit will accrue based on thePart A – Benefit only.

If you cease to be permanently and totally disabled beforeyou reach your Normal Retirement Date, your disabilityretirement benefit will cease. However, you will be eligibleto receive an early retirement benefit, special vestedbenefit or a deferred vested benefit if you satisfy theconditions for one of those benefits based upon your ageand Years of Vesting Service at the time your disabilityretirement benefit ceases.


Disabled before you are eligible for disability retirementIf you become permanently and totally disabled while astaff member and you have not attained age 40 or have notcompleted 15 Years of Vesting Service at the time youbecome disabled (or both), you will be eligible to receive up

to one Year of Vesting Service while disabled. Theadditional one Year of Vesting Service will not be used tocount service toward your eligibility for a disabilityretirement benefit. Provided you have completed threeYears of Vesting Service, you will be eligible for a deferredvested benefit.

8

Retirement benefitcalculations: combinedaccrued benefit

Your combined accrued benefit formulaIf you were hired before 2017 and were eligible for the Plans, and you continued working for the Firm once the Part B –Cash Balance Benefit was implemented as of January 1, 2017, the value of your total retirement benefit will bedetermined by combining your accrued benefit under the Part A – Benefit formula (see the “Retirement benefitcalculations – Part A – Benefit” section) determined as of December 31, 2016, that produces the highest benefit plus thenew Cash Balance formula under the Part B – Cash Balance Benefit (see the “Retirement benefit calculations: Part B –Cash Balance Benefit” section). If you were hired on or after January 1, 2017, your total retirement benefit will bedetermined solely by the Part B – Cash Balance Benefit. Effective January 1, 2017, if you are not yet vested in the Plans,you will be vested in your total pension benefit after three years of service.

Part A – Benefit* Part B – Cash Balance Benefit

Benefit accrued through December 31,2016 (can be reduced if you commencepayments before your Normal RetirementDate, and/or terminate employmentbefore eligibility for early retirement orspecial vesting). plus

Benefit based on Points (Points are age plusYears of Vesting Service as of December 31 ofprior Plan Year) starting January 1, 2017:

• A “notional” account is established for you,and the value of the vested account willincrease steadily over time with creditsprovided by the Firm until commencement.

• Your retirement benefit will be based on thevalue of your vested account at retirementor commencement.

* Your Part A – Benefit will be determined under the formula in effect (your benefit earned under the FAC Benefit,Prior CB Benefit or Minimum Flat Dollar Benefit) prior to January 1, 2017 that produces the highest benefit. YourPart A – Benefit includes the value of any subsidized early retirement benefits for which you may become eligiblewhen you terminate employment or retire from the Firm.

Please note: A notional account is not an actual individual and personal account (such as a 401(k) Plan account), but arecordkeeping measure to track the benefit you are accruing in the Plan.


Retirement benefitcalculations: Part B – CashBalance Benefit

Beginning January 1, 2017, your annual retirement benefit will be calculated under the Cash Balance Formula describedbelow. Prior to 2017, your benefit was calculated with the formula(s) described in the “Retirement benefit calculations:Part A – Benefit” section.

The value of your total retirement benefit is determined by combining your Part A – Benefit, if any, with the Part B – CashBalance Benefit. See the “Retirement benefit calculations: Combined Accrued Benefit” section above.

Appendix A includes benefit calculation examples of the Cash Balance Formula method.

Cash Balance Formula

Under the Cash Balance Formula, your annual accrual is calculated as follows:

Annual Cash Balance CreditA percentage of yourCompensation credited to yournotional account as of the last dayof the year or the date you leaveEY, if earlier

+

Interest Credit4% annual interest on your accounteach Plan Year +

Transitional Credit (2017–2021)For those with at least 10 Years ofVesting Service and 60 or more points,both as of December 31, 2016, apercentage of your Compensationcredited to you as of the last day of theyear (from 2017 to 2021 only) or thedate you leave EY, if earlier

Annual Cash Balance Credits

The percentage of your Annual Cash Balance Credit is determined by your “Points” as of the previous December 31. YourPoints are determined by your age based on years and full months plus Years of Vesting Service counted in years andfull months. Each completed full month counts as one-twelfth of a point.

PointsAnnual Cash

Balance Credit0 – <35 2.5%

35 – <50 3.25%50 – <65 4%65 – <80 5%80 – <95 6%

95+ 7%

10

Interest CreditsFor each Plan Year beginning on or after January 1, 2018,your Cash Balance Account will be credited with 4% interestannually. Your Cash Balance Account contributions mustbe aged one year before interest begins accruing. Interestwill continue as long as you remain an active employee.Each year’s accrual is credited to your account as of thebeginning of the next Plan Year or, if earlier, the date youleave the Firm and commence your benefit or reach NormalRetirement Date. If you work past your Normal RetirementDate, interest will be prorated through the last full monthpreceding your severance of employment.

Transitional CreditsLonger-service employees may be eligible for additionalTransitional Credits, based on points as of December 31,2016 and fixed for the duration of crediting. TheTransitional Credits are a percentage of yourCompensation and credited as of the last day of the year orthe date you leave EY, if earlier. These credits will beavailable for those with at least 10 Years of Vesting Serviceas of December 31, 2016 and have 60 points or more as ofDecember 31, 2016. Transitional Credits will be applied forfive years (2017–2021) or until you leave EY, whichevercomes first. If you leave EY and return, Transitional Creditswill not resume upon rehire, even if you are rehired before2022.

Your Transitional Credit percentage is determined by yourTransition Points as of December 31, 2016 and, unlikeyour Annual Cash Balance Credit, is unchanged until theTransitional Credits end in 2022. Your Transition Points

are determined by your age in years and full months plusYears of Vesting Service in years and full months as ofDecember 31, 2016 (provided you have at least 10 yearsof service as of December 31, 2016). Each completed fullmonth counts as one-twelfth of a point.

TransitionPoints

TransitionalCredit

60 – <65 4%65 – <80 5%80 – <95 6%

95+ 7%Your final Part B – Cash Balance Benefit is the accumulatedvalue in your Cash Balance Account, which is the sum of allthe Annual Cash Balance Credits, Transitional Credits andInterest Credits over the course of your career. If you’revested, this amount is available to you as a lump sum(subject to spousal consent, if married). You may also electto take this benefit as an annuity, in which case it isconverted to the annuity form you select and the amountof your monthly payment is the Actuarial Equivalent ofyour account balance. The determination of ActuarialEquivalence is based on your age, your beneficiary’s age, ifapplicable, and the IRS-defined applicable mortality factorsand applicable interest rate in effect under the Plan at thetime your annuity commences. If you elect to defercommencement of your retirement benefit, your CashBalance Account will continue to accrue Interest Credits ata 4% annual rate from your termination date until the datethat you retire, which cannot be later than your NormalRetirement Date.


Retirement benefitcalculations:Part A – Benefit

If you retired or terminated employment before 2017, youraccrued benefit was calculated using the Part A – Benefitformula only.

If you were eligible for benefits under the Ernst & YoungDefined Benefit Retirement Plan before 2017 and youcontinued working for the Firm on or after January 1,2017, the value of your total retirement benefit isdetermined by combining your Part A – Benefit earnedbefore 2017 with your Part B – Cash Balance Benefitearned beginning in 2017 until you terminate employment.See the “Retirement benefit calculations: Combinedaccrued benefit” section above.

Under the Plans, your Part A – Benefit is calculated asdescribed below:

• Your benefit is calculated as the greatest of (1), (2) and(3) below if you commenced service with the Firm prior toJanuary 1, 2014, and if at least one of the followingapplies:

• You first became an active participant in the Planafter September 30, 1994, or

• On September 30, 1994, you had been a Planparticipant during three or fewer Plan Years.

• Your Plan benefit is calculated as the greater of (1) and (3)below if you commenced service with the Firm on or afterJanuary 1, 2014.

You automatically receive the highest amount applicable toyou. The full amount as of December 31, 2016 is your“Part A – Benefit.” Each of the methods is described infurther detail below. For more information, Appendix Aincludes examples of the FAC Benefit, Prior CB Benefit andthe Minimum Flat Dollar Benefit calculation methods.

(1) FAC BenefitThe calculation that wasused to determine your FAC Benefitis:

The maximum annual benefit payable under the FACBenefit was $125,000 as of January 1, 2014.

(2) Prior CB BenefitThe Prior CB Benefit produces a notional bookkeeping“account” based on your calendar year compensation andservice. An amount is calculated as of the end of the PlanYear (or the end of the month in which your severanceoccurs) for any Plan Year or partial Plan Year during whichyou complete at least one hour of service in accordancewith the following schedule effective October 1, 1996:

Year of Planparticipation

Percentage of PlanYear compensation

1 5%2 4%3 3%4 2%5 1%

More than 5 0%

FAC Benefit

1.3% of Final Average Compensation up to SocialSecurity Covered Compensation

+ Plus

1.7% of Final Average Compensation over SocialSecurity Covered Compensation

x That sum multiplied by

Yrs Years of Benefit Service up to a maximum of30 years subject to the maximum annualbenefit limit described below.

12

On the last day of each month, interest at an annual rate of6% (7.5% before January 1, 2017) is credited to the PriorCB Benefit account balance as of the beginning of the PlanYear. Interest is credited both while you are employed bythe Firm and following your separation from service withthe Firm.

If you were a participant on September 30, 1994, and hadbeen a participant during three or fewer Plan Years, thePrior CB Benefit as of October 1, 1994 equals the lumpsum value of your accrued benefit calculated under theFAC Benefit on September 30, 1994. The accrued benefiton September 30, 1994 is calculated under all applicableformulas then in effect and the highest benefit amount willapply.

Compensation under the Prior CB Benefit for employeeshired or rehired on or after July 1, 2004 is limited to 50%of the IRS annual dollar limit for Plan Years beginning on orafter January 1, 2005. The IRS compensation limit for2016 was $265,000.

The Prior CB Benefit projected to the later of (a) yourNormal Retirement Date and (b) your PensionCommencement Date is converted to a monthly annuityvalue. The monthly annuity value is compared to themonthly annuity value determined under the FAC Benefitand Minimum Flat Dollar Benefit, if applicable. Yourmonthly benefit is based on the formula (either the FAC

Benefit, the Prior CB Benefit or Minimum Flat DollarBenefit, if applicable) that provides the greater monthlybenefit.

(3) Minimum Flat Dollar BenefitThe Minimum Flat Dollar Benefit, which is $3,800 per year,accrues on a monthly basis (beginning January 1, 2014)during the period you participate in the Ernst & YoungDefined Benefit Retirement Plan following yourcommencement of participation (up to a maximum of threeyears). This formula is not used after December 31, 2016.

Special rules for participants of Predecessor PlansIf you had Supplementary Firm Contributions made on yourbehalf to the Arthur Young Employees’ Retirement Plan,the annual retirement benefit described above will bereduced unless you are eligible to and elect to transferthose contributions to this Plan, rather than take them inthe form of a lump sum or in installments. For a moredetailed discussion, see “Offset for Arthur Young accountbalance.”

If you were a participant in the Ernst & Whinney DefinedBenefit Pension Plan or the Arthur Young Retirement Planon September 30, 1990, and you become eligible for abenefit under this Plan, your benefit under this Plan will notbe less than your accrued benefit as of September 30,1990, under the plan in which you were then participating.


Termination beforeretirement age

Special vested benefitsYou will be entitled to a special vested benefit if:

• You leave the Firm on or after January 1, 2017 and afteryou have reached age 50 with at least three Years ofVesting Service; and

• The combination of your age and Years of Vesting Serviceequals at least 75.

Your benefit will be calculated under each of the applicableretirement benefit calculations described in “Retirementbenefit calculations: Part B – Cash Balance Benefit” and“Retirement benefit calculations: Part A – Benefit” and youwill automatically receive the sum of the two benefits whenyou commence your benefits. You may begin receivingyour Part A – Benefit at age 65 (age 60 if you havecompleted 30 Years of Vesting Service). Alternatively, youmay elect to receive a reduced Part A – Benefit at any time.The Part A – Benefit will be reduced by 5% for each year(0.4167% for each month) that your payments beginbefore age 65 (age 60 if you have completed 30 Years ofVesting Service). The Part B – Cash Balance Benefit annuitywill be the Actuarial Equivalent of your Cash BalanceAccount balance based on your age, your beneficiary’s age,if applicable, and the IRS-defined mortality factors andapplicable interest rate assumptions then in effect underthe Plans at the time your annuity commences.

Deferred vested benefitsIf you leave the Firm on or after January 1, 2017 andbefore you are eligible for normal, early, disabilityretirement, or special vested benefits but after completingat least three Years of Vesting Service, you have a right tothe benefit you have earned up to the date you leave theFirm. Benefits Express will automatically send a letter toyour address of record with the amount of your benefit.Alternatively, you may contact Benefits Express athttp://resources.hewitt.com/ey or by calling+1 877 339 1239.

If you earned a Part A – Benefit, that portion of yourbenefit will be adjusted for early termination byrecalculating the FAC Benefit (see “Retirement benefitcalculations – Part A – Benefit”) and applying a service ratiofactor. The service ratio factor uses Years of Benefit

Service projected to normal retirement age (but limited to30 years) and multiplying the result by a fraction, thenumerator of which is Years of Benefit Service at theearlier of termination, or December 31, 2016, and thedenominator of which is Years of Benefit Service projectedto normal retirement age. The deferred vested Part A –Benefit is then the greater of this early termination FACBenefit, the Prior CB Benefit and the Minimum Flat DollarBenefit.

If you had Supplementary Firm Contributions made on yourbehalf to the Arthur Young Employees’ Retirement Plan,the annual retirement benefit described above will befurther reduced. For a more detailed discussion, see“Offset for Arthur Young account balance.”

The Part B – Cash Balance Benefit portion of your deferredvested benefit is based on the account balance at the timethat you elect to receive your benefit. If you elect a lumpsum, the Part B – Cash Balance Benefit portion of the lumpsum is the account balance. If you elect an annuity, thePart B – Cash Balance Benefit portion of the annuity isbased on the Actuarial Equivalent annuity that your lumpsum can provide, based on your age and other parametersat the time that the annuity starts.

The value of your total retirement benefit will bedetermined by combining your accrued benefit underPart A – Benefit plus your accrued benefit under Part B –Cash Balance Benefit.

You can begin receiving your full deferred vested benefit atage 65. Alternatively, you may elect to start receivingbenefits before age 65, although the Part A – Benefitamount will be actuarially reduced based on your age at thetime benefits commence, because it will be paid to you fora longer period of time than if you had waited until age 65to begin receiving your benefit, and interest on yourPart B – Cash Balance Benefit will stop accruing at the timeyour benefit commences.

In certain cases, as described in “How your retirementbenefit is paid,” your spouse’s consent may be required tobegin your benefit before age 65.

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How your retirementbenefit is paid

Normal forms of paymentThe way your benefit is paid depends on whether you aresingle or married when payments start:

• If you are single, your benefit will be paid in monthlypayments for as long as you live. No payments are madeafter your death. This is referred to as the Life OnlyOption.

• If you are married, your benefit will be paid for as long asyou live, in monthly payments that are less than you wouldreceive if you were single. However, after your death, 50%of the monthly payment amount you received willcontinue to be paid to your spouse for his or her life. Thisis referred to as the 50% Joint and Survivor Option.

These are the standard forms of payment under the Plans.You may instead elect one of the optional forms ofpayment described below. To do so, you must file theappropriate application form within the 90-day periodbefore your benefit commencement date. If you aremarried, your spouse must consent in writing to yourelection of an optional form of payment, to yourdesignation of a beneficiary other than your spouse, and, itmay be required if you elect to begin receiving benefitsbefore age 65. (Your spouse’s consent is not required ifyou elect the 75% or 100% Joint and Survivor Optiondescribed below with your spouse as your beneficiary.)

Optional forms of paymentThe Plans offer optional forms of payment that areactuarially equivalent in value to the Life Only Option, butthe amount of monthly payments provided by each optionwill be different to take into account the different paymentfeatures provided. The following optional forms of paymentare available:

• Life only option. Your benefit will be paid in monthlypayments for your life only. (This is the normal form ofpayment for single participants, but is optional for marriedparticipants.)

• Joint and survivor option. Your benefit will be paid inreduced monthly payments for your life and, after you die,monthly payments will continue to your beneficiary, ifthen living, for his or her life. The amount of yourbeneficiary’s monthly payment can be 100%, 75%, 50%, or25% of your monthly payment — as you choose. Choosinga larger survivor benefit will cause the monthly amount

paid during your lifetime to be less. If your beneficiary isnot living at the time of your death, no further paymentswill be made.

• Period certain option. Your benefit will be paid in reducedmonthly payments for your lifetime with a guaranteedminimum period. This means that if you die before the endof that period, the same monthly payments will continueto your beneficiary for the remainder of the period. Yourbenefit can be guaranteed for 5, 10, or 15 years —whichever period you prefer. If you live longer than theguaranteed period you elect, monthly payments willcontinue for the rest of your life, but no benefit will be paidto your beneficiary upon your death.

• Joint and survivor with pop-up option. Your benefit will bepaid in reduced monthly payments for your life and, afteryou die, monthly payments will continue to yourbeneficiary, if then living, for his or her life. The amount ofyour beneficiary’s monthly payment can be 100%, 75%,50% or 25% of your monthly payment — as you choose. If,however, your beneficiary dies before you, the monthlypayments payable to you thereafter “pop-up” to themonthly amount you would have received if you hadelected the Life Only Option and will continue for the restof your life, but no benefit will be paid to your beneficiaryupon your death.

Beneficiary designationsYour beneficiary under the Plans is the person or personsyou designate to receive payments after your deathpursuant to the option you have elected. If you aremarried, your spouse must consent in writing to yourdesignation of someone other than your spouse. You maychange your beneficiary designation at any time beforeyour payments start. If you elect the Period Certain option,you may also change your beneficiary designation afterpayments commence. You may not change yourbeneficiary designation with any other form of benefitsoption after payments commence. However, if you aremarried, your spouse must consent in writing to the changeunless the change results in the designation of your spouseas sole beneficiary. Beneficiary designations may be made,revoked, or changed only by completing a signed formacceptable to the Committee that is filed with theCommittee before your death. Spousal consent must besigned and notarized or witnessed by a designatedrepresentative of the Plan.


Required distributionsYou are required to begin taking at least minimumdistributions of your benefit after reaching age 70½ if youare no longer working for EY or face excise (penalty) taxesimposed by the IRS. If you continue to work past age 65 onor after January 1, 2016, you will receive a Suspension ofBenefits Notice where benefits will not be paid until afteryou terminate your employment. You will accrue benefitsuntil that time.

Lump-sum paymentIf the present value of your vested benefit under the Plansis $1,000 or less, you must receive the present value ofyour vested benefit in a single lump-sum payment after youleave the Firm in lieu of receiving monthly payments fromthe Plans. The present value of your lump-sum benefitpayment is determined as of the first day of the monthfollowing your severance date.

If the present value of your vested benefit under the Plansis greater than $1,000, you may elect to receive your fullbenefit in a single lump-sum payment if:

(1) The actuarial present value of your vested benefit is lessthan or equal to $25,000;

(2) Your separation of service occurs on or after your NormalRetirement Date;

(3) Your separation of service occurs before your NormalRetirement Date provided you:

• Are credited with 10 Years of Vesting Service andhave reached age 55;

• Were a participant in the Arthur Young Plan, firstperformed services for Arthur Young United Stateson or afterJanuary 1, 1988, have been credited with five Yearsof Vesting Service, and have reached age 60; or

• Leave the Firm on or after January 1, 2017 afteryou have reached age 50 with at least three Years ofVesting Service and the combination of your age andYears of Vesting Service equals at least 75.

(4) The actuarial present value of your vested benefit isgreater than $25,000 and you are within six months ofyour separation of service. If you do not request adistribution within six months and elect acommencement date not later than the first of the monthfollowing the six-month anniversary of your separation ofservice, the lump sum exceeding $25,000 will not beavailable to you until you reach your earliest retirementage, which is defined by the Plans as:

• The date a vested participant reaches his or herNormal Retirement Date,

• The date a vested participant who has accrued atleast 10 Years of Vesting Service upon separation ofservice reaches age 55, or

• The date a vested participant who has accrued atleast three Years of Vesting Service upon separationof service and the participant’s age plus vestingservice is at least 75, reaches age 50.

Under lump-sum payment options (1), (2), and (3) above,your Part A – Benefit lump-sum, if applicable, will be thegreater amount between the Actuarial Equivalent presentvalue of the pension annuity commencing on your NormalRetirement Date or the Actuarial Equivalent present valueof the pension annuity commencing on your PensionCommencement Date. Under lump-sum option (4), yourPart A – Benefit lump sum is the Actuarial Equivalentpresent value of the benefit commencing on your NormalRetirement Date.

In all cases, your Part B – Cash Balance Benefit lump-sumamount will be equal to your Cash Balance Account balanceon your Pension Commencement Date.

Alternatively, you may defer your benefit not later thanyour Normal Retirement Date. If you are married, yourspouse must consent in writing to your election for a lump-sum payment.

Tax rules affecting lump-sum distributions are described in“Survivor benefits, offset and special tax rules.”

How a lump-sum payment worksA lump-sum payment means that you are paid the entirevalue of your vested benefit in one lump-sum paymentinstead of monthly annuity payments when you retire fromor leave the Firm. This option allows you to lock in 100% ofthe total value of your benefit for your family or for yourestate. Detailed information about your lump-sum optionwill be provided when you are ready to commence yourbenefits.

The present value of your benefit is determined as of theday you commence your benefit. The calculation is basedon the applicable mortality factors and interest ratesprescribed by the IRS and in effect under the Plans at thetime your benefit commences. The applicable mortalityfactors and interest rates can change over time based onchanges in life expectancy and market conditions.

When you leave EY, you’ll need to decide how you want toreceive your lump-sum payment:

• Roll over your lump-sum payment into an IndividualRetirement Account (IRA) or into another employer planthat accepts rollovers, such as a 401(k) plan. This optionmay allow you to avoid a potential IRS early distributionpenalty and defer taxes until you start taking distributions.You’ll need to consider the possible tax and otheradvantages available to you with a lump-sum rollover.

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• Receive a check made payable to you. With this form ofpayment, you will be subject to applicable withholdingtaxes, and the distributed amount will be taxable incomefor federal income taxes, including a possible 10% earlywithdrawal tax penalty. State and local taxes may alsoapply.

Please refer to “Survivor benefits, offset and special tax rules”below for more information.

Rollover into a Roth IRAYou or your beneficiary can roll over a lump-sum paymentof non-Roth money from the Plans to a Roth IRA, as well asto another IRA or eligible employer plan. If you roll over apayment of non-Roth money to a Roth IRA, a special ruleapplies under which the amount of the payment rolled over(reduced by any after-tax amounts) will be taxed. However,the 10% additional income tax on early distributions will notapply.

If you roll over the payment to a Roth IRA, later paymentsfrom the Roth IRA that are qualified distributions will not betaxed (including earnings after the rollover). A qualifieddistribution from a Roth IRA is a payment made after youare age 59½ (or after your death or disability), or as aqualified first-time homebuyer distribution of up to$10,000) and after you have had a Roth IRA for at leastfive years. In applying this five-year rule, you count fromJanuary 1 of the year for which your first contribution wasmade to a Roth IRA. Payments from the Roth IRA that arenot qualified distributions will be taxed to the extent of

earnings after the rollover, including the 10% additionalincome tax on early distributions (unless an exceptionapplies).

You do not have to take required minimum distributionsfrom a Roth IRA during your lifetime. For moreinformation, see IRS Publication 590, Individual RetirementArrangements (IRAs).

Please note: If a participant dies leaving his or her accruedbenefit to a designated beneficiary who is not his or herspouse, the designated beneficiary may roll over theinherited assets into a traditional or Roth IRA.

Written spousal consentAny written consent of a spouse that is required under thePlans must acknowledge the effect of the consent and bewitnessed by a designated Plan representative or notarypublic. In general, the written consent of your spouse willbe required when the effect of your elections or beneficiarydesignations will be to deny your spouse all or a portion ofthe benefit to which he or she would otherwise becomeentitled upon your death.

Recovery of overpaymentIf any benefit payment is made in error or in excess of theamount you are due according to the terms of the Plans,your future benefits may be reduced by the amount of theerror or the excess payment plus interest. The Plans mayalso recover the error or excess payment amount directlyfrom you or your estate or in any other manner.


Survivor benefits, offsetand special tax rules

Survivor benefitsIf you are married or have a registered Domestic Partner,have a vested right to the Part A – Benefit under the Plans,and die before your benefit payments begin, a benefit willbe paid to your surviving spouse. (This Part A – Benefit isavailable only to your surviving legal spouse or yourDomestic Partner, provided you have registered yourpartner with Benefits Express.) If you die while an activeemployee with an hour of service on or after January 1,2017 (or was at least age 40 with 15 or more years ofvesting service at the time of Permanent & Total Disabilityon or after January 1, 2017), but prior to commencingbenefit payments, your spouse will receive a monthlybenefit for his or her life in an amount equal to the monthlybenefit your spouse would have been eligible to receive ifyou had terminated your service with the Firm and electedto begin receiving benefits on the day before your death inthe form of the 100% Joint and Survivor Option with yourspouse as the beneficiary.

Otherwise, if you die after you terminate employment butprior to commencing benefit payments, your spouse orregistered Domestic Partner will receive a monthly benefitfor his or her life in an amount equal to the monthly benefityour spouse would have been able to receive if you hadelected to begin receiving benefits on the day before yourdeath in the form of the 50% Joint and Survivor Option withyour spouse as the beneficiary.

A single life annuity or a single lump-sum payment option isavailable to your surviving spouse or Domestic Partner.The lump-sum amount is equal to the Actuarial Equivalentpresent value of the single life annuity that would havebeen payable to the spouse or Domestic Partner.

Effective January 1, 2017, if you are married or have aregistered Domestic Partner, have a vested right to thePart B – Cash Balance Benefit under the Plans, and diebefore your benefit payments begin, a benefit will be paidto your surviving spouse or Domestic Partner unless a validbeneficiary designation has been filed with the Plan namingsomeone else (with your spouse’s written consent). If youare single, your benefit will be paid to your designatedbeneficiary. Married participants (with spousal consent) orsingle participants can choose multiple primary andcontingent beneficiaries to receive the benefit. Thebeneficiaries must be properly registered with BenefitsExpress before your death to be valid. Only a spouse

beneficiary can defer commencement of benefits until yourNormal Retirement Date, provided your spouse is the soleprimary beneficiary. A single life annuity or a lump-sumoption is available to any beneficiary. The lump-sumamount of the Part B – Cash Balance Benefit is equal toyour Cash Balance Account balance on the 1st of themonth coincident or next following the date of your death,and there is no dollar limit on the amount that can be paidby lump sum. The single life annuity is the actuarialequivalent of the Cash Balance Account. If you did notdesignate a beneficiary by the date of your death, the PartB – Cash Balance Benefit will be paid out in this order: (i)surviving spouse, (ii) surviving Domestic Partner, and (iii)estate.

If you have the same beneficiary for both the Part A –Benefit and the Part B – Cash Balance Benefit, the sameform of payment must be elected for each benefit. If thebeneficiaries differ, a separate form-of-payment electioncan be made by each beneficiary.

If a participant dies leaving his or her accrued Part B – CashBalance Benefit to a designated beneficiary who is not hisor her spouse, the designated beneficiary may roll over theinherited assets into a traditional or Roth IRA.

If you die during military serviceIf you die while performing qualified military service, yourbeneficiary will receive any additional benefits that wouldhave been provided to you had you resumed employmentprior to your death. This includes vesting and ancillarydeath benefits, but not additional benefit accruals.

Offset for Arthur Young account balanceIf you were a participant in the Arthur Young Employees’Retirement Plan that existed prior to January 1, 1989, youmay have an account balance attributable toSupplementary Firm Contributions made on your behalf.This account is now part of the Ernst & Young RetirementSavings Plan. If you elect to transfer this account balanceas of December 31, 2016 to the Ernst & Young DefinedBenefit Retirement Plan before your benefit under this Planbegins, your Part A — Benefit will be calculated as describedearlier in this document — i.e., without offset. (This right totransfer is only available to staff members who areemployed on their Early Retirement Date.) If yourseverance occurs before your Early Retirement Date, or if

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your severance occurs after your Early Retirement Dateand your Supplementary Firm Contributions accountbalance as of December 31, 2016 is not transferred to thisPlan, your benefit under this Plan will be reduced by anamount which is the equivalent actuarial value of youraccount balance as of December 31, 2016.

Special tax rules for lump-sum distributionsFederal income tax must generally be withheld at a rate of20% on lump-sum distributions. Withholding is not requiredon distributions that are a direct rollover to an IRA oranother employer’s qualified plan. The distribution will betaxed later when you take it out of the IRA or the employerplan.

Lump-sum distributions received from the Plans may besubject to a 10% tax in addition to the regular income taxpayable. This additional tax applies if payments are madeto you unless:

(1) You are age 59½ or older;

(2) You are disabled;

(3) You leave the Firm at age 55 or later;

(4) The payment is a direct rollover to an IRA or anotheremployer’s qualified plan; or

(5) Within 60 days from receipt of payment, you roll over thedistribution into another qualified plan or IRA.

The additional 10% tax does not apply to lump-sumdistributions to your spouse or beneficiary following yourdeath.

If you leave the Firm, you may roll over all or part of yourlump-sum distribution into an IRA or a qualified plan ofyour new employer, if that plan accepts rollovers.

You should consult with your personal tax adviser beforerequesting a lump-sum distribution from the Plans so thatyou fully understand the impact on your personal taxsituation.


Applying for benefits,loss of benefits andplan cost

Estimating your benefitsTo obtain an estimate of your retirement benefits, contactBenefits Express at http://resources.hewitt.com/ey or bytelephone at +1 877 339 1239.

Applying for your benefitsYou must contact Benefits Express at +1 877 339 1239 toinitiate your benefit, but no more than 90 days before thedate you begin. You must complete and return any requiredforms.

How you can lose your benefitsYou should be aware of the following circumstances thatcould cause you to lose or forfeit your benefits under thePlans.

• Termination. If your employment terminates before youbecome vested, you will lose any Part A – Benefit you haveaccumulated in the Plans unless you are subsequentlyreemployed. If your employment terminates before youbecome vested, you will lose any Part B – Cash BalanceBenefit you have accumulated in the Plans unless you aresubsequently reemployed before incurring a five-yearbreak-in-service.

• Death. If you die before becoming eligible for a vestedbenefit, no benefit is payable. If you are eligible for abenefit and die before payment of your benefit begins, theonly benefit payable is the pre-retirement survivor benefitdescribed earlier. If you die after you have begun toreceive benefits, the benefit payable after your death, ifany, will depend on the form of payment you elected.

• Return to active service. If you return to activeemployment with EY after starting to receive a pensionand you are under age 65, your payments will besuspended while you are an active staff member, but youmay accrue additional pension benefits for this period ofservice. Pension benefits will be recalculated, reduced forthe payments you have already received, and resumedagain when you terminate your active employment.

If you return to active employment with EY within 60 daysafter your retirement date, and you are age 65 or over,your Part B – Cash Balance Benefit payments will besuspended while you are an active staff member. You willcontinue to receive your Part A – Benefit payments. YourPart B – Cash Balance pension benefits will berecalculated, reduced for payment you have alreadyreceived, and resumed again when you terminate youractive employment. If you return to active employmentwith EY more than 60 days after your retirement date andyou are age 65 or over, all benefit payments will continue.If you return to active employment with EY and are underage 65, all benefit payments will be suspended until youremployment is terminated.

• Working after age 65. If you continue to work for EY pastage 65, no benefits will be paid to you until you actuallyretire. However, you will continue to accrue benefits up tothe maximum under the Plans until you actually retire.

Plan costThe Plans require no contributions from you. EY pays theentire cost of these benefits. Contributions by EY to thePlans are actuarially determined.

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Plan interpretationThe Retirement Committee has the sole discretion tointerpret the provisions of these Plans. While the Firmintends to continue the Plans described herein, the Firmreserves the right to amend or terminate the Plans at anytime without prior notice, in any manner, and with respectto any class of individual.

Complete information about the Plans is contained in thePlan documents maintained by EY. If a conflict existsbetween this summary and the Plan documents, the Plandocuments will govern. Questions should be directed toBenefits Express at +1 877 339 1239.

Assignment of benefitsThe assets of the Plans are used exclusively to providebenefits to you and your beneficiaries while the Planscontinue. You cannot assign, transfer or attach yourbenefits or use them as collateral for a loan, except to theextent the Plans receive a Qualified Domestic RelationsOrder.

Qualified Domestic Relations OrderA Qualified Domestic Relations Order is an order orjudgment made by a court under a state’s domesticrelations laws, which recognizes the right of a spouse,former spouse, child or other dependent of a participant tosome or all of his or her benefits under the Plans and whichmeets certain requirements of the Internal Revenue Code.Plan participants and beneficiaries can obtain, withoutcharge, from Total Rewards — Benefits the Plans’procedures for determining whether a court order orjudgment meets the requirements of the Internal RevenueCode.

In addition, the Plan Administrator will comply with a courtorder, judgment, decree or settlement relating to criminalor civil violations involving the Plans that provides for all ora portion of your benefits to be used as payment to thePlans to satisfy such court order, judgment, decree orsettlement, provided that the rights of your spouse orbeneficiary to your benefits will not be violated.

Top-heavy rulesUnder the law, if 60% of the Plans’ benefits are payable to“key employees” as defined by law, the Plans will bedeemed to be “top-heavy.” If the Plans become top-heavy,participants will become vested at an accelerated rate andcertain benefit minimums will apply. It is very unlikely,however, that the Plans will become top-heavy.

If the Plans are underfundedCertain limits on benefit payments and benefit accrualsapply if the Plans fall short of funding targets (also called“underfunded”) established by the Pension Protection Actof 2006. EY will notify you if these benefit restrictionsapply.

Termination of the PlansWhile the Firm intends and expects to continue the Plans, itreserves the right to amend or terminate the Plans at anytime without prior notice, in any manner, and with respectto any class of individual. However, no amendment may bemade that would deprive you of any benefit you had earnedup to the time of the amendment.

In the unlikely event that the Plans are terminated, activeparticipants will become fully vested in their benefitsaccrued to the date of termination to the extent funded asof that date. Upon Plan termination, the Plans’ assets willbe applied for the benefit of retired participants,beneficiaries, and terminated vested and activeparticipants — as prescribed by law. The Plans provide thatif they are terminated, any excess assets remaining afterall liabilities to participants and beneficiaries are satisfiedwill be returned to the Firm. If the assets of the Plans areinsufficient to pay all benefits, benefits may be guaranteedby the Pension Benefit Guaranty Corporation, as describedbelow.

Plan termination insuranceYour pension benefits under these Plans are insured by thePension Benefit Guaranty Corporation (PBGC), a federalinsurance agency. If the Plans terminate without enoughmoney to pay all benefits, the PBGC will step in to pay pensionbenefits. Most people receive all of the pension benefits theywould have received under their plan, but some people maylose certain benefits.

The PBGC guarantee generally covers: (1) normal and earlyretirement benefits; (2) disability benefits if you becomedisabled before the Plans terminate; and (3) certainbenefits for your survivors.

The PBGC guarantee generally does not cover: (1) benefitsgreater than the maximum guaranteed amount set by law forthe year in which the Plans terminate; (2) some or all of thebenefit increases and new benefits based on Plan provisionsthat have been in place for less than five years at the time thePlans terminate; (3) benefits that are not vested because youhave not worked long enough for the company; (4) benefitsfor which you have not met all of the requirements at thetime the Plans terminate; (5) certain early retirementpayments (such as supplemental benefits that stop whenyou become eligible for Social Security) that result in an earlyretirement monthly benefit greater than your monthly benefitat the Plans’ normal retirement age; and (6) non-pensionbenefits such as health insurance, life insurance, certain deathbenefits, vacation pay, and severance pay.

Even if certain of your benefits are not guaranteed, you stillmay receive some of those benefits from the PBGC dependingon how much money your Plan has and on how much thePBGC collects from employers.


For more information about the PBGC and the benefits itguarantees, ask your Plan Administrator or contact thePBGC, P.O. Box 151750, Alexandria, VA 22315-1750 orcall +1 800 400 7242 or +1 202 326 4000 (not a toll-freenumber). TTY/TDD users may call the federal relay servicetoll-free at +1 800 877 8339 and ask to be connected to+1 800 400 7242. Additional information about thePBGC’s pension insurance program is available athttp://www.pbgc.gov.

How to request benefitsTo request a benefit from the Plans, contact BenefitsExpress at +1 877 339 1239.

Statement of ERISA rightsAs a participant in the Ernst & Young Defined BenefitRetirement Plan or the Ernst & Young Inactive DefinedBenefit Retirement Plan, you are entitled to certain rightsand protections under the Employee Retirement IncomeSecurity Act of 1974 (ERISA). ERISA provides that all Planparticipants shall be entitled to:

Receive information about your plan benefitsExamine, without charge, at the Plan Administrator’s officeand at other specified locations, such as worksites, alldocuments governing the Plans, including a copy of thelatest annual report (Form 5500 Series) filed by the Planswith the U.S. Department of Labor and available at thePublic Disclosure Room of the Employee Benefits SecurityAdministration.

Obtain, upon written request to the Plan Administrator,copies of documents governing the operation of the Plans,including copies of the latest annual report (Form 5500Series) and an updated summary plan description. Theadministrator may make a reasonable charge for thecopies.

Examine the annual report and receive a copy of it uponwritten request.

Receive a summary of the Plan’s annual funding notice. ThePlan Administrator is required by law to furnish eachparticipant with a copy of the annual funding notice.

Obtain a statement telling you whether you have a right toreceive a pension at normal retirement age (age 65) and ifso, what your benefits would be at normal retirement age ifyou stop working under the Plans now. If you do not have aright to a pension, the statement will tell you how manymore years you have to work to get a right to a pension.This statement must be requested in writing and is notrequired to be given more than once every twelve (12)months. The Plans must provide the statement free ofcharge.

Prudent actions by plan fiduciariesIn addition to creating rights for Plan participants, ERISAimposes duties upon the people who are responsible for theoperation of an employee benefit plan. The people whooperate your Plan, called “fiduciaries” of the Plans, have aduty to do so prudently and in the interest of you and otherPlan participants and beneficiaries. No one, including youremployer or any other person, may fire you or otherwisediscriminate against you in any way to prevent you fromobtaining a pension benefit or exercising your rights underERISA.

Enforce your rightsIf your claim for a pension benefit is denied or ignored, inwhole or in part, you have a right to know why this wasdone, to obtain copies of documents relating to thedecision without charge, and to appeal any denial, all withincertain time schedules.

Under ERISA, there are steps you can take to enforce theabove rights. For instance, if you request a copy of Plandocuments or the latest annual report from the Plans anddo not receive them within 30 days, you may file suit inFederal court. In such a case, the court may require thePlan Administrator to provide the materials and pay you upto $110 a day until you receive the materials, unless thematerials were not sent because of reasons beyond thecontrol of the administrator. If you have a claim forbenefits which is denied or ignored, in whole or in part, youmay file suit in a state or Federal court. If it should happenthat Plan fiduciaries misuse the Plans’ money, or if you arediscriminated against for asserting your rights, you mayseek assistance from the U.S. Department of Labor, or youmay file suit in a Federal court. The court will decide whoshould pay court costs and legal fees. If you are successful,the court may order the person you have sued to pay thesecosts and fees. If you lose, the court may order you to paythese costs and fees, for example, if it finds your claim isfrivolous.

Assistance with your questionsIf you have any questions about your Plan, you shouldcontact the Plan Administrator. If you have any questionsabout this statement or about your rights under ERISA, orif you need assistance in obtaining documents from thePlan Administrator, you should contact the nearest officeof the Employee Benefits Security Administration, U.S.Department of Labor, listed in your telephone directory orthe Division of Technical Assistance and Inquiries,Employee Benefits Security Administration, U.S.Department of Labor, 200 Constitution Avenue N.W.,Washington, D.C. 20210. You may also obtain certainpublications about your rights and responsibilities underERISA by calling the publications hotline of the EmployeeBenefits Security Administration.

22

The Employee RetirementIncome Security Act of 1974(ERISA)

The following information is provided to you in accordance with the Employee Retirement Income Security Act of 1974(ERISA):

Plan names Ernst & Young Defined Benefit Retirement PlanErnst & Young Inactive Defined Benefit Retirement Plan

Employer Identification Number 34-6565596

Plan number 111 (Ernst & Young Defined Benefit Retirement Plan)114 (Ernst & Young Inactive Defined Benefit Retirement Plan)

Plan sponsor and employer Ernst & Young US LLP Total Rewards — Benefits200 Plaza DriveSecaucus, NJ 07094

Type of plan Defined Benefit

Plan Year January 1 through December 31

Plan administrator Ernst & Young US LLP Retirement Committee200 Plaza DriveSecaucus, NJ 07094

Telephone: +1 201 872 2200

Plan costs Paid by Ernst & Young US LLP

Agent for service of legal process General Counsel of Ernst & Young US LLP5 Times SquareNew York, NY 10036Telephone: +1 212 773 3800

Legal process may also be served on the Retirement Committee or PlanTrustee.

Plan Trustee JPMorgan Chase Bank4 Metrotech Plaza, 16th FloorBrooklyn, NY 11245

How to file a claim If you believe you are entitled to a benefit under the Plans that you havenot received, you may file a claim with the National Director of Benefits,Ernst & Young US LLP, 200 Plaza Drive, Secaucus, NJ 07094.


Review of claim If your claim for benefits is denied, in whole or in part, by the NationalDirector of Benefits, the Review Committee will give you written notice of theadverse benefit determination within 90 days after the claim was received(plus an additional 90 days if the Review Committee determines that specialcircumstances require an extension of time for processing the claim and ifwritten notice of the additional 90-day extension of time indicating thespecific circumstances requiring the extension and the date by which adecision will be rendered is given to you within the first 90-day period). Thenotice will (1) state the specific reason(s) for the adverse benefitdetermination, (2) make reference(s) to the specific provisions of the Planson which the determination was based, (3) contain a description of anyadditional material or information necessary for you to perfect the claimand an explanation of why such material or information is necessary, and(4) contain a description of the Plans’ review procedures, and the timelimits applicable to such procedures, including a statement of your right tobring a civil action under ERISA following an adverse benefit determinationon review.

Within six months after receipt of a notification of an adverse benefitdetermination, you or your authorized representative may appeal the denialby filing with the Review Committee a written request for a review of yourclaim. If such an appeal is so filed within six months, a Named Fiduciarydesignated by the Review Committee will conduct a full and fair review of theclaim. During the review, you or your authorized representative will beprovided with (1) the opportunity to submit written comments, documents,records, and other information relating to the claim for benefits, and (2)reasonable access to and copies of, upon request and free of charge, alldocuments, records, and other information relevant to your claim forbenefits. In addition, the review will take into account all comments,documents, records, and other information submitted by you relating to theclaim, without regard to whether the information was submitted orconsidered in the initial benefit determination. The Named Fiduciary willmail or deliver to you written notice of the benefit determination on reviewwithin a reasonable period of time, but not later than 60 days after thereceipt of the request for review unless special circumstances require anextension of time for processing. If the Named Fiduciary determines that anextension of time for processing is required, written notice of the extensionwill be furnished to you setting forth the special circumstances requiring anextension of time and the date by which the Named Fiduciary expects torender a decision on review, and will be furnished prior to the termination ofthe initial 60-day period. In no event will the extension exceed a period of60 days from the end of the initial period.

In the case of an adverse benefit determination on review, the notice of thedetermination will (i) state the specific reason(s) for the adverse benefitdetermination, (ii) make reference(s) to the specific provisions of the Planson which the determination was based, (iii) contain a statement that youare entitled to receive, upon request, and free of charge, reasonable accessto, and copies of, all documents, records, and other information relevant toyour claim for benefits, and (iv) contain a statement of your right to bringan action under ERISA. The determination on review will be final and binding.

You must exhaust the Plans’ claims and appeal procedures beforefiling any legal action regarding a claim for benefits. Any legal actionmust be filed with a court of competent jurisdiction within one yearafter the date of the Named Fiduciary’s written decision on the appealof a denied claim.

24

Appendix A: Sample benefitcalculations

This appendix includes sample calculations of normal, early and deferred vested retirement benefits. All calculationsassume that no Supplementary Firm Contributions were made on the participant’s behalf to the Arthur Young Employees’Retirement Plan. Social Security Covered Compensation amounts effective January 1, 2016 are shown in Appendix B.

Each of the following examples calculates the single life annuity payable for your life only. If you are married and receivethe standard 50% Joint and Survivor benefit, or if you elect one of the optional forms of payment, your monthly benefitswill be actuarially reduced. This reduction is based on the option you elect and the age of your spouse/beneficiary at thetime benefit payments commence.

Normal retirement benefitPart B – Cash Balance Benefit OnlyAssume you started at the Firm on January 2, 2018 at age 47. You want to know how much your retirement benefit will growover the years. You have a Compensation of $62,000 in 2018 and expect a 2½% increase each year. Your retirement benefitwill grow as follows:

Year Beginning Balance Points Annual Cash Balance Credit Interest Credit Ending Balance

2018 $0 47 3.25% x $62,000 = $2,015 $0 $2,015

2019 $2,015 49 3.25% x $63,550 = $2,065 4% x $2,015 = $81 $4,161

2020 $4,161 51 4% x $65,139 = $2,606 4% x $4,161 = $166 $6,933

2021 $6,933 53 4% x $66,767 = $2,671 4% x $6,933 = $277 $9,881

As of December 31, 2021, you would have a cash balance of $9,881, which you could take as a lump sum at that time.You could also elect to take the benefit as an annuity. The life annuity would be the Actuarial Equivalent at age 51 of thelump sum. The formula is $9,881 ÷ 17.9502 = $550 per year at age 51 for your lifetime.

You may also elect to defer your benefit. To convert this to the annuity equivalent at age 65 you have to increase it with4% interest for 14 years and then convert the projected lump sum to an annuity. The formula in this example is ($9,881 x1.04014 ÷ 13.3389) = $1,283 per year at age 65 for your lifetime.

Please note: The actual Actuarial Equivalent annuity conversion factors (17.9502 and 13.3389, respectively, in theseexamples) would be based on the IRS-defined mortality and interest rates appropriate for an annuity being paid in the years2022 and 2037, respectively; for illustration purposes, we are using IRS mortality for 2017 and a 4% interest rate.


Normal retirement benefitCombined FormulaAssume you are retiring on July 1, 2017 at age 65 with 33 Years of Vesting Service and 32½ Years of Benefit Service (as ofDecember, 31, 2016), $62,500 Compensation through June 2017 and a Final Average Compensation of $100,000 as ofDecember 31, 2016. Your benefits payable under the Defined Benefit Retirement Plan are:

Part A – BenefitSince you were a Plan participant for more than three years prior to October 1, 1994, your Part A – Benefit as ofDecember 31, 2016 is determined under the FAC Benefit:

Lesser of Social Security Covered Compensation and Final Average Compensation $80,004

Plan multiplier x 1.3% $1,040.05

Excess Final Average Compensation over Social Security Covered Compensation $19,996

Plan multiplier x 1.7% $ 339.93

$1,379.98

Years of Benefit Service (30 years maximum) x 30

Annual retirement benefit, payable at age 65 for your lifetime only $41,399.40

Part B – Cash Balance BenefitYou receive a Transitional Credit since you have at least 60 points and over 10 Years of Service as of December 31,2016. Since your beginning balance in the Part B – Cash Balance Benefit is $0, there is no 4% Interest Credit.

Compensation $62,500.00

Annual Cash Balance Credit (age 64½ + 32½ Years of Vesting Service atDecember 31, 2016 = 97 points)

x 7% $4,375.00

Transitional Credits (age 64½ + 32½ Years of Vesting Serviceat December 31, 2016 = 97 points)

x 7% $4,375.00

Part B – Cash Balance Benefit total $8,750.00

Actuarial Equivalent Annuity Factor at age 65* 13.3389

Annual retirement benefit, payable at age 65 for your lifetime only (Balance /Factor)

*Factor based on IRC 417(e) IRS Mortality for 2017 and Interest (4% for illustration purposes)

$655.98

Total annual retirement benefit

Part A plus Part B $42,055.38

If you terminated employment on December 31, 2016 (at age 64½), your benefit would have been calculated under thePart A – Benefit formula only, with a total retirement benefit of $41,399.40. Furthermore, because you were at least age60 and had over 30 years of service, you could also have commenced at that time without any reduction for earlycommencement.

26

Early retirement benefitAssume you are retiring on July 1, 2017 at age 63 with 25 Years of Vesting Service and 24½ Years of Benefit Service (as ofDecember 31, 2016), $62,500 Compensation through June 2017 and a Final Average Compensation of $100,000 as ofDecember 31, 2016. If you elect to start collecting benefits immediately, your early retirement benefits payable under theDefined Benefit Retirement Plan are:

Part A – BenefitSince you were hired in 1992, you are ineligible for the Minimum Flat Dollar Benefit and, for purposes of illustration, wecan assume that the Prior CB Benefit is too small to be a factor. Therefore, we are calculating your Part A – Benefit as ofDecember 31, 2016 under the FAC Benefit:





$1,361.74

Years of Benefit Service (30 years maximum) x 24.5

Annual retirement benefit at age 65 $33,362.63

Early retirement reduction (subtract 5% for each year before age 65) x .90

Annual retirement benefit, payable at age 63 for your lifetime $30,026.37

Part B – Cash Balance BenefitYou receive Transitional Credits, since you have at least 60 points and over 10 Years of Vesting Service as ofDecember 31, 2016. There is no 4% Interest Credit, because your beginning balance in the Part B – Cash Balance Benefitis $0.


Annual Cash Balance Credit (age 62½ + 24½ Years of Vesting Service at December 31,2016 = 87 points)

x 6% $3,750.00

Transitional Credits (age 62½ + 24½ Years of Vesting Service at December 31, 2016 =87 points)

x 6% $3,750.00



Annual retirement benefit, payable at age 63 for your lifetime only (Balance / Factor)


$533.18




Early retirement benefitAssume you are retiring on July 1, 2017 at age 60 with 30½ Years of Vesting Service and 30 Years of Benefit Service (as ofDecember 31, 2016), $70,000 Compensation through June 2017 and a Final Average Compensation of $120,000 as ofDecember 31, 2016. Your benefit is calculated as follows:






$1,668.00

Years of Benefit Service (30 years maximum) x 30


(Please note: There is no early retirement reduction on or after age 60 with 30 or more Years of Vesting Service.)

Part B – Cash Balance BenefitYou receive a Transitional Credit, since you have at least 60 points and over 10 Years of Vesting Service. Since yourbeginning balance in the Part B – Cash Balance Benefit is $0, there is no 4% Interest Credit.


Annual Cash Balance Credit (age 59½ + 30 Years of Vesting Service at December 31,2016 = 89½ points)

x 6% $4,200.00

Transitional Credits (age 59½ + 30 Years of Vesting Service at December 31, 2016 =89½ points)

x 6% $4,200.00



Annual retirement benefit, payable at age 60 for your lifetime only (Balance / Factor)


$555.24



28

Deferred vested benefitAssume you terminated employment on July 1, 2017 at age 48 with 26½ Years of Vesting Service and 26 Years of BenefitService (as of December 31, 2016), $42,000 Compensation through June 2017 and a Final Average Compensation of $80,000as of December 31, 2016. Your deferred vested benefits payable at age 65 under the Defined Benefit Retirement Plan arecalculated as follows:




Excess Final Average Compensation over Social Security Covered Compensation (x 1.7%) $0.00 $ 0.00

$1,040.00

Years of Benefit Service projected to age 65 (30 years maximum) x 30


Ratio of your actual Years of Benefit Service at December 31, 2016 to your possible Years ofBenefit Service to age 65

x 26/43½

Annual deferred vested benefit, payable at age 65 for your lifetime only $18,648.28

Part B – Cash Balance BenefitYou receive Transitional Credits, since you have at least 60 points and over 10 Years of Vesting Service. There is no 4%Interest Credit, because your beginning balance in the Part B – Cash Balance Benefit is $0.


Annual Cash Balance Credit (age 47½ + 26 Years of Vesting Service at December 31,2016 = 73½ points)

x 5% $2,100.00

Transitional Credits (age 47½ + 26 Years of Vesting Service at December 31, 2016 =73½ points)

x 5% $2,100.00

Part B – Cash Balance Benefit total at July 1, 2017 $4,200.00

Interest Credits at 4% until Age 65 (17 years) $3,981.18

Part B – Cash Balance Benefit Total at July 1, 2034 $8,181.18


Annual retirement benefit, payable at age 65 for your lifetime (Balance / Factor)


$555.24




Deferred vested benefitAssume you terminated employment on December 31, 2017 at age 35 with 6 Years of Vesting Service and 5 Years of BenefitService (as of December 31, 2016), $78,000 Compensation in 2017 and a Final Average Compensation of $75,000 as ofDecember 31, 2016. Your deferred vested benefits payable at age 65 under the Defined Benefit Retirement Plan arecalculated as follows:

Part A – BenefitSince you had fewer than three years of participation as of December 31, 2013, your Part A – Benefit is the highest calculationamong the FAC Benefit, Prior CB Benefit and the Minimum Flat Dollar Benefit:

1. FAC Benefit


Plan multiplier x 1.3% $975.00

Excess Final Average Compensation over Social Security Covered Compensation (x 1.7%) $0.00 $ 0.00

$975.00

Years of Benefit Service projected to age 65 (30 years maximum) x 30

Annual retirement benefit at age 65 (hypothetical, before reduction) $29,250.00

Ratio of your actual Years of Benefit Service at December 31, 2016 to your possibleYears of Benefit Service to age 65

x 5/36


2. Prior CB Benefit


Year ending CompensationApplicablepercentage

Percentagetimes

compensationInterest for

year*

Prior CB Benefit end ofPlan Year

(or termination dateif earlier)

December 31, 2012 $75,000.00 5% $3,750.00 7.50% $3,750.00

December 31, 2013 75,000.00 4% 3,000.00 7.50% 7,031.25

December 31, 2014 75,000.00 3% 2,250.00 7.50% 9,808.59

December 31, 2015 75,000.00 2% 1,500.00 7.50% 12,044.23

December 31, 2016 75,000.00 1% 750.00 7.50% 13,697.55

December 31, 2017 78,000.00 0% 0.00 6.00% 14,519.41

*The plan specified interest rate applied to the Prior CB Benefit was 7.5% for all years through December 31, 2016 and 6.0%thereafter.

30

The annual annuity payable at age 65 (for your lifetime only) is determined by projecting the Prior CB Benefit attermination using the interest rate, the number of years from the termination date to age 65, and the age 65 annuityfactor. In this example, the number of years to age 65 is 30, the age 65 annuity factor is 9.5237, and the interest rate is6.0% per year. The formula in this example is ($14,519.41 x 1.06030 ÷ 9.5237) = $8,756.27 per year for your lifetimeonly. In this example, the Prior CB Benefit calculation provides an annuity higher than the FAC Benefit (see precedingpage).

3. Minimum Flat Dollar Benefit

The Minimum Flat Dollar Benefit method (for participants hired before January 1, 2014) provides an annual accrual of$3,800.00 during the period commencing January 1, 2014 and ending on the three-year anniversary of participationfor a total of $7,600.

You receive higher of 1, 2 or 3Final Part A – Benefit Payable at Age 65 (max 1, 2 and 3) $8,756.27

Part B – Cash Balance BenefitThere is no 4% Interest Credit, because your beginning balance in the Part B – Cash Balance Benefit is $0.


Annual Cash Balance Credit (age 34 + 5 Years of Vesting Service at December 31, 2016= 39 points)

x 3.25% $2,535.00

Part B – Cash Balance Benefit total at December 31, 2017 $2,535.00

Interest Credits at 4% until Age 65 $5,687.01

Part B – Cash Balance Benefit Total at December 31, 2034 $8,222.01


Annual retirement benefit, payable at age 63 for your lifetime (Balance / Factor)


$616.39




Appendix B — Social SecurityCovered Compensation

The following table shows the amount of Social Security Covered Compensation for different years of birth, based on theIRS table in effect on January 1, 2016. This schedule is used for the Part A – Benefit through December 31, 2016 only.

Year ofbirth

Amount of Social Security CoveredCompensation effective January 1,

2016Year of

birth

Amount of Social Security CoveredCompensation effective January 1,

2016

1947 $67,308 1965 $106,716

1948 69,996 1966 108,144

1949 72,636 1967 109,464

1950 75,180 1968 110,664

1951 77,640 1969 111,756

1952 80,004 1970 112,716

1953 82,308 1971 113,616

1954 84,564 1972 114,492

1955 88,884 1973 115,308

1956 90,984 1974 116,004

1957 93,000 1975 116,604

1958 94,920 1976 117,072

1959 96,780 1977 117,408

1960 98,580 1978 117,744

1961 100,320 1979 118,080

1962 101,964 1980 118,320

1963 103,608 1981 118,452

1964 105,204 1982 andlater

118,500

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