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Pension Update

Pension Update. July 2004. Eligibility. Years of Service <5 yrs 5–10 yrs  10 yrs. At Exit. Age Less than 55 N/A Vestor A Vestor B 55 – 65 N/A Vestor A Retiree – Early 65 N/A Vestor A Retiree – Normal Over 65 N/A Vestor A Retiree – Deferred.

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Pension Update

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  1. Pension Update July 2004

  2. Eligibility Years of Service <5 yrs 5–10 yrs 10 yrs At Exit Age Less than 55 N/A Vestor A Vestor B 55 – 65 N/A Vestor A Retiree – Early 65 N/A Vestor A Retiree – Normal Over 65 N/A Vestor A Retiree – Deferred N/A No pension, no retirement benefits. Vestor A Pension (vested factors), no retirement benefits. Vestor B Pension (vested factors), no retirement benefits.Note: Special rules may apply if disabled, die or is covered by 50-54 Severance Rule. Retiree Pension (normal factors), full retirement benefits.

  3. = Career Earnings Career Earnings  2.125% Adj. Highest AverageMonthly Base Earnings (HAE = Highest Avg. Earnings) HAE  Service Multiplier #1*  Service+ (HAE – 150% Covered Compensation) (Service Multiplier #2*  Service) = Ohio Edison Highest Average Monthly Earnings Formula or Centerior Energy Final Average Earnings Benefit Formula * Service Multiplier #1 First 20 years 1.58% Next 10 years 1.18% Next 5 years 0.78% Over 35 years 1.1% Service Multiplier #2 First 35 years 0.32% Pension Formulas

  4. Age Normal Vested 65 100% 100% 64 100% 91% 63 100% 82% 62 100% 75% 61 100% 69% 60 100% 63% 59 88% 58% 58 84% 53% 57 80% 49% 56 75% 45% 55 70% 42% Early Retirement Factors

  5. 55–65 years of age Vestor Post-2000 Pre-2001 Vestor Post-2000 Pre-2001 Years 55 56 57 58 59 60 61 62 63 64 65 59½–60½ years of age Years 59 59 59 59 59 59 60 60 60 60 60 60 60 Months 6 7 8 9 10 11 0 1 2 3 4 5 6 Early RateFactors

  6. PensionEstimate 6

  7. Pension Estimate

  8. Disability Retirement Benefits 10 years of service and eligible to receive benefits from FirstEnergy’s LTD Program • Disability Retirement Benefits of $400 per month, payable to earliest of: recovery, death, or age 65 • Continue to accrue pension service • Eligible for retiree healthcare

  9. Less than 5 N/A N/A 100% prov payee, VestorERFS, no ret. benefits 5 to 10 0 100% prov payee, NormalERFS, ret. benefits 10 or more No change 100% prov payee, NormalERFS, ret. benefits Before DOC No change On or AfterDOC Option elected, NormalERFS, ret. benefits N/A N/A Less than5 N/A 100% prov payee, VestorERFS, no ret. benefits 5 or more 0 Death Benefits Benefit Commencement Years ofService Status Age 55 (earliest) Immediate* Active Retired Terminated * 1st of month following.

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