As you almost certainly know, health care costs continue to rise on a nationwide basis. This past January, the Trustees required a very modest increase in the hourly contribution of $0.10 per hour. Unfortunately, but as was anticipated, the need for additional contributions exists to maintain the financial stability of the NAS Metal Trades Welfare Fund. Therefore, beginning with work performed January 1, 2005, the contribution rate required to receive each level of benefit will be as follows:

In the event a group does not increase the contribution rate, benefits will be provided under the plan where the contribution being made is adequate for the plan of benefits.

The Trustees remain concerned that these contribution rates will again increase somewhat as of September 1, 2005. They will review the financial status of the NAS Metal Trades Welfare Fund at their Spring 2005 meeting and advise you if additional contributions will be required.

This is also to advise you that for hours worked beginning September 1, 2005, the contribution rates required to maintain the NAS Metal Trades Pension Plan will increase by $0.10 per hour. The contribution rate for Plan A pension benefits will be $0.65 per hour and the contribution rate for Plan B pension benefits will be $0.35 per hour.

In the event an employer maintaining the NAS Metal Trades Pension Plan does not increase the contribution rate as required, the Plan, in accordance with federal law, will have to notify the employees of that employer how that failure to increase the contribution rate will reduce their pension benefits.