Message From The President Highlights It's A Defined Benefit Plan Sources Of Funding Buyer Beware Cost-Of-Living Adjustments Membership Benefit Changes Pension Commmittee Investment Committee Asset Mix Investments At December 31, 2000 Asset Types Investment Managers Custodian/Trustee Pension Plan Performance Financial Statements

You are in: The Plan : Publications : 2000 Annual Report : Sources Of Funding   Sources Of Funding MTS believes that planning for your future is a shared responsibility. As such, the Company will share the cost of your MTS Pension Plan. The money necessary to pay the benefits promised by the MTS Pension Plan comes from three sources: Employee contributions Company contributions Investment earnings Employees contribute a fixed percentage of their salary each pay period to the Plan. The Company contributes the amount necessary to ensure that benefits earned can be paid when they are due. The amount of the Company's contribution is determined by an actuarial valuation. An actuarial valuation calculates the benefits earned (the liabilities of the Plan) and compares those liabilities to the assets in the Fund. If the assets exceed the liabilities, no Company contribution is required. But if the assets do not provide adequate funding for the Plan’s obligations, the company is responsible for making the contributions necessary to eliminate the shortfall. Actuarial valuations are performed on our Plan at least once every three years. MTS's contribution holiday in 2000 was based on the actuarial valuation performed in 2000. This valuation showed that the Plan’s assets exceeded the benefit obligations and so that employer funding was not required. The Plan remains fully funded as of January 1, 2001. Investment earnings are the largest source of income for the Plan. In 2000, cash inflows to the Plan totalled $68.4 million and investment income accounted for $59.7 million, representing 87%. Copyright 2004. All rights reserved.