Earning True Assummed

Service Age at Base Pay Annual potential at Retirement Age of Rate of

Start Date Service Start at Vesting increase vesting Age Death inflation
2012 34 $ 166,000 3.00% $200,000 55 90 4.00%

Servi
Unreduced ce Reduced Pension P at
Retirement Retirement Credited Monthly Perio Early Penalty Monthly early
Year Age Service Base Pay Pension d Factor Pension Retirement
2017 39 5 $ 166,000 $1,038 1 30% $726 $87,573
2018 40 6 $170,980 $1,282 1 30% $898 $112,570
2019 41 7 $176,109 $1,541 1 30% $1,079 $140,682
2020 42 8 $181,393 $1,814 1 30% $1,270 $172,227
2021 43 9 $186,834 $2,102 1 30% $1,471 $207,551
2022 44 10 $192,439 $2,405 1 30% $1,684 $247,032
2023 45 11 $198,213 $2,725 1 30% $1,908 $291,082
2024 46 12 $204,159 $3,062 1 30% $2,144 $340,154
2025 47 13 $210,284 $3,417 1 30% $2,392 $394,737
2026 48 14 $216,592 $3,790 1 30% $2,653 $455,369
2027 49 15 $223,090 $4,183 2 26% $3,095 $552,498
2028 50 16 $229,783 $4,596 2 26% $3,401 $631,291
2029 51 17 $236,676 $5,029 2 26% $3,722 $718,504
2030 52 18 $243,777 $5,485 2 26% $4,059 $814,936
2031 53 19 $251,090 $5,963 2 26% $4,413 $921,457
2032 54 20 $258,623 $6,466 2 26% $4,785 $1,039,015
2033 55 21 $266,381 $6,993 2 26% $5,174 $1,168,643
2034 56 22 $274,373 $7,545 2 22% $5,885 $1,311,405
2035 57 23 $282,604 $8,125 2 18% $6,662 $1,463,615
2036 58 24 $291,082 $8,732 2 14% $7,510 $1,625,229
2037 59 25 $299,814 $9,369 3 9% $8,526 $1,816,080
2038 60 26 $308,809 $10,062 3 6% $9,458 $1,981,148
2039 61 27 $318,073 $10,788 3 3% $10,464 $2,153,274
2040 62 28 $327,615 $11,548 3 0% $11,548 $2,332,018
2041 63 29 $337,444 $12,345 3 0% $12,345 $2,443,511
2042 64 30 $347,567 $13,179 4 0% $13,179 $2,553,747
2043 65 31 $357,994 $14,051 4 0% $14,051 $2,662,048
2044 66 32 $368,734 $14,964 4 0% $14,964 $2,767,655
2045 67 33 $379,796 $15,920 4 0% $15,920 $2,869,720
2046 68 34 $391,190 $16,919 4 0% $16,919 $2,967,297
2047 69 35 $402,926 $17,964 4 0% $17,964 $3,059,333
2048 70 36 $415,013 $19,056 4 0% $19,056 $3,144,661
2049 71 37 $427,464 $20,198 4 0% $20,198 $3,221,984

# Confidential
 2050 72 38 $440,288 $21,391 4 0% $21,391 $3,289,867
2051 73 39 $453,496 $22,637 4 0% $22,637 $3,346,724
2052 74 40 $467,101 $23,939 4 0% $23,939 $3,390,802

Reduced Monthly Pension

$30,000

$25,000

$20,000

$15,000

$10,000

$5,000

$0
35 40 45 50 55 60 65 70 75

$4,000,000

$3,500,000

$3,000,000

$2,500,000

$2,000,000

$1,500,000

$1,000,000

$500,000

$0
35 40 45 50 55 60 65 70 75

# Confidential
$0
35 40 45 50 55 60 65 70 75

# Confidential
Monthly
Pension at
true F*((1+H$3)^-
retirement (55-B7))
$5,174

Earning Earning
potential at potential P Total P at Earning Pension P
early at early early potential P after true Total P at
retirement retirement retirement at PG&E Retirement PG&E
$200,000 $2,864,682 $2,952,255 $2,377,686 $623,948 $3,001,634
$208,000 $2,806,253 $2,918,822 $2,306,794 $648,906 $2,955,700
$216,320 $2,736,818 $2,877,501 $2,228,085 $674,862 $2,902,948
$224,973 $2,655,505 $2,827,732 $2,141,099 $701,857 $2,842,956
$233,972 $2,561,381 $2,768,932 $2,045,351 $729,931 $2,775,282
$243,331 $2,453,455 $2,700,487 $1,940,330 $759,128 $2,699,459
$253,064 $2,330,673 $2,621,756 $1,825,504 $789,493 $2,614,997
$263,186 $2,191,913 $2,532,066 $1,700,312 $821,073 $2,521,385
$273,714 $2,035,979 $2,430,716 $1,564,165 $853,916 $2,418,081
$284,662 $1,861,605 $2,316,973 $1,416,448 $888,073 $2,304,520
$296,049 $1,667,440 $2,219,937 $1,256,513 $923,596 $2,180,109
$307,891 $1,452,050 $2,083,342 $1,083,684 $960,539 $2,044,223
$320,206 $1,213,914 $1,932,418 $897,248 $998,961 $1,896,209
$333,015 $951,412 $1,766,348 $696,462 $1,038,919 $1,735,381
$346,335 $662,827 $1,584,284 $480,544 $1,080,476 $1,561,020
$360,189 $346,335 $1,385,351 $248,676 $1,123,695 $1,372,371
$374,596 $0 $1,168,643 $0 $1,168,643 $1,168,643
$389,580 $0 $1,311,405 $0 $1,311,405 $1,311,405
$405,163 $0 $1,463,615 $0 $1,463,615 $1,463,615
$421,370 $0 $1,625,229 $0 $1,625,229 $1,625,229
$438,225 $0 $1,816,080 $0 $1,816,080 $1,816,080
$455,754 $0 $1,981,148 $0 $1,981,148 $1,981,148
$473,984 $0 $2,153,274 $0 $2,153,274 $2,153,274
$492,943 $0 $2,332,018 $0 $2,332,018 $2,332,018
$512,661 $0 $2,443,511 $0 $2,443,511 $2,443,511
$533,167 $0 $2,553,747 $0 $2,553,747 $2,553,747
$554,494 $0 $2,662,048 $0 $2,662,048 $2,662,048
$576,674 $0 $2,767,655 $0 $2,767,655 $2,767,655
$599,741 $0 $2,869,720 $0 $2,869,720 $2,869,720
$623,730 $0 $2,967,297 $0 $2,967,297 $2,967,297
$648,680 $0 $3,059,333 $0 $3,059,333 $3,059,333
$674,627 $0 $3,144,661 $0 $3,144,661 $3,144,661
$701,612 $0 $3,221,984 $0 $3,221,984 $3,221,984

# Confidential
 $729,676 $0 $3,289,867 $0 $3,289,867 $3,289,867
$758,863 $0 $3,346,724 $0 $3,346,724 $3,346,724
$789,218 $0 $3,390,802 $0 $3,390,802 $3,390,802

1 2 3
28 30% 26% 21%
29 30% 26% 21%
30 30% 26% 21%
31 30% 26% 21%
32 30% 26% 21%
33 30% 26% 21%
Reduced Monthly Pension
34 30% 26% 21%
35 30% 26% 21%
36 30% 26% 21%
37 30% 26% 21%
38 30% 26% 21%
39 30% 26% 21%
40 30% 26% 21%
70 75 41 30% 26% 21%
42 30% 26% 21%
43 30% 26% 21%
44 30% 26% 21%
45 30% 26% 21%
46 30% 26% 21%
47 30% 26% 21%
48 30% 26% 21%
49 30% 26% 21%
50 30% 26% 21%
51 30% 26% 21%
52 30% 26% 21%
Pension P at early Retirement 53 30% 26% 21%
Total P at early retirement 54 30% 26% 21%
Total P at PG&E
55 30% 26% 21%
56 27% 22% 18%
57 24% 18% 15%
58 21% 14% 12%
59 18% 10% 9%
60 15% 6% 6%
61 12% 3% 3%
62 9% 0% 0%
63 6% 0% 0%
64 3% 0% 0%
70 75 65 0% 0% 0%

# Confidential
70 75
66 0% 0% 0%
67 0% 0% 0%
68 0% 0% 0%
69 0% 0% 0%
70 0% 0% 0%
71 0% 0% 0%
72 0% 0% 0%
73 0% 0% 0%
74 0% 0% 0%

# Confidential
 monthly
rate of inflation = 4% inflation = 0.333% retiring salary = $266,381

age of hire = 34 age of retirement = 55 years of service =

age of death = 95 age of spouse death = 95

Age to take Reduction Monthly

benefit factor Benefit n P/A life benefits PRA/FLB PRET/ARET
55 0.26 $5,174.46 480 $1,242,217 $1,242,217 $1,242,217
56 0.22 $5,454.16 468 $1,295,824 $1,245,097 $1,229,372
57 0.18 $5,733.86 456 $1,347,463 $1,244,030 $1,216,003
58 0.14 $6,013.56 444 $1,397,023 $1,239,295 $1,202,089
59 0.09 $6,363.18 432 $1,460,438 $1,244,834 $1,187,609
60 0.06 $6,572.96 420 $1,489,441 $1,219,857 $1,172,539
61 0.03 $6,782.73 408 $1,516,417 $1,193,332 $1,156,854
62 0.00 $6,992.51 396 $1,541,258 $1,165,400 $1,140,531
63 0.00 $6,992.51 384 $1,518,300 $1,103,099 $1,123,542
64 0.00 $6,992.51 372 $1,494,408 $1,043,237 $1,105,862
65 0.00 $6,992.51 360 $1,469,542 $985,719 $1,087,461
66 0.00 $6,992.51 348 $1,443,662 $930,452 $1,068,310
67 0.00 $6,992.51 336 $1,416,729 $877,348 $1,048,379
68 0.00 $6,992.51 324 $1,388,698 $826,324 $1,027,637
69 0.00 $6,992.51 312 $1,359,525 $777,297 $1,006,049
70 0.00 $6,992.51 300 $1,329,164 $730,189 $983,581
71 0.00 $6,992.51 288 $1,297,566 $684,925 $960,198
72 0.00 $6,992.51 276 $1,264,680 $641,433 $935,863
73 0.00 $6,992.51 264 $1,230,454 $599,644 $910,536
74 0.00 $6,992.51 252 $1,194,834 $559,491 $884,177

# Confidential
 unreduced average market
pension = $6,993 return = 7%

monthly market
years of service = 21 return = 0.583%

FRET/ARET PRET+FRET
$0 $1,242,217
$64,125 $1,293,497
$132,885 $1,348,888
$206,617 $1,408,706
$285,678 $1,473,287
$370,454 $1,542,993
$461,359 $1,618,214
$558,836 $1,699,367
$663,359 $1,786,901
$775,438 $1,881,300
$895,620 $1,983,081
$1,024,489 $2,092,799
$1,162,674 $2,211,054
$1,310,849 $2,338,486
$1,469,735 $2,475,784
$1,640,108 $2,623,689
$1,822,796 $2,782,994
$2,018,691 $2,954,554
$2,228,747 $3,139,283
$2,453,988 $3,338,166

# Confidential
Reduction
Percentage

Reduction in Your Pension if Your Credited Service Is…

Age Less Than 15 to 24 25 to 29 30 Years or
15 Years Years Years More

64 3% — — —
63 6% — — —
62 9% — — —
61 12% 3% 3% —
60 15% 6% 6% —
59 18% 10% 9% —
58 21% 14% 12% —
57 24% 18% 15% —
56 27% 22% 18% —
55 30% 26% 21% —

Note: Reduction factors are based on age in years and months prior to your
normal retirement age (age 65). Although only ages as of your birth date are
shown on this chart, the reduction factors change with each additional month
of age after age 55.

For example, if an employee with less than 15 years of service retired at age
55, the reduction factor would be 30 percent. Each month of age past 55 will
decrease the reduction factor. For example, at age 55 years and four months,
the reduction factor would be 29 percent, and so on. While reduction factors
change for each month of age between birth dates, they do not change for
additional months or years of credited service until you move into a new
service band, as illustrated in the table. For example, if you are age 55 and
four months with 16 years of service, the factors are the same as for someone
at age 55 and four months with 23 years of service.

# Confidential