Summary of Benefits When You Leave The Boeing Company

Summary of Your Benefits When You Leave The Boeing Company Employees Represented by UAW 148 and 1482 This guide applies to you if you are a union-represented employee of The Boeing Company. When you leave Boeing, your benefits will depend on how your departure is classified. Classifications include • Layoff. • Retirement from active employment. • Resignation. Note: This guide does not apply to you if you are terminated for cause or you depart as a result of a divestiture. Because you may be eligible for more than one of these classifications (for example, if you receive a layoff notice and you are eligible to retire), it is important to understand how each would affect your benefits. For example, certain benefits will be less favorable if you resign. This guide describes each situation so that you are aware of the differences. This guide covers the following three topics: 1. How the classification of your departure will affect your benefits. 2. Eligibility criteria for Boeing pension benefits. 3. Sources for more information. Every effort has been made to provide an accurate summary of how benefits are affected for the union-represented employees of The Boeing Company. Certain eligibility and benefit provisions apply to each of the Plans, programs, and policies described in this guide; not all of these provisions are described here. In the event of a conflict between this guide and any of the Plans, the terms of the Plans will control. Updated summary plan descriptions may be obtained by contacting the applicable Boeing Service Center through Boeing TotalAccess. Copies of the official Plan documents are available by written request to the Plan Administrator (see “Sources for More Information” in section 3). The Boeing Company reserves the right to change, modify, amend, or terminate any of the plans or provisions described here at any time.

BOEING is a trademark of Boeing Management Company. Copyright © 2006 Boeing. All rights reserved.

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1. How Your Benefits Will Be Affected Your Boeing benefits will depend on the reason for your departure: whether you resign, are laid off, or retire from active employment. To determine whether you are eligible to retire, see section 2, beginning on page 8. The following table explains the effects of each situation: Reason for Your Departure Benefit Medical coverage Note: Continuation coverage is provided in accordance with the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA).

Resignation • Coverage as an active employee will end on the last day of the month in which you resign.

Layoff • Coverage as an active employee will end on the last day of the month in which your layoff occurs.

Retirement from active employment • Coverage as an active employee will end on the last day of the month in which you retire.

• You and your dependents then may • You and your dependents may enroll • Your retirement date is always the continue coverage through COBRA for coverage under COBRA, and first day of the month following your for up to 18 months by self-paying the coverage generally continues with termination because of retirement; required premiums. regular active employee contributions active medical coverage ends on the until the earlier of last day of the month before your • However, if you are considering retirement date. resignation and you are already • Three months after the last day eligible to retire from Boeing, please of the month in which your layoff • You and your dependents then may refer to “Retirement from active occurs, or elect to continue coverage through employment” in the right-hand COBRA for up to 18 months, or you • The date you become covered as column on this page. may be eligible for retiree medical an employee or dependent under coverage. another employer’s medical plan. • After three months of coverage with regular active employee contributions, you and your dependents may continue coverage through COBRA for the remaining COBRA eligibility period by selfpaying the required premiums.


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Reason for Your Departure Benefit Retiree medical coverage Note: Employees hired January 1, 2005, and after are not eligible for retiree medical coverage.

Resignation You will not be eligible for Boeing retiree medical coverage unless you are eligible to retire when you resign.

Layoff You must meet the following eligibility criteria:

You must meet the following eligibility criteria when you retire:

• Be at least age 55 or older on the date of layoff, and

• Retire under the MDC West Employee Retirement Income Plan and begin drawing a pension, and

• Have at least 15 years vested service, and • Retire within five years from the date of layoff

Dental coverage Note: Continuation coverage is provided in accordance with the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA).


• Coverage as an active employee will end on the last day of the month in which you resign. • You and your dependents may elect to continue coverage through COBRA for up to 18 months by selfpaying the required premiums.

Retirement from active employment

• Be at least age 55 or older and have at least 15 years vested service.

Note: The 15-year vesting requirement does not apply if you were age 55 or Note: The 15-year vesting requirement older on your date of layoff and had does not apply if you were age 55 or at least 10 years vesting service as of older on your date of layoff and had January 1, 2005. at least 10 years vesting service as of January 1, 2005. If you are not eligible for retiree medical, you may continue your active In accordance with the collective coverage through self-payment under bargaining agreement, reemployment COBRA. will not cause loss of eligibility for retiree medical coverage if you are recalled to work before your recall right’s expiration date. • Coverage as an active employee Coverage ends on the last day of the ends on the last day of the month in month in which you retire; you and which you are laid off. your dependents then may elect to continue coverage through COBRA • Then you and your dependents may for up to 18 months by self-paying the elect to continue coverage through required premiums. COBRA for 18 months, with the first three months paid by the Company.

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Reason for Your Departure Benefit Flexible spending accounts

Basic life insurance

Resignation

Layoff

Retirement from active employment

• Dependent Care Spending Account: Contributions will stop with your last regular check. You may file for eligible claims through April of the following year in which you lose eligibility. The balance remaining in your dependent care account may be used to reimburse qualified expenses you incur through the end of the calendar year. • Health Care Spending Account: Contributions stop at the end of the calendar month in which your employment ends. However, you can continue your participation under COBRA. If you elect continuation (COBRA), your future contributions are on an aftertax basis. If you do not elect COBRA, the balance remaining in your account may be used only to reimburse qualified expenses you incurred on or before the last day of the month in which you lost eligibility. Your coverage will end on your last day of employment. You then will have 31 days to convert your coverage to an individual policy. If death occurs during the conversion period, an insurance benefit may be paid.

Survivor income

Your coverage will end on your last day of employment.

AD&D insurance

Your coverage will end on your last day of employment.

Optional life insurance

Your coverage will end on your last day of employment; you can convert to an individual policy within 31 days of this date.

Weekly disability coverage

Your coverage will end on your last day of employment. Note: If you have filed a disability claim, benefits continue according to plan provisions.

Extended disability coverage

Your coverage will end on your last day of employment. Note: If you have filed a disability claim, benefits continue according to plan provisions.

Vacation

All accrued and unused vacation will be paid.

Sick days

Sick leave will be paid according to provisions of the applicable collective bargaining agreement.


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Reason for Your Departure Benefit The Boeing Company Voluntary Investment Plan (VIP)

Resignation Layoff Retirement from active employment • You may leave your funds in the Plan or request a partial distribution, installment distributions, a total distribution, an annuity, or a rollover until you are age 99. Note: Federal law requires that you begin taking required minimum distributions at age 70½. You will be notified before any distribution. • If you have a VIP loan, you must repay it before you request a total distribution or within 90 days after your termination date, whichever comes first. Otherwise, the balance will be treated as a taxable distribution. • You will not be able to make new contributions, request a loan from the Plan, or continue loan payments. • You may continue to make fund transfers or fund reallocations in your VIP account. • The VIP summary plan description booklet is available on the Boeing Savings Plan Online web site (see section 3). Go to the Forms page and scroll to the bottom of the page for the document. Notes: • For information about any other Boeing savings plans, please contact the Boeing Savings Service Center through Boeing TotalAccess (see section 3). • Tax consequences may vary depending on your circumstances and the options you choose. Please seek competent financial and tax planning advice.


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Reason for Your Departure Benefit Resignation Layoff Retirement from active employment Employee Payroll Stock Ownership • You will be eligible to receive a lump-sum distribution of your account balance, payable in the form of cash or shares of Plan of McDonnell Douglas Boeing stock. Corporation • If your account balance is greater than $1,000, you can leave your funds in the plan until you reach age 65 or request Note: If you were employed by an immediate distribution. McDonnell Douglas between • If your account balance is less than $1,000 at termination, CitiStreet will distribute your account balance to you January 1, 1983, and December 31, within 90 days unless you complete and mail a Postponed Payment form to CitiStreet within 15 days of your layoff or 1986, and have not had a separation retirement. in service, you may be eligible to receive a distribution from this Plan. • You may postpone payment for up to 12 months following the month of your layoff or retirement. • Contact the Boeing Savings Service Center to request a Postponement Payment form or to set up a distribution method.

Learning Together Program and Applicable Education Stock Units

Note: Tax consequences may vary depending upon your circumstances and the options you choose; please seek competent financial and tax planning advice. You must repay the Company for any • You may complete the courses in • You must repay the Company for any prepaid tuition unless you terminate which you currently are enrolled. prepaid tuition unless you retire after at least one day after completing any If you do not wish to complete the completing your course. college courses; if you have completed course, you can notify the Learning a degree and have received a notice Together Administrator (with proof of • If you have received a stock unit award, the stock will vest of stock unit award (with three years your 60-day notice), withdraw from immediately, and you will receive the of vesting required), you will not be a course, and not be liable for any shares of stock (minus the income eligible for the award unless you prepaid tuition. tax owed). have fulfilled the three-year vesting • If you receive notice of a stock unit requirement. award and • You choose voluntary layoff; you will not be eligible for the award. • You are laid off involuntarily, the award will vest immediately, and you will receive the shares of the stock (minus the income tax owed).


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Reason for Your Departure Benefit ShareValue Trust

Resignation Layoff Retirement from active employment • You will retain eligibility for a prorated distribution, based on the ratio of your months of participation (as an eligible employee on the active payroll before departure) to the 48 months in the open investment periods. • You no longer will be credited with months of participation on the first full calendar month you no longer are on the active payroll. • You must wait until the end of an investment period before you will know whether a distribution has resulted from that period. If there will be a distribution, you will be notified by mail at your home address on record with the Company.

Recall rights

Employee Retirement Income Plan of McDonnell Douglas Corporation—Hourly West Plan

You will not be eligible for first consideration for recall.

Please refer to your collective bargaining agreement for recall rights information. See the retirement eligibility criteria in section 2.

You will not be eligible for recall.

Note about retiree medical contributions for employees eligible for the Retiree Medical Plan Contributions for retiree medical coverage vary by union group and, in some cases, by years of service. For more information about retiree medical contributions, contact the Boeing Service Center for Health and Insurance through Boeing TotalAccess. The Boeing Company reserves the right to amend, modify, or terminate the Retiree Medical Plan at any time.


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2. Eligibility Criteria for the Employee Retirement Income Plan of McDonnell Douglas Corporation—Hourly West Plan Benefits The following tables show if and when you are eligible for pension benefits under the Employee Retirement Income Plan of McDonnell Douglas Corporation—Hourly West Plan. You can start your Boeing pension now if you are vested and . . . • You are age 65 or older while employed with at least one year of vesting service, or • If you are age 62 (but younger than 65) and have at least 10 years of vesting service, your benefit will be unreduced if you elect early retirement. • You are age 55 (but younger than age 62) and have at least 10 years of vesting service; your benefit may be reduced. • You are at least age 55 or older and have at least 30 years of aggregate benefit service; your benefit will be unreduced if you elect early retirement. Note: If you postpone commencement of your pension benefit beyond the first of the month following a termination of employment other than layoff, your pension benefit will be considered “terminated vested” (which generally means a significant reduction in your benefit), and you will not be eligible for retiree medical coverage.

If you are laid off, you can retire if you are . . .

Pension benefits would be . . .

Age 55 or older on your layoff date with at least 10 years of vesting service.

Reduced if you are younger than age 62.

Age 65 or older with at least one year of vesting service.

Unreduced.

Note: If you decide not to commence your pension within five years following your layoff date, the amount of your pension benefit may be significantly reduced, and you will not be eligible for retiree medical coverage.

You are eligible for a retirement benefit at age 65 if you are . . . Vested (at least five years) in your pension benefit at the time of your termination.


Pension benefits would be . . . Payable at age 65, or reduced and payable as early as age 55.

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Ineligibility for a Retirement Benefit If you have fewer than five years of vesting service at the time of your termination* and you are under age 65, you will not be eligible to receive any pension benefit from the Employee Retirement Income Plan of McDonnell Douglas Corporation—Hourly West Plan. * Employees who are laid off earn up to one year of vesting service and benefit service in the year following their layoff from the Employee Retirement Income Plan of McDonnell Douglas Corporation—Hourly West plan. The accrual of layoff hours stops when an employee • returns to work, • commences their benefit, or • dies before the one-year anniversary of their layoff.

3. Sources for More Information Boeing Benefits web site Visit Benefits on the World Wide Web (http://www.boeing.com/benefits/).

Boeing TotalAccess Boeing TotalAccess connects you to the Boeing benefits service centers. You must have your BEMS ID number (or Social Security number) and your Boeing TotalAccess password (except when you use the Boeing Web). • Boeing Web: https://my.boeing.com • World Wide Web: https://my-ext.boeing.com • Telephone: 1-866-473-2016; TTY/TDD services are available at 1-800-755-6363. Customer service representatives are available Monday through Friday from 7 a.m. to 8 p.m. Central time. Automated telephone services are available 24 hours a day, every day.


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Once you reach the menu, follow the prompts: • For the Boeing Service Center for Health and Insurance Plans, choose “health and insurance.” • For the Boeing Savings Service Center, choose “savings.” • For the Boeing Pension Service Center, choose “pension.” • To request a new Boeing TotalAccess password or a password mailer, choose “password administration.”

ShareValue Trust ShareValue Trust information is available through Boeing TotalAccess on the Boeing Web or through the ShareValue Trust site on the World Wide Web (http://www.boeing.com/share/).

Boeing Plan Administrator To request copies of official plan documents, write to the Plan Administrator at The Boeing Company, 100 North Riverside Plaza, MC 5002-8421, Chicago, IL 60606-1596. You will be charged a reasonable fee for reproduction of materials you request.


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Summary of Benefits When You Leave The Boeing Company

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