Legal Information

This section of your Benefits Handbook provides you with important information about the employee benefits available to you through Alexander & Baldwin, Inc.'s benefits program. In this section you will find information regarding...

• The administration of the plans that comprise the A&B benefits program,

• Claims review procedures,

• The rights guaranteed to you under Federal law, and

• Additional administrative information required by law.

If you need more information or assistance on benefit matters, we encourage you to contact your local Human Resources department.

The table below includes the name, address and employer identification number associated with all of the A&B employee benefit plans.

The following information applies to the Alexander & Baldwin, Inc. benefits program.

Plan Administrator

Alexander & Baldwin, Inc. (822 Bishop St., PO Box 3440, Honolulu, HI 96801, 808-525-6611) is the Plan Administrator for the benefit plans discussed in this Handbook.

For many plans, A&B has chosen an insurer, trustee or administrator of services to act on its behalf. Therefore, references to "plan administrator" may refer to the entities listed in the Directory Of Plans.

Plan Sponsor

Alexander & Baldwin, Inc. (822 Bishop St., PO Box 3440, Honolulu, HI 96801, 808-525-6611) is the Plan Sponsor for the benefit plans described in this Handbook, with the exception of the following: The A&B Retirement Plans for Salaried Employees of...

• Alexander & Baldwin, Inc. is sponsored by Alexander & Baldwin, Inc.

• Matson is sponsored by Matson Navigation Company, Inc.; Matson Integrated Logistics, Inc.; Matson Integrated Logistics (Texas), Inc.; Matson America Transportation Services, LLC; Matson Terminals, Inc.; Matson Services, Inc.; Matson Leasing Company, Inc.; and Matson Intermodal Systems, Inc.

• Hawaiian Commercial & Sugar Company is sponsored by Hawaiian Commercial & Sugar Company.

• Properties and Food Product Subsidiaries is sponsored by A&B Properties, Inc; East Maui Irrigation Company, Inc; Hawaiian Duragreen, Inc.; Kahului Trucking & Storage, Inc.; Kauai Coffee Company, Inc.; Kauai Commercial Company, Incorporated; Kukui'ula Development Company, Inc.; McBryde Sugar Company, Limited; South Shore Community Services, LLC; and South Shore Resources, LLC.

Please refer to Employer Information for Company addresses and other information.

Agent For Service Of Legal Process

Process may be served on any of the benefit plans by directing such legal process to the Plan Administrator or Trustee.

Plan Year

The A&B benefits plans discussed in this Handbook are administered on a calendar-year basis, beginning January 1 and ending December 31.

Plan Financing And Contributions

The source of contributions for the benefit plans described in your Benefits Handbook is employer and/or employee contributions, as determined by A&B and, in many cases, based on the individual employee elections. (For more details, refer to the individual benefit plan descriptions provided in the other sections of your Benefits Handbook.)

The funding of these plans is either insured or self-insured, as noted in the Directory of Plans.

Plan Documents

The benefit plan descriptions contained in your Benefits Handbook summarize the main features of the A&B benefits program, and are not intended to amend, modify or expand the plan provisions. In all cases, the provisions of the plan booklet, document, master insurance contract, or trust agreement control the administration and operation of the plans.

If a conflict exists between a statement in your Benefits Handbook and the provisions of the plan booklet, document, master insurance contract, or trust agreement, the plan booklet, document, master insurance contract, or trust agreement will govern.

Every effort has been made to ensure that the information in this Handbook correctly reflects the terms of the plan document, master insurance contract, group plan certificate or trust agreement.

In certain circumstances, key provisions of these Plans have been summarized. The Administrators of the applicable Plans will administer these and all other provisions in accordance with the documents referenced above. Thus, the Plan Administrator's decisions may vary somewhat from the summary provided in this Handbook.

The information in this Handbook applies only to Alexander & Baldwin, Inc. salaried non-bargaining employees working in the U.S. or its territories and possessions. All references to Alexander & Baldwin, Inc. or "A&B" include all other participating companies listed in the Employer Information table, unless specified otherwise.

Discretionary Authority Of  Plan Administrator And Plan Fiduciaries

In carrying out their responsibilities, A&B, the Plan Administrator and the Plan Fiduciaries have the discretionary authority to interpret the terms of the plans, and to determine the eligibility for benefit payment. Any interpretation or determination made by such discretionary authority shall be given full force and effect, unless it can be shown that the interpretation was arbitrary and capricious.

No Guarantee Of Employment

By adopting and maintaining these plans, A&B has not entered into an employment contract with any employee. Nothing in the plan documents or this document gives any employee the right to be employed by the Company or to interfere with the Company's right to discharge any employee at any time. Similarly, these plans do not give A&B the right to require any employee to remain employed by the Company, or to interfere with the employee's right to terminate employment with A&B at any time.

Plan Future

While Alexander & Baldwin, Inc. intends to continue these plans, it reserves the right, in its sole discretion, to terminate, suspend, withdraw, amend, or modify the plans and/or policies (including altering the amount you must pay for any of these benefits) in writing, in whole or in part, at any time. Any such action is subject to the applicable provisions of the plan document; however, if a plan is terminated, it will not affect any claim made when the plan was in force.

Either the policyholder (A&B) or the carrier can cancel coverage by giving 31 days written notice. If A&B terminates the Plan, you may be able to convert your group coverage(s) to an individual policy(ies); however, certain restrictions and limitations may apply.

The benefit plans listed in the table below are technically described by the U.S. Department of Labor as "welfare plans" or "pension plans." All Plans carry the applicable Employer Identification Number (see Employer Information for details). These numbers are assigned to A&B and its affiliated companies by the Internal Revenue Service. Individual plan numbers are listed in the table below.

On December 31, 2005, the former A&B Retirement Plan for Salaried Employees of Properties & Food Products Subsidiaries merged into the A&B Retirement Plan for Salaried Employees of Alexander & Baldwin, Inc.

The former A&B Retirement Plan for Salaried Employees of Matson became one of the several plans that merged into the Retirement Plan for Employees of Matson. The following summarizes the merger activity:

• On December 29, 2001, the A&B Retirement Plan for Salaried Employees of Matson, the Matson Navigation Pension Plan for Salaried Clerical Bargaining Unit Employees (Honolulu), and the MTI Pension Plan for Special Officers were merged into the MTI Pension Plan for CFS/CY Employees.

• On December 30, 2001, the MTI Pension Plan for CFS/CY Employees was merged into the MTI Pension Plan for CEM Employees. The plan name was subsequently changed to the Retirement Plan for Employees of Matson.

When you are reasonably sure you are eligible to receive benefits under any of these plans, you may request a claim form from your local Human Resources representative. Claim forms may also be available on-line via the Company intranet.

Under certain health care plans you may not need to file a claim to receive benefits. For details about when you need to file a claim, refer to the applicable benefit plan description provided elsewhere in your Benefits Handbook.

All claims submitted to the Plan Administrator must be on forms provided by the Plan Administrator unless forms are not currently available, in which case you may simply supply the appropriate party with a written statement outlining proof and extent of loss. (HMSA requires that all claims be submitted on an HMSA or universal claim form; note, too, that HMSA does not have claim forms for out-of-area claims.)

Complete the claim form according to the directions and return it to the appropriate Plan Administrator (or to Benefits Administration if directed to do so) within the timeframe requested.

The Plan Administrator will review the claim to determine whether or not benefits are payable in accordance with the terms and provisions of the group plan. Under special circumstances, the Plan Administrator may require additional review time, in which case you will receive written notice informing you of the need for an extension. The Plan Administrator may require a medical examination or additional information to make a determination of your claim. If additional information is required, you will receive a request in writing, indicating what information is needed and the reason.

What If Your Benefits Are Denied?

If your claim for benefits is denied in whole or part, the Plan Administrator will provide you with written notice of the denial. For purposes of this section, "denial" means an adverse benefit determination where the full amount of expenses has not been paid by the plan.

Each written notice of denial will:

• State the specific reasons for the denial the claim.

• Reference any applicable provisions upon which the denial is based.

• Describe additional material or information necessary to complete the claim and why such information is necessary.

• Describe plan procedures and time limits for appealing the determination, your right to obtain information about those procedures, and—if you have exhausted the plan's appeal procedures—the right to sue in federal court. If you do not request an appeal in writing on time, you will lose your right to appeal your denial or file a suit in court.

• Disclose any internal rule, guidelines, protocol, or similar criterion relied on in making the denial (or state that such information will be provided free of charge upon request).

• If the denial is based on medical necessity or experimental treatment, the plan will provide an explanation of the scientific or clinical judgment for the decision, applying plan terms to your medical condition (or state that such information will be provided free of charge upon request).

• For urgent claims, the denial notice will include a description of the expedited review process applicable to such claims. This denial may be given orally, provided that a written or electronic notification is furnished to you no later than three days after the verbal notification.

Appeals

If you believe your claim was denied in error, you may appeal this decision to the plan. You have 180 days after receiving the claim denial to appeal the plan's decision. If you do not request an appeal within this timeframe, you will lose your right to appeal under the plan. You may submit written comments, documents, or other information to support your appeal and request access to all relevant documents free of charge. The review of the claim denial will take into account all new information, whether or not presented or available at the initial claim review, and will not be influenced by the initial claim decision.

A person who is not involved in the initial claim determination will conduct the appeal review and such person will not work under the original decision maker's authority. If your claim was denied on the grounds of medical judgment, the plan will consult with a health professional with appropriate training and experience. This health care professional will not be the individual who was consulted during the initial determination or work under their authority. If the advice of a medical or vocational expert was obtained by the plan in connection with the denial of your claim, we will provide you with the names of each such expert, regardless of whether the advice was relied upon.

If your claim involves urgent care, a request for an expedited appeal may be submitted orally or in writing and all necessary information shall be transmitted between the plan and you by telephone, fax, or other similar method.

If your appeal is denied, the denial notice will contain the following information:

• The specific reasons for the appeal determination.

• A reference to the specific plan provisions on which the determination was based.

• A statement that you are entitled to receive upon request, and without charge, reasonable access to or copies of all document, records, or other information relevant to the determination.

• A statement describing any voluntary appeal procedures offered by the plan and your right to obtain information about these procedures.

• A statement describing your right to bring a civil lawsuit under federal law. If you do not first exhaust the plan's appeal procedures, you will lose your right to file a suit in court.

• A statement disclosing any internal rule, guidelines, protocol or similar criterion relied on in making the adverse determination (or a statement that such information will be provided free of charge upon request).

• If the denial is based on medical necessity or experimental treatment, an explanation of the scientific or clinical judgment for the determination, applying plan terms to your medical condition (or state that such information will be provided free of charge upon request).

• A statement that "You or your plan may have other voluntary alternative dispute resolution options, such as mediation. One way to find out what may be available is to contact your local U.S. Department of Labor office and your state insurance regulatory agency."

The appeal determination notice may be provided in written or electronic form. Electronic notices will be provided in a form that complies with any applicable legal requirements.

In addition, as required under California law, California employees that have a complaint concerning a claim under their health plans may seek assistance by contacting the:

You may also call the California Department of Managed Health Care at  888-466-2219.

If, after following these steps, your claim still has not been resolved to your satisfaction, you should contact your local Human Resources representative; you may also serve legal process upon the Plan Administrator.

Although A&B anticipates very few problems of this kind, you should be aware of the channels that are open to you.

Claim Deadlines For Health Care Benefits

The following claim review and appeal timeframes are maximums. The plan may notify you—and you may respond with requested information—earlier than these maximums. However, if you (or your provider) do not provide the requested information within the specified timeframes, your claim will be denied.

For purposes of this section, health care includes medical, dental, vision, prescription drug and mental health/substance abuse benefits. Claims are categorized as follows:

Urgent claim. Claims for treatment of conditions that could jeopardize your life, health, or ability to regain maximum function, or would subject you to severe pain. If a physician determines the condition is urgent, the plan must accept the physician's determination.

Pre-service claim. Claims that require notification or approval before services are rendered.

Post-service claim. Claims where the services have already been provided to the patient.

The health benefit options offered under the plan use health information about you and your covered dependents only for the purposes of providing treatment, paying claims, and related functions. To protect the privacy of health information, access to your health information is limited to such purposes. In addition, effective April 14, 2003, the health plan options offered under the plan will comply with the applicable health information privacy requirements of federal regulations issued by the Department of Health and Human Services. As required by law, A&B distributed a Privacy Notice to all employees in April 2003.

The Employee Retirement Income Security Act of 1974 (ERISA) was enacted to protect the interest of participants and beneficiaries in certain employee benefit plans.

As a participant in the A&B benefit plans described in your Benefits Handbook, you have certain rights and protections under ERISA, as outlined in the following statement adapted from the U.S. Department of Labor regulations.

ERISA Rights Statement

ERISA provides that all plan participants are entitled to...

• Examine, without charge, at the plan administrator's principal office*—and at other specified locations—all plan documents and insurance contracts. The Plan Administrator's principal office is located at 822 Bishop St., Honolulu, HI 96813. Participants may also examine the latest annual report (Form 5500 Series) filed with the U.S. Department of Labor, and available at the Public Disclosure Room of the Employee Benefits Security Administration.

• Obtain copies of all documents and other plan information governing the plan by writing to the appropriate Plan Administrator. The administrator may make a reasonable charge for the copies.

• Receive a summary of the plan's annual financial report (the plan administrator is required by law to furnish each plan participant with a copy of this summary annual report).

• Receive a written explanation of why a claim for benefits has been denied, in whole or in part, and a review and reconsideration of the claim.

• Obtain a statement of account values in the retirement program (Retirement Plan for Salaried Employees, IDC Plan, and PSR Plan) and what portion would be yours, if any, if you stopped working now. If you are not entitled to a benefit under any of the retirement plans at the time you request the statement, the statement will tell you how many years you must work to earn the right to a benefit. This statement, which must be provided at no charge and must be requested in writing, is not required to be given more than once every 12 months.

• Continue group health care coverage (for yourself, your spouse and/or dependent children) if there is a loss of coverage under the plan due to a qualifying event, though you or your dependents will have to pay for this coverage. For additional details, see COBRA Continuation Coverage.

• A reduction in, or elimination of, exclusionary periods of coverage for pre-existing conditions that may apply under your medical plan if you have creditable coverage from another plan. Note, however, that no such restrictions apply under any of the A&B medical plans. You should be provided a certificate of creditable coverage, free of charge, from your group health plan when you:

  • lose coverage under the plan,

  • become entitled to COBRA continuation coverage, or

  • lose COBRA continuation coverage.

    You have up to 24 months after losing coverage to request evidence of creditable coverage. Without evidence of creditable coverage, you may be subject to a pre-existing condition exclusion for 12 months (18 months for late enrollees) after you apply for new group coverage.

In addition to creating rights for plan participants, ERISA imposes obligations on those responsible for the operation of your plans. The people who operate the plans ("fiduciaries") must do so prudently and in the interest of all plan participants and beneficiaries.

No one—neither the Company nor any individual—may fire you or otherwise discriminate against you for obtaining a benefit or exercising your rights under ERISA. However, this rule neither guarantees continued employment, nor affects your employer's right to terminate your employment for other reasons.

If your claim for a benefit is denied in whole or in part, you have the right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules.

Under ERISA, there are steps you can take to enforce the rights listed above. For instance, if you request a copy of plan documents or the latest annual report from the Plan Administrator and do not receive them within 30 days, you may file suit in a Federal court. In such a case, the court may require the plan administrator to provide the materials and pay you up to $110 a day until you receive them, unless they were not sent because of reasons beyond the administrator's control.

If your claim for benefits is denied, and you have been through the plan's appeals procedure, you may sue in a state or Federal court. In addition, if you disagree with the plan's decision or lack thereof concerning the qualified status of a domestic relations order or a medical child support order, you may file suit in Federal court.

Similarly, if you believe plan fiduciaries are misusing plan money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a Federal court. The court will decide who should pay court costs and legal fees. If you win, the court may order the person you sued to pay these legal expenses. If you lose, the court may order you to pay the court costs and legal fees (if, for example, it finds your claim is frivolous).

If you have questions about one of the plans, you should contact the plan administrator. If you have questions about this statement or your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory. You may also contact the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Ave. N.W., Washington, D.C., 20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration.

Remember: The Benefits Handbook does not attempt to cover every detail of all Alexander & Baldwin, Inc. employee benefits. Also, only the plan administrator is authorized to make administrative interpretations of the provisions of any plan and will do so only in writing. You should not rely on any representation—whether oral or in writing—that any other individual may make concerning plan provisions and your entitlement to benefits under any plan.

The descriptions in your Benefits Handbook are intended to meet the Company's Summary Plan Description (SPD) requirements for the benefits available to eligible Company employees, except as otherwise noted.

All rights reserved. No part of this document may be reproduced, photocopied, stored on a retrieval system or transmitted without the expressed written consent of the publisher

The Benefits Handbook describes the benefits provided to Alexander & Baldwin, Inc. salaried non-bargaining employees working in the U.S., or its territories or possessions. By adopting and maintaining this benefits program, Alexander & Baldwin, Inc. has not entered into an employment contract with any employee.