This is a summary of the annual report for The Hotel Industry – ILWU Pension Plan, Federal I.D. #99-6027621, for the plan year beginning on January 1, 2003 and ending on December 31, 2003. The annual report has been filed with the U.S. Department of Labor’s Pension and Welfare Benefits Administration under the Employee Retirement Income Security Act of 1974 (ERISA).

BASIC FINANCIAL STATEMENT

Benefits under the plan are provided by contributions from employers of plan participants. Plan expenses were $8,629,536. These expenses included $1,308,824 in administrative expenses, $7,320,712 in benefits paid to participants and beneficiaries. A total of 12,465 persons were participants in or beneficiaries of the plan at the end of the plan year, although not all of these persons had yet earned the right to receive benefits.

The value of plan assets, after subtracting liabilities of the plan, was $164,317,686 as of December 31, 2003, compared to $143,018,198 as of January 1, 2003. During the plan year, the plan experienced an increase in its net assets of $21,299,488. This increase includes unrealized appreciation or depreciation in the value of the plan assets; that is, the difference between the plan’s assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. The plan had total income of $29,929,024, including employer contributions of $1,918,399, gains from sale of assets of $6,531,737, and earnings from investments of $21,490,579.

MINIMUM FUNDING STANDARDS

An actuary’s statement shows that enough money was contributed to the plan to keep it funded in accordance with the Minimum Funding Standards of ERISA.

You have the right to receive a copy of the full annual report, or any part thereof, on request. The item(s) listed below are included in that report:

1. An accountant's report;
2. Assets held for investment;
3. Fiduciary information, including transactions between the plan and parties-in-interest (that is, persons who have certain relationships with the plan); and
4. Actuarial information regarding the funding of the plan.

To obtain a copy of the full annual report or any part thereof, write or call the office of Pacific Administrators, Inc., who is the Plan Administrator, 1221 Kapiolani Boulevard, Suite 900, Honolulu, Hawaii 96814, (808) 441-8600. The charge to cover copying costs will be $23.25 for the full annual report, or $.25 per page for any part thereof.

You also have the right to receive from the Plan Administrator, on request and at no charge, a statement of the assets and liabilities of the plan and accompanying notes, or a statement of income and expenses of the plan and accompanying notes, or both. If you request a copy of the full annual report from the Plan Administrator, these two statements and accompanying notes will be included as part of that report. The charge to cover copying costs given above does not include a charge for the copying of these portions of the report because these portions are furnished without charge.

You also have the legally protected right to examine the annual report at the Trust Fund Office, 1221 Kapiolani Boulevard, Suite 900, Honolulu, Hawaii 96814, and at the U.S. Department of Labor in Washington, D.C., or to obtain a copy from the U.S. Department of Labor upon payment of copying costs. Requests to the Department of Labor should be addressed to: Public Disclosure Room, Room N-1513, Employee Benefits Security  dministration, U.S. Department of Labor, 200 Constitution Avenue, Washington, D.C. 20210.

Additional Information

The plan income of $29,929,024 includes other income of ($11,691).

FUND ADDRESS & TELEPHONE NUMBER
1221 Kapiolani Boulevard, Suite 900
Honolulu, Hawaii 96814
(808) 441-8600/Neighbor Island 1-888-520-8078