Unisys Retirement Program Changes - …

1 Unisys Retirement Program Changes Frequently Asked Questions Frequently Asked Questions (FAQs) Addendum #1 April 11, 2006 The following are additional questions and answers about the Retirement Program Changes . Click here to review the comprehensive FAQs document made available on March 22, 2006. Questions are grouped into two main categories: Pension Plan and Savings Plan, and then organized by main topics. Click on the page link below to navigate to the questions and answers you seek. Pension Plan Savings Plan What Is Changing Page 2 Page 4 Important Dates Page 2 Page 4 How This Affects My Benefit Page 2 Page 5 Who to Contact Page 3 Page 7 Please note: The following communication describes in a summary fashion or refers to Changes to certain Unisys benefit plans, without going into all of the details. The provisions of the applicable plan documents solely determine the legal rights and obligations of any person. In the event of any discrepancy between this communication and the official plan documents, the applicable plan documents (including any amendments), as interpreted by the plan administrator, in his/her/its sole discretion, will always govern.

2 Unisys reserves the right to amend or terminate any or all of its benefit plans, in whole or in part, at any time and for any reason to the extent permissible under applicable law. For active employees whose benefits are governed by collective bargaining agreements, benefit Changes will be implemented consistent with the company s statutory and contractual obligations. 1 2 Pension Plan What Is Changing 1. As a result of the Retirement Program Changes , will Unisys end its contributions to the Unisys Pension Plan? As announced on March 22, 2006, Unisys is ceasing benefit accruals under the Unisys Pension Plan effective December 31, 2006.

3 As indicated on page 6 of the e-brochure, Unisys is required to follow certain rules and regulations under the Federal Employee Retirement Income Security Act of 1974, as amended (ERISA) and the Internal Revenue Code, including the requirement to fund at specified levels. Unisys intends to comply with those rules. Each year, the Plan s assets and liabilities are reviewed by a specialist called an actuary who determines the contribution necessary to meet the government s applicable funding requirements. Important Dates 1. When will Unisys offer Retirement planning workshops? In the fall, Unisys will offer on-site workshops at several Unisys locations to help you with your Retirement planning and your Savings Plan questions. Once the dates of the workshops are finalized, we ll communicate the details to all employees. But don t wait to learn more. Retirement planning Web workshops are currently available through the Fidelity Retirement Resource Center at: You can register for and attend these Web workshops at any time to obtain specific information about making your investment choices.

4 The workshops offered include: Retirement Savings Basics, Rebalancing Your Portfolio, Evaluating Stock Mutual Funds, Basics of Estate Planning, and College Planning Web Workshop. How This Affects My Benefit 1. Is the trust fund for the Unisys Pension Plan fully funded? Detailed financial information regarding the Unisys Pension Plan can be found in the Company's Annual Report and other publicly available filings with the Federal Securities and Exchange Commission (SEC). On December 14, 2005, all participants were issued the 2004 Summary Annual Report for the Unisys Benefit Plans, which includes information regarding the assets and liabilities of the Unisys Pension Plan as of December 31, 2004. The 2005 Summary Annual Report for the Unisys Benefit Plans will be issued to all participants in late 2006. 2. I understand I ll still get my accrued benefit under the Pension Plan if I m vested. How can I be sure I m vested? The benefits you ve earned as of December 31, 2006 will not be affected if you are vested under the Unisys Pension Plan by that date.

5 If you are not yet vested, you generally continue to earn vesting service under the Pension Plan if you continue to work for Unisys after 2006 or if you are on an approved leave of absence. You generally become vested once you complete five years of service, or you reach age 65 and are participating in the plan while working for Unisys . If you leave Unisys before completing five years of service, or reach age 65 without being a participant in the plan, you will not receive any benefits under the Pension Plan. Back to TopPension Plan (Cont.) 3 Who to Contact 1. I noticed that some of my personal data in Employee Self Service (ESS) is inaccurate. Who do I contact to make corrections? Active employees can update personal information (such as home address) through Employee Self Service (ESS).

6 If you notice that other information (such as vesting service) is incorrect, please contact the Unisys Benefits Service Center at 877-864-7972 to request a review and correction, if required. 2. How can I get answers to other specific questions about my Pension Plan benefits? You can call our Pension Change Hotline at 1-800-340-4533, which opened at 9:00 , Eastern Time, on March 22, 2006. Call center representatives will be available from 9:00 to 6:00 , Eastern Time, Monday through Friday (except New York Stock Exchange holidays). Hearing-impaired employees may reach the TTY hotline at 1-800-695-1317 during the same days and hours. However, since the TTY number is not a dedicated Unisys number, it s important that you identify yourself as a Unisys employee when calling. You can also refer back to frequently asked questions on the Employee Network, which will be updated with addendums like these, as needed. If you have questions concerning your current pension accrual, estimates or vesting status, you should call the Unisys Benefits Service Center at 877-864-7972.

7 Call center representatives are available from 9:00 to 5:00 , Eastern Time, to assist you. You can also refer to the applicable Unisys Pension Plan Summary Plan Description, which can be found on The Employee Network or on the Your Benefits Resources Web site at: The Summary Plan Description has not been updated to reflect the Retirement Program Changes . In the fall of 2006, you will receive a personalized Retirement benefit statement in the mail, which will show you the estimated pension benefit you have earned under the Unisys Pension Plan as of December 31, 2006, if you continue working for Unisys until then. It will also show projections of your Savings Plan account based on your then current contribution elections. To run your own estimated Unisys Pension Plan calculations, log on to the Your Benefits Resources Web site at: available 24 hours a day, Monday through Saturday, and after 1:00 , Eastern Time, on Sundays. Be sure to use December 31, 2006 as your hypothetical termination date to estimate the accrued pension benefit you will be entitled to under the Pension Plan, assuming you meet the eligibility and vesting requirements as of that date.

8 Back to Top 4 Savings Plan What Is Changing 1. What is a Roth 401(k) account and is Unisys planning on implementing one? Typically, participants in defined contribution plan have made salary deferrals on a before-tax basis and paid income taxes upon distribution of the account assets. Part of this strategy was based on the concept that participants in Retirement would be eligible for a lower personal income tax rate, helping to lessen the income tax consequence for the withdrawal. Beginning January 1, 2006, Federal laws governing 401(k) defined contribution plans were changed to allow plan sponsors to amend their savings plans to permit participants to designate all or a portion of their elective salary deferrals as what s known as Roth 401(k) contributions.

9 Roth 401(k) deferrals differ from more traditional qualified defined contribution Retirement plan salary deferrals in these ways: Designated Roth 401(k) contributions are made on an after-tax basis, that is, the eligible pay is taxed as regular income before being contributed to the participant s account. Upon qualified distribution, however, Roth 401(k) contributions and all investment results are free from Federal income taxation. The availability of Roth 401(k) contributions provides plan participants with a different option for the Federal income tax treatment of their eligible pay deferrals and their distributions. At this time, Unisys has no plans to add a Roth 401(k) account to the Savings Plan. Important Dates 1. When will Unisys offer Retirement planning workshops? In the fall, Unisys will offer on-site workshops at several Unisys locations to help you with your Retirement planning and your Savings Plan questions. Once the dates of the workshops are finalized, we ll communicate the details to all employees.

10 But don t wait to learn more. Retirement planning Web workshops are immediately available through the Fidelity Retirement Resource Center at: You can register for and attend these Web workshops at any time to obtain specific information about making your investment choices. The workshops offered include: Retirement Savings Basics, Rebalancing Your Portfolio, Evaluating Stock Mutual Funds, Basics of Estate Planning, and College Planning Web Workshop. Back to TopSavings Plan (Cont.) 5 How This Affects My Benefit 1. I m not currently enrolled in the Savings Plan. How do I enroll? If you are eligible but not currently enrolled, you can enroll at any time or learn more about the plan by accessing the Fidelity NetBenefits Web site at: available 24 hours a day, 7 days a week.