Vacation Benefit Plan, SAR 2006

SUMMARY ANNUAL REPORT

FOR PACIFIC MARITIME ASSOCIATION VACATION BENEFIT PLAN

This is a summary of the annual report for the Pacific Maritime Association Vacation Benefit Plan, EIN 94-1126322, Plan No. 505, for the period January 1, 2006 through December 31, 2006. The annual report has been filed with the Internal Revenue Service, as required under the Employee Retirement Income Security Act of 1974 (ERISA).

Basic Financial Statement

Benefits under the plan are provided through a trust fund. Plan expenses were $65,756,643. These expenses included $38,958 in audit fees and $65,717,685 in benefits paid to participants and beneficiaries. A total of 14,279 persons were participants in or beneficiaries of the plan at the end of the plan year.

The value of plan assets, after subtracting liabilities of the plan, was $5,098,515 as of December 31, 2006, compared to $4,438,562 as of January 1, 2006. During the plan year, the plan experienced an increase in its net assets of $659,953. The plan had total income of $66,416,596, including employer contributions of $66,000,000 and interest income of $416,596.

Your Rights to Additional Information

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

1. an accountant's report;

2. assets held for investment;

3. transactions in excess of 5% of the plan assets;

4. insurance information, including sales commissions paid by insurance carriers; and

5. actuarial information regarding the funding of the plan.

To obtain a copy of the plan’s full annual financial report, or any part thereof, write or call Pacific Maritime Association, 555 Market Street, 3rd Floor, San Francisco, CA 94105, (415) 576-3200. The charge for copying costs will be $2.00 for the full annual report or 25 cents 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 plan’s full annual financial report from the plan administrator, these two statements and accompanying notes will be included as part of that report.

You also have the legally protected right to examine the plan’s annual financial report at the main office of the plan (Pacific Maritime Association, 555 Market Street, 3rd Floor, San Francisco, CA 94105) 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 should be addressed to: Public Disclosure Room, Room N-5638, Pension and Welfare Benefits Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20210.