New and Useful Information Regarding Your AMO Plans Benefits

New and Useful Information Regarding Your AMO Plans Benefits

AMO MEDICAL PLAN

Prescription Drug Benefits:

As you know, the AMO Medical Plan announced the engagement of Envision Pharmaceutical Services/Rx Options as its new Pharmacy Benefit Manager (PBM) effective April 1, 2004.

THERE WILL BE NO CHANGE IN THE CURRENT PRESCRIPTION DRUG BENEFIT THAT WENT INTO EFFECT ON JANUARY 1, 2004.
YOUR OLD PRESCRIPTION DRUG CARD WILL NO LONGER BE VALID ON OR AFTER APRIL 1, 2004.

Annual Prescription Drug Deductible:

If you have met your annual prescription drug deductible for services before April 1, 2004, you will not have to meet a new deductible under the new PBM. The data will be transferred to the new PBM and honored by the Plan.
If you have met a portion of your annual prescription drug deductible prior to April 1, 2004, it will be transferred to the new PBM, honored by the Plan and applied to the calendar year deductible. If you have not met your annual prescription drug deductible, it will be applied to prescription drug services rendered on or after April 1, 2004. Please note, during the initial transition period, in some cases the accrual of the annual prescription drug deductible may be temporarily delayed, but will be implemented on a future claim during the calendar year.

If you have not received your new Prescription Drug Card or do not have your new card in your possession when filling a prescription:

If you are eligible for prescription drug benefits under the AMO Medical Plan and you do not have your new prescription drug card, simply identify yourself as an AMO Medical Plan participant with your identification number and advise the pharmacist there has been a change in your Pharmacy Benefit Manager to Envision/Rx Options. The pharmacist should bill the drug through to Envision/Rx Options. You will be required to pay any co-payment, deductible or non-covered expense at the point of sale.

If you or your pharmacist require any assistance filling a prescription drug, please contact Envision/Rx Options Pharmacy Helpdesk at 1-800-361-4542 or the AMO Medical Plan Participant Services at 1-800-348-6515.

AMO PENSION PLAN

Re-Employment of AMO Pensioners due to Temporary Shortage of Qualified Personnel:

The Board of Trustees of the AMO Pension Plan directed effective October 1, 2003 that because of a temporary shortage of qualified personnel, pensioners who receive written permission of the Trustees of the AMO Pension Plan, upon the written application of the pensioner, may return to Covered Employment without loss of pension payments during the period of re-employment. This approval is within the AMO Pension Plan Trustees' discretion when it is determined that there are shortages of qualified personnel.

Under the temporary shortage provision, a Pensioner may return to Covered Employment without penalty during the period of re-employment provided such Pensioner notifies the Trustees in writing and receives the written permission of the Trustees prior to the date of his/her re-employment.

If the Trustees subsequently determine that a shortage no longer exists, the Administrator will give any such Pensioner notice of the need to return to pensioner status under the AMO Pension Plan.

A Pensioner returning to Covered Employment under this provision with a company contributing to the AMO Medical Plan will be eligible for medical coverage as an active employee upon meeting the eligibility requirements of the American Maritime Officers Medical Plan. Active Employee Medical Benefits for a Pensioner who returns to Covered Employment will cease on the date following his last day of Covered Employment. Participants who were eligible for AMO Medical Plan Pensioner’s benefits will revert to pensioner coverage after the last day of Covered Employment.

Penalties remain in effect for a Pensioner who returns to Covered or non-covered employment without written permission from the Board of Trustees of the AMO Pension Plan.

AMO 401(k) PLAN/AMO PENSION PLAN

The Board of Trustees has continued to monitor the situation with Putnam. Based on the review conducted by the Trustees in consultation with their independent financial consultant, it has been determined that the market timing that took place in the Putnam International Fund occurred prior to the 401(k) Plan and AMO Pension Plan engaging Putnam, and there currently is no evidence that any Plan participant has been harmed by the market timing. However, the international portfolio management team has changed as a result of the market timing charges.

Based on the recommendations made by the independent financial consultant, the Trustees have decided to close the Putnam International Fund to new entrants and/or dollars and offer the Templeton Foreign Fund, a non-Putnam fund, as an international fund alternative. The Trustees have also decided to offer a more diversified investment lineup by offering non-Putnam alternative fund choices to parallel and supplement each existing investment class. As a result, four new funds were available beginning March 1, 2004: Dodge & Cox Balanced, Dodge & Cox Value, Victory Diversified Stock and Cooke & Bieler Mid-Cap Value.

Below we have listed a complete lineup of your investment options and have indicated whether these options are “existing” or “new”. The new funds were available for investments on March 1, 2004 under both the 401(k) Plan and the Money Purchase Benefit. You should have received an informational package from Putnam that included fund prospectus. If you require fund information, you may contact Putnam Customer Service Representatives at 1-877-864-6644.

The 401(k) Plan and MPB Investment Options	Existing or New to 401(k) Plan and MPB Participants	Putnam/Non-Putnam Funds
GROWTH FUND
MSIF Inc. Small Company Growth	Existing	Non-Putnam
Growth Fund of America	Existing	Non-Putnam
BLEND FUNDS
Putnam S&P 500 Index Fund	Existing	Putnam
Putnam Research Fund	Existing	Putnam
Victory Diversified Stock	New	Non-Putnam
Putnam International Equity	CLOSED To New Contributions	Putnam
Templeton Foreign Fund	New	Non-Putnam
VALUE FUNDS
Putnam Equity Income	Existing	Putnam
Dodge & Cox Value Fund	New	Non-Putnam
Putnam Mid-Cap Value Fund	Existing	Putnam
Cooke & Bieler Mid-Cap Value	New	Non-Putnam
Heartland Value Fund	Existing	Non-Putnam
BALANCED FUNDS
George Putnam Fund of Boston	Existing	Putnam
Dodge & Cox Balanced Fund	New	Non-Putnam
CAPITAL PRESERVATION FUND
Putnam Stable Value Fund	Existing	Putnam

Investment Advice and Guidance Services Available May 2004:

Beginning in May 2004, you will have access to professional and objective investment help via the Web. Financial Engines* provides investors with personalized advice and portfolio management. Available online, on paper, by phone, and in person, the advice is accessible to all and unique to each investor's goals and financial circumstances. Information about how to take advantage of this investment advice and guidance service will be provided under separate cover before May 2004. There will not be any fee for this service.

*Financial Engines is not an affiliate of Putnam Investments. Neither Putnam nor the Trustees of the AMO 401(k) Plan are responsible for investment advice provided through Financial Engines or liable for the investment of your account.

Putnam on call:

Through the Voice Response System, Customer Service Representatives will be available to answer your questions any business day between 8:00 a.m. and 10:00 p.m. ET. Just call 1-877-864-6644.

Additionally, you can also access the Web site at www.ibenefitcenter.com for information about your program or for account transactions, including accessing daily price information on your available investments or obtaining your account balance.

Important Note: You will need your Social Security Number and Personal Identification Number (PIN) to access the Putnam Web Site and telephone services.

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