8. Benefit Plans:

Retirement Plans

Substantially all employees of the Foundation are covered by two defined contribution retirement plans which provide for retirement benefits through a combination of the purchase of individually-owned annuities and cash payout. The Foundation’s policy is to fund costs incurred. Pension expense amounted to $2,992,967 and $3,027,579 for 2004 and 2003, respectively, under these plans.

Postretirement Benefits

The Foundation provides postretirement medical and dental benefits to all employees who meet eligibility requirements. The benefit obligation for 2004 and 2003 is summarized as follows (in thousands):

The benefit information for 2004 and 2003 is summarized as follows (in thousands):

The estimated future benefit payments are as follows (in thousands):

In December 2003, the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the “Act”) was signed into law. The Act introduces a prescription drug benefit under Medicare Part D as well as a Federal subsidy to employers whose plans provide an “actuarial equivalent” prescription drug benefit. The Foundation’s postretirement prescription drug benefits should qualify for this subsidy. The Foundation will treat the effects of the Act as an actuarial gain upon adoption of the Financial Accounting Standards Board Staff Position No. 106-2, “Accounting and Disclosure Requirements Related to the Medicare Prescription Drug, Improvement and Modernization Act of 2003” as of December 31, 2005.

9. Capital Lease Obligations:

The Foundation entered into several noncancellable capital leases relating to computer hardware. The future minimum rental payments required under these leases are as follows: