Ron, Diane, and Leslie attend a wood working awards dinner after one of Ron's handcrafted chairs is nominated, but the happy occasion is threatened by the arrival of Tammy II. Meanwhile, Jerry hosts a holiday party at his home with his wife, and some of his friends are shocked to find they were not invited.

When Leslie finds out Jerry is retiring, she struggles with the proper way to commemorate the occasion. Chris and Ann prepare to have a baby together. Tom worries he will become the office punching bag once Jerry leaves.