How is the performance of the offered investment options evaluated?

The Committee adopted a written Statement of Investment Policies and Guidelines at their August 12, 2004 meeting. This Statement establishes criteria for funds offered within the 457 and 401(a) plans as well as the criteria for eliminating investment options. The policy is reviewed annually and assists in meeting the fiduciary responsibility of the Committee to act in the best interest of all plan participants. As stated in the guidelines, “the Committee will evaluate fund performance at least annually. Performance results will be evaluated using comparisons with the guidelines, pertinent market indices and appropriate peer groups of managers. When necessary, fund performance will be reviewed more frequently.” Evaluation is focused on long-term performance, though interim qualitative factors may influence a decision to add or remove a fund.