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Home My Public Portal AboutDeferred Comp 2007 Audited FinancialsP%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P% THE METROPOLITAN ST. LOUIS SEWER DISTRICT DEFERRED COMPENSATION PLAN AND TRUST FINANCIAL REPORT (Audited) Year Ended December 31, 2007 P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P%P% THE METROPOLITAN ST. LOUIS SEWER DISTRICT DEFERRED COMPENSATION PLAN AND TRUST ______________________________________________________________FINANCIAL REPORT __________________________________________________________________________Contents Page INDEPENDENT AUDITORS’ REPORT 1 MANAGEMENT’S DISCUSSION AND ANALYSIS 3 FINANCIAL STATEMENTS Statements of Plan Net Assets 6 Statements of Changes in Plan Net Assets 7 Notes to Financial Statements 8 SUPPLEMENTAL INFORMATION Historical Trend Information 15 Investment Returns and Expense Ratios 16 Hochschild, Bloom & Company LLP Cnlilkd PUhlic' Acc'ounlanl,> COllsultant. ' and Advisors INDEPENDENT AUDITORS' REPORT November 12,2008 The Board of Trustees THE METROPOLITAN ST. LOUIS SEWER DISTRICT We have audited the accompanying statements of plan net assets of THE METROPOLITAN ST. LOUIS SEWER DISTRICT DEFERRED COMPENSATION PLAN AND TRUST (the Plan) as of December 31, 2007 and 2006, and the related statements of changes in plan net assets for the years then ended. These financial statements are the responsibility of the Plan Administrator. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with U.S. generally accepted auditing standards. Those stan dards require that we plan and perfonn the audits to obtain reasonable assurance about whether the finan cial statements are free of material misstatement. An audit includes consideration of internal control over fmancial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan's internal control over fman cial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test ba sis, evidence suppOlting the amounts and disclosures in the fmancial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall fmancial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the plan net assets as of December 31, 2007 and 2006, and the changes in plan net assets for the years then ended, in confonnity with U.S. generally accepted accounting principles. The management's discussion and analysis is not a required part of the basic financial statements, but is supplementary infonnation required by U.S. generally accepted accounting principles. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary infonnation. However, we did not audit the in formation and express no opinion on it. []16100 Chesterfield ParkW3) West. Suite 125. Chesterfield. 1\ Ji"souri 63017-~~29. 636-532-9525. Fax 6J6-532-9055 [ I WIIO Washington Square. P.O . no ... 1457. \\ashingtoll. \Jissollri (,30IJO-R..J57. 6Jti-239-.t78S. Fax 636-239-S-'-'8 w\\\\.hhclp.C{)nl POLARIS •. , !\\ ' nll,,",r' Polan , Inl ~"l<1ri"l1l1l wllh FlITn~ III Pnn"ll'al IS, ;11Id 11lI C:1'f1:1li .,II.,J Cill..-' Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Plan's financial statements. The supplemental information, as listed in the table of contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements of the Plan. Such information has been SUbjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. ~{~.[·~~t? CERTIFIED PUBLIC ACCOimTANTS d- Page 2 THE METROPOLITAN ST. LOUIS SEWER DISTRICT DEFERRED COMPENSATION PLAN AND TRUST MANAGEMENT’S DISCUSSION AND ANALYSIS ________________________________________FOR THE YEAR ENDED DECEMBER 31, 2007 __________________________________________________________________________________ Page 3 This report consists of the financial statements related to The Metropolitan St. Louis Sewer District De- ferred Compensat io n P la n and Trust (the Plan). The statements of pla n net assets and the statements of changes in plan net assets (on pages 6 and 7)provide informat io n about the Plan’s assets and changes in it s assets during the year. These statements are prepared using the accrual basis o f account ing.The in- vestments held in trust for plan benefits are reported at fair value. This ma nagement’s discussion and analysis o f the Plan’s financial performance provides an overview of the Plan’s financial act ivit ie s fo r the fiscal year ended December 31, 2007. Please read it in conjunctio n with the Plan’s financial statements sect io n. FINANCIAL HIGHLIGHTS Plan Additions,Deductions, and Net Assets Net assets available for plan benefits exceeded $28.7 millio n at the end of 2007 and the net asset value increased by $2.6 millio n fro m t hat of December 31, 2006,due to the combined impact of both an in- crease in the overall value of the equit y invest me nt markets and an increase in part ic ipant contribut io ns. Contribut io ns fro m participants were approximately $2.6 millio n,an increase of $116 thousand. Plan Additions for 2007, 2006, and 2005 (in thousands) 2007 2006 Percent Change 2005 Percent Change Employee contributions $2,596 $2,479 4.7%$2,203 12.5% Investment income 1,500 2,790 (46.2) 1,311 112.8 Total Additions 4,096 5,269 (22.3) 3,514 49.9 Plan Deduction for 2007,2006, and 2005 (in thousands) 2007 2006 Percent Change 2005 Percent Change Distributions to participants and beneficiaries $1,443 $1,406 2.6%$670 109.9% Net Assets at December 31,2007, 2006, and 2005 (in thousands) 2007 2006 Percent Change 2005 Percent Change Assets held in trust $28,766 $26,113 10.2%$22,249 17.4% THE METROPOLITAN ST. LOUIS SEWER DISTRICT DEFERRED COMPENSATION PLAN AND TRUST MANAGEMENT’S DISCUSSION AND ANALYSIS ________________________________________FOR THE YEAR ENDED DECEMBER 31, 2007 __________________________________________________________________________________ Page 4 Participant Census Employee participat io n in t he Plan is on a vo lu nt ary basis. Plan participants are comprised of act ive employees of the District, retirees or surviving spouses,and terminated emplo yees with account bal- ances as fo llo ws: Number Of December 31 Participants 2007 625 2006 619 2005 612 Investment Aspects Invest me nt decisions are participant directed. The participants are offered a diversified portfolio of in- vestment options to select fro m.These invest me nt options represent a series o f mut ual fu nds primarily sponsored and managed by the Vanguard Group. A breakdown of the participant directed asset alloca- tion as of the last day of the fiscal years ended 2007, 2006, and 2005 fo llows: Asset Allocation as of December 31, 2005 59%21% 8% 8%4% Asset Allocation as of December 31, 2007 59%24% 7%5%5% Equity Balanced Fixed Income Stable Value Cash equivalents Asset Allocation as of December 31, 2006 60%23% 7%6%4% Equity Balanced Fixed Income Stable Value Cash Equivalents THE METROPOLITAN ST. LOUIS SEWER DISTRICT DEFERRED COMPENSATION PLAN AND TRUST MANAGEMENT’S DISCUSSION AND ANALYSIS ________________________________________FOR THE YEAR ENDED DECEMBER 31, 2007 __________________________________________________________________________________ Page 5 Certain participants with assets valued at $757,966 and $799,626 in 2007 and 2006, respectively,are invested in a series of fixed and variable rate annuity contracts sponsored by Lincoln National Life In- surance Company. The Linco ln National Life option was phased out in 1992, and any balances repre- sent undistributed participant balances. This option is no longer available to new participants or for cur- rent deferrals. Fiduciary Responsibilities The Board of Trustees and senior management are fiduciaries of the Plan and Trust. Fiduciaries are charged wit h t he responsibilit y o f assuring that the assets of the Plan are used exclusively for the benefit of Pla n participants and the beneficiaries. Request for Information This financial report is designed to provide the Board of Trustees, senior management, participants, in- vestment managers, and other interested parties with an overview of the Plan’s finances and accountabil- it y fo r the money received. Questions concerning any of the information provided in this report or re- quests for addit io nal informat io n should be addressed or e-ma iled to: Karl J. Tyminski, Secretary-Treasurer The Metropolitan St. Louis Sewer District 2350 Market Street St. Louis, MO 63103-2555 or kjtymi@st lmsd.com THE METROPOLITAN ST. LOUIS SEWER DISTRICT DEFERRED COMPENSATION PLAN AND TRUST __________________________________________________________STATEMENTS OF PLAN NET ASSETS 2007 2006 ASSETS Investments at fair value: Mutual funds 26,023,916$ 23,204,823 Common/collective trust 1,366,284 1,581,886 Annuity contracts 757,966 799,626 Participant loans 618,245 526,636 NET ASSETS HELD IN TRUST FOR PLAN BENEFITS 28,766,411$ 26,112,971 See notes to financial statements___________________________________________________________________ Page 6 December 31 THE METROPOLITAN ST. LOUIS SEWER DISTRICT DEFERRED COMPENSATION PLAN AND TRUST ______________________________________STATEMENTS OF CHANGES IN PLAN NET ASSETS 2007 2006 ADDITIONS TO NET ASSETS ATTRIBUTED TO: Investment income: Interest and dividends 1,558,077$ 951,126 Net appreciation (depreciation) in fair value of investments (57,208)1,839,805 Total Investment Income 1,500,869 2,790,931 Less - Investment expenses 350 500 Net Investment Income 1,500,519 2,790,431 Employee contributions: Elected deferrals 2,595,532 2,413,736 Rollovers - 65,331 Total Employee Contributions 2,595,532 2,479,067 Total Additions 4,096,051 5,269,498 DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO: Distributions to participants and beneficiaries 1,442,611 1,405,638 NET INCREASE 2,653,440 3,863,860 NET ASSETS AVAILABLE FOR BENEFITS, JANUARY 1 26,112,971 22,249,111 NET ASSETS AVAILABLE FOR BENEFITS, DECEMBER 31 28,766,411$ 26,112,971 See notes to financial statements______________________________________________________________ Page 7 Ended December 31 For The Years THE METROPOLITAN ST. LOUIS SEWER DISTRICT DEFERRED COMPENSATION PLAN AND TRUST ______________________________________________NOTES TO FINANCIAL STATEMENTS __________________________________________________________________________________ Page 8 NOTE A -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies consistently applied by THE METROPOLITAN ST. LOUIS SEWER DISTRICT DEFERRED COMPENSATION PLAN AND TRUST (the Plan) in the prepa- ration of the accompanying financial statements are summarized below: 1.Basis of Accounting The financial statements of the Plan are prepared under the accrual basis of accounting. Benefit payments to participants or beneficiaries are recorded upon distribution. 2.Accounting Estimates The preparation of financial statements in conformity with U.S. generally accepted ac- counting principles requires the Plan Administrator to make certain estimates and assump- tions that affect the reported amounts in the financial statements. Actual results could dif- fer from those estimat es. 3.Investment Valuation Purchases and sales of mutual funds are recorded on the settlement date. Investments in mut ual funds are valued at fair value based on quoted market prices. Investments in annu- it y co nt racts are valued at contract values reported by the insurance company, which ap- proximate fair value.Investments in participant loans are valued at the outstanding princi- pal balance, which approximate fair value. 4.Administrative Expenses All general administrative costs of the Plan are paid by The Metropolitan St. Louis Sewer District (the District), except those attributable to participants’ choice of optional invest- ment s or optional forms of benefit payments. Theses expenses are charged to the respec- tive participants’ account balance. NOTE B -DESCRIPTION OF THE PLAN The following descriptio n of the Plan provides only general information. Participants should refer to the Plan agreement for a complete description of the Plan’s provisions. 1.General The Plan is a defined contribution benefit plan covering substantially all employees of the District. The District’s Board of Trustees established the Plan in September 1996.Plan provisions are established and may be amended by the District’s Board of Trustees.The District does not contribute to the Plan. All assets of the Plan are the sole property of the THE METROPOLITAN ST. LOUIS SEWER DISTRICT DEFERRED COMPENSATION PLAN AND TRUST ______________________________________________NOTES TO FINANCIAL STATEMENTS __________________________________________________________________________________ Page 9 NOTE B -DESCRIPTION OF THE PLAN (Continued) 1.General (Continued) Plan and are not subject to the claims of the creditors of the District. The Plan Adminis- trator issues a publicly available summary plan description. That info rmation may be o b- tained by writing to The Metropolitan St. Louis Sewer District, 2350 Market Street, St. Louis, MO 63103-2555. 2.Contributions Under the Plan provisions, employees of the District are eligible to contribute up to 100% of their total compensation int o the Plan, through payroll deferral, any amount not previ- ously r educed or withheld from their total compensation. In accordance with the Internal Revenue Code Section 457 as amended, the Plan limit s an employee’s annual contribution (adjusted annually)not to exceed $15,500 for the year ended December 31, 2007 and $15,000 for the year ended December 31, 2006.If the employee is o ver the age of 50, they can contribute an additional catch-up contribution up to $5,000 for the years ended December 31, 2007 and 2006.Underutilization catch-up of two times the standard annual deferral apply within the three years prior to normal retirement, less amounts deferred un- der the Plan.Amo unts contributed by employees are deferred for federal and state income tax purposes until received as a withdrawal or distribution from the Plan. Employee contributions may be allocated to the Vanguard Group accounts only, in 1% increment s as the participant directs. No contributions are currently made to the Lincoln National accounts. Equity Option:Vanguard Windsor II Fund, Vanguard 500 Index Fund, and Vanguard U.S. Growth Fund -Investment objective is long-term capital growth. Diversification Option:Vanguard Small Cap Index Fund,Vanguard Mid Cap Index Fund,and Vanguard International Growth Fund -Investment objective is long-term capital growth. Life Strategy Option: Vanguard Life Strategy Growth Fund, Vanguard Life Strategy Moderate Growth Fund, Vanguard Life Strategy Conservative Growth Fund, and Vanguard Life Strategy Income Fund -Investment objective is long-term capital growth and/or income. Bond Option: Vanguard Total Bond Market Index Fund -Investment objective is in- come stability and conservation of principal. Balanced Option: Vanguard Balanced Index Fund -Investment objective is income, conservation of principal, and long-term growth. THE METROPOLITAN ST. LOUIS SEWER DISTRICT DEFERRED COMPENSATION PLAN AND TRUST ______________________________________________NOTES TO FINANCIAL STATEMENTS __________________________________________________________________________________ Page 10 NOTE B -DESCRIPTION OF THE PLAN (Continued) 2.Contributions (Continued) Stable Value Option: Vanguard Retirement Savings Trust -Investment objective is inco me stability and conservation of principal. Money Market Option: Vanguard Federal Money Market Fund -Investment objective is safety of principal. Loan Fund:The District allows participants to borrow from their account, usually a percentage of their vested balance. 3.Participant Accounts Each participant’s account is credited with the participant’s contribution and allocations of Plan earnings. Allocations are based on participants’ account balances, as defined. There are no forfeitures applicable to the Plan. Participants’ contributions are immediately fully vested. At December 31, 2007 and 2006, 625 and 619 participants, respectively,actively partici- pated in t he Plan. 4.Participant Loans Active participants, with some exceptions, may borrow from their fund accounts a per- centage of their vested account balances. Principal and interest is paid through payroll de- ductions.Interest rates on loans outstanding at December 31, 2007 and 2006 range from 5% to 9¼%. 5.Distributions Participants contributing to the Plan may receive benefits or withdraw the present value of funds contributed to the Plan upon retirement, disability, or termination of employment from t he District or due to financial hardship as defined by the Plan, if approved by the Plan Administ rator. Participants may select various payout options including lump sum or equal annual pay- ment s over various periods. Participants may also elect to have the value of the account converted into fixed or variable annuity contracts. All investments, including annuity con- tracts, remain assets of the Plan until payments are made to the participants. THE METROPOLITAN ST. LOUIS SEWER DISTRICT DEFERRED COMPENSATION PLAN AND TRUST ______________________________________________NOTES TO FINANCIAL STATEMENTS __________________________________________________________________________________ Page 11 NOTE B -DESCRIPTION OF THE PLAN (Continued) 6.Tax Status The Plan received a favorable determination letter from the Internal Revenue Service on June 23, 1999, indicating the Plan and its underlying trust are qualified under Section 457 of the Internal Revenue Code. NOTE C -RELATED PARTY-IN-INTEREST TRANSACTIONS The Plan invests in shares of mutual funds managed by an affiliate of Vanguard Fiduciary Trust Co mpany (VFTC). VFTC acts as trustee for only those investments as defined by the Plan. Transactions in such investment s qualify as party-in-int erest transactions which are exempt from the prohibited transaction rules. NOTE D -INVESTMENTS Investments held by the custodians in the Plan’s name were as follows: December 31 2007 2006 Mutual funds: Vanguard Group, Inc.: Windsor II Fund $ 6,694,576*6,883,911* Balanced Index Fund 3,438,968*3,234,625* 500 Index Fund 3,419,978*3,197,006* U.S. Growth Fund 2,301,622*2,026,466* Total Bond Market Index Fund 1,770,119*1,465,661* International Growth Fund 1,665,643*1,084,174 Federal Money Market Fund 1,473,156*918,762 Life Strategy Moderate Growth Fund 1,396,299 1,132,776 Life Strategy Growth Fund 1,114,083 837,496 Mid Cap Index Fund 1,000,994 857,426 Small Cap Index Fund 966,683 930,345 Life Strategy Conservative Growth Fund 488,405 423,074 Life Strategy Income Fund 293,390 213,101 Total Mutual Funds 26,023,916 23,204,823 Commo n/collective trust Vanguard Group, Inc.: Retirement Savings Trust 1,366,284 1,581,886 Participant loans 618,245 526,636 *Represents 5% or more of the Plan’s net assets. THE METROPOLITAN ST. LOUIS SEWER DISTRICT DEFERRED COMPENSATION PLAN AND TRUST ______________________________________________NOTES TO FINANCIAL STATEMENTS __________________________________________________________________________________ Page 12 NOTE D -INVESTMENTS (Continued) December 31 2007 2006 Annuit y contracts: Lincoln National Life: Fixed earnings option: Lincoln National Fixed 332,507 389,463 Variable earnings option: Growth and Income Fund 162,816 147,055 Special Opportunity Fund 146,031 142,192 International Fund 32,478 28,272 Trend Fund 26,873 24,509 Social Awareness Fund 14,572 11,497 Capital Appreciation Fund 9,616 5,294 Managed Fund 7,846 4,807 Midcap Growth 6,196 - Equity-Income Fund 6,029 8,018 Money Market Fund 5,101 33,007 Global Growth 4,817 - Aggressive Growth Fund 3,084 5,512 Total Annuit y Co nt racts 757,966 799,626 $28,766,411 26,112,971 Debt Securities Interest Rate and Credit Risk The Plan will minimize t he risk that the market value of securities in the portfolio will fall due to changes in general interest rates by selecting mutual funds fo r the investment portfolio that manage credit quality and duration of fixed income investments. The Plan will minimize credit risk, the risk of loss due to failure of the security issuer or backer, by s elect- ing mut ual funds for the investment portfolio that manage their respective fund under a predetermined average credit risk investment management policy. The following table provides information on the duration and credit ratings associated with the Plan’s in- vestment in debt-backed mutual funds, excluding obligations of the U.S. Government or obligations ex- plicit ly guaranteed by the U.S. government wit hin t hese funds at December 31, 2007 and 2006: THE METROPOLITAN ST. LOUIS SEWER DISTRICT DEFERRED COMPENSATION PLAN AND TRUST ___________________________________________________________________________________NOTES TO FINANCIAL STATEMENTS _______________________________________________________________________________________________________________________ Page 13 NOTE D -INVESTMENTS (Continued) S&P Average Average Effective Plan Investments Credit Credit Quality Percentage Duration With Debt Securities Fair Value Rating AAA AA A BBB BB In Years December 31, 2007: Vanguard Balanced Index Fund $3,438,968 AAA 31.3%2.4%3.6% 2.8%-%4.4 Vanguard Total Bond Market Index Fund 1,770,119 AAA 79.2 5.6 8.1 7.1 -4.4 Vanguard Federal Money Market Fund 1,473,156 AAA 100.0 - - - - 0.2 Vanguard Life Strategy Moderate Growth Fund 1,396,299 AAA 24.2 1.7 2.5 2.2 - 4.6 Vanguard Retirement Savings Trust 1,366,284 AA 54.3 44.5 1.2 - -2.7 Vanguard Life Strategy Conservative Growth Fund 488,405 AA 30.9 6.3 7.4 5.5 0.2 3.8 Vanguard Life Strategy Income Fund 293,390 AA 46.7 7.5 9.0 6.9 0.2 4.0 Lincoln National Fixed (annuity contracts)332,507 AA ****** Lincoln Money Market Fund 5,101 AA ****** December 31, 2006: Vanguard Balanced Index Fund 3,234,625 AAA 33.3 3.6 2.8 - - 4.5 Vanguard Total Bond Market Index Fund 1,465,661 AAA 94.0 4.0 2.0 - - 4.5 Vanguard Federal Money Market Fund 918,762 AAA 100.0 - - - - 0.2 Vanguard Life Strategy Mo derate Growth Fund 1,132,776 AAA 28.1 1.2 0.6 - - 4.5 Vanguard Retirement Savings Trust 1,581,886 AAA 52.0 46.0 2.0 - - 2.9 Vanguard Life Strategy Conservative Growth Fund 423,074 AAA 41.2 5.2 3.4 0.2 - 3.4 Vanguard Life Strategy Income Fund 213,101 AAA 60.0 6.0 3.8 0.2 - 4.5 Lincoln National Fixed (annuity contracts)389,463 AA * * * * * * Lincoln Money Market Fund 33,007 AA * * * * * * *Information is unavailable for this mutual fund. THE METROPOLITAN ST. LOUIS SEWER DISTRICT DEFERRED COMPENSATION PLAN AND TRUST __________________________________________________SUPPLEMENTAL INFORMATION __________________________________________________________________________________ Page 14 SUPPLEMENTAL INFORMATION SECTION THE METROPOLITAN ST. LOUIS SEWER DISTRICT DEFERRED COMPENSATION PLAN AND TRUST __________________________________________________SUPPLEMENTAL INFORMATION __________________________________________________________________________________ Page 15 HISTORICAL TREND INFORMATION For The Distributions To Increase Years Ended Employee Net Investment Participants (Decrease) December 31 Contributions Income (Loss)And Beneficiaries In Net Assets 2007 $2,595,532 $1,500,519 ($1,442,611)$2,653,440 2006 2,479,067 2,790,431 (1,405,638)3,863,860 2005 2,203,103 1,311,662 (670,007)2,844,758 2004 2,050,893 1,909,831 (792,780)3,167,944 2003 2,041,688 2,746,391 (1,238,629)3,549,450 2002 2,133,784 (2,095,283 )(1,819,333)(1,780,832) 2001 1,986,726 (1,194,727)(793,369)(1,370) 2000 2,345,212 (257,908)(850,507)1,236,797 1999 1,608,507 951,611 (530,279)2,029,839 THE METROPOLITAN ST. LOUIS SEWER DISTRICT DEFERRED COMPENSATION PLAN AND TRUST __________________________________________________SUPPLEMENTAL INFORMATION __________________________________________________________________________________ Page 16 INVESTMENT RETURNS AND EXPENSE RATIOS An independent investment consultant, New England Pension Consultants, monitored investment performance of the various options offered to the participants. For 2007 the investment consultant reported that all actively managed funds posted positive returns for the fiscal year ended December 31, 2007. Performance of the funds are measured net of the corresponding expense ratios. Below is a table that reflects the funds available for participants to invest and the perform- ance for the years ended 2007 and 2006 as compared to the appropriate benchmarks as well as their current expense ra- tios: Returns Net of Fees* Funds/Benchmarks Expense Ratios 2007 2006 Federal Money Market Retirement Savings Trust 90-day Treasury Bills Bankers Trust 3-Year Guaranteed Investment Contract Rate 0.24% 0.30 5.1% 4.5 5.0 4.6 4.8% 4.4 4.8 3.8 Total Bond Market Index Lehman Brothers Aggregate Bond Index 0.19 6.9 7.0 4.3 4.3 Balanced Index 60% Standard &Poor’s (S&P)500/40% Lehman Brothers Aggregate Bond Index 0.19 6.2 6.1 11.0 11.1 Life Strategy Income Dow Jones U.S. Moderate Conservative Portfolio 0.24 6.7 6.6 7.9 7.5 Life Strategy Conservative Growth Dow Jones U.S. Moderate Conservative Portfolio 0.24 7.0 7.5 10.6 7.5 Life Strategy Moderate Growth Dow Jones U.S. Moderate Portfolio 0.23 7.4 6.6 13.3 10.3 Life Strategy Growth Russell 1000 0.23 7.5 5.8 16.1 15.5 Standard & Poor’s (S&P) 500 Index Standard &Poor’s 500 Index 0.15 5.4 5.5 15.7 15.8 Windsor II Fund Russell 1000 Value Index 0.33 2.2 (0.2) 18.3 22.3 U.S. Growth Russell 1000 Growth Index 0.50 10.1 11.8 1.8 9.1 Mid Cap Index Russell Mid Cap Index 0.21 6.0 5.6 13.6 15.3 Small Cap Index Russell 2000 Index 0.22 1.2 (1.6) 15.7 18.4 International Growth Citigroup Primary Market Index (PMI);Europe, Pacific, and Asian Countries (EPAC) Index Morgan Stanley Capital International (MSCI); Europe, Australia, and Far East (EAFE) Index 0.51 15.9 13.0 11.2 25.7 25.2 26.3 * The returns shown above are net of fees as reported by the managers.