Investment Options
Contributions are invested at the employee's direction among the various investment options. Participants may change their investment options at any time by calling (800) 584-6001 or via ING's website.

Investment Funds

Aetna Ascent VP Aetna Bond VP Aetna Crossroads VP Aetna Fixed Account Aetna International VP Aetna Legacy VP Aetna Money Market VP

Chapman Equity Fund Franklin Small Cap Growth Fund I - Class A Janus Aspen Series Balanced Portfolio Janus Twenty Fund Pioneer Fund (2) T. Rowe Price Equity Index 500 Fund

Quarterly Statements
Each calendar quarter, participants will receive a statement showing the contributions made during the quarter, any interest and investment gains or losses, and the current account balance. Quarterly statements will be mailed within 20 calendar days after the end of each calendar quarter.

Vesting
"Vesting" refers to a participant's right to receive the account balance held on his/her behalf when he/she leaves District government service.

The retirement account will become fully vested under the following circumstances:

• Completion of five years of creditable service in covered employment,
• Death while employed, or
• Permanent disability.

If an employee leaves District government employment before his/her account is vested, he/she forfeits the account balance.

Distributions and Withdrawals
Normally, the money in an employee's account is distributed when he/she retires.

Other circumstances under which employees or their beneficiaries can receive their account balance are:

• Termination of employment (if vested)
• Death while employed, or
• Permanent disability.

Payment Options
When the account value is distributed, the employee or his/her beneficiary may choose from various payment options, including:

• Lump sum cash payment,
• Lump sum rollover payment,
• Installment payments, or
• Annuity payments.

All of the above payments, except for a lump sum rollover payment, are subject to federal and some state taxes.

For lump sum cash payments, ING will withhold 20 percent for federal tax purposes at the time of payment. A participant may incur a 10 percent federal tax penalty if he/she elects a distribution (other than lump sum rollover payment) before turning age 59�.

Minimum Distribution Requirement (MDR)
IRS regulations require that participants must begin receiving payments from their retirement account by April 1st of the calendar year following the later of:

• the calendar year the employee attains age 70�, or
• the calendar year the employee retires.

Filing a Claim for Benefits
Plan benefits must be applied for in writing. Contact ING at (800) 584-6001 and request a distribution package. The participant must complete and sign the required forms in the package and send them, with his/her personnel action form, to the DC Office of Personnel/Office of Compensation and Benefits (OCB), 441 4th Street, NW, Suite 330S, Washington, DC 20001. OCB must approve the payment and forward the forms to ING.

ING will mail payment to the participant within seven calendar days of receiving the approved forms.