Voluntary Employee Deferrals
An employee may defer up to $11,000 annually for the year 2002; this maximum amount will increase by $1,000 each year until 2006. Further details regarding catch up provisions for your retirement are available on the District's custom ING/Aetna website.

Investment Options
Deferrals are invested at the employee's direction among the various investment options. Participants may change their investment options at any time.

Investment Funds (effective March 28, 2002)

Aetna Ascent VP, Aetna Legacy VP Aetna Crossroads VP Aetna International VP Aetna Small Company VP Alliance Growth and Income Fund Ariel Capital Chapman DEM Equity Deutsche Equity 500 Index Investment

Franklin Small Cap Growth ING Stable Asset Value Account Janus Aspen Series Aggressive Growth MFS Massachusetts Investors Growth A Pax World Balanced Pioneer A Fund T. Rowe Price Value Fund Adv

Quarterly Statements
Each calendar quarter, participants will receive a statement showing the deferrals 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.

Payment Options
The employee or his/her beneficiary may choose from the following payment options less a 20 percent tax withholding:

• Lump sum cash payment,
• Lump sum rollover payment not reinvested within 60 days, or
• Installment payments with less than 10-year payout.

The employee or his/her beneficiary may choose from the following payment options less, at the participant's direction, a 10 percent tax withholding:

• Unforeseen emergencies,
• Installment payouts with greater than a 10-year life,
• Annuities,
• Minimum distribution requirements (MDR), or
• Non-spousal death benefits.

Direct rollovers are not subject to tax withholding.

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.