Your investment choices offer a range of investment management strategies. "Passively managed" index funds are structured to mirror the composition of broader market benchmarks. Benchmarks are designed to capture the full breadth of the target market. Their portfolios reflect the market weightings, with no attempt to anticipate future market moves and alter their holdings accordingly.

"Actively managed" funds seek to add value above the market return and/or avoid falling markets by shifting the portfolio's holdings based upon the investment managers' forecasts and analysis of future market moves. Portfolio holdings and weights may vary significantly from the broad market weightings represented in the appropriate benchmark.

Benefits of passive management are low trading and investment management costs, so there is little detriment to the full use of investors' capital. Passively managed vehicles will participate in positive returns during rising markets. They also will bear the full negative impact of falling markets.

Active fund managers seek to outperform the markets. Actively-managed funds could potentially gain more value (or lose less value) than passively-managed funds if, and when, their fund managers succeed. However, active management incurs higher trading and investment management costs and may result in returns below the market benchmark.

Your investment choices include these passively managed funds:

• U.S. Bond Fund
  
• U.S. Equity Index Fund
  

Your investment choices include these actively managed funds:

• Money Market Fund
  
• Balanced Fund
  
• New Horizons Fund
  
• U.S. Blended Equity Fund
• Social Awareness Fund
  
• International Blended Equity Fund
  

These actively managed funds combine investment managers applying different methodologies to select portfolio holdings. This offers the potential for diversification and added returns.

The Balanced Fund also is an actively managed vehicle. For members choosing not to elect investments, the Balanced Fund will be the investment vehicle for their entire accounts.The Balanced Fund will be structured to provide long-term capital growth and diversification for all members. At least 80% will be allocated among:

• Bonds and equities
  
  
• U.S. and international equities
  
  
• Passive and active management
  

Take time to review this material as part of your comprehensive investment planning process.