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dcp investment options Plan participants designate a percentage of total contribu- tions to be placed in one or more of seven accounts of the Minnesota Supplemental Investment Fund. The Minnesota State Board of Investment (SBI) administers this investment fund and includes actively and passively managed stock, bond, a balanced fund, a money market fund, and a fixed interest account. You may change your investment selec- tions at any time and may also transfer all or portions of pre- viously purchased shares from one account to another. CHOOSING INVESTMENT OPTIONS People have different levels of comfort when it comes to investing their money. There are no risk -free or insured accounts in the Supplemental Investment Fund. There are, however, certain accounts that pose less risk than others. You should expect that these lower risk accounts will also provide lower returns over the long run. To help with your investment selection, SBI pub- lishes an annual Supplemental Investment Fund Prospec- tus showing the investment goals and actual returns of the accounts. You can find this publication on both PERA's and SBI's websites. SBI also maintains monthly share values going back to 1967 on their website, including monthly interest for the Money Market. PERA Service Representatives are not finoncial advisors and cannot offer recommendations to DCP participants about where to invest their funds. Participants who need additional investment counseling may wish to obtain advice from a finan- cial planning professional. CHANGING INVESTMENT SELECTIONS To change your investment options, please complete the DCP Investment Selection form and return it to PERA by mail or fax. You may transfer all of your current invest- ments to different accounts, or you may transfer part of your investments. HOW TO CHANGE INVESTMENT SELECTIONS Transfer all investments. To withdraw all your funds from an account and transfer them to other(s), you need to complete Part II of the DCP Investment Selection form. There are three steps to follow: 1 In column A of Part I I, write 100% in the box correspond- ing to each account in which you wish to sell all shares you currently own. This tells PERA to sell 100 percent of the shares in the account or accounts so indicated. • Designate new investment selections in column B. Indicate what percentage of the proceeds of the sale of shares in Column A should be invested in the accounts listed. 3 Check how your current contributions are being invested. If the account you want to abandon appears as an investment selection for future contributions, you must designate new investment selections for payroll contributions, unless you want shares of this account purchased in the future. To select new investments for payroll contributions, you must complete Part I of the DCP Investment Selection form. In Part I, indicate the percentage of new and incoming payroll contributions you want invested in the accounts listed. Transfer part of your investments. To with- draw some, but not all, of your funds invested in a particular account, you need to complete Part II of the DCP Investment Selection form. There are two steps to follow: 1 In column A of Part II, write in the percentage of the account value you wish to withdraw in the box cor- responding to the account in which you wish to sell some shares. Since you wish to withdraw only part of the value of your account, the percentage you will write in here will be less than 100 percent for each account you wish to reduce. 2 You must designate new investment selections in column B. When completing column B, indicate the percentage of the proceeds of the sale of shares in column A you wish invested in the accounts listed. SPECIAL RULES REGARDING THE FIXED INTEREST ACCOUNT You may transfer funds from any of the Supplemental Investment Fund accounts to the Stable Value Fund (fixed interest account) at any time during the year. Although there is considerable flexibility in depositing lump sums into the account, transferring money out of the account may be restricted, depending on the accounts to which you transfer funds. Funds may be transferred directly from the Stable Value Fund into equity -related accounts without restriction. Equity -related accounts include the Balanced Fund, U.S. Stock Actively Managed Fund, U.S. Stock Index Fund, Bond Fund or Broad International Stock Fund within the Supplemental Investment Fund. You may not re -transfer these amounts to the Money Market Fund for at least 90 days. 4