1. Employee Benefits and Wellness Team October 21, 2009

2. ICMA-RC Fund Lineup ICMA-RC has a standard trust series lineup of funds. ICMA-RC performs full qualitative and quantitative due diligence on funds in the trust series. City of Scottsdale will make changes to its fund lineup to align with changes ICMA-RC has made to its standard trust series.

3. Monies invested in a fund being eliminated will be mapped to a similar fund that is in the trust series – employees can choose some other fund if they wish. Communication to employees and transfer of funds to be accomplished in about 90 days. Funds eliminated represent about 5% of City of Scottsdale plan assets. More information and sample employee communication to follow.

4. Default for Funds being Eliminated Funds Being EliminatedDefault Fund VT American Century ValueVT Allianz NFJ Dividend Value VT Hotchkis and Wiley Large Cap ValueVT Allianz NFJ Dividend Value VT Lord Abbett Large Company ValueVT Eaton Vance Large-Cap Value VT T. Rowe Price Small Cap StockVT T. Rowe Price Small Cap Value VT American Century Real EstateVT First American Real Estate Securities Specialty FundsAppropriate Milestone Portfolio

5. Managed Accounts – new ICMA-RC service being considered Totally voluntary program enhancement in which an employee may elect to turn over management of their account to a third party portfolio manager Ibbotson and Associates. Program designed for “passive investor” who prefers to delegate investment decisions to professionals. Service customized to investors ‘ long term goals, planned retirement age, amount of savings, etc. Online enrollment or enroll during meeting with retirement plan specialist. Participant may opt in or out of program. Most other cities offer this service in their 457 plan. Employee pays fee based on size of account balance. Ranges from.6% annually on first $25,000 to.25% annual for amounts over $250,000.

6. Brokerage Window Option – new ICMA-RC service being considered Totally voluntary program enhancement in which participants may elect to manage their funds through self directed investment in the universe of stocks and mutual funds. Minimum $30,000 account balance is required. Initial minimum transfer to brokerage account is $5,000. May invest in funds outside of City of Scottsdale standard lineup – including those being replaced. Employee bears full responsibility for investment decision.

7. Signature of disclosure statement required – employee responsible for choices. Transactions made on line or by phone. $50 start up fee plus additional fee per transaction. Includes statements, confirmation of transactions. More information, meetings with retirement plan specialists to follow.