1. Copyright © 2015 GRS – All rights reserved. RTD/ATU 1001 Pension Plan January 13, 2015 Pension Fund Status As of January 1, 2014

2. January 1, 2014 Valuation Highlights (the plan is in funding peril)  Contributions are not sufficient to fund the liabilities ► Total actuarial requirement is for 27.1%; 16.0% scheduled for receipt in 2014 ► Fund is projected to be fully depleted by 2036 Last year the depletion year was 2032, for a gain of 4 years  Actuarial Accrued Liability increased by $3.5M ► From $422.8M to $426.3M  Actuarial Value of Assets increased by $6.5M ► From $200.9M to $207.4M ► Market value increased from $198M to $213M  Unfunded Actuarial Accrued Liability decreased by $3.1M ► From $221.9M to $218.8M ► This decreased the required contribution amount ► Scheduled contributions do cover the normal (annual) costs of the plan 2

3. January 1, 2014 Valuation Highlights  The normal cost is 11.81% of pay (including admin expenses) ► The scheduled contribution is 16% of pay ► New agreement increases contributions over time  Actuarially recommended contribution decreased by $1.5M ► Decrease due to investment gains and salary increases less than expected ► ARC will keep increasing as recommended payments are “missed”  48.7% funded on an actuarial basis  Total active participant count decreased by 97 ► From 1,678 to 1,581 ► New hires will continue to “bend down” the normal cost, so more funding can go to the unfunded accrued liability 3

4. History of the Funded Ratio 4 Valuation Date- January 1,Funded Ratio 2002106.39% 200382.96 200491.09 200591.73 200689.06 200787.07 200886.03 200972.57 201073.08 201168.67 201252.24 201347.52 201448.66

5. The scheduled contribution amount was insufficient, starting in 2003 5 Plan Year Ended December 31, Percentage of ARC contributed 2002102.2% 200353.7 200460.9 200575.3 200664.2 200764.6 200867.8 200944.5 201059.0 201147.3 201233.5 201346.2 2014--

6. Long-Term Funding-Reforms to improve the plan 6  Total ARC is 27.14% of payroll compared to the total scheduled contribution rate of 16.00% of payroll.  Amendment #22 was adopted in 2010 with the following changes in effect for participants hired on or after January 1, 2011 (Tier 2): ► New benefit schedule listed in Section 6.01 of the Plan provisions Vesting is changed from 5 years to 10 years The benefit multiplier is changed from 2.5% to 1.0% Unreduced retirement is changed from age 55 with 20 years of service to age 60 with 20 years of service Early retirement reduction is changed from 5.0% from age 55 to 2.5% from age 60 The maximum service included in the benefit calculation is reduced from 30 years to 25 years ► Sick and vacation payouts are no longer included in the pension benefit calculation ► Interest on employee contributions is changed from 5% to 3%

7. Long-Term Funding-Reforms to improve the plan 7  On February 27, 2013, a tentative agreement was reached with the following schedule for contributions:  Agreement also included specific short-term salary increases (less than 3% per year) YearRTDMembersTotal 201312%4%16% 201412%4%16% 201513%5%18% 201613%5%18% 201713%5%18%

8. Long-Term Funding (Continued) 8  If all actuarial assumptions are met each year, including a net investment return of 7.0% per year, and annual contributions equal those stated in the tentative agreement: ► Assets will be fully depleted by 2036  Per the investment consultant, the estimated 2014 investments return is 4% ► Incorporating this into the above projections, assets will be fully depleted by 2035 ► To reach 100% funding by 2044, assets would need to earn 15% per year through 2020  In 2014, Society of Actuaries released new mortality tables ► Current tables based on national data up to year 2000, new tables based on data to 2014 ► New tables assume members will live longer than under current tables ► Future valuations will eventually need to move to new tables or a more conservative assumption than currently used; will increase normal cost and liabilities

9. RTD/ATU Summary  Reforms have been enacted to reduce benefit accruals for new hires and to improve the funding of the plan  Projections (based on an assumed 7% return) are not enough to ensure the plan will remain viable throughout the next 30 years. 9