APPENDICES 
 
 

APPENDICES 

A) BY-LAWS 

B) INVESTMENT GUIDELINES 

C) MEMORANDUM OF UNDERSTANDING 

D) CONFLICTS OF INTEREST POLICY STATEMENT 

E) CONFIDENTIALITY POLICY STATEMENT 

F) PROXY VOTING POLICY 

G) AUDIT COMMITTEE CHARTER 

H) ADMINISTRATIVE COMMITTEE CHARTER 

I) CHIEF INVESTMENT OFFICER, SENIOR OPERATING OFFICER AND SENIOR 

ACCOUNTING OFFICER CERTIFICATION LETTERS 

J) RAILROAD RETIREMENT BOARD CERTIFICATION LETTER TO TREASURY 

AND TREASURY FEDERAL REGISTER NOTICE ON 2015 TAX RATE 

K) NOTICE TO THE RAILROAD RETIREMENT BOARD AND ACCEPTANCE OF 

NEW TRUSTEES 

L) BIOGRAPHICAL INFORMATION ON TRUSTEES AND STAFF 
 

 

 APPENDIX A
 
 
As Amended on March 26, 2003 

BYLAWS 

of 

THE NATIONAL RAILROAD RETIREMENT 


INVESTMENT TRUST 


A Trust Established Pursuant to 


The Railroad Retirement and Survivors' Improvement Act of 2001 


ARTICLE I 


Purposes 


The National Railroad Retirement Investment Trust (hereinafter, the "Trust") is 

organized exclusively for the purposes set forth in Section 105 ofThe Railroad 

Retirement and Survivors' [mprovement Act of2001 (the "Act"): to manage and invest 

the assets of the Trust. Section 105(a) of the Act provides for the establishment of a 

Board of Trustees (the "Board") to operate the Trust and authorizes the Board to make 

rules to govern its operations, employ professional staff, and contract with outside 

advisors to provide legal, accounting, investment advisory or other services necessary for 

the proper administration of the Trust. Subject to the provisions ofthe Act, applicable 

laws ofthe District of Columbia and these Bylaws, the Trust may conduct any or all 

lawful affairs necessary to manage and invest its assets. 
ARTICLE II 


Trustees 


Section 1. Powers. Subject to the provisions ofthe Act, applicable laws 

of the District ofColumbia and these Bylaws, the activities and affairs ofthe Trust shall 

be conducted and all powers shall be exercised by or under the direction of the Board. 

The Board may delegate the management ofspecific activities of the Trust to any 

person(s) or committees, provided that the activities and affairs ofthe Trust shall be 

managed and all powers shall be exercised under the direction ofthe Board. Without 

prejudice to the aforementioned general powers, but subject to the same limitations, it is 

hereby expressly declared that the Board shall have the following powers in addition to 

the other powers enumerated in these Bylaws: 

(a) To select and remove the officers, agents, independent contractors, 

employees and advisors of the Trust (including, but not limited to, legal counsel, 

independent advisers, investment managers, custodial institutions and public accountants, 

as prescribed by the Act), prescribe powers and duties for them and, where appropriate, 

fix their compensation. 

(b) To conduct the affairs and activities of the Trust and to make such 

rules and regulations as the Board may deem appropriate for the proper administration of 

the Trust. 

(c) To borrow money and incur indebtedness for the purposes of the 

Trust, and to cause to be executed and delivered therefor, in the Trust's name, promissory 

notes, bonds, debentures, deeds of trust, mortgages, pledges or other evidences ofdebt 

and securities therefor. 
(d) to acquire, by lease or by purchase, interests in real property in 

furtherance ofthe purposes ofthe Trust and to execute and deliver such agreements, 

indemnifications, undertakings, and other writings as may be required in connection 

therewith. 

Section 2. Number of Trustees, Selection and Term of Office. Seven 

(7) Trustees shall be selected, qualified and appointed to staggered terms, in accordance 

with the provisions ofSection 105(a) ofthe Act. The six (6) Trustees who are selected 

by rail labor and management shall have the power to select the Independent Trustee. 

Terms of office shall commence on February 1 of each year. 

Section 3. Vacancies. Subject to the provisions ofthe Act, applicable 

laws ofthe District of Columbia and these Bylaws, any Trustee may resign, effective 

upon giving sixty days' written notice to the Board, or on such shorter notice as may be 

agreed between the Board and the resigning Trustee. Pursuant to Section 105(a) ofthe 

Act, a vacancy in the Board shall not affect the power ofthe Board and shall be filled in 

the same manner as the selection of the Trustee whose departure caused the vacancy. 

Each Trustee so selected shall hold office until the expiration ofthe term of the replaced 

Trustee and until a successor has been appointed. 

A vacancy or vacancies in the Board shall be deemed to exist in case of 

the death, resignation, or removal of any Trustee. The Board may declare vacant the 

office of a Trustee who has been declared ofunsound mind by a final order ofcourt, or 

convicted of a felony, or been found by a final order or judgment of any court to have 

breached any fiduciary duty arising under the Act or under any other applicable law 

governing the Trust. 

3 

Section 4. Compensation. The six (6) Trustees who are selected by rail 

labor and management shall have the power to fix the Independent Trustee's 

compensation for services to the Trust. None of the six (6) Trustees who are selected by 

rail labor and management shall receive compensation from the Trust; provided, 

however, that any such Trustee who is not employed by either rail labor or management 

shall be entitled to receive reasonable compensation to be determined by the other 

Trustees. All Trustees shall be entitled to receive reimbursement for reasonable costs 

incurred in connection with their attendance at Board meetings and performance of other 

services to the Trust. 

Section 5. Place of Meetings. Meetings ofthe Board shall be held at any 

place, within or without the District ofColumbia, which has been designated from time to 

time by the Board. In the absence ofsuch designation, meetings shall be held at the 

principal office ofthe Trust. 

Section 6. Public Access to Board Meetings. The Board shall have the 

authority to determine the extent to which individuals other than Trustees may attend 

meetings or otherwise participate in the deliberations ofthe Board; provided, however. 

that no such individual employed by rail labor or management shall be entitled to receive 

reimbursement for such activities. 

Section 7. Annual Meetings. The Board shall hold an annual meeting for 

the purpose of organization and the transaction of business. Annual meetings ofthe 

Board shall be held without call or notice on March 1 at 10:00 a.m. local time or on 

such other date as the Board may specify. 

4 

Section 8. Regular Meetings. Regular meetings ofthe Board shall be 

held at least quarterly without call or notice on such dates as may be fixed by the.Board. 

Section 9. Special Meetings. Special meetings ofthe Board for any 

purpose or purposes may be called at any time by the Chair of the Board or any three 

Trustees upon at least seven (7) business days> notice to each Trustee or on such shorter 

notice as all Trustees may agree. 

Section 10. Quorum. Pursuant to Section 105(a) ofthe Act, five (5) 

Trustees constitute a quorum ofthe Board for the transaction ofbusiness. Investment 

guidelines must be adopted by a unanimous vote of the entire Board. Unless otherwise 

specified in the Act or these Bylaws, all other decisions ofthe Board shall be decided by 

a majority vote ofthe quorum present. Subject to the foregoing, every act or decision 

taken or made by a majo1ity ofthe Trustees present at a meeting duly held at which a 

quorum is present shall be regarded as an act ofthe Board. 

Section 11. Participation in Meetings Via Telephone or Video 

Conference. Tmstees and others entitled to participate in Board meetings may 

participate in meetings ofthe Board via telephone or video conference. 

Section 12. Ad journment. A majority ofthe Trustees present, whether 

or not a quorum is present, may adjourn any Board meeting to another time and place. 

Trustees who are absent from the adjourned meeting shall be given notice of the time and 

place at which such meeting will resume. 

Section 13. Action Without a Meeting. Any action required or 

permitted to be taken by the Board may be taken without a meeting if all Trustees consent 

in writing (including by facsimile) to such action. Such written consent shall have the 

5 

same effect as a vote ofthe Board and shall be filed with the minutes of lhe proceedings 

ofthe Board. 

Section 14. Rights of Inspection. Every Trustee shall have the right at 

any reasonable time to inspect and copy all books, records, and documents of every kind 

and to inspect the physical properties of the Trust. 

Section 15. Committees. The Board may appoint one or more 

committees, including, but not limited to, (i) an Administrative Committee, (ii) an Audit 

Committee and (iii) an Investment Committee, each consisting oftwo or more Trustees. 

Except as otherwise provided in these Bylaws or in the Act, the Board may delegate to 

such committees any ofthe authority oflhe Board, provided that no such Committee 

shall have the authority to: 

(a) Amend or repeal these Bylaws or any other organizational 

documents of the Trust or the Board; 

(b) Fill vacancies on the Board or in any committee; 

(c) Appoint other committees ofthe Board or the members thereof; 

(d) Approve any self-dealing (or "conflict ofinterest") transaction; 

(e) Adopt an agreement ofmerger or consolidation; or 

(f) Sell, lease or exchange Trust property and assets. 

The Board may appoint, in the same manner, alternate members of any 

committee who may replace any absent member at any meeting ofthe committee. The 

Board shall have the power to prescribe the manner in which proceedings of any such 

committee shall be conducted. In the absence of any such prescription, such committee 

shall have the power to prescribe the manner in which its proceedings shall be conducted. 

6 

Minutes shall be kept of each meeting of each committee, and such minutes shaJl be 

included as an appendix to the minutes of the next meeting ofthe Board 

ARTICLE III 


Officers 


Section 1. Officers. The officers ofthe Trust shall be a Chair, and such 

other officers as may be appointed by the Board. The Chair shall preside at all meetings 

ofthe Board and exercise and perform such other powers and duties as may be from time 

to time assigned by the Board. 

Section 2. Selection, Removal and Resignation. The officers of the 

Tmst shall be appointed by, and shall serve at the pleasure of, the Board, and shall hold 

their respective offices until their resignation, removal, or other disqualification from 

service, or until their respective successors shall be appointed. 

Any officer may be removed, either with or without cause, by the Board at 

any time. Any officer may resign at any time by giving written notice to the Board, and 

any such resignation shall take effect at the date of the receipt ofsuch notice or at any 

later time specified therein. 

Section 3. Vacancies. A vacancy in any office because of death, 

resignation, removal or any other cause shall be filled in the manner prescribed in these 

Bylaws for regular appointment to such office. Such vacancies shall be filled as they 

occur. 

7 

ARTICLE IV 

Other Provisions 

Section 1. Principal Office. The principal office of the Trust shall be 

fixed and located at 1250 Eye Street, N.W., Washington, D.C., or such other address as 

the Board shall determine. The Board is granted full power and authority to change said 

principal office from one location to another. The Board may make such changes 

pursuant to this Section 1 without amending the Bylaws, provided that any such changes 

are documented in a Board resolution duly noted in the minutes of the meetings where 

such decisions arc made. 

Section 2. Books and Records. The Trust's books and records, together 

with all of the documents and papers pertaining to the business ofthe Trust, shall be kept 

and maintained at the principal office ofthe Trust. The fiscal year of the Trust shall end 

on September 30, unless otherwise provided for by the Board, and the books and records 

of the Trust shall be kept on a fiscal year basis and shall reflect all the transactions ofthe 

Trust and be appropriate and adequate for the Trust's business. 

Section 3. Representation of Ownership Interests. The Board or any 

duly authorized delegate ofthe Board may vote, represent, and exercise on behalfof the 

Trust all rights incident to any and all shares of any corporation, or other interest in any 

entity, held in the name of the Trust. The authority herein granted may be exercised 

either by any such officer in person or by proxy or power of attorney. 

Section 4. Banking. The Chair, or any duly authorized delegate ofthe 

Board, may: (i) make deposits into operating accounts held in the Trust's name and 

endorse checks, drafts, or other instrnments for such deposits; and (ii) sign or countersign 

8 

checks, drafts, or other orders for the payment ofmoney issued in the name ofthe Trust 

against any funds deposited into any such accounts. 

ARTICLE V 


Indemnification 


The Trust sha11 indemnify, in the manner and to the fullest extent 

permitted by law (including, without limitation, the Act), any person (or the estate of any 

person) who was or is a party to, or is threatened to be made a party to, any threatened, 

pending or completed action, suit or proceeding, whether or not by or in the right ofthe 

Trust, and whether civil, criminal, administrative, investigative or otherwise, by reason of 

the fact that such person is or was a Trustee or an employee of either a rail carrier or a rail 

union who performed services for the Tmst at the direction of one or more Trustees. To 

the fullest extent permitted by law, the indemnification provided herein shall include 

expenses (including attorneys' fees), judgments, fines and amounts paid in settlement; 

and, in the manner provided by law, any such attorneys' fees and expenses may be paid 

by U1e Trust in advance ofthe final d.isposition ofsuch action, suit or proceeding upon 

receipt, in each case, of an undertaking by or on behalfofthe Trustee to repay such 

amounts, together with interest thereon, ifit is ultimately determined that such Trustee is 

not entitled to indemnification with respect thereto. 

9 

ARTICLE VI 


Amendment, Construction and Definitions 


Section 1. Amendments. These Bylaws may be amended or repealed by 

a majority vote of a quorum ofTrustees present at a duly held meeting or by a consent in 

writing of all Trustees. 

Section 2. Construction and Definitions. Unless the context otherwise 

requires, the general provisions, rules of construction and definitions contained in the Act 

and in any applicable laws ofthe District ofColumbia not inconsistent with the Act shall 

govern the construction ofthese Bylaws. 

10 

 

 

 

 

APPENDIX B
 
N 


National Railroad Retirement Investment Trust 

INVESTMENT GUIDELINES 

The National Railroad Retirement Investment Trust (the "Trust" or "NRRIT") was 

established, effective February 1, 2002, pursuant to Section l 5G) of the Railroad Retirement Act 

of 1974, as amended by Public Law 107-90, the Railroad Retirement and Survivors' 

Improvement Act of 2001 (the "Act"). The Act was amended subsequently by Public Law 108­

203, the Social Security Protection Act of2004, to make certain technical corrections to the 2001 

legislation creating the Trust. The Trust's sole purpose is to invest the assets of the railroad 

retirement system for the Railroad Retirement Board. Domiciled in Washington, D.C., the Trust 

is a tax-exempt entity (pursuant to Section 50l(c)(28) ofthe Internal Revenue Code) and is not 

an agency or instrumentality ofthe United States federal government. 

The Trust is governed by a Board of seven Trustees (the "Board of Trustees") -- three 

selected by railroad carriers, three selected by railroad labor unions, and an independent Trustee 

selected by the other six Trustees. The Act sets forth fiduciary standards for the Trustees and 

directs them to discharge their duties solely in the interest of the Railroad Retirement Board (an 

agency of the United States federal government) and, through it, the participants and 

beneficiaries of the programs funded under the Railroad Retirement Act. 

The Board of Trustees has adopted the following Mission Statement to guide the work of 

the Board and its investment staff: 

The mission ofthe National Railroad Retirement Investment Trust is to help 

secure the retirement benefits of all participants of the railroad retirement system. 

Through the diligent oversight and prudent investment of railroad retirement 

assets, and an adherence to the highest ethical and professional standards within 

the industry, NRRIT's trustees and investment professionals contribute to the 

financial security of rail workers, retirees, and their families, and the strength of 

the American rail industry. 

The Trust is authorized by the Act to diversify the investment ofthe assets of the railroad 

retirement system through the use of multiple asset classes as is customary for defined benefit 

plans of other U.S. industries. Section l 5G) of the Act directs the Board ofTrustees to adopt 

Investment Guidelines which must be approved by a unanimous vote of the Trustees. The Act 

authorizes the Board of Trustees to invest the assets of the Trust in a manner consistent with such 

Investment Guidelines. The Trustees are required by the Act to diversify the Trust's 

investments "so as to minimize the risk of large losses and to avoid disproportionate influence 

over a particular industry or firm, unless under the circumstances it is clearly prudent not to do 

so." In accordance with these statutory directives, the Board ofTrustees has adopted these 

Investment Guidelines. 
I. Investment Objectives 

The Trust's primary investment objectives are to establish a portfolio that will achieve a 

long-term rate-of-return on assets sufficient to enhance the financial strength ofthe railroad 

retirement system and to do so in a diversified manner that minimizes the risk oflarge losses. 

Achievement ofthese objectives will facilitate the payment of benefits under the Act by the 

Railroad Retirement Board and the United States Treasury. To further these objectives, the Trust 

has established the asset allocation policy set forth in these Investment Guidelines and will seek 

to obtain returns that are in the aggregate greater than the returns ofthe strategic policy 

benchmark set forth below. In addition, the Trust shall take such other steps as may be 

appropriate to effectively manage investment risk and volatility. 

II. A. Asset Allocation Policy and Strategic Policy Benchmark 

In 2002, the Trustees retained an independent investment advisory firm to conduct a 

comprehensive asset allocation study for the purpose of analyzing asset allocation strategies for 

the Trust. The study analyzed the long-term expected return, risk, and return correlation of 

various asset classes, as well as the expected return and risk of various portfolios ofthese asset 

classes. In 2004, 2006, 2008, 2011, and 2014, the Trust took steps to review and update its asset 

allocation with new analysis performed by the Trust's investment staff with the use of analytic 

resources provided by independent investment advisory firms. As a result ofthese reviews, the 

Board of Trustees periodically has refined the Trust's asset allocation policy and strategic policy 

benchmark. 

2 

The Trust's overall asset allocation (target allocation and policy range) and strategic 

policy benchmark to govern the investment of assets managed by the Trust are set forth below. 

II 

Asset Class 

Policy 

Benchmark 

Target 

Allocation % 

Policy 

Range% 

US Equity Russell 3000 22 17-27 

Non-US Equity MSCI ACWI Ex-US IMI-$Net 22 17-27 

Private Equity 2/3 Russell 3000 + 1/3 MSCI 

ACWI Ex-US IMI-$Net + 300 bp 10 5-15 

Global Equity 

-

54% 45-63% 

US Fixed Income Barclays US Universal 13 

! 

9-17 

Non-US Fixed Income Barclays Global Aggregate exUSD 7 4-10 

Global Fixed Income 20% 14-26% I 

Real Estate 

NCREIF Property Index 8 2-15 

Custom REIT' 2 (combined)

Commodities Bloomberg Commodity Index 5 2-8 

Global Real Assets 15% 8-22% 

Absolute Return NRRlT Public Markets Composite 10 5-15 

Cash BofA ML 91 Day T-bill 1 0-3 

Other 11% 5-18 

TOTAL FUND 100% 

1

NRRJT's Custom REIT benchmark is 1/3 "FTSE NAREIT Equity REIT index" and 2/3 " FTSE EPRNNAREIT Developed Index - Net Return to 

US Investors." 

The Trust maintains an Investment Plan developed by the investment staff and approved 

by the Board ofTrustees, which is updated periodically. 1 The Investment Plan sets forth the 

strategy to implement the asset allocation policy for each asset class and its provisions must be 

consistent with the requirements of these Investment Guidelines. As set forth in the Investment 

Plan, certain asset classes may include proposed allocations to " specialist managers" who have 

investment strategies with attributes similar to Absolute Return asset class investments (~, use 

of leverage, ability to take significant short positions, illiquidity, and/or the presence of 

1 The most recent update ofthe Investment Plan was approved on August J9, 2014. 

3 

significant incentive fees). The aggregate assets held by managers with these attributes shall be 


subject to an overall limitation calculated as follows: 


The swn of the: 


(i) assets held in the Absolute Return asset class; and 

(ii) assets held by specialist managers in other asset classes with absolute return-type 

attributes, other than managers in the Private Equity and Real Estate asset classes; 

shall not exceed 15% of the overall assets in the Trust portfolio. 

This limitation shall be a "new investment" limitation calculated by the Board at the time of a 

proposed investment covered by this limitation, and shall not require remedial action with 

respect to existing investments previously made consistent with the limitation. 

The asset allocation policy contains certain asset classes that are relatively illiquid in 

nature and may not otherwise be suitable for interim investment in index-type investment 

vehicles to obtain the market exposure contemplated by the asset allocation policy. As a result, 

investments in these asset classes are funded over an extended period of time. To accurately 

reflect the interim investment offunds earmarked for these more complex asset classes, the Trust 

maintains an internal version of its target allocation and policy ranges to properly track the 

interim retention of such funds within other asset classes at any given point in time. The interim 

version ofthe target allocation and policy ranges is updated at the start of each fiscal year. 

Rebalancing decisions made pursuant to subsection B ofthis section II are to be made with 

reference to these interim target allocations and policy ranges. 

B. Asset Allocation Rebalancing Rules 

I. Mandatory Rebalancing Requirements 

a. If, at the end of any calendar quarter, the proportion ofTrust assets invested in 

any asset class, other than private equity, private real estate, or absolute return, (as 

calculated by the Trust's custodian bank) is above the upper or below the lower 

limits ofthe policy range for such asset class, as prescribed above, the Trust is 

required by its Board of Trustees to rebalance assets by transferring assets to or 

from such asset class from or to one or more other asset classes ("Mandatory 

Rebalancing"). Mandatory Rebalancing shall be implemented by the trust's 

investment staff. Mandatory Rebalancing will be required if either the upper or 

lower limits for the policy range of a particular asset class(~, US Equity) or the 

upper or lower limits for the policy range of a global class~, Global Equity) 

have been exceeded. 

b. When a Mandatory Rebalancing of an asset class is required, the Trust's 

investment staff shall rebalance the asset class to a point that is within 50% of the 

midpoint ofthe target allocation within the policy range (~, where the target 

allocation is 26% and the policy range is 21 % - 31 %, the rebalance must reset the 

asset class to a point between 23.5% and 28.5%). 

4 

c. In implementing and transferring assets from or to an existing investment as 

part of a Mandatory Rebalancing, the Trust's investment staff shall not increase 

the position in any particular investment by more than 100% or reduce a position 

by more than 50% (~, if the value of a particular investment at the time ofthe 

Mandatory Rebalancing is 80, it can not be increased to more than 160, or 

reduced below 40 as a result ofthe rebalancing). 

d. Mandatory Rebalancing will be initiated promptly in the first month following 

receipt of a quarterly notice from the Trust's custodian bank that one or more asset 

classes are above the upper or below the lower policy range limits prescribed 

above. Rebalancing must be completed promptly and in a cost effective manner. 

e. Ifthe Trust's investment staff concludes that a Mandatory Rebalancing is not 

deemed advisable, consent ofthe Board ofTrustees will be required to supersede 

the requirements ofthis subsection B.l. 

2. Non-mandatory Rebalancing Authority 

a. The Trust's investment staff shall regularly monitor the positioning of each 

asset class within its policy range and make such recommendations to the 

Trustees as are appropriate with respect to the advisability ofrebalancing asset 

classes that are nearing, but have not exceeded, the high or low points oftheir 

policy ranges. 

b. In addition, the Trust may initiate a rebalancing (each such rebalancing, a "Nonmandatory Rebalancing") in situations where with respect to any asset class other 

than private equity, private real estate or absolute return, such a rebalancing: 

(i) moves the asset class closer to the approved policy target for an asset class 

(or subcategory of an asset class where subcategories are set forth in the Trust's 

Investment Plan); (ii) involves the transfer of less than one percent (1 %) ofTrustmanaged assets; and (iii) transfers assets only to mandates of investment 

managers that have been previously approved by the Trustees. Any Non-mandatory 

Rebalancing shall be initiated and implemented by the Trust's investment staff. 

c. In transferring assets from or to an existing investment as part of a Nonmandatory Rebalancing, the Trust's investment staff shall not increase the position 

in any particular investment by more than 100% or reduce a position by more than 

50% (~, ifthe value of a particular investment at the time ofthe rebalancing is 

80, it can not be increased to more than 160, or reduced below 40 as a result ofthe 

rebalancing). 

d. Where a Non-mandatory Rebalancing is undertaken, the Trust's investment 

staff shall report the specifics of such rebalancing to the Trustees promptly after 

such rebalancing has been completed. After a Non-mandatory Rebalancing has 

been completed, no subsequent Non-mandatory Rebalancing can be 

undertaken that would have the effect, when combined with the immediately 

proceeding Non-mandatory Rebalancing, oftransferring more than one percent 

5 

(1 %) ofTrust assets, or increasing the position in any particular investment by 

more than 100% or reducing a position by more than 50%, unless the subsequent 

Non-mandatory Rebalancing occurs at least two days after the notification to the 

Trustees ofthe prior Non-mandatory Rebalancing. 

e. In evaluating how best to liquidate assets to fund periodic transfers to the 

United States Treasury required by Section 15(k) of the Act for the payment of 

benefits, the Trust shall take into consideration the asset classes that are at the 

high end of their respective policy ranges, relative cash positions ofthe Trust's 

investment managers, and other relevant factors. 

III. Selection of Investment Managers 

Pursuant to Section l 5U) of the Act, the Board ofTrustees shall retain independent 

investment managers to invest the assets ofthe Trust consistent with these Investment 

Guidelines. A separate agreement between the Trust and each individual investment manager 

will document the specific responsibilities, limitations, and compensation arrangements of each 

investment manager. Each investment manager will have full discretion, within the parameters 

of that manager's Investment Management Agreement with the Trust, to (i) select securities and 

properties for investment, (ii) determine the timing of and execute transactions, and (iii) act in 

accordance with the Trust's Proxy Voting Policy Statement. 

IV. Other Investment Requirements and Limitations 

A. 	No more than 10% of the Trust's assets may be invested by any individual investment 

manager (including any of its affiliates). This limitation shall not apply to assets 

invested by an investment manager retained to invest assets in index accounts. 

B. 	 Trust assets shall not be invested either directly, or through private equity investment 

entities, in securities of publicly traded corporations whose primary business is the 

operation ofNorth American railroads. This limitation shall not apply to securities 

that are purchased as part of a market index account or market exchange traded fund, 

pooled or commingled fund, or separate account, where an investment manager 

selects the underlying securities of the portfolio and the Trust is not in a position to 

control investment or securities selection. 

C. 	 In making investments on behalf of the Trust, an investment manager is authorized to 

utilize leverage (including by the use of derivative instruments to the extent permitted 

by paragraph D below) in the manager's investment strategy only to the extent 

delineated by the Trust in the investment manager's Investment Management 

Agreement with the Trust; provided, however, that the use of such leverage shall not 

6 

directly or indirectly expose the Trust to a risk of financial loss that exceeds the dollar 

amount of the Trust's investment with the investment manager in question. 

D. 	Subject to the limitations of the immediately preceding paragraph C, and only to the 

extent delineated by the Trust in an Investment Management Agreement with an 

investment manager, derivative instruments may be used by an investment manager 

as a means of hedging and risk control, for arbitrage, to create market exposures, or 

to manage country and asset allocation exposures. In these situations, an investment 

manager may use derivatives when they are the most effective means of achieving the 

investment objective. 

1. 	 Where appropriate, an investment manager may use derivative instruments for the 

following reasons: 

a. 	 Hedging and risk control. To the extent that a portfolio is exposed to clearly 

defined risks and there are derivative instruments that can be used to reduce 

those risks, an investment manager may use such derivative instruments for 

the purpose of hedging such risks, including cross-hedging of currency 

exposures. 

b. 	 Arbitrage. An investment manager may use derivative instruments to 

facilitate the simultaneous purchase and sale of securities for the purpose of 

taking advantage of a pricing disparity. 

c. 	 Creation ofmarket exposures. An investment manager may use derivative 

instruments to replicate the risk!retum profile of an asset or asset class 

provided that the Investment Management Agreement for such investment 

manager allows for such exposures to be created with the underlying assets 

themselves. 

d. 	 Management ofcountry and asset allocation exposure. An investment 

manager whose portfolio mandate permits tactically changing the exposure of 

the portfolio to different countries and/or asset classes may use derivative 

instruments for this purpose. 

2. 	 Derivative instruments may not be used in the following ways: 

a. 	 Derivative instruments may not be used to invest in asset classes, securities, 

currencies, indices, or any other financial vehicle unless such exposures 

would be allowed by a portfolio's investment guidelines if created with nonderivative instruments. 

b. 	 Derivative instruments may not be used to magnify overall portfolio 

exposure to an asset, asset class, interest rate, or any other financial vehicle 

beyond that which would be allowed by a portfolio's investment guidelines if 

created with non-derivative instruments. 

7 

c. 	 Derivative instruments may not be used to increase the portfolio risk above 

that which could be experienced by using permitted physical securities. 

d. 	 An investment manager may not use borrowed funds to finance the use of 

any derivative instrument. 

E. 	 In order to diversify the Trust's counterparty credit risk, and to limit the Trust's credit 

exposure to any one counterparty, the Trust's investment managers shall establish 

limits for each oftheir trading counterparties based upon both the credit rating ofthe 

counterparty and the relative level of risk associated with each existing and proposed 

transaction. These limits shall satisfy such standards as may be established by the 

Trust from time-to-time. 

F. 	 All investments shall be made in accordance with the Trust's Conflict oflnterest 

Policy. 

V. Voting of Proxies 

All proxies shall be voted solely in the interest of plan participants and beneficiaries as 

outlined in the Trust's Proxy Voting Policy Statement. 

VI. Periodic Review and Amendment 

The Board of Trustees shall review these Investment Guidelines on a regular basis. Any 

material changes approved by the Board ofTrustees will be communicated to the Trust's 

investment managers. 

8 

Revised, approved and adopted by the undersigned Trustees at Washington, D.C. on 

August 19, 2014. 

George J. r sco, 

National Conference of Firemen and Oilers,SEIU 

ecutive Vice President Law & Corporate 

Relations 

Norfolk Southern Co oration 

r asurer 


Union Pacific Corporation 


Special Assistant to the President and 

International Vice President 

Transportation Communications International 

Union 

Independent Trustee 

ncent 

Assistant Vice President Tax 

Burlington Northern Santa Fe, LLC 

William C. Walpert 

National Secretary Treas er 

Brotherhood ofLocomotive Engineers and 

Trainmen 

9 

 

 

 

APPENDIX C
 
MEMORANDUM OF UNDERSTANDING 

Budgetary, Accounting and Financial Reporting Responsibilities 


Respecting Assen Held by tile 


National Railroad Retirement Investment Trust 


The Railroad Retirement Board (RRB), the National Railroad Retin;ment Investment 

Trust (the Investment Trust), the Department ofthe Treasury (Treasury), ahd the Office of 

Management and Budget (OMB) (collectively, the Parties), agree on the following budgetary, 

accounting and :financial reporting responsibilities respecting assets transferred to and from, and 

held by, the Investment Trust for RRB. 

1.0 General 

The Parties agree that, (i) while the Railroad Retirement and Survivors' Improvement Act 

of2001 (P.L. 107-90) (the Act) provides that the Investment Trust is not a department, ag~ncy, 

or instrumentality of the Federal Government, the cash and investments held by the Investment 

Trust for RRB are nevertheless assets ofthe Federal Government and must be accounted for and 

reported as such; (ii) the Act provides that the Investment Trust is not subject to the requirements 

ofTitle 31 ofthe U.S. Code (including apportionment); and (iii) the annual audit of the 

Investment Trust required by the Act shall be prepared in accordance with Generally Accepted 

Accounting Principles (GAAP). 

2.0 Fiscal Yea~ of the Investment Trust 

The Investment Trust will use the same fiscal year as the Federal Government. 

Currently, the Federal Government's fiscal year begins on October 1 and ends on September 30 

ofthe following calendar year. 

3.0 Account Structure 

The transactions ofthe Investment Trust shall be reported using a separate trust fund 

account symbol, with RRB being the program agency for that account. The following Treasury 

Fund Account Symbols have been reserved to report this activity: 

60X8118 National Railroad Retirement Investment Trust 

60X811~.1 Gains and losses on non-Federal securities, National Railroad 

Retirement Investment Trust 

60X8118.2 Earnings on investments in Federal securities, National Railroad 

Retirement Investment Trust 

60X8118.3 Interest and dividends on non-Federal securities, National Railroad 

Retirement Investment Trust 

60X8118.4 Payment from the Railroad Retirement Account, National Railroad 

Retirement Investment Trust 
60X8118.5 Payment from the Social Security Equivalent Benefit Account, National 

Railroad Retirement Investment Trust 

60X81l8. 6 Payment from the Railroad Retirement Supplemental Account, National 

Railroad Retirement Investment Trust 

Federal securities are securities issued by the Treasury and securities issued by a Federal 

agency. Non-Federal securities include all permitted investments, excluding Federal securities. 

For purposes ofthis memorandum, securities that are guaranteed by Federal agencies are 

considered to be non-Federal securities . 

. Treasury's Financial Management Service (FMS) has established the accounts described 

above (with the designation account symbol of 60X81l8) in FMS's central accounting and 

financial reporting system. Using this new account number, Treasury's Bureau ofthe Public 

Debt (BPD) will establish a separate investment account within BPD's investment accounting 

system for Investment Trust activity. This separate account will be reflected' in separate line 

items on both the Monthly Treasury Statement and the Monthly Statement ofthe Public Debt for 

the activity of the Investment Trust. 

4.0 	 Accounting Treatment of Non-Federal Security Purchases and Sales by the 

Investment Trust 

Purchases and sales of non-Federal securities (other than gains and losses) by the 

Investment Trust will be treated as a means of financing, as required by section 105(c) ofthe 

Act. 

5.0 	 Receipts to the Railroad Retirement System 

Treasury's Internal Revenue Service will continue to collect and deposit receipts from the 

railroad industry for funding ofthe Railroad Retirement System. Nothing in this memorandum 

is to be construed as altering that arrangement. Receipts will initially be credited to the Railroad 

Retirement Account (RRA) or the Social Security Equivalent Benefit Account (SSEBA), as 

appropriate. RRB shall continue to account for these receipts, in accordance with Treasury 

guidance issued from time to time. 

5.1 	 Investment in the RRA and the SSEBA 

The receipts credited to the RRA and the SSEBA will be automatically invested by BPD 

in par-value Treasury special securities maturing on the first business day ofthe following month 

unless RRB provides specific instructions to do otherwise. Proceeds from maturing securities in 

the RRA and the SSEBA will be automatically re-invested by BPD in par-value Treasury special 

securities maturing on the first busine_ss day ofthe following month unless RRB provides 

specific instructions to do otherwise. 
5.2 Receipts of the Investment Trust 

Receipts of the.Investment Trust will be recorded in the following sub-accounts: 

• Gains and losses on non-Federal securities (60X81l8.1); 

• Earnings on investments in Federal securities (60X8118.2); 

• Interest and dividends on non-Federal securities (60X8118.3); 

• Payment from the Railroad Retirement Account (60X8 l l 8.4); 

• Payment from the Social Security Equivalent Benefit Account ( 60X8 l 18. 5); and, 

• Payment from the Railroad Retirement Supplemental Account (60X8118.6). 

6.0 Transfers of Assets from RRB to the Investment Trust 

Subject to the Act and this Memorandum ofUnderstanding, RRB shall determine the 

timing and the amount of transfers of assets from the RRA, SSEBA, and the Railroad Retirement 

Supplemental Account (RRSA) to the Investment Trust. 

6.1.1 Cash Transfers 

RRB shall direct Treasury to transfer cash from the RRA, SSEBA, and RRSA to the 

Investment Trust. RRB has provided Treasury's Office of Cash and Debt Management (OCDM) 

with an initial schedule of expected transfers for a period ofsix months (September 2002 through 

February 2003). RRB shall provide OCDM with updates to the initial schedule ifthere are any 

changes to the dates and amounts of the expected transfers. Ifit is determined that the transfers 

will extend beyond the initial six-month schedule, RRB shall provide a revised schedule to cover 

periods not included on the original schedule (i.e. beyond February 2003) as soon as it is known 

that transfers will extend beyond this period. 

Ifthe need arises for RRB to make transfers from the Investment Trust to the RRA to 

fund Treasury-disbursed payments, RRB shall provide OCDM with the anticipated amount(s) to 

be transferred between the Investment Trust and the RRA. 

These updates to the initial schedule of cash transfers and notices oftransfers from the 

Investment Trust to RRB shall be pursuant to the business rules contained in Section 6.1.2. All 

updated schedules and notices shall be delivered in writing to: 

David J. Monroe 

Director, Office of Cash and Debt Management 

Department of the Treasury 

1500 Pennsylvania Ave, NW 

Washington, DC 20220 

Fax Number- (202) 622-4775 
6.1.2 Notice for Specific Cash Transfers 

Below are the business rules for providing advance notification to Treasury for daily cash 

management purposes. For each specific transfer of cash projected in the schedule provided in 

section 6.1.1, RRB shall provide: 

• 	 fifteen ( 15) business days advance written notification for amounts greater than $2 

billion, 

• 	 five (5) business days advance written notification for amounts between $500 million 

and $2 billion, 

• 	 two (2) business days advance notification of amounts between $50 million and $500 

million, and 

• 	 transfers ofless than $50 million do not require advance notification. 

(See Attachment A for the procedures to transfer cash assets to the Investment Trust. Additional 

guidance on the reporting of large dollar transfers is provided in the Treasury Financial Manual, 

Volume 1, Part 6, Section 8500 (http://www.fms.treas.gov/tfm/voll/vlp6c850.,txt.).) 

6.2 Transfers of Securities 

Subject to the Act, RRB may request Treasury to transfer certain Treasury securities to 


the Investment Trust. Only securities held by RRB on the date of enactment of the Act (i.e. on 


December 21, 2001) are eligible to be transferred. RRB shall identify to BPD any specific 


securities to be transferred to the Investment Trust. Notification shall be signed by the contact 


for RRB account on file with BPD, and shall be delivered prior to 3:00 p.m. (Eastern Time) in 


writing to: 


Susan Chapman 


Director, Division ofFederal Investments 


Office ofPublic Debt Accounting 


Bureau ofthe Public Debt 


P.O. Box 1328 


Parkersburg, WV 26106 


Phone Number (3 04) 480-5111 


Fax Number (304) 480-5212 


. BPD will transfer these securities to the Investment Trust by changing the account in 

which the secu~ities are held in BPD's investment accounting system from the Railroad 

Retirement Account, 60X8011, to the Investment Trust account, 60X8118. No transaction 

activity (redemption or investment) will result :from the transfer; however, RRB must report the 

transfer ofthe securities between the accounts to FMS. The securities will be maintained in nonmarketable, book-entry form. 

(See Attachment B for the procedures to transfer Treasury securities currently held by 

RRB to the Investment Trust.) 
6.3 Accounting Treatment for Assets Held by the Investment Trust 

RRB will record all cash and investments held by the Investment Trust for RRB as 


Federal funds held outside of Treasury. 


7.0 Reporting Requirements 

7.1 Annual Report 

Section 105(a)(3)(E) ofthe Act requires the Investment Trust to submit an annual 

management report to Congress no later than 180 days after the end ofthe Investment Trust's 

fiscal year, and to provide a copy ofthe management report to the President, RRB, and OMB 

when it is submitted to Congress. 

7.2 Monthly Reporting Requirements 

As RRB continues to be responsible for the overall management ofthe Railroad 

Retirement System, RRB will be responsible for all budgetary and proprietary reporting ofthe 

Investment Trust's transactions, and for reporting to Treasury the amount of cash and the value 

ofinvestments held by the Investment Trust. Treasury and OMB have developed specialized 

reporting requirements to handle the complexity added by the use ofthe Investment Trust to 

manage the Railroad Retirement System's assets and the disbursing agent to pay pension 

benefits. 

• 	 RRB is required to report all payments to and from the Investment Trust and the RRA, 

SSEBA, and RRSA on a monthly basis for the month in which the payment occurred. 

• 	 The Investment Trust may report on a one month delayed basis to RRB, which in tum 

willreport the information to Treasury on a monthly basis. However, the Investment 

Trust will work towards improving the timeliness ofits reporting, so that the transactions 

are reported as ofthe end ofthe month in which they occurred, consistent with all other 

Federal reporting. 

7.2.1 Monthly Reporting by RRB on the RRA and the SSEBA 

Nothing in this memorandum is to be construed as altering RRB's current requirements 

for monthly financial reporting of activity in the RRA and the SSEBA. 

Transfers from the RRA and the SSEBA to the Investment Trust account will be reported 

as outlays ofthose accounts and as offsetting receipts ofthe Investment Trust account. 

Transfers from the Investment Trust account to the RRA will be reported as outlays ofthe 

Investment Trust account and as offsetting receipts ofthe RRA. 
7.2.2 Timing of Monthly Reports by the Investment Trust to RRB 

The Investment Trust shall report the information described in sections 7.2.3, 7.2.4, and 

7.2.5 on a monthly basis to RRB. Except when Treasury, OMB, RRB and the Investment Trust 

agree to an alternative reporting schedule, this means that the Investment Trust may report each 

month's transactions no later than the third workday day of the second month after the 

transactions have occurred. (Beginning January 2003, the Investment Trust may report no later 

than the second workday ofthe second month.) 

7.2.3 Required Monthly Information 

Except as provided in Section 7.2.4, the Investment Trust shall report the following 


information to RRB: 


• Total market value ofnon-Federal securities, end of month; 

• . Total interest earnings on Federal securities; 

• Total interest and dividends earned on non-Federal securities; 

• Total purchases of non-Federal securities; 

• Total sales of non-Federal securities; 

• Cash balance, end of month; 

• Total purchases (at par) ofFederal securities; 

· • Discounts and premiums on Federal securities at time of purchase 

• Total sales (at par) ofFederal securities; 

• Payments to the disbursing agent; 

• Administrative expenses; and, 

• Payments received from the RRA, the SSEBA, and the RRSA. 

Interest earnings on Federal securities (other than zero coupon bonds) shall include any 

purchase premiums and/ or accrued interest at the time of purchase (as a negative), any periodic 

interest payments (as a positive), any gains realized from purchase discounts at the time of 

maturity or sale (as a positive) 1,.and any gains or losses on sale. Zero coupon bonds will be 

valued at market value on a monthly basis. The purchases and sales of all other Federal 

securities shall be reported at par. (Additional guidance to Federal agencies on reporting for 

accounts invested in Department ofthe Treasury securities is provided in the Treasury Financial 

Manual, Volume 1, Part 2, Chapter 4300 (http://www.fms.treas.gov/tfm/voll/vlp2c430.pdt). 

For U.S. Standard General Ledg~r transactions related to reporting for accounts invested in 

Department of the Treasury securities, further guidance is available at 

http ://www.fms.treas.gov/ussgl.) 

Interest and dividends earned on non-Federal securities shall be reported on a gross basis. 

That is, ifinterest or dividends are reinvested, this shall be reported simultaneously as interest or 

dividends earned and as purchas~s of non-Federal securities. 

1 Discounts are reported as a positive in subclass 75 (Unrealized Discount on Investments) at time of purchase. At 

maturity or sale, the purchase discount is reversed by reporting a negative receipt in subclass 75 and any gain 

realized from the discount is reported as interest in the 60X8118.2 receipt account as a positive. 
RRB shall use the information provided by the Investment Trust to prepare the monthly 

financial reports for the Investment Trust account ( 60X8 l l 8) and report to Treasury. As long as 

the Railroad Retirement System payments are disbursed through a FMS Financial Center, RRB 

shall complete the Statement of Transactions (Form 224) by the fifth workday of the month (the 

third workday, beginning January 2003). Once the Railroad Retirement System payments are 

disbursed through a non-Federal disbursing agent, RRB shall complete the Statement of 

Accountability (Form 1219) and the Statement ofTransactions (Form 1220) by the fifth workday 

of the month. RRB shall use the standard reporting procedures to complete these reports. 

(Additional gu!dance to Federal agencies on financial reporting is provided in the Treasury 

Financial Manual, Volume 1, Part 2. (http://www.fms.treas.gov/tfm/voll/vlp2cl00.html.).) The 

table in Appendix C provides detailed guidance for reporting each class of anticipated 

transactions. 

7.2.4 	 Monthly Valuation of Assets Held by the Investment Trust 

As mentioned above, RRB shall report the total market value of the portfolio of nonF ederal securities held by the Investment Trust to Treasury on a monthly basis. Realized and 

unrealized gains and losses (net of purchases and sales) on the portfolio of non-Federal securities 

held by the Investment Trust shall be reported as offsetting receipts. The Investment Trust may 

report this mark-to-market valuation of the portfolio to RRB on a 30-day delay basis. RRB will 

calculate gains and losses on non-Federal securities as follows: 

Total market value of non-Federal securities, end of the current month 

+ 	 Sales of non-Federal securities 

Purchases of non-Federal securities 

Total market value of non-Federal securities, end of previous month 

The Parties agree that it would be difficult and expensive to revalue certain classes of 

non-Federal assets held by the Investment Trust on a monthly basis. Therefore, the Investment 

Trust shall be required to revalue monthly only assets for which current market quotations are 

readily available in nationally recognized financial media. The Investment Trust may revalue all 

other assets on an annual basis (at the end of the fiscal year). 

7 .2.5 	 Administrative Expenses 

The Investment Trust shall report its direct expenditures for administrative expenses to 

RRB each month on an aggregate basis. In addition, at least once each year (at the end of the 

fiscal year) the Investment Trust shall report the amount of administrative expenses incurred by 

investment management firms that invest on its behalf. To the extent that these firms deduct 

their administrative expenses from earnings reported to the Investment Trust, the Investment 

Trust shall report the amount of estimated administrative expenses separately and increase 

amounts of earnings reported by the same amount. 
7.2.6 Certification of Monthly Information 

RRB shall certify to Treasury that it has reported the information.provided to it by the 

Investment Trust. RRB' s certification will not be construed as certifying to the accuracy ofthe 

information provided by the Investment Trust. Ensuring the accuracy of the information 

provided on a monthly basis is a responsibility ofthe Investment Trust. However, RRB is 

responsible for ensuring that the annual information reported to Treasury is consistent with the 

Investment Trust's audited financial statements subject to differences between the budget and 

financial reporting in the basis for measurement of transactions. To the extent there are 

differences for other reasons, RRB will work with the Investment Trust to correct the 

information reported to Treasury. · · 

7 .2. 7 Benefit Payments 

RRB' s reporting of monthly benefit payments is not covered by the one month delay 

permitted by paragraph 7.2.2 because RRB will have-the information necessary to report benefit 

payments at the end ofthe month in which the benefits are paid. Under the Act, RRB continues 

to have the responsibility for determining who is entitled to railroad retirement benefits, the 

amount of each benefit, and the timing of payments. In addition, RRB will direct the Investment 

Trust to transfer funds to the disbursing agent sufficient to pay railroad retirement non-SSEB tier 

1, tier 2 and supplemental benefits. 

7.3 Required Quarterly Reporting 

On a quarterly basis, RRB will also be required to complete FACTS II (Federal Agencies' 

Centralized Trial-Balance System II) reporting based on information provided by the Investment 

Trust. FACTS II will allow RRB to submit one set of accounting data (mostly budgetary, but 

some also proprietary) that fulfills the needs ofthe FMS 2108 Year-End Closing Statement and 

the SF 133 Report on Budget Execution. The reporting schedule and additional guidance related 

to FACTS II reporting is provided in the FMS website at 

http://www.fms.treas.gov/ussgl/factsii/index.htmi. 

7.4 Required Yearly Reporting 

RRB shall report the financial information as required in the Treasury Financial Manual, 

Volume I, Part 2, Chapter 4000 (I TFM 2-4000) Federal Agencies' Centralized Trial-Balance 

System (FACTS I) to FMS, using Treasury Fund Account Symbol number 60X8 l 18 which will 

include the information on the activities and balances of the Investment Trust. 

8.0 Revision of Reporting Requirements 

Ifnecessary, this memorandum will be updated as needed, with consent of the Parties, to 

reflect changes in reporting requirements published in OMB' s Circular No .. A-11. 

Attachments 
9.0 Signatures 

Railroad Retirement Board 

Steven A Bartholow 

General Counsel/Senior Executive Officer 

National Railroad Retirement 

Investment Trust 

Signature 

Enos T. Throop, Jr. 

Chief Investment Officer 

o~ V, Loo z_ 

Date 

Department of the Treasury 

JbJ,..---­

Signature 

Office of Management and Budget 

Richard P. Emery, Jr. 


Assistant Director for Budget Review 


~2..007-.. 
Attachment A 

Cash Transfer to the National Railroad Retirement Investment Trust 

Ob_jective 

Initial Transfer 

of Excess 

Balances (Cash) 

from RRB 

Accounts to 

Trust 

Procedures 


I RRB I Trust Action 

The Trust, through RRB, has provided a schedule 

to Treasury (OF AS) of pending transfers of the 

initial balances in the Railroad Retirement 

Account (60X8011), the Social Security 

Equivalent Benefit Account (60X8010) and the 

Railroad Retirement Supplemental Account ­

(60X8012). With this advance notification, funds 

can be made available to Trust on specified dates. 

Updates to the schedule oftransfers should.he 


provided, in writing, to: 


David J. Monroe 

Director, Office of Cash and Debt Management 

Department of the Treasury · 

1500 Pennsylvania Ave, NW 

Washington, DC 20220 

Fax Number - (202) 874-4775 

RRB instructs BPD to liquidate securities held in 

accounts 60X8011, 60X8010 and 60X8012 by 

sending redemption 'instruction to BPD 

designating specific securities to liquidate. 

(Standard procedures, using Request for 

Investment/Redemption Form) 

RRB instructs FMS to move cash balance from 

60X801 l, 60X8010 and/or 60X8012* account to 

Investment Trust's account at its designated 

custodial bank. 

RRB certifying officer will use the Electronic 

Certification System or complete a hardcopy SF 

1166 and .send it to FMS Regional Financial 

Center, to move money to Trust account outside 

ofTreasury. 

RRB will report the outlay offunds from 

accounts 60X8010, 60X8011, and/or 60X8012 on 

the current month SF 224 for those accounts, and 

report an offsetting receipt to account 60X8118 

with a subclass of ( 41) on the current month SF 

224 to indicate funds were moved to the 

Investment Trust outside of Treasury. 

I Treasury Action 

Treasury (OF AS - OCDM) identifies need 

for requested amolint of cash and plans to 

have funds available. 

Depending on size of transfer, Treasury may 

be able to make transfers of cash without the 

full 30-day notice. However, the 30-day 

notice will enable Treasury to ensure that 

the full amount of funds will be able to be 

transferred in 30 days. Treasury will work 

with RRB and the Trust on speci,fic timing 

of transfers. 

BPD liquidates securities. Increases cash 

balance of investment accounts. 

FMS will effect the transfer of the funds-to 

the Trust's account at its designated 

:financial institution. (The transfer will most 

likely occur electronically, either by 

automated clearinghouse credit, or wire 

transfer at the option ofRRB.) 

*Once all funds in the Supplemental Benefit Account (60X8012) are transferred to the Trust, this account will be 

eliminated. The other two accounts will have ongoing activity. 
On-going 

transfers of 

funds to the 

Investment 

Trust 

RRB will identify amount offunds to move to the 

mvestment Trust. 

Funds shall be transferred in accordance with the 

notification timeframes outlined in Section 6.1.2. 

Notification should be sent in writing to: 

Cash Forecasting Division 

Cash Accounting and Reporting Directorate 

Financial Management Service Department of the 

Treasury 

3700 East West Highway, Room 5A09 

Hyattsville, Maryland 20782 

Fax Number: 202-874-9945 

Or: 202-874-9984 

Telephone: 202-874-9790 

e-mail: funds. control@bns. treas. gov 

Iffunds are invested in short term, par-value ­

Treasury securities, RRB instructs BPD to 

liquidate securities held in accounts 60X8011, or 

80X8010 by sending redemption instruction to 

BPD designating specific securities to liquidate. 

(Standard procedures, using Request for 

Investment/Redemption Form) 

RRB instructs FMS to move a cash amount from 

the 60X8011and/or60X8010 account(s) to 

designated account of the Trust 

RRB certifying officer will use the Electronic 

Certification System or complete a hardcopy SF 

1166 and send it to FMS Regional Financial 

Center, to move money to Trust account outside 

of Treasurv. 

RRB will report the outlay of funds from 

accounts 60X8010, 60X8011, and/or 60X8012 on 

the current month SF 224 for those accounts, and 

report an offsetting receipt to account 60X8118 

with a subclass of ( 41) on the current month SF 

224 to indicate funds were moved to the 

Investment Trust outside of Treasury. 

BPD liquidates securities. Increases cash 

balance of investment accounts. 

FMS will effect the transfer of the funds to 

the Trust's account at its designated 

:financial institution. (The transferwill most 

likely occur electronicaTI.y, either by 

automated clearinghouse credit, or wire 

transfer at the option ofRRB.) 
Attachment B 

Securities Transfer to the National Railroad Retirement Investment Trust 


(Including the Transfer ofthe Proceeds ofRedeemed 


Securities held by the Investment Trust) 


Procedures 

Objective I RRB I Trust Action I Treasury Action 

Transfer of BPD changes the ownership ofthe 


Currently-held 


RRB identifies specific securities to transfer to 

securities, by changing the account in 


Securities from 


the Trust ownership. (In writing to BPD using 

established contact for RRB account as which the securities are held in InvestOne 

RRB to Trust signatory.) from the RRB account, 60X8011, to the 

account for Trust activity, 60X8 l l 8. No 

transaction activity (redemption or 

Susan Chapman 

(Notification should beprovided, in writing,- to:) 

irivestment) occurs. 

Director, Division ofFederal Investments 

Office ofPublic Debt Accounting 

Bureau ofthe Public Debt 

P.O. Box 1328 


Parkersburg, WV 26106 


Phone Number (304) 480-5111 


Fax Number (304) 480-5112 


Trust must establish a designated contact for new 


account. Completes Fund Information Form 


and submits it to BPD at the above address. 
 ., RRB must report the transfer of securities from 


60X8011to60X8118 to FMS via the monthly 


account transaction reporting (SF 224). 


BPD liquidates designated securities and 

Securities held 

Redemption of Trost completes Request for 

increases cash balance in Investment 

by the Trust at 

Investment/Redemption Form identifying 

Account (60X8118). 

BPD 

security to be redeemed and submits it to BPD. 

FMS will e:ffect the transfer ofthe funds to 

Proceeds (Cash) 

Transfer of the Trust requests that RRB instructs FMS to move 

the Trust account at its designated financial 

ofa 

cash balance from 60X8 l l 8 account to Trust 

institution. (The transfer will most likely 

Redemption to occur electronically, either by automated 

the Trust 

Funds shall be transferred in accordance with the 

clearinghouse credit, or wire transfer at the 

option ofRRB.) 

' Notifu:ation should be sent in writing to: 


Cash Forecasting Division 


Cash Accounting and Reporting Directorate 


Financial Management Service Department of the 


Treasury 


3700 East West Highway, Room 5A09 


Hyattsville, Maryland 20782 


FaxNumber: 202-874-9945 


Or: 202-874-9984 


Telephone: 202-874-9790 


notification time:frames outlined in Section 6.1.2. 
e-mail: funds. control@fms.treas.gov 

certifying officer will use the Electronic 

Certification System or complete a hardcopy SF 

1166 and send to FMS Regional Financial Center, 

to move money to Trust account outside of 

Treasurv. 
Railroaq Investment Trust 

Accounting for Transactions· 

Funqs 60X8010, 60XB011, 60X801 :2 and 60X8118 

Transaction USSGL 

1. AnticiQated AQQrOQriation 

Proprietary None 

Budgetary .. 4120 

4450 

Appropriations Anticipated - Indefinite 

Unapportioned Authority 

2. Ai:mortionment 

Proprietary 


Budgetary 


3. Tax Receiets 

Proprietary 

Budgetary 

4. AEmortionment and Allotment 

Proprietary 


Budgetary 


5. Transfer Funds to RIT 

Proprietary 

Budgetary 

None 

4450 Unapportioned Authority 

4590 Apportionments Unavailable - Anticipated Resources 

1010 

5800 

4114 

4120 

4590 

4510 

4510 

4610 

5760 

1010 

1130 

5750 

4610 

4902 

4114 

4620 

Fund Balance With Treasury 

Tax Revenue Collected 

Appropriated Trust or Special Fund Receipts 

Appropriations Anticipated - Indefinite 

None 

Apportionments Unavailable - Anticipated Resources 

Apportionments 

Apportionments 

Allotments - Realized Resources 

Expenditure Financing Sources - Transfers Out 

Fund Balance With Treasury 

Funds Held by the Public 

Expenditure Financing Sources - Transfers In 

Allotments - Realized Resources 


Delivered Orders - Obligations, Paid 


Appropriated Trust or Special Fund Receipts 


Unobligated Fu"nds Not Subject to Apportionment 


SF224 

None 

None 

60X8010.2 

60X8011.2 

(Reported) 

by Treasury) 

None 

(09)60X8010 

(09)60X8011 

(09)60X8012 

(41)60X8118 

60X8118.5 

60X8118.4 

60X8118.6 

Attachment C 

60X8010, 60X8011, 

60X8012 60X8118 

RRB NRRIT 

Debit Credit Debit Credit 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

85 

85 

85 

85 

. 85 

85 

85 

85 
Railroad Investment Trust Attachment C 

Accounting for Transactions 

Funds 60X8010, 60X8011, 60X8012 and 60X8118 60X8010, 60X8011, 

60XB012 60XB118 

RRB NRRIT 

Transaction USSGL SF224 Debit Credit Debit Credit 

6. 	 Purchases of Treasua: Securities at Par2 

Proprietary 1610 Investment in U.S. Securities (par) (88)60X8118 10 

1130 Funds Held by the Public (41)60X8118 10 

Budgetary None 

7. 	 Sale of Treasu!Jl Securities at Par2 

Proprietary 1130 Funds Held by the Public (41)60X8118 5 

1610 Investment in U.S. Securities (par) (98)60X8118 5 

Budgetary None 

8. 	 Earnings on Federal Securities 

- (41)60X8118 1 

5310 Earnings on Investments 

PrQprietary 	 1130 Funds held by the Public 

1 

Budgetary 4114 Appropriated Trust or Special Fund Receipts 

60X8118.2 

1 

4620 Unobligated Funds Not Subject to Apportionment 1 

9. 	 Purchase of Federal Agencl£ Securities at Par2 10 


Proprietary 1620 Investment in Securities Other than Public Debt 
 (80)60X8118 10 

1130 Funds ~eld by the Public (41)60xB118 . 

Budgetary 	 None 

10. 	 Sale of Federal Agencl£ Securities at Par2 


Proprietary 1130 Funds held by the Public 
 10 

1620 Investment in Securities Other than Public Debt 

(41)60x811B 

(90)60xB 118 10 

Budgetary None 

11. 	 RITC Purchases of Non-Federal Securities 


Proprietary 1620 Investment in Securities Other than Public Debt 
 (42)60x81181 73 

1130 Funds Held by the Public (41)60X8118 73 

Budgetary 4620 1.Jnobligated Funds Not Subject to Apportionment 73 

4394 Receipts unavailablefor Obligation Upon Collection 73 
Railroad Investment Trust 

Accounting for Transactions 

Funds 60X8010, 60X8011, 60X8012 and 60X8118 

Transaction 	 USSGL 

12. Mark to Market for Unrealized Gain (Non-Federal Securities} 

Proprietary 1618 

7180 

Market Adjustment - Investments 

Unrealized Gain - Investments 

Budgetary 4114 

4394 

Appropriated Trust or Special Fund Receipts 

Receipts Unavailable for Obligation Upon Collection 

13. 	 RITC Sale of Non-Federal Securiti.es 

(reflecting market adjustment- realized gain) 

Proprietary 

Budgetary 

14. 	 Pal£ment of Admin Exeenses 

Proprietary 

Budgetary 

15. 	 Payment of Benefits 

Proprietary 

Budgetary 

1130 

1620 

7110 

7180 

1618 

4114 

4394 

4620 

6100 

1130 

1010 

1010 

4620 

4902 

6400 

1130 

1010 

1010 

4620 

4902 

Funds Held by the Public 

Investment in Securities other than Public Debt 

Gains on Disposition of Assets 

Unrealized Gain - Investments 

Market Adjustment - Investments 

Appropriated Trust or Special Fund Receipts 

Receipts Unavailable for Obligation Upon Collection 

Unobligated Funds Not Subject to Apportionment 

Operating Expenses 

Funds Held by the Public 

Fund Balance with Treasury3 

Fund Balance with Treasury 

Unobligated Funds Not Subject to Apportionment 

Delivered Orders-Obligations, Paid 

Benefit Expenses 

Funds Held by the Public 

Fund Balance with Treasurl 

Fund Balance with Treasury 

Unobligated Funds Not Subject to Apportionment 


Delivered Orders-Obligations, Paid 


Attachment C 

60X8010, 60X8011, 

60X8012 60X8118 

RRB NRRIT 

SF224 Debit Credit Debit Credit 

(42)60X81181 20 

60X8118.1 20 

20 

20 

100 


(42)60X81181 


(41)60X8118 

73 

60X8118.1 27 

60X8118.1 20 


(42)60X81181 
 20 

7 

93 

100 

2 


{41)60X8118 


(10)60X8118 

2 

2 

2 

2 

2 

2 


(41)60X8118 


(61)60X8118 

2 

2 

2 

2 

2 
Railroad Investment Trust Attachment C 

Accounting for Transactions 

Funds 60X8010, 60X8011, 60X8012 and 60X8118 60X8010, 60X8011, 

Transaction USSGL SF224 

16. Interest and Dividends Received (Non-Federal Securities} 

Proprietary 1130 Funds Held by the Public 

5310 Interest Revenue 

(41)60X8118 

60XB118.3 

Budgetary 4114 

4620 

Appropriated Trust or Special Fund Receipts 

Unobligated Funds Not Subject to Apportio~ment 

17. Mark to Market for Unrealized Loss (Non-Federal Securities} 

Proprietary 7280 Unrealized Loss - Investments 

1618 Market Adjustment - Investments 

60X8118.1 

(4Z)60X81181 

Budgetary 4394 

4114 

Receipts Unavailable for Obligation Upon Collection 

Appropriated Trust or Special Fund Receipts 

18. Transfer Zero-Cou12on Bonds to NRIT 

Proprietary 

I.. 

1630 

1631 

1633 

1638 

7110 

1630 

1631 

1638 

Investments - ZCBs 

Unamortized Discount - ZCBs 

Amortization of Discount - ZCBs 

Market Adjustment - ZCBs 

Gains on Disposition of Assets 

Investments - ZCBs 

Unamortized Discount - ZCBs 

Market Adjustment - ZCBs 

(88)60XB011 

(72)60X8011 

(72)60X8011 

(88)60X8118 

(72)60XB118 

(72)60X8118 

60X8012 60X8118 

RRB NRRIT 

Debit Credit Debit Credit 

5 

5 

5 

5 

10 

10 

10 

10 

1,000 

400 

200 

100 

200 

1,000 

400 

100 

Budgetary 

19. Mark to Market - Zero Cou[!on Bonds 

Proprietary 

Budgetary 

1638 

5310 

4114 

4394 

None 

Market Adjustment - Investments in zero coupon bonds 

Interest Revenue 

Appropriated Trust or Special Fund Receipts 

Receipts Unavailable for Obligation Upon Collection 

(72)60X8.118 

60X8118.1 

50 

50 

50 

50 

1 Until programming changes are in effect for Treasury's central accounting system, monthly reporting to Treasury of subclass 42 (investments 

in non-Federal securities) is not required. However, balances for non-Federal securities should be reflected as a footnote in the 4th quarter 

FACTS II submission for yearend reporting. 2 For Federal securities purchased at a premium, discount, or inc.lude accrued interest, refer to existing U.S. Standard General Ledger guidance 

f!>r budgetary and/or proprietary accounting transaction entries. Additionally, for SF224 reporting, if investments are in non-guaranteed Federal Agency Securities 

use subclass 81 for investments and 91 for redemptions. 3 This is an automatic system entry. Do not report on the SF224. 10/2/02 
Attachment D 

Transfer of Funds from the National Railroad Retirement Investment Trust 

to Treasury for Disbursing Purposes 

Procedures 

Ob_iective I RRB I Trust Action I Treasury Action 

Transfers of Through the Fedwire Deposit System, the 

Funds (Cash) 

Note: These procedures will only be used in the 

RRB will be credited with immediately 

from the Trust 

event that funds held by the Trust are required to 

be transferred back to the Treasury to make available funds from the wire transfer: 

to Treasury for benefit payments. Once the non-Federal 

Disbursement disbursing agent is in place, funds should not need (A. separate memorandum of understanding

covers the disbursement of benefit 

payments by FMS until a non-Federal 

RRB advises the Trust that funds should be 

to be returned to Treasury. 

disbursing agent is selected.) 

returned to the Treasury for disbursement of 

benefit payments. 

The Trust will liquidate assets and transfer funds, 


by wire tranefer, to the Treasury's account at the 


New York Federal Reserve Bank to the credit of 


theRRB. 
 , 

Should it be necessary to transfer amowits in 


excess of$50 million from the Investment Trust to 


the RRB, a large dollar deposit notification would 


be required to be sent by RRB to: 


Cash Forecasting Division 


Cash Accounting and Reporting Directorate 


Financial Management Service Department of the 


Treasury 


3700 East West Highway, Room 5A09 


Hyattsville, Maryland 20782 


Fax Number: 202-87 4-9945 


Or: 202-874-9984 


Telephone: 202-87 4-9790 


e-mail: funds.control@fms.treas.gov 

 

 APPENDIX D 

 


 

CONFLICTS OF INTEREST
 

Policy Statement of the

National Railroad Retirement Investment Trust
 

Statement of policy 

The policy of the National Railroad Retirement Investment Trust (the "Trust") with respect to 

conflicts of interest requires that the Trustees and all employees (hereinafter "NRRIT personnel") 

avoid any conflict or appearance of conflict between their personal interests and the interest of 

the Trust in dealing with all entities or individuals doing or seeking to do business with the Trust. 

Underlying these standards is the fundamental proposition that all NRRIT personnel must

discharge their duties solely in the interest of the Railroad Retirement Board and through it, the

participants and beneficiaries of the programs funded under the Railroad Retirement Act of 1974, 

as amended. 

Personal finances 

NRRIT personnel shall not, without the consent of the Board of Trustees, hold or acquire a 

financial interest in any enterprise which to the knowledge of the individual has any business 

relationship with the Trust, or is seeking to establish such business relationship. A financial 

interest shall not include securities in a publicly traded company held directly or indirectly, 

provided that such interest is less than one percent (1%) of the outstanding shares of such 

company or debt of such company. 

Outside activities 

NRRIT personnel shall not hold any position with any other enterprise, the existence of which 

would conflict or might reasonably be supposed to conflict with the individual’s performance of 

his or her duties or responsibilities to the Trust without full and complete disclosure thereof to 

the Board of Trustees. 

NRRIT personnel shall not negotiate employment with any person or entity that is doing 

business or seeking to do business with the Trust without full and complete disclosure thereof to 

the Board of Trustees. 

Inside information 

NRRIT personnel shall maintain the confidentiality of all information related to deliberations and 

decisions, including but not limited to investment decisions, of the Trust and shall not use such 

information for personal profit or allow it to be used for personal profit of others. 

Gratuities 

NRRIT personnel, or members of their families, shall not accept gifts from any person, firm or 

corporation doing business or seeking to do business with the Trust, of such a nature or in such a 

circumstance that a reasonable person could infer that the acceptance of such gifts might unduly 

influence the individual in the performance of his or her duties. In deciding whether to accept 

any gift from such person, firm or corporation, NRRIT personnel, or members of their families 

should exercise proper judgment and as a general rule, should not accept any gift with a fair 

market value in excess of $100. 
 

 


 

NRRIT personnel, or members of their families, may accept entertainment-related services (e.g., 

food or beverages, invitations to attend a sporting event or participate in a sporting activity) 

where they are (a) reasonable in scope, (b) associated with a bona fide business meeting or 

conference, and (c) provided to others as a normal part of doing business in the industry or 

profession. Moreover, consistent with policies established by the SEC and NASD for investment 

managers, entertainment-related services may be accepted by NRRIT personnel or members of 

their families only when a representative of the host accompanies such individuals to the event. 

If no representative of the host is present at the event, such services are regarded as gifts and 

subject to the gift policies above. 

Notwithstanding the terms of the preceding two paragraphs, NRRIT personnel, or members of 

their families shall not accept money or any other thing of value in connection with any 

investment made by or for the Trust, nor shall any such person have any pecuniary interest in 

such investment. 

Disclosure 

Whenever a NRRIT personnel becomes aware of a conflict of interest, or has any question as to 

any activity, interest, or relationship which could be construed as a conflict of interest, such

individual shall promptly report the circumstances to the Board of Trustees. 

All NRRIT personnel shall annually sign a statement affirming that such person has: 

a. received a copy of this conflict of interest policy, 

b. read and understands this policy, and 

c. agreed to comply with its terms. 

As approved and adopted in amended form by the Board of Trustees on January 16, 2013. This 

Policy Statement was originally approved and adopted by the Board on July 19, 2002. 

2
 
 

 APPENDIX E
 

 


 

CONFIDENTIALITY
 

Policy Statement of the

National Railroad Retirement Investment Trust
 

Statement of general policy 

The Board of Trustees (the “Board”) of the National Railroad Retirement Investment Trust (the 

“Trust”) recognizes the sensitivity of all deliberations related to investment decision making, 

particularly in a Trust of this size and unique statutory structure. As such, the Board has 

adopted a policy that requires that the Trustees, Trust Advisors, and all Trust employees 

(hereinafter "NRRIT personnel"), as well as any investment advisor, manager, or custodian 

retained by the Trust, maintain the confidentiality of all information related to investment 

deliberations and decisions and other operations of the Trust. 

The Trustees also recognize their statutory obligation to discharge their duties solely in the 

interest of the Railroad Retirement Board and through it, the participants and beneficiaries of the 

programs funded under the Railroad Retirement Act of 1974. As such, the Trust shall respond to 

any inquiry of the Railroad Retirement Board with respect to investment activities of the Trust, 

but shall do so in a manner so as to maintain the confidentiality of such information, under such 

terms and conditions as may be developed by Trust counsel and the General Counsel of the 

Railroad Retirement Board. Any request for confidential information from any other agency or 

instrumentality of the Federal Government shall be considered by the Trustees on a case-by-case 

basis and in consultation with the Railroad Retirement Board. 

Confidential information 

All information relating to Trust business, including Trustee investment and business 

deliberations, internal staff deliberations, Board and Committee meeting book materials and 

meeting minutes, Trust investment plans, manuals and memoranda, internal investment analyses, 

meeting summaries or notes, and all other similar work papers should be treated as confidential 

by NRRIT personnel, unless (1) release of such information is required to carry out a direction 

from the Board, (2) is otherwise authorized by the Board or the Chief Investment Officer, or (3) 

is included in summary or aggregate form in annual reports that are required pursuant to the Act, 

or any other applicable Federal law. 

Continuing Obligation to Preserve Confidentiality 

All confidential information of the Trust is the sole and exclusive property of the Trust, and the 

obligation to preserve such confidentiality shall continue for former NRRIT personnel after their 

professional affiliation with the Trust ends. 

Annual Affirmation 

All NRRIT personnel annually shall sign a statement affirming that such person has: 
 


 

a. received a copy of this confidentiality policy, 

b. read and understands this policy, and 

c. agreed to comply with its terms. 

Approved by the Board of Trustees on January 27, 2005. 

2
 
 

 APPENDIX F
 
 

 

NATIONAL RAILROAD RETIREMENT INVESTMENT TRUST 
 

PROXY VOTING POLICY STATEMENT 
 

I. PURPOSE 
 

The purpose of the National Railroad Retirement Investment Trust’s (“NRRIT” or the 

“Trust”) Proxy Voting Policy Statement is to provide investment managers and the Railroad 

Retirement Board (the “RRB”) with written documentation of the requirements for the voting of 

proxies for assets held in NRRIT’s accounts. 

Section 15(j)(5)(A) of the Railroad Retirement Act of 1974 (the “Act”), as amended by 

NRRIT’s enabling legislation, the Railroad Retirement and Survivors’ Improvement Act of 

2001, sets forth the fiduciary duties of NRRIT’s Board of Trustees. Specifically, the Trustees are 

required to discharge their duties with respect to Trust assets, including the voting of proxies, 

“solely in the interest” of the RRB, and through it, the participants and beneficiaries of the 

programs funded through the Trust. Although the Trust is not subject to ERISA, the general 

prudence standard set forth in the Act is based upon the general fiduciary standards imposed by 

ERISA. 

II. RESPONSIBILITIES OF INVESTMENT MANAGERS

 Independent investment managers retained by the Trust pursuant to Section 15(j)(4)(B) of 

the Act will be fiduciaries of the Trust, and as such they will be required to exercise the same 

duties of loyalty and care in managing Trust assets. Where the Trust delegates management 

authority with respect to specified Trust assets to an investment manager, such investment 

manager will have exclusive authority to vote all proxies related to the Trust securities under its 

control unless such authority is expressly limited in the investment manager’s contract with the 

Trust. Prudent investment management includes the voting of proxies consistent with the 

investment manager’s own proxy voting guidelines and solely in the interest of the participants 

and beneficiaries of the Railroad Retirement system. 

Each investment manager retained by the Trust will agree to fulfill the following 

responsibilities: 

A. Each investment manager will be obligated to vote all proxies on securities held by 

such manager in the Trust’s portfolios. 

B.	 	Each investment manager will be expected to carefully examine all proxy issues. The 

decision with respect to the proxy vote must be made on a case by case basis, 

prudently and solely in the interest of the participants and beneficiaries of the 

Railroad Retirement System. 

C. Each investment manager must adopt and implement written policies and procedures 

that are reasonably designed to ensure that proxies with respect to Trust assets will be 

voted in the best interest of the participants and beneficiaries of the Railroad 

Retirement System. The manager must provide to the Trust: (i) a copy of its proxy 
 

 

voting guidelines, and (ii) a summary of its procedures for recording proxy votes and 

reporting them to the Trust. 

D. Decisions with respect to proxy voting may be delegated by the investment manager 

to an independent third party advisory firm, provided however that such advisory firm 

must exercise its judgment in a manner that it is consistent with this Proxy Voting 

Policy Statement and with the proxy voting policy of the investment manager. 

E. Each investment manager must accurately record its proxy votes for each Trust 

security held and the basis for such votes. The votes may be tallied by general 

category. These records must be made available to the Trust upon its request. 

F.	 	Each investment manager must provide to the Trust on a quarterly basis: 

1)		 Written certification that all proxies with respect to Trust securities have been 

voted solely in the interest of the participants and beneficiaries of the Railroad 

Retirement system; 

2)		 Written certification that neither the officers of the investment management firm 

nor their personnel have been unduly influenced by outside sources regarding the 

voting of any proxy; 

3)		 In cases where a conflict of interest has been identified, written certification that 

adequate measures were taken to ensure that such conflict did not affect any 

proxy vote and documentation explaining the nature of such conflict; and 

4) Adequate documentation to report all proxy votes with respect to Trust securities 

cast by the investment manager and, for all non-routine matters, the basis for such 

votes. 

III. COORDINATION WITH CUSTODIANS 

The investment manager will have the responsibility of ensuring that all proxies with 

respect to Trust securities are voted, and will coordinate as necessary with the custodians of the 

Trust's assets to see that this responsibility is carried out. 

Should the investment manager not receive proxy solicitation materials on a timely basis 

from the custodian, which could prevent normal handling of the materials and timely voting from 

taking place, the investment manager may designate the custodian as its agent to vote the proxy 

in question. Under these circumstances, the investment manager will not be relieved of its 

fiduciary responsibility for the voting of proxies; therefore, the investment manager must provide 

the custodian with specific voting instructions. 

IV. RESPONSIBILITIES OF THE TRUST 

Consistent with its fiduciary duties as they relate to the voting of proxies, the Trust assumes 

the following responsibilities: 

2 
 

 

A. As part of its due diligence review of prospective investment managers and its 

ongoing oversight of current managers, the Trust's investment staff will review each 

investment manager’s policies and procedures with respect to proxy voting to ensure 

that they are in compliance with this Proxy Voting Policy Statement. 

B.	 	Upon receipt of the documentation submitted quarterly by the investment managers, 

the Trust's investment staff will review and report to the Board of Trustees regarding 

each investment manager's proxy voting record with respect to Trust securities. 

C. The Board of Trustees shall annually review the report of the Trust's investment staff 

with respect to proxy voting of Trust securities. 

D. The Trust reserves the right to modify or rescind the proxy voting authority delegated 

to an investment manager at any time. 

V. DOCUMENTATION 

This Proxy Voting Policy Statement will be (i) attached to the Trust’s Investment 

Guidelines, and (ii) incorporated by reference into each investment management agreement 

entered into by the Trust. 

Revised and Approved by the Board on March 29, 2011 

3 
 

 APPENDIX G
 
 


 

	 

	 

	 

	 

	 

	 

	 

	 

National Railroad Retirement Investment Trust 

Audit Committee Charter
 

It shall be the duty of the Audit Committee to: 

1.	 Retain an independent auditor pursuant to an engagement and fee letter approved by 

the Committee to perform the annual audit of the Trust, review the results of such 

audit and all other reports received from the auditor. In selecting an auditor the 

Committee shall take into consideration the auditing firm’s particular expertise with 

institutions that manage complex investment portfolios. 

2.	 Hold periodic meetings with the auditor to discuss any and all matters brought to 

the attention of the Committee by the auditor. Require that the auditor not 

undertake any non-audit consulting assignment for the Trust without the prior 

approval of the Audit Committee. 

3.	 Require that the auditor promptly disclose the results of any examination or 

inspection made by the Public Company Accounting Oversight Board, the 

Securities and Exchange Commission, and any other governmental or other 

regulatory body related to independence, audit quality, or any other significant 

matters. 

4.	 Review annual financial certification prepared by CIO and Senior Operating Officer 

affirming the completeness and accuracy of the Trust’s statement of financial 

position and the integrity of the Trust’s internal control structure and procedures for 

financial reporting. 

5.	 Review and provide a recommendation to the Board with respect to draft Annual 

Management Report prepared for transmittal to Congress as required by The 

Railroad Retirement Act of 1974 (the “Act”). 

6.	 Manage the Trust’s program of periodic internal audits, including coordination and 

consultation with the Railroad Retirement Board with respect to such reviews. 

7.	 Oversee the Trust’s conflicts-of-interest and confidentiality policies to ensure that 

the Trustees, its employees and agents comply with duties and responsibilities 

specified in the Railroad Retirement Act, and fiduciary responsibilities arising 

under the Act or other applicable law. 

8.	 Establish and maintain a secure process for receiving, retaining and handling named 

or anonymous complaints or “whistleblower” submissions related to action of any 

Trustee, Trust employee or Trust agent that might constitute fraud or result in an 
	 


 

inaccurate or incomplete recording of the Trust’s financial or accounting 

information. 

9.	 Oversee the Trust’s federal and District of Columbia tax filings including the 

annual filing of its Form 990 information return and any required Form 990T 

income tax return that might be applicable with respect to a fiscal year. 

10. Oversee the staff’s compliance with the Trust’s obligations under its 

Memorandum of Understanding (MOU) with the federal government entities that 

are parties to the MOU and assess the appropriateness of any proposed changes in 

those obligations that might arise from time-to-time. 

11. Undertake an annual self assessment to ensure that the Committee is meeting the 

responsibilities set forth in this Resolution. This self assessment shall include as an 

appendix a report prepared by the Senior Accounting Officer on the operation of all 

material internal accounting and audit systems 

As revised and approved by the Board on May 2, 2014 

4837-9265-1016, v. 2 

2
 
 

 APPENDIX H
 
	 

	 

	 

	 

	 

	 

	 

National Railroad Retirement Investment Trust 

Administrative Committee Charter 

It shall be the duty of the Administrative Committee to: 

1.	 In General: Establish and oversee all matters related to the administrative functioning of 

NRRIT, including the development of its annual budget and policies to govern staff 

compensation, employee benefits, receipt of gifts, and travel reimbursement. 

2.	 Annual Budget: Review the annual budget prepared by the Chief Executive Officer/Chief 

Investment Officer (CEO/CIO) and the Senior Operating Officer (SOO) prior to its 

submission to the Board for review at the first Board meeting of each fiscal year. 

3.	 Base Compensation and Annual Bonus: Make recommendations to the Board regarding the 

criteria to be used annually to set base compensation and annual bonuses, taking into 

consideration the need to recruit and retain qualified investment professionals in a 

competitive environment, but also recognizing the unique public-private nature of NRRIT. 

4.	 Deferred Compensation Plan: Periodically review the Trust's deferred compensation plan for 

senior staff and make recommendations to the Board regarding prospective changes as may 

be appropriate, taking into consideration the need to recruit and retain qualified investment 

professionals in a competitive environment, but also recognizing the unique public-private 

nature of NRRIT. 

5.	 Employee Benefits: Make recommendations to the Board regarding the creation and 

operation of cost effective plans to provide such employee benefits as may be determined 

by the Committee to be necessary and appropriate, and using outside consultants to the 

extent necessary, review the adequacy and appropriateness of such plans on a periodic 

basis. These may include health insurance; life insurance; disability insurance; annual, 

medical or other types of paid or unpaid leave; severance; defined contribution plans; etc. 

6.	 Tax Filing: Oversee the preparation and filing of those sections of the Trust’s annual Form 

990 information return that relate to compensation matters. 

7.	 Compensation Comparability: Make recommendations to the Board regarding appropriate 

peer bench marks to assess NRRIT compensation practices for comparable positions of 

responsibility, employ outside consultants as necessary, and use independent survey data to 

review annually the compensation and benefit practices of peer pension and investment 

entities to assess the appropriateness of NRRIT compensation practices and peer 

benchmarks. 
 

	 

	 

	 

	 

	 

	 

	 


 

8.	 Training, Advancement and Succession: Coordinate with the CEO/CIO with respect to the 

development of appropriate education and training opportunities for staff, and review staff 

advancement and succession planning periodically with the CEO/CIO. 

9.	 Trustee Expenses: Establish a policy to govern Trustee expense reimbursement and require 

the Committee Chair to review all reimbursement requests submitted pursuant to this 

policy. 

10.	 Gift and Travel Policies: Establish and monitor policies to govern staff receipt of gifts and 

travel reimbursements that are consistent with the NRRIT Conflict of Interest Policy 

Statement. 

11.	 Retention of Legal Counsel: Recommend to the Board for approval the retention of legal 

counsel as necessary to (i) advise the Board on all matters relating to the Board’s 

responsibilities, (ii) oversee investment matters approved by the Board, and (iii) provide 

counsel on such other matters as may be deemed necessary by the Board. 

12.	 Legal Compliance: Review processes recommended by counsel to ensure that all 

compensation and benefit programs (including any deferred compensation program 

structured to meet Internal Revenue Service rules) are structured to be compliant with 

federal and other applicable laws. 

13.	 Administrative Operations: Oversee NRRIT administrative operations and review annually 

a report prepared by the SOO on the operation and cost of systems to manage payroll, 

employee benefits, occupancy costs, insurance, information technology, and commercial 

banking services (other than those of the Trust custodian). 

14.	 Self Assessment: Undertake an annual self assessment to ensure that the Committee is 

meeting the responsibilities set forth in this Resolution. This self assessment shall include 

as an appendix the annual operations report prepared by the SOO referenced in the 

preceding paragraph. 

As approved by the Board on May 22, 2013 

4839-3009-4869, v. 3 

2
 
 

 APPENDIX I 
Chief Investment Officer’s Certification 

of the National Railroad Retirement Investment Trust’s 

Process of Financial Reporting And 

System of Internal Controls 

I, Catherine A. Lynch, Chief Investment Officer of the National Railroad Retirement Investment 

Trust (“NRRIT”), certify that: 

(1) I have reviewed the Annual Management Report for Fiscal Year 2014, prepared 

pursuant to Section 105 of Public Law 107-90, the Railroad Retirement and 

Survivor’s Improvement Act of 2001. 

(2) Based on my knowledge, this Annual Management Report does not contain any 

untrue statement of material fact or omit to state a material fact necessary to make 

the statements made, in light of the circumstances under which the statements were 

made, not misleading with respect to the period covered by this Annual Management 

Report. 

(3) Based on my knowledge, the financial statements and other financial information 

included as part of this Annual Management Report fairly present in all material 

respects the financial position, results of operations and cash flows of NRRIT as of 

and for the year ended September 30, 2014. 

(4) NRRIT’s other certifying officers, the Senior Operating Officer and Senior 

Accounting Officer, and I are responsible for establishing and maintaining effective 

disclosure controls and procedures for NRRIT and have: 

a. designed such disclosure controls and procedures to ensure that material 

information relating to NRRIT is made known to us by others within 

NRRIT, particularly during the period in which this Annual Management 

Report was prepared; 

b. evaluated the effectiveness of NRRIT’s disclosure controls and procedures as 

of September 30, 2014, (the “Evaluation Date”); and 

c. presented in this Annual Management Report our conclusions about the 

effectiveness of the disclosure controls and procedures based upon our 

evaluation as of the Evaluation Date. 

(5) NRRIT’s other certifying officers and I have disclosed, based upon our most recent 

evaluation, to NRRIT’s auditor and the NRRIT Audit Committee: 

a. all significant deficiencies in the design or operation of internal controls 

which could adversely affect NRRIT’s ability to record, process, summarize, 

and report financial data and have identified for NRRIT’s auditor any 

material weaknesses in internal controls; and 
b. 	 any fraud, whether or not material, that involves management or other 

employees who have a significant role in NRRIT's internal controls. 

(6) 	 NRRIT's other certifying officers and I have indicated in this Annual Management 

Report whether there were signlficant changes in the internal controls or in other 

factors that could significantly affect internal controls subsequent to the date of our 

most recent evaluation, including any corrective actions with regard to significant 

deficiencies and material weaknesses. 

' .-b..l y .,,(__ 

Catherine A. Lynch 

Chief Executive Officer/ 

Chief Investment Officer 
Senior Operating Officer’s Certification 

of the National Railroad Retirement Investment Trust’s 

Process of Financial Reporting And 

System of Internal Controls 

I, Grace A. Ressler, Senior Operating Officer of the National Railroad Retirement Investment Trust 

(“NRRIT”), certify that: 

(1) I have reviewed the Annual Management Report for Fiscal Year 2014, prepared 

pursuant to Section 105 of Public Law 107-90, the Railroad Retirement and 

Survivor’s Improvement Act of 2001. 

(2) Based on my knowledge, this Annual Management Report does not contain any 

untrue statement of material fact or omit to state a material fact necessary to make 

the statements made, in light of the circumstances under which the statements were 

made, not misleading with respect to the period covered by this Annual Management 

Report. 

(3) Based on my knowledge, the financial statements and other financial information 

included as part of this Annual Management Report fairly present in all material 

respects the financial position, results of operations and cash flows of NRRIT as of 

and for the year ended September 30, 2014. 

(4) NRRIT’s other certifying officers, the Chief Investment Officer and Senior 

Accounting Officer, and I are responsible for establishing and maintaining effective 

disclosure controls and procedures for NRRIT and have: 

a. designed such disclosure controls and procedures to ensure that material 

information relating to NRRIT is made known to us by others within 

NRRIT, particularly during the period in which this Annual Management 

Report was prepared; 

b. evaluated the effectiveness of NRRIT’s disclosure controls and procedures as 

of September 30, 2014, (the “Evaluation Date”); and 

c. presented in this Annual Management Report our conclusions about the 

effectiveness of the disclosure controls and procedures based upon our 

evaluation as of the Evaluation Date. 

(5) NRRIT’s other certifying officers and I have disclosed, based upon our most recent 

evaluation, to NRRIT’s auditor and the NRRIT Audit Committee: 

a. all significant deficiencies in the design or operation of internal controls 

which could adversely affect NRRIT’s ability to record, process, summarize, 

and report financial data and have identified for NRRIT’s auditor any 

material weaknesses in internal controls; and 
b. 	 any fraud, whether or not material, that involves management or other 

employees who have a significant role in NRRIT's internal controls. 

(6) 	 NRRIT's other certifying officers and I have indicated in this Annual Management 

Report whether there were significant changes in the internal controls or in other 

factors that could significantly affect internal controls subsequent to the date of our 

most recent evaluation, including any corrective actions with regard to significant 

deficiencies and material weaknesses. 

O.~ Grace A. Ressler 

Senior Operating Officer 
Senior Accounting Officer’s Certification 

of the National Railroad Retirement Investment Trust’s 

Process of Financial Reporting And 

System of Internal Controls 

I, Neil E. Kotras, Senior Accounting Officer of the National Railroad Retirement Investment Trust 

(“NRRIT”), certify that: 

(1) I have reviewed the Annual Management Report for Fiscal Year 2014, prepared 

pursuant to Section 105 of Public Law 107-90, the Railroad Retirement and 

Survivor’s Improvement Act of 2001. 

(2) Based on my knowledge, this Annual Management Report does not contain any 

untrue statement of material fact or omit to state a material fact necessary to make 

the statements made, in light of the circumstances under which the statements were 

made, not misleading with respect to the period covered by this Annual Management 

Report. 

(3) Based on my knowledge, the financial statements and other financial information 

included as part of this Annual Management Report fairly present in all material 

respects the financial position, results of operations and cash flows of NRRIT as of 

and for the year ended September 30, 2014. 

(4) NRRIT’s other certifying officers, the Chief Investment Officer and Senior 

Operating Officer, and I are responsible for establishing and maintaining effective 

disclosure controls and procedures for NRRIT and have: 

a. designed such disclosure controls and procedures to ensure that material 

information relating to NRRIT is made known to us by others within 

NRRIT, particularly during the period in which this Annual Management 

Report was prepared; 

b. evaluated the effectiveness of NRRIT’s disclosure controls and procedures as 

of September 30, 2014, (the “Evaluation Date”); and 

c. presented in this Annual Management Report our conclusions about the 

effectiveness of the disclosure controls and procedures based upon our 

evaluation as of the Evaluation Date. 

(5) NRRIT’s other certifying officers and I have disclosed, based upon our most recent 

evaluation, to NRRIT’s auditor and the NRRIT Audit Committee: 

a. all significant deficiencies in the design or operation of internal controls 

which could adversely affect NRRIT’s ability to record, process, summarize, 

and report financial data and have identified for NRRIT’s auditor any 

material weaknesses in internal controls; and 
'· 


b. 	 any fraud, whether or not material, that involves management or other 

employees who have a significant role in NRRIT's internal controls. 

(6) 	 NRRIT's other certifying officers and I have indicated in this Annual Management 

Report whether there were significant changes in the internal controls or in other 

factors that could significantly affect internal controls subsequent to the date of our 

most recent evaluation, including any corrective actions with regard to significant 

deficiencies and material weaknesses. 

Neil E. Kotras 

Senior Accounting Officer 
 

 APPENDIX J
 
UNl'l'l:.;J) STATES OF AMERICA 

RAILROAD RETIREMENT BOARD 


844 NORTH RUSH STREET 


CHICAGO, ILLINOIS 60Gl 1-2092 


MICHAELS. SCHWARTZ, CHAIRl\tAN OCT 31 2014 

WALTER A. BARROWS, k\BOR Ml l\tnEH 

STEVEN ,J. ANTHONY. _-\NAGb:Ml NT Mr MBER 

The Honorable Jacob J. Lew 

Secretary ofthe Treasury 

Washington, D.C. 20220 

Dear Mr. Secretary: 

In accordance with Section 23(b) of the Railroad Retirement Act of 1974, we certify the 

Account Benefits Ratio for fiscal year 2014.to be 5.18. 

Chapter 22, Subchapter E, Section 3241 of the Internal Revenue Code of 1986, as added 

by Title II, Section 204, of the Railroad Retirement and Survivors' Improvement Act of 

2001, requires that the Secretary of the Treasury determine the Average Account Benefits 

Ratio for the 10 most recent fiscal years, and publish a notice in the Federal Register, no 

later than December 1 of each calendar year, stating the rates oftax which are applicable 

for the following calendar year for rail employers, employee representatives, and 

employees. For your information, we estimate the 10-year Average Account Benefits 

Ratio, rounded to the next highest multiple of 0.1, to be 6.0. 

Sincerely, 

11/fjWalter A. JI 

Barrows 

P~ 

s11:~~ -:r~ 

Steven J. Anthony 

o Printed on recycled paper. 

asabaliauskas on DSK5VPTVN1PROD with NOTICES

Federal Register / Vol. 79, No. 230 / Monday, December 1, 2014 / Notices 71153 

Service, Office of Research, Compliance 

Analysis and Modeling (RAS:R:CAM), 

1111 Constitution Ave. NW., K–3rd 

Floor/006, Washington, DC 20224, 

Email: kim.bloomquist@irs.gov 

FOR FURTHER INFORMATION CONTACT: 

Copies of the submission(s) may be 

obtained by calling (202) 927–5331, 

email at PRA@treasury.gov, or the entire 

information collection request maybe 

found at www.reginfo.gov. 

Internal Revenue Service 

OMB Number: 1545–XXXX. 

Type of Review: New Collection. 

Title: Pilot Test of Consumer Tipping 

Survey. 

Abstract: The IRS is charged with 

collecting revenue legally owed to the 

federal government. One important 

category of income comes in the form of 

tips. Previous empirical research has 

shown income from tips to be 

significantly underreported, limiting the 

IRS’s ability to collect the proper 

amount of tax revenue. The IRS believes 

a new study of consumer tipping 

practices is needed in order to better 

understand current tip reporting 

behavior so tax administrators and 

policy makers can make the tax system 

fairer and more efficient. Therefore, the 

IRS wishes to develop updated 

estimates of consumer tipping revenue 

across numerous services where tipping 

is prevalent. 

In support of this mission, IRS is 

seeking a standard clearance to conduct 

a one-month pilot test in preparation for 

a nation-wide consumer tipping survey. 

There exists a substantial difference in 

the cost per response between a 

probability and non-probability sample. 

Pilot tests are therefore necessary to 

determine the relative accuracy and 

selection bias of tipping data that are 

collected using these different sampling 

methodologies in order to determine if 

there is tradeoff between accuracy and 

cost. The results of the pilot will be 

used to determine the sampling method 

employed in a nation-wide survey. 

Affected Public: Individuals. 

Estimated Total Annual Burden 

Hours: 4,717. 

Robert Dahl, 

Treasury PRA Clearance Officer. 

[FR Doc. 2014–28214 Filed 11–28–14; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

Publication of the Tier 2 Tax Rates 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice. 

SUMMARY: Publication of the tier 2 tax 

rates for calendar year 2015 as required 

by section 3241(d) of the Internal 

Revenue Code (26 U.S.C. 3241). Tier 2 

taxes on railroad employees, employers, 

and employee representatives are one 

source of funding for benefits under the 

Railroad Retirement Act. 

DATES: The tier 2 tax rates for calendar 

year 2015 apply to compensation paid 

in calendar year 2015. 

FOR FURTHER INFORMATION CONTACT: 

Kathleen Edmondson, 

CC:TEGE:EOEG:ET1, Internal Revenue 

Service, 1111 Constitution Avenue NW., 

Washington, DC 20224, Telephone 

Number (202) 317–6798 (not a toll-free 

number). TIER 2 TAX RATES: The tier 

2 tax rate for 2015 under section 3201(b) 

on employees is 4.9 percent of 

compensation. The tier 2 tax rate for 

2015 under section 3221(b) on 

employers is 13.1 percent of 

compensation. The tier 2 tax rate for 

2015 under section 3211(b) on employee 

representatives is 13.1 percent of 

compensation. 

Dated: November 21, 2014. 

Victoria A. Judson, 

Division Counsel/Associate Chief Counsel 

(Tax Exempt and Government Entities). 

[FR Doc. 2014–28176 Filed 11–28–14; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF VETERANS 

AFFAIRS 

Loan Guaranty: Assistance to Eligible 

Individuals in Acquiring Specially 

Adapted Housing; Cost-ofConstruction Index 

AGENCY: Department of Veterans Affairs. 

ACTION: Notice. 

SUMMARY: The U.S. Department of 

Veterans Affairs (VA) announces that 

the aggregate amounts of assistance 

available under the Specially Adapted 

Housing (SAH) grant program will 

increase by 4.307 percent for Fiscal Year 

(FY) 2015. 

DATES: December 1, 2014 

FOR FURTHER INFORMATION CONTACT: John 

Bell, III, Assistant Director for Loan 

Policy and Valuation, Department of 

Veterans Affairs, 810 Vermont Avenue 

NW., Washington, DC 20420, (202) 632– 

8786 (not a toll-free number). 

SUPPLEMENTARY INFORMATION: In 

accordance with 38 U.S.C. 2102(e) and 

2102A(b)(2) and 38 CFR 36.4411, the 

Secretary of Veterans Affairs announces 

for FY 2015 the aggregate amounts of 

assistance available to veterans and 

servicemembers eligible for SAH 

program grants. 

Public Law 110–289, the Housing and 

Economic Recovery Act of 2008, 

authorized the Secretary to increase the 

aggregate amounts of SAH assistance 

annually based on a residential home 

cost-of-construction index. The 

Secretary uses the Turner Building Cost 

Index for this purpose. 

In the most recent quarter for which 

the Turner Building Cost Index is 

available, Quarter 2 FY 2014, the index 

showed an increase of 4.307 percent 

over the index value in Quarter 2 FY 

2013. Pursuant to 38 CFR 36.4411(a), 

therefore, the aggregate amounts of 

assistance for SAH grants made 

pursuant to 38 U.S.C. 2101(a) or 2101(b) 

will increase by 4.307 percent for FY 

2015. 

Public Law 112–154, the Honoring 

America’s Veterans and Caring for Camp 

Lejeune Families Act of 2012, required 

that the same percentage of increase 

apply to grants authorized pursuant to 

38 U.S.C. 2102A. See 38 U.S.C. 

2102A(b)(2). As such, the maximum 

amount of assistance available under 

these grants, which are called grants for 

Temporary Residence Adaptation (TRA 

grants), will also increase by 4.307 

percent for FY 2015. 

The increases are effective as of 

October 1, 2014. 

Specially Adapted Housing: Aggregate 

Amounts of Assistance Available 

During Fiscal Year 2015 

2101(a) Grants and TRA Grants 

Effective October 1, 2014, the 

aggregate amount of assistance available 

for SAH grants made pursuant to 38 

U.S.C. 2101(a) will be $70,465 during 

FY 2015. The maximum TRA grant 

made to an individual who satisfies the 

eligibility criteria under 38 U.S.C. 

2101(a) and 2102A will be $30,934 

during FY 2015. 

2101(b) Grants and TRA Grants 

Effective as of October 1, 2014, the 

aggregate amount of assistance available 

for SAH grants made pursuant to 38 

U.S.C. 2101(b) will be $14,093 during 

FY 2015. The maximum TRA grant 

made to an individual who satisfies the 

eligibility criteria under 38 U.S.C. 

2101(b) and 2102A will be $5,523 

during FY 2015. 

Signing Authority 

The Secretary of Veterans Affairs, or 

designee, approved this document and 

authorized the undersigned to sign and 

submit the document to the Office of the 

Federal Register for publication 

electronically as an official document of 
 

 APPENDIX K
 
NRRIT National Railroad Retirement Investment Trust 

1250 Eye Street, N.W., Suite 500, Washington, DC 20005-5930 

Phone: 202.589.0100 Fax: 202.589.0200 

February 1, 2014 

The Honorable Michael Schwartz 

Chair 

U.S. Railroad Retirement Board 

844 N. Rush Street 

Chicago, IL 60611 

The Honorable Jerome F. Kever 

Management Member 

U.S. Railroad Retirement Board 

844 N. Rush Street 

Chicago, IL 60611 

The Honorable Walter Barrows 

Labor Member 

U.S. Railroad Retirement Board 

844 N. Rush Street 

Chicago, IL 60611 

Re: 	 Board ofTrustees - Transition 

Dear Messrs. Schwartz, Kever and Barrows: 

On behalf ofthe Board ofTrustees ofthe National Railroad Retirement 

Investment Trust, I am writing to report the following developments: 

1. 	 The term ofMr. Richard G. Patsy as Trustee expired on January 31, 2014. 

2. 	 Mr. Joel Parker, Special Assistant to the President and International Vice 

President ofthe Transportation Communications International Union/IAM, has 

been appointed to serve a new term on the Board pursuant to Section 

15G)(3)(A)(ii)(I) ofthe Railroad Retirement Act of 1974 (the "Act'') as amended 

by Public Law 107-90, the Railroad Retirement and Survivors' Improvement Act 

of2001. Mr. Parker's new term commences on February 1, 2014 and will expire 

on January 31, 2017. In accepting his appointment, Mr. Parker has agreed to 

discharge his duties with respect to the assets ofthe Trust solely in the interests of 
the Railroad Retirement Board and, through it, the participants and beneficiaries 

ofthe programs funded under the Railroad Retirement Act. Enclosed for your 

reference is a copy ofthe Acceptance by Trustee by which Mr. Parker formally 

accepted his appointment to the Board. 

3. 	 Mr. William F. Quinn, chairman and founder ofAmerican Beacon Advisors, has 

been appointed to serve a new term on the Board pursuant to Section 

15G)(3)(A)(ii)(III) ofthe Railroad Retirement Act of 1974 (the "Act") as 

amended by Public Law 107-90, the Railroad Retirement and Survivors' 

Improvement Act of2001. Mr. Quinn's new term commences on February 1, 

2014 and will expire on January 31, 2017. In accepting his appointment, Mr. 

Quinn has agreed to discharge his duties with respect to the assets ofthe Trust 

solely in the interests ofthe Railroad Retirement Board and, through it, the 

participants and beneficiaries ofthe programs funded under the Railroad 

Retirement Act. Enclosed for your reference is a copy ofthe Acceptance by 

Trustee by which Mr. Quinn formally accepted his appointment to the Board. 

4. 	 Mr. C. Alec Vincent, Assistant Vice President Finance and Treasurer, Burlington 

Northern Santa Fe LLC, has been appointed to serve on the Board pursuant to 

Section 15G)(3)(A)(ii)(II) ofthe Railroad Retirement Act of 1974 (the "Act") as 

amended by Public Law 107-90, the Railroad Retirement and Survivors' 

Improvement Act of 2001. Mr. Vincent's term commences on February 1, 2014 

and will expire on January 31, 2017. In accepting his appointment, Mr. Vincent 

has agreed to discharge his duties with respect to the assets ofthe Trust solely in 

the interests ofthe Railroad Retirement Board and, through it, the participants and 

beneficiaries ofthe programs funded under the Railroad Retirement Act. 

Enclosed for your reference is a copy ofthe Acceptance by Trustee by which Mr. 

Vincent formally accepted his appointment to the Board. 

We look forward to continued cooperation with you in maintaining the strength of 

the railroad retirement system for the benefit of rail workers and their families, rail 

retirees, and the rail industry as a whole. 

~112r C. Alec Vincent 

Chair 

Enclosures 
ACCEPTANCE BY TRUSTEE 

OF THE NATIONAL RAILROAD RETIREMENT INVESTMENT TRUST 

The National Railroad Retirement Investment Trust (the "Trust") was established, 

effective February 1, 2002, pursuant to Section 15G) ofthe Railroad Retirement Act of 1974 (the 

"Act"), as most recently amended by Public Law 107-90, the Railroad Retirement and Survivors' 

Act of2001 (the "2001 Act"). Pursuant to the Act, a Board ofTrustees (the "Board") is to be 

established to assume fiduciary responsibility for the operation ofthe Trust. 

Pursuant to Section 15G)(3)(A)(ii) ofthe Act, the undersigned individual has been 

appointed as a trustee (the "Trustee") ofthe Trust, by either: (a) the joint recommendation of 

labor organizations, national in scope, organized in accordance with section 2 ofthe Railway 

Labor Act and representing at least 2/3 of all active employees represented by such national 

labor organizations covered under the Act; (b) carriers as defined in section 1 ofthe Railway 

Labor Act employing at least 2/3 of all active employees covered under the Act; or ( c) a majority 

ofthe other 6 members ofthe Board ofTrustees. 

The undersigned Trustee has reviewed Section 15G) ofthe Act as well as a copy ofthe 

Bylaws ofthe Trust. The Trustee understands the duties and responsibilities ofserving on the 

Board, including his :fiduciary obligations to the Trust. Specifically, under the Act, each Trustee 

is required to discharge his fiduciary duties solely in the interest ofthe Railroad Retirement 

Board, and through it, the participants and beneficiaries ofthe programs funded under the Act, (i) 

for the exclusive purpose ofproviding benefits to participants and beneficiaries and defraying 

reasonable plan expenses, (ii) with the care, skill, prudence and diligence under the 

circumstances then prevailing that a prudent person in a like capacity and familiar with such 

matters would use in the conduct of an enterprise of a like character and with like aims 

(including, by diversifying investments), and (iii) in accordance with the Trust's governing 

documents. 

In addition, the undersigned recognizes that the Act imposes conflict ofinterest 

restrictions intended to prevent the Trustees from (i) dealing with the assets ofthe Trust in their 

own interests, (ii) acting in any transaction involving the assets ofthe Trust on behalfof a party 

whose interests are adverse to the interests ofthe Trust, and (iii) receiving any consideration for 

their own personal account from any party dealing with the assets ofthe Trust. 

Understanding all ofthe foregoing duties and responsibilities ofthis position, the 

undersigned individual hereby agrees to serve as a Trustee ofthe Trust, effective February 1, 

2014. 

JoelP~0
ACCEPTANCE BY TRUSTEE 


OF THE NATIONAL RAILROAD RETIREMENT INVESTMENT TRUST 


The National Railroad Retirement Investment Trust (the "Trust") was established, 

effective February 1, 2002, pursuant to Section 150) ofthe Railroad Retirement Act of 1974 (the 

"Act"), as most recently amended by Public Law 107-90, the Railroad Retirement and Survivors' 

Act of2001 (the "2001 Act"). Pursuant to the Act, a Board ofTrustees (the "Board") is to be 

established to assume fiduciary responsibility for the operation ofthe Trust. 

Pursuant to Section 15G)(3)(A)(ii) ofthe Act, the undersigned individual has been 

appointed as a trustee (the "Trustee") ofthe Trust, by either: (a) the joint recommendation of 

labor organizations, national in scope, organized in accordance with section 2 ofthe Railway 

Labor Act and representing at least 2/3 of all active employees represented by such national 

labor organizations covered under the Act; (b) carriers as defined in section 1 ofthe Railway 

Labor Act employing at least 2/3 of all active employees covered under the Act; or ( c) a majority 

ofthe other 6 members ofthe Board of Trustees. 

The undersigned Trustee has reviewed Section 150) ofthe Act as well as a copy ofthe 

Bylaws ofthe Trust. The Trustee understands the duties and responsibilities ofserving on the 

Board, including his fiduciary obligations to the Trust. Specifically, under the Act, each Trustee 

is required to discharge his fiduciary duties solely in the interest ofthe Railroad Retirement 

Board, and through it, the participants and beneficiaries ofthe programs funded under the Act, (i) 

for the exclusive purpose ofproviding benefits to participants and beneficiaries and defraying 

reasonable plan expenses, (ii) with the care, skill, prudence and diligence under the 

circumstances then prevailing that a prudent person in a like capacity and familiar with such 

matters would use in the conduct of an enterprise of a like character and with like aims 

(including, by diversifying investments), and (iii) in accordance with the Trust's governing 

documents. 

In addition, the undersigned recognizes that the Act imposes conflict ofinterest 

restrictions intended to prevent the Trustees from (i) dealing with the assets ofthe Trust in their 

own interests, (ii) acting in any transaction involving the assets ofthe Trust on behalfof a party 

whose interests are adverse to the interests ofthe Trust, and (iii) receiving any consideration for 

their own personal account from any party dealing with the assets ofthe Trust. 

Understanding all ofthe foregoing duties and responsibilities ofthis position, the 

undersigned individual hereby agrees to serve as a Trustee ofthe Trust, effective February 1, 

2014. 

/~ 
ACCEPTANCE BY TRUSTEE 

OF THE NATIONAL RAILROAD RETIREMENT INVESTMENT TRUST 

The National Railroad Retirement Investment Trust (the "Trust") was established, 

effective February 1, 2002, pursuant to Section 15(j) ofthe Railroad Retirement Act of 1974 (the 

"Act"), as most recently amended by Public Law 107-90, the Railroad Retirement and Survivors' 

Act of2001 (the "2001 Act"). Pursuant to the Act, a Board ofTrustees (the "Board") is to be 

established to assume fiduciary responsibility for the operation ofthe Trust. 

Pursuant to Section 15G)(3)(A)(ii) ofthe Act, the undersigned individual has been 

appointed as a trustee (the "Trustee") ofthe Trust, by either: (a) the joint recommendation of 

labor organizations, national in scope, organized in accordance with section 2 ofthe Railway 

Labor Act and representing at least 2/3 of all active employees represented by such national 

labor organizations covered under the Act; (b) carriers as defined in section 1 ofthe Railway 

Labor Act employing at least 2/3 of all active employees covered under the Act; or ( c) a majority 

ofthe other 6 members ofthe Board ofTrustees. 

The undersigned Trustee has reviewed Section 150) ofthe Act as well as a copy ofthe 

Bylaws ofthe Trust. The Trustee understands the duties and responsibilities ofserving on the 

Board, including his fiduciary obligations to the Trust. Specifically, under the Act, each Trustee 

is required to discharge his fiduciary duties solely in the interest ofthe Railroad Retirement 

Board, and through it, the participants and beneficiaries ofthe programs funded under the Act, (i) 

for the exclusive purpose ofproviding benefits to participants and beneficiaries and defraying 

reasonable plan expenses, (ii) with the care, skill, prudence and diligence under the 

circumstances then prevailing that a prudent person in a like capacity and familiar with such 

matters would use in the conduct of an enterprise of a like character and with like aims 

(including, by diversifying investments), and (iii) in accordance with the Trust's governing 

documents. 

In addition, the undersigned recognizes that the Act imposes conflict ofinterest 

restrictions intended to prevent the Trustees from (i) dealing with the assets ofthe Trust in their 

own interests, (ii) acting in any transaction involving the assets ofthe Trust on behalf of a party 

whose interests are adverse to the interests ofthe Trust, and (iii) receiving any consideration for 

their own personal account from any party dealing with the assets ofthe Trust. 

Understanding all ofthe foregoing duties and responsibilities ofthis position, the 

undersigned individual hereby agrees to serve as a Trustee ofthe Trust, effective February 1, 

:o~tlt;;J' 
 

 APPENDIX L
 
NATIONAL RAILROAD RETIREMENT INVESTMENT TRUST 

BOARD OF TRUSTEES 

FEBRUARY 1, 2014 TO JANUARY 31, 2015 

BIOGRAPHICAL INFORMATION 

CHAIR: Alec Vincent is Assistant Vice President Tax of BNSF Railway, with 23 years 

of experience in rail industry financial management positions. His current areas of 

responsibilities include various tax functional areas including federal income tax 

compliance, state income tax compliance, and state and local sales, use and excise 

taxes. In addition, Alec leads the Finance budget teams responsible for supporting the 

company’s Positive Train Control project and BNSF’s capital expansion projects. Prior to 

assuming his tax related roles in 2014, Alec was Treasurer heading up BNSF’s treasury 

function with responsibility for the execution of capital market transactions, corporate 

liquidity management, interest rate derivative hedging, equipment financing, developing 

cash management solutions, and compliance oversight of the company’s benefit plan 

investments. He is a graduate of both the University of Kansas and Washburn 

University and holds a Master's in Business Administration. Mr. Vincent has served on 

the Board since February 1, 2010. 

George J. Francisco, Jr. currently serves as President Emeritus of the National 

Conference of Firemen & Oilers, SEIU (NCFO). Previously, he served as President of 

the NCFO, from January 1998 until his retirement on December 31, 2010. As NCFO 

President, he had extensive experience serving as a trustee of a number of union 

pensions, 401(k) and health and welfare funds, including the Affiliates’ Officers and 

Employees Pension and the Supplemental Retirement Savings (401(k)) plans of the 1.5 

million-member SEIU, as well as the Firemen and Oilers National Pension and Welfare 

Plan. During his more than 35 years with NCFO, Mr. Francisco also served as the 

Conference Vice President, before becoming Conference Secretary-Treasurer in 1996. 
He also recently served as Vice President of Local 32BJ, SEIU, representing more than 

120,000 members. Mr. Francisco holds a BS degree from the University of Dubuque. 

He has served on the Board since February 1, 2002. 

James A. Hixon is Executive Vice President Law and Corporate Relations of Norfolk 

Southern Corporation. Prior to assuming this position, he was Executive Vice President 

Finance and Public Affairs of the Corporation. Mr. Hixon is an attorney with a master of 

laws degree in taxation. His undergraduate major was in business administration and 

finance. He has 35 years of professional experience, first in the private practice of law, 

and for the past 30 years, in senior finance and administration positions at Norfolk 

Southern. In addition to his structuring and compliance responsibilities for railroad 

retirement at Norfolk Southern, Mr. Hixon is one of three members of the Norfolk 

Southern Benefits Investment Committee with fiduciary responsibility for the 

Corporation’s $2 billion-plus private pension plan and selecting the investment options 

for the Corporation’s respective section 401(k) plans. Previously, Mr. Hixon was one of 

four members of the Conrail Pension Fund Investment Committee from 1998 to 2006, 

with fiduciary responsibility for Pension Trust assets of $575 million. Further, he has 

served as Board Member of the Board of Visitors of Old Dominion University from July 

2002 to June 2010, and served as Rector from September 2004 to September 2006. 

Mr. Hixon was one of the primary negotiators of the labor-management agreement 

signed in January 2000 that led to the passage of the Railroad Retirement and 

Survivors’ Improvement Act of 2001. Mr. Hixon has served on the Board for four 

separate terms since the Trust’s inception on February 1, 2002. 

Mary S. Jones is Vice President and Treasurer of Union Pacific Corporation. In her 

position, Ms. Jones is responsible for corporate finance, investor relations, insurance, 

banking and cash management, and oversight of the company’s benefit plan 

investments. Ms. Jones joined Union Pacific Corporation in New York in 1980 as a 

Strategic Planning Associate. In 1982, she transferred to Union Pacific Resources in 

Denver, where she held various positions in financial management and analysis. She 

2 
returned to Union Pacific Corporation in 1988, joining the controller’s department as 

Manager – Planning and Analysis, for trucking transportation. She became Assistant 

Vice President, Investor Relations in 1994, and was actively involved in the restructuring 

of the holding company. In 1998 she was promoted to Vice President – Investor 

Relations, the position she held before her promotion to Vice President and Treasurer. 

She is a graduate of both Columbia University and Carleton College and holds a 

master's degree in Finance and Marketing. Ms. Jones has served on the Board since 

June 1, 2010. 

Joel Parker is Special Assistant to the President and International Vice President of the 

Transportation Communications International Union (TCU)/IAM. He was elected to the 

International Vice President position in 1991, and reelected in 1995, 1999, 2004, 2009, 

and 2014. The Transportation Communications International Union is one of the oldest, 

largest, and most diversified unions in the transportation industry, tracing its 

representation of railroad workers back to 1899. Today, the union represents 46,000 

active railroad workers and 13,000 retirees that are covered by the railroad retirement 

program. In 2005, TCU merged with the International Association of Machinists, which 

has approximately 700,000 active and retired members. Mr. Parker, who has 40 years 

of experience within the railroad industry, has been active in union leadership for 36 

years of this period. At the TCU, Mr. Parker has primary responsibility for collective 

bargaining, arbitration, and pension issues. In addition, Mr. Parker serves as Trustee 

for the TCU 401(k) Plan, and previously served as Trustee for the Los Angeles County 

MTA pension plan and the Los Angeles County TCU Health and Welfare Plan. Mr. 

Parker was one of the primary negotiators in the labor-management agreement signed 

in January 2000 that led to the passage of the Railroad Retirement and Survivors’ 

Improvement Act of 2001. Mr. Parker has served on the Board since February 1, 2002. 

William F. Quinn is the chairman and founder of American Beacon Advisors, a $56 

billion investment management firm responsible for managing the American Airlines 

pension funds as well as assets from external clients including the American Beacon 

3 
 

mutual funds. He has been with the firm and its predecessors, which was wholly 

owned by AMR Corporation until 2008, since 1974. Mr. Quinn has served on several 

investment committees for non-profit endowments and has been a leader within the 

corporate pension community serving on several industry groups. He also has served 

on the board of directors of three public companies. He is a graduate of Fordham 

University and became a certified public accountant while working at Arthur Young & 

Co. Mr. Quinn has served on the Board since February 1, 2011. 

William C. Walpert is National Secretary-Treasurer Emeritus of the Brotherhood of 

Locomotive Engineers and Trainmen (BLET), a Division of the Rail Conference of the 

International Brotherhood of Teamsters. As the BLET’s National Secretary-Treasurer 

prior to January 1, 2015, he was in custody of all funds of the BLET and had supervision 

over the financial and record department personnel of the BLET. Since 2001, Mr. 

Walpert has served as a trustee for the BLET defined benefit retirement plan serving 

National Division employees; the Brotherhood of Locomotive Engineers’ (BLE) 401(k) 

retirement plan, a deferred compensation plan serving National Division and General 

Committee employees; and the BLE’s non-qualified deferred compensation plan serving 

National Division employees. Since 2004, he has served as Secretary of the BLET 

Disability and Welfare Benefit Trust Fund Administrative Trust. Previously, as General 

Secretary-Treasurer of the BLE, Mr. Walpert was in charge of the BLE Finance 

Committee that helped merge the BLE with the International Brotherhood of Teamsters. 

He first began working in the rail industry in 1973, and holds bachelors and masters 

degrees from Missouri State University. Mr. Walpert has served on the Board since 

October 19, 2011. 

4 
 


 


 

NATIONAL RAILROAD RETIREMENT INVESTMENT TRUST
 

BIOGRAPHICAL INFORMATION
 

INVESTMENT STAFF AS OF SEPTEMBER 30, 2014 

Senior Staff 

Catherine A. Lynch was named the Chief Executive Officer/Chief Investment Officer 

on January 29, 2008. From February 1, 2003 to that date, Ms. Lynch served as the 

Trust’s Senior Investment Officer. She joined the Trust from the George Washington 

University, where she was responsible for the University’s approximately $650 million 

endowment, increasing its policy allocation to alternative investments from 5% to 30%; 

she also handled a total of approximately $560 million in debt issuance for the 

University. From 1995 through 1999, she served as Assistant Treasurer of the 

Episcopal Church of America, brought in as part of a new financial management team to 

overhaul financial operations and oversee approximately $325 million in endowment 

and charitable trust funds. Prior to that, she was an equity analyst on both the buy side 

and the sell side. Ms. Lynch served on the Board of Regents of the CFA Institute’s 

Financial Analysts Seminar from 2009-2012. She has been a member of the New York 

State Common Retirement Fund’s Investment Advisory Committee since 2013 and was 

recently appointed as its Chair. She earned the CFA designation in 1986, and holds an 

undergraduate degree in philosophy from Yale University. 

Grace A. Ressler has served the Trust as its Senior Operating Officer since October 1, 

2002. Ms. Ressler has more than 30 years of treasury and investment management 

experience, including 13 years at Amtrak, where she served as Senior Director of 

Treasury Operations. In this capacity, Ms. Ressler was responsible for corporate 

treasury operations, including investment of corporate funds and oversight of the 

Amtrak defined benefit plan. Prior to joining Amtrak, Ms. Ressler was the Vice 

President and Treasurer of the J. C. Penney Financial Corporation, where she managed 

the direct-issue commercial paper program for the company. Ms. Ressler holds the 

5 
Certified Treasury Professional (CTP) designation; she obtained an undergraduate 

degree from West Chester University and an MBA from the Baruch College of the City 

University of New York. 

David J. Locke On January 29, 2008, Mr. Locke was named Senior Managing Director 

– Investments. He joined the Trust on August 4, 2003 as Director of Private Equity, 

and was named Managing Director of Global Private Markets on October 1, 2006. Mr. 

Locke has more than 25 years of experience in financial analysis, including thirteen 

years of experience in private equity investments. Prior to joining the Trust, Mr. Locke 

was a Principal with Prudential Investment Management, where he was responsible for 

Prudential’s private equity fund-of-funds investment team, handling the identification, 

selection and monitoring of fund investments. Previously, Mr. Locke was the Senior 

Investment Officer for Alternative Assets at the Los Angeles County Employees 

Retirement Association (LACERA) from 1993 until 2000; in that capacity he was 

responsible for LACERA’s private equity investment program. Mr. Locke holds a BS 

degree in finance from California State University and an MBA with honors from the 

University of Southern California. 

Neil E. Kotras has served as the Trust’s Senior Accounting Officer since April 25, 2006. 

Prior to joining the Trust, Mr. Kotras worked as Assistant Vice President as a member of 

the Investment Treasury group at T. Rowe Price Associates, where he was responsible 

for compliance, financial reporting and accounting policy for the firm’s mutual fund 

products. Also in this capacity, Mr. Kotras had oversight of the firm’s Financial 

Reporting Department. Previously, he was a manager in the audit practice of 

PricewaterhouseCoopers LLP (formerly Coopers & Lybrand LLP), where he was 

responsible for several large asset management engagements in the Baltimore/ 

Washington DC Metro area. Mr. Kotras is a Certified Public Accountant. Neil holds an 

undergraduate degree in accounting and economics from the Sellinger School of 

Business at Loyola University Maryland, and an MBA in finance from the Robert H. 

Smith School of Business at the University of Maryland. 

6 
 

Other Staff Members (in alphabetical order) 

Annita Biondo joined the Trust on October 1, 2007 as Financial Analyst – Operations 

and Accounting, and on October 1, 2012 she was named Senior Financial Analyst. Prior 

to joining the Trust, Ms. Biondo was a Tax Accountant for RSM McGladrey. Previously, 

she worked at General Motors and other corporations in finance and human resources. 

She received a BA degree from Indiana University of Pennsylvania and an MBA from 

Marymount University. 

Rhett Butler joined the Trust on March 3, 2014 as an Investment Analyst for Absolute 

Return Investments. Prior to joining the Trust, Mr. Butler worked at T. Rowe Price 

Associates where he was responsible for analyzing target date and target risk asset 

allocation portfolios for portfolio managers and investment analysts. Mr. Butler earned 

a BA in economics from University of Maryland Baltimore County and is a CFA 

charterholder. 

William J. Carr, III On May 3, 2010, Mr. Carr joined the Trust as Director of US 

Equity. Prior to joining the Trust, Mr. Carr was Senior Investment Analyst at the District 

of Columbia Retirement Board for more than eight years where he covered multiple 

asset classes and advised the Board on numerous issues, including asset allocation and 

manager selection. Previously, Mr. Carr was Vice President and Portfolio Manager for 

an emerging markets private equity fund manager for over five years. Mr. Carr served 

as a Peace Corps Volunteer in Poland as an economic advisor from 1994 to 1996. Mr. 

Carr’s other prior work experience includes corporate attorney for Miller, Nash, Wiener, 

Hager, & Carlsen, and auditor for Touche Ross. Mr. Carr earned the CFA designation in 

2001. Mr. Carr holds a BBA degree in accounting from Millsaps College and a JD 

degree from the University of Virginia School of Law. 

7 
Xiaolu “Claire” Cui joined the Trust on February 16, 2014 as Investment Analyst for 

Public Markets, initially focusing on US Equity. Prior to joining the Trust, she was a 

financial engineer at Fannie Mae where she was responsible for analyzing financial 

models used in the securitization of mortgage-backed securities. Previously, she 

worked at the Carlyle Group and at Ernst & Young. Ms. Cui holds a BS degree from the 

McIntire School of Commerce at the University of Virginia and is a CFA charterholder. 

Liz Fisher was named as Director of Fixed Income on April 1, 2014. She joined the 

trust as Senior Investment Analyst – Real Assets on December 3, 2007 and transitioned 

to the public markets team in 2013. Prior to joining the Trust, Ms. Fisher was a Senior 

Investment Analyst with the State Retirement and Pension System of Maryland, where 

she was responsible for oversight of the System’s fixed income and real estate 

managers. In addition, from 1993 to 2005, she worked for Legg Mason Wood Walker, 

Inc., with the majority of her tenure as a credit analyst and strategist in the Fixed 

Income Capital Markets group. Ms. Fisher is a CFA charterholder and earned a BS 

degree in business at the University of Maryland. 

Cynthia Gibbs joined the Trust on May 1, 2008 as Office Manager. Prior to joining the 

Trust, Ms. Gibbs worked for more than twenty years in the health care industry in south 

Florida and Ohio, most recently as Coordinator of Leadership Development and Career 

Resources for a large healthcare provider in northeast Ohio. Ms. Gibbs earned a BA in 

communications from Florida Atlantic University. 

J. Lodge Gillespie Jr joined the Trust on September 1, 2014 and serves as Director of 

Real Assets. Prior to joining the Trust, Mr. Gillespie was a Managing Director of Private 

Investments at The Investment Fund for Foundations (TIFF), where he managed a 

$725 million portfolio of private real estate and natural resource investments on behalf 

of TIFF’s non-profit foundation and endowment members. Mr. Gillespie previously 

spent three years with Standard & Poor’s. He earned his CFA designation in 2001. Mr. 

8 
 

Gillespie received an AB degree from Colgate University and an MA degree from the 

University of Virginia. 

Barry Kaplan is the Director of Absolute Return Investments. On April 2, 2007, Mr. 

Kaplan joined the Trust as a Senior Investment Analyst. Prior to joining the Trust, he 

worked for Nuveen Investments, where he was involved in the development and 

execution of product strategies in support of their closed-end fund business. 

Additionally, Mr. Kaplan worked as an Associate for Duff & Phelps, performing business 

and asset valuations. Preceding this role, he completed the Financial Leadership 

Program at AT&T, working in various business units including business development 

and mergers and acquisitions. He received an undergraduate degree from the 

University of Maryland and an MBA from the Kellogg School of Management at 

Northwestern University. Mr. Kaplan is a CFA charterholder. 

Courtney C. Macdonald is a Senior Investment Analyst of Private Equity. On March 

16, 2010, Ms. Macdonald joined the Trust as an Investment Analyst, focused on Private 

Markets. Prior to joining the Trust, she was a Senior Associate in the Investment 

Consulting Group at Cambridge Associates, working with endowments and foundations 

on asset allocation and manager selection. Ms. Macdonald received a BA in economics 

from Johns Hopkins University in 2005 and is a CFA charterholder. 

Maureen McCarthy joined the Trust on October 1, 2006 and currently serves as 

Director of Operations. Prior to joining the Trust, Ms. McCarthy worked at the ICMA 

Retirement Corporation, where she managed the pricing, trading and portfolio 

accounting functions. Ms. McCarthy earned a BS degree from Regis University. 

Kevin McCormack joined the Trust on December 10, 2007, as Director of Risk 

Management and was named as Director of Non-US Equity in September of 2008. Mr. 

McCormack has over 20 years of investment management experience. Prior to joining 

the Trust, he worked for BellSouth Corp. for ten years as Associate Director of 

9 
 

 

Investments in the Trust Asset Management Group. Before joining BellSouth, he was 

at the Southern Company as Manager of Trust Finance and Investments. Mr. 

McCormack holds a BS degree with a concentration in finance from the University of 

Albany and an MBA degree from Emory University. Mr. McCormack is a CFA 

charterholder. 

Erik A. Murad On July 1, 2012, the Trust hired Erik Murad to serve as an Investment 

Analyst for Public Markets. Prior to joining the Trust, Mr. Murad worked as an Equity 

Analyst for the Mayer Fund while pursuing his graduate degree at the University of 

Maryland. Previously, he worked as a Financial Analyst for Oberthur Technologies. Mr. 

Murad received a BA degree in economics from the University of Virginia in 2008 and an 

MBA degree from the University of Maryland’s Smith School of Business in 2012. 

Michael A. Reeves joined the Trust on September 1, 2004 as Senior Investment 

Advisor of Private Equity. On October 1, 2006, Mr. Reeves was named Director of 

Private Markets. Mr. Reeves joined the Trust from FleetBoston Financial Company 

where he was an Associate overseeing the bank’s private equity investments. 

Previously, he had worked with the State Street Corporation and other entities in the 

analysis and monitoring of private equity investments. Mr. Reeves earned a BS degree 

in finance from Western New England College and an MBA from the University of San 

Francisco. 

David Toms On May 16, 2011, the Trust hired David Toms to serve as Investment 

Analyst for Public Markets, initially focusing on Non-US Equity and Currency Overlay. 

Prior to joining the Trust, Mr. Toms worked at Freddie Mac analyzing credit investment 

risk and opportunity as a Senior Financial Analyst within the Multifamily Capital Markets 

group. Previously, he worked for the City of Lynchburg in their Economic Development 

office. Mr. Toms holds a BBA in finance with a minor in economics from the James 

Madison University College of Business. Mr. Toms is a CFA Charterholder. Currently, 

Mr. Toms is pursuing an MBA degree at Georgetown University. 

10 
Dennis Wei joined the Trust on July 15, 2013 as Investment Analyst for Global Real 

Assets. Prior to joining the Trust, Mr. Wei worked as an Analyst for the Tufts University 

Investment Office where he was responsible for endowment investments in Absolute 

Return, Private Equity, and Real Assets. Mr. Wei received a BA in economics from Tufts 

University in 2010. 

11 
National R 

NR 

Railroad Re Investment Trust 

RRIT 

Retirement 

T 

2001 K Street, N.W. 


Suite 1100 


Washington, DC 20006