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) CHIEF INVESTMENT OFFICER, SENIOR OPERATING OFFICER AND SENIOR 

 ACCOUNTING OFFICER CERTIFICATION LETTERS

H) RAILROAD RETIREMENT BOARD CERTIFICATION LETTER TO TREASURY AND 

 TREASURY FEDERAL REGISTER NOTICE ON 2012 TAX RATE 

I) NOTICE TO THE RAILROAD RETIREMENT BOARD AND ACCEPTANCE OF NEW TRUSTEES 

J) 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 of The Railroad 

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

the assets of the Trust. Section 1 05( 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 of the 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 of the Act, applicable laws 

of the District of Columbia and these Bylaws, the activities and affairs of the Trust shall 

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

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

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

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

prejudice to the aforementioned general powers, but subj ect 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 of debt 

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

furtherance of the purposes of the 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 of Section 1 05(a) of the 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 of the Act, applicable 

laws of the 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 l05(a) of the 

Act, a vacancy in the Board shall not affect the power of the 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 of the 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 of unsound mind by a final order of court, 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 of the Board shall be held at any 

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

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

principal office of the 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 of the 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 of the 

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 of the Board shall be 

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

Section 9. Special Meetings. Special meetings of the 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 l05(a) of the Act, five (5) 

Trustees constitute a quorum of the Board for the transaction of business. 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 of the Board shall be decided by 

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

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

quorum is present shall be regarded as an act of the Board. 

Section 11. Participation in Meetings Via Telephone or Video 

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

participate in meetings of the Board via telephone or video conference. 

Section 12. Adjournment. A majority of the 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 ofthe 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 of the Board and shall be filed with the minutes of the proceedings 

of the 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 of two or more Trustees. 

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

such committees any of the authority of the 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 of the Board or the members thereof; 

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

(e) Adopt an agreement of merger 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 of the 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 shall be 

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

of the 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 

Trust 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 of such 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 detennine. 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 are made. 

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

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

and maintained at the principal office of the 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 of the 

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

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

duly authorized delegate of the Board may vote, represent, and exercise on behalf of 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 instruments for such deposits; and (ii) sign or countersign 

8 
checks, drafts, or other orders for the payment of money issued in the name of the Trust 

against any funds deposited into any such accounts. 

ARTICLE V 

Indemnification 

The Trust shall 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 of the 

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 Trust 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 the Trust in advance of the final disposition of such action, suit or proceeding upon 

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

amounts, together with interest thereon, if it 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 of Trustees 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 of the District of Columbia not inconsistent with the Act shall 

govern the construction of these Bylaws. 

10 
 

 APPENDIX B

 







 

 APPENDIX C

 
MEMORANDUM OF UNDERSTANDING 

Budgetary, Accounting and Financial Reporting Responsibilities 

Respecting Asset\' 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 of the 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 of the 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 

of Title 31 of the 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 

of the 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 

60X811~.1 

60X8118.2 

60X8118.3 

60X8118.4 

National Railroad Retirement Investment Trust 

Gains and losses on non-Federal securities, National Railrmid 

Retirement Investment Trust 

Earnings on investments in Federal securities, National Railroad 

Retirement Investment Trust 

Interest and dividends on non-Federal securities, National Railroad 

Retirement Investment Trust 

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 

60X8118.6 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 of this 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 60X8118) in FMS' s central accounting and 

financial reporting system. Using this new account number, Treasury's Bureau of the 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) of the 

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 of the 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 of the 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 of the 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 (60X8118.1); 

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

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

• Payment from the Railroad Retirement Account (60X8118.4); 

• Payment from the Social Security Equivalent Benefit Account (60X8118. 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 of Understanding, 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 of six months (September 2002 thraugh 

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

changes to. the dates and amaunts af the expected transfers. If it is determined that the transfers 

will extend beyond the initial six-manth schedule, RRB shall pravide a revised schedule to. caver 

periads nat included on the ariginal schedule (i.e. beyond February 2003) as so. on as it is known 

that transfers will extend beyond this period. 

If the need arises far RRB to make transfers fram the Investment Trust to. the RRA to 

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

be transferred between the Investment Trust and the RRA. 

These updates to. the initial schedule af cash transfers and notices af transfers fram the 

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

updated schedules and natices shall be delivered in writing to.: 

David J. Manroe 

Director, Office af Cash and Debt Managemel1t 

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 of less 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/tfmlvoll/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.rn. (Eastern Time) in 

writing to: 

Susan Chapman 

Director, Division of Federal Investments 

Office of Public Debt Accounting 

Bureau of the Public Debt 

P.O. Box 1328 

Parkersburg, WV 26106 

Phone Number (304) 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 of the 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) of the Act requires the Investment Trust to submit an annual 

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

fiscal year, and to provide a copy of the 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 of the Railroad 

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

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

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

reporting requirements to handle the complexity added by the use of the 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 RItA, 

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 

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

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

are reported as of the end of the 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 of those accounts and as offsetting receipts of the Investment Trust account. 

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

Investment Trust account and as offsetting receipts of the 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 of the 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 of non-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) of Federal securities; 

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

• Total sales (at par) of Federal 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)l,.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 of the Treasury securities is provided in the Treasury Financial 

Manual, Volume 1, Part 2, Chapter 4300 (http://www.fms.treas.gov/tfmlvoll/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/ussg!.) 

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

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

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

I 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 (60X8118) 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 of Transactions (Form 1220) by the fifth workday 

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

(Additional guIdance to Federal agencies on financial reporting is provided in the Treasury 

Financial Manual, Volume 1, Part 2. (http://www.fms.treas.gov/tfmJvoll/v1p2c100.htm1.).) 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 nonFederal 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) theInvestment 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 amouht 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 of the 

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

provided on a monthly basis is a responsibility of the 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/ussgllfactsiilindex.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 60X81I8 which will 

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

8.0 Revision of Reporting Requirements 

If necessary, 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-II. 

Attachments 
9.0 Signatures 

Railroad Retirement Board 

Steven A. Bartholow 

General Counsel/Senior Executive Officer 

National Railroad Retirement 

Investment Trust 

Signature 

Enos T. Throop, If. 

Chief Investment Officer 

o~ VI Loo L 

Date 

Department of the Treasury 

~JbJ Signature 

Donald V. Hammond 

/0 . :~mt SecreWy 

Od--

ate 

Office of Management and Budget 

Richard P. Emery, Jr. 

Assistant Director for Budget Review 

I 0 l!l ~ b_OOL- na=tFi 
Attachment A 

Cash Transfer to the National Railroad Retirement Investment Trust 

Procedures 

Ob.jective I RRB / Trust Action 

Initial Transfer 

of Excess 

Balances (Cash) 

from RRB 

Accounts to 

Trust 

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 

EquivalentBenefit Account (60X801O) 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 o/transfers 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 

InvestmentJRedemption Form) 

RRB instructs FMS to move cash balance from 

60X8011, 60X80IO 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 

of Treasury. 

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 Treasll!Y. 

I Treasury Action 

Treasury (OF AS - OCDM) identifies need 

for requested amoUnt of cash and plans to 

have funds available. 

Depending on size of transfer, Treasury may 

be able to make transfers of cash without the 

full30-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 RRB will identify amount of funds to move to the 

transfers of Investment Trust. 

funds to the 

Investment Funds shall be transferred in accordance with the 

Trust notification timeframes outlined in Section 6.1.2. 

Notifzcation 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@)ins. treas. gov 

If funds are invested in short term, par-value- BPD liquidates securities. Increases cash 

Treasury securities, RRB instructs BPD to balance of investment accounts. 

liquidate securities held in accounts 60XgO 11, or 

80X8010 by sending redemption instruction to 

BPD designating specific securities to liquidate. 

(Standard procedures, using Request for 

InvestmentiRedemption Form) 

RRB instructs FMS to move a cash amount from FMS will effect the transfer of the funds to 

the 60X8011 and/or 60X8010 account(s) to the Trust's account at its designated 

designated account of the Trust financial institution. (The transfer will most 

likely occur e1ectroniciilly, either by 

RRB certifying officer will use the Electronic automated clearinghouse credit, or wire 

Certification System or complete a hardcopy SF transfer at the option ofRRB.) 

1166 and send it to FMS Regional Financial 

Center, to move money to Trust account outside 

of TreasllI)'. 

RRB will report the outlay of funds from 

accounts 60X801O, 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. 
Attachment B 

Securities Transfer to the National Railroad Retirement Investment Trust 

(Including the Transfer of the Proceeds of Redeemed 

Securities held by the Investment Trust) 

Procedures 

Ob.jective I RRB I Trust Action 1 Treasury Action 

Transfer of RRB identifies specific securities to transfer to BPD changes the ownership of the 

Currently-held the Trust ownership. (In writing to BPDusing securities, by changing the account in 

Securities from 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, 60X8118. No 

(Notification should be provided, in writing,. to:) transaction activity (redemption or 

Susan Chapman irivestment) occurs. 

Director, Division of Federal Investments 

Office of Public Debt Accounting 

Bureau of the Public Debt 

P.O. Box 1328 

Parkersburg, WV 26106 

Phone Number (304) 480-5111 

Fax Number (304) 480-5112 

Trust must establish a designated coutact for new 

account. Completes Fund Information Form 

and submits it to BPO at the above address. 

RRB must report the transfer of securities from ., 

60X8011 to 60X8118 to FMS via the monthly 

account transaction reporting (SF 224). 

Redemption of Trust completes Request for BPD liquidates designated securities and 

Securities held InvestmentiRedemption Form identifying increases cash balance in Investment 

by the Trust at security to be redeemed and submits it to BPD. Account (60X81 18). 

BPD 

Transfer of the Trust requests that RRB instructs FMS to move FMS will effect the transfer of the funds to 

Proceeds (Cash) cash balance from 60X8118 account to Trust the Trust account at its designated financial 

ofa institution. (The transfer will most likely 

Redemption to Funds shall be transferred in accordance with the occur electronically, either by automated 

the Trust notification time:frames outlined in Section 6.1.2. 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 

Fax Number: 202-874-9945 

Or: 202-874-9984 

Telephone: 202-874-9790 
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 

Treasury. 
1. 

2. 

3. 

4. 

5. 

Railroaq Investment Trust 

Accounting for Transactions" 

Funqs 60X8010, 60XB011, 60X8012 and 6OX8118 

Transaction 

Antici(!ated A(!(!ro(!riation 

Proprietary 

Budgetary ." 

AQQortionment 

Proprietary 

Budgetary 

Tax Receiets 

Proprietary 

Budgetary 

AQQortionment and Allotment 

Proprietary 

Budgetary 

Transfer Funds to RIT • Proprietary 

Budgetary 

USSGL 

None 

4120 Appropriations Anticipated - Indefinite 

4450 Unapportioned Authority 

None 

4450 Unapportioned Authority 

4590 Apportionments Unavailable - Anticipated Resources 

1010 Fund Balance With Treasury 

5800 Tax Revenue Collected 

4114 Appropriated Trust or Special Fund Receipts 

4120 Appropriations Anticipated - Indefinite 

None 

4590 Apportionments Unavailable - Anticipated Resources 

4510 Apportionments 

4510 Apportionments 

4610 Allotments - Realized Resources 

5760 Expenditure Financing Sources - Transfers Out 

1010 Fund Balance With Treasury 

1130 Funds Held by the Public 

5750 Expenditure Financing Sources - Transfers In 

4610 Allotments - Realized Resources 

4902 Delivered Orders - Obligations, Paid 

4114 Appropriated Trust or Special Fund Receipts 

4620 Unobligated Fu"nds Not Subject to Apportionment 

Attachment C 

60X8010, 60X8011 , 

60X8012 60X8118 

RRB NRRIT 

SF 224 Debit Credit Debit Credit 

None 

100 

100 

None 

100 

100 

60X8010.2 100 

60X8011.2 100 

(Reported) 

by Treasury) 100 

100 

None 

100 

100 

100 

100 

85 

(09)60X8010 85 

(09)60X8011 

(09)60X8012 

(41)60X8118 85 

60X8118.5 85 

60X8118.4 

60X8118.6 

. 85 

85 

85 

85 
6. 

7. 

8. 

9. 

10. 

11. 

Railroad Investment Trust 

Accounting for Transactions 

Funds 60X8010. 60X8011. 60X8012 and 60X8118 

Transaction 

Purchases of Treasua: Securities at Pa.-2 

Proprietary 

Budgetary 

Sale of Treasua: Securities at Pa.-2 

Proprietary 

Budgetary 

Earnings on Federal Securities 

PrQprietary -

Budgetary 

Purchase of Federal Agencll Securities at Pa.-2 

Proprietary 

. 

Budgetary 

Sale of Federal Agencll Securities at Pa.-2 

Propriefary 

Budgetary 

RITC Purchases of Non-Federal Securities 

Proprietary 

Budgetary 

USSGL 

1610 

1130 

1130 

1610 

1130 

5310 

4114 

4620 

1620 

1130 

1130 

1620 

1620 

1130 

4620 

4394 -.--~ 

Attachment C 

60X8010. 60X8011. 

60XB012 60XB11B 

RRB NRRIT 

SF 224 Debit Credit Debit Credit 

Investment in U.S. Securities (par) (BB)60XB11 B 10 

Funds Held by the Public (41)60X8118 10 

None 

Funds Held by the Public (41)60X8118 5 

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

None 

Funds held by the Public (41)60X8118 1 

Earnings on Investments 60X8118.2 1 

Appropriated Trust or Special Fund Receipts 1 

Unobligated Funds Not Subject to Apportionment 1 

10 

Investment in Securities Other than Public Debt (BO)60XB11 B 10 

Funds ~eld by the Public (41)6OxB118 

None 

Funds held by the Public (41)60xB11B 10 

Investment in Securities Other than Public Debt (90)60x811 B 10 

None 

Investment in Securities Other than Public Debt (42)60xB1181 73 

Funds Held by the Public (41)60XB11B 73 

i.Jnobligated Funds No! Subject to Apportionment 73 

Receipts unavailablefor ()tJligatjon Upon Collection 73 
Railroad Investment Trust 

Accounting for Transactions 

Funds 6OX8010, 60X8011 , 6OX8012 and 60X8118 

Transaction USSGL 

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

Proprietary 1618 Market Adjustment - Investments 

7180 Unrealized Gain - Investments 

Budgetary 4114 Appropriated Trust or Special Fund Receipts 

4394 Receipts Unavailable for Obligation Upon Collection 

13. RITC Sale of Non-Federal Securiti.es 

(reflectihg market adjustment- realized gain) 

Proprietary 1130 Funds Held by the Public 

1620 Investment in Securities other than Public Debt 

7110 Gains on Disposition of Assets 

7180 Unrealized Gain - Investments 

1618 Market Adjustment - Investments 

Budgetary 4114 Appropriated Trust or Special Fund Receipts 

4394 Receipts Unavailable for Obligation Upon Collection 

4620 Unobligated Funds Not Subject to Apportionment 

14. Pal£ment of Admin Exeenses 

Proprietary 6100 Operating Expenses 

1130 Funds Held by the Public 

1010 Fund Balance with Treasurl 

1010 Fund Balance with Treasury 

Budgetary 4620 Unobligated Funds Not Subject to Apportionment 

4902 Delivered Orders-Obligations, Paid 

15. Pal£ment of Benefits 

Proprietary 6400 Benefit Expenses 

1130 Funds Held by the Public 

1010 Fund Balance with Treasulf 

1010 Fund Balance with Treasury 

Budgetary 4620 Unobligated Funds Not Subject to Apportionment 

4902 Delivered Orders-Obligations, Paid 

Attachment C 

60X8010,60X8011, 

60X8012 60X8118 

RRB NRRIT 

SF 224 Debit Credit Debit Credit 

(42)60X81181 20 

60X8118.1 20 

20 

20 

(41)60X8118 100 

(42)60X81181 73 

60X8118.1 27 

60X8118.1 20 

(42)60X81181 20 

7 

93 

100 

(10)60X8118 2 

(41)60X8118 2 

2 

2 

2 

2 

(61)60X8118 2 

(41)6DX8118 2 

2 

2 

2 

2 
Railroad Investment Trust 

Accounting for Transactions 

Attachment C 

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

60)(8012 

RRB 

Transaction USSGL SF 224 Debit 

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

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

5310 Interest Revenue 60X8118.3 

Budgetary 4114 Appropriated Trust or Special Fund Receipts 

4620 Unobligated Funds Not Subject to Apportio~ment 

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

Proprietary 7280 Unrealized Loss - Investments 60X8118.1 

1618 Market Adjustment - Investments (4:2)60X81181 

Budgetary 4394 Receipts Unavailable for Obligation Upon Collection 

4114 Appropriated Trust or Special Fund Receipts 

18. Transfer Zero-Coul2on Bonds to NRIT 

Proprietary 1630 Investments - ZCBs (88)60X8011 

1631 Unamortized Discount - ZCBs (72)60X8011 

1633 Amortization of Discount - ZCBs 

1638 Market Adjustment - ZCBs (72)60X8011 

7110 Gains on Disposition of Assets 

1630 Investments- ZCBs (88)60X8118 

I.. 1631 Unamortized Discount - ZCBs (72)60X8118 

1638 Market Adjustment - ZCBs (72)60X8118 

Budgetary None 

19. Mark to Market - Zero Coullon Bonds 

Proprietary 1638 Market Adjustment - Investments in zero coupon bonds (72)60X8.118 

5310 Interest Revenue 60X8118.1 

Budgetary 4114 Appropriated Trust or Special Fund Receipts 

~--.. ~--. -------- _4394 __ Receipts Unavailable for Obligation Upon Coliection -L.....~----~---

1 Until programming changes are in effect for Trea5ury'5 central accounting 5Y5tem, monthly reporting to Treasury of subclass 42 (investments 

in non-Federal 5ecurities) is not required. However, balances for non-federal securities should be reflected as a footnote in the 4th quarter 

FACTS" submission for yearend reporting. 

2 For Federal securities purchased at a premium, discount, or include accrued interest, refer to existing U.S. Standard General Ledger guidance 

Credit 

1,000 

400 

200 

100 

200 

f!>r budgetary andlor proprietary accounting transaction entrie5. Additionally, for SF224 reporting, if investment5 are in non-guaranteed Federal Agency Securitie5 

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 

60X8118 

NRRIT 

Debit Credit 

5 

5 

5 

5 

10 

10 

10 

10 

1,000 

400 

100 

50 

50 

50 

50 
Attachment D 

Transfer of Funds from the National Railroad Retirement Investment Trust 

to Treasury for Disbursing Purposes 

Procedures 

Ob.iective I RRB / Trust Action I Treasury Action 

Transfers of Note: These procedures will only be used in the Through the Fedwire Deposit System, the 

Funds (Cash) event that funds held by the Trust are required to RRB will be credited with immediately 

from the Trust be transforred 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 (1\ separate memorandum of understanding 

to be returned to Treasury. covers the disbursement of benefit 

payments by FMS until a non-Federal 

RRB advises the Trust that funds should be disbursing agent is selected.) 

returned to the Treasury for disbursement of 

benefit payments. 

The Trust will liquidate assets and transfer funds, 

by wire ~er, to the Treasury's account at the 

New York Federal Reserve Bank to the credit of 

theRRB. ~ 

Should it be necessary to transfer amounts 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: 202-874-9945 

Or: 202-874-9984 

Telephone: 202-874-9790 

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. 
2

 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) are associated with a bona fide business meeting or 

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

profession. 

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 an 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 July 10, 2003. This 

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

 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: 
2

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. 
 

 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 
2 

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: 
3 

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 
 

 APPENDIX G
Chief Investment Officer's Certification 

of the National Railroad Retirement Investment Trust's 

Process of Financial Reporting And 

System ofIntemal Controls 

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

Trust ("NRRlT"), certify that: 

(1) I have reviewed the Annual Management Report for Fiscal Year 2011, prepared 

pursuant to Section 1 05 of Public Law 1 07-90, 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, 2011. 

(4) NRRlT'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 NRRlT and have: 

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

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

NRRlT, 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, 2011, (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) NRRlT's other certifying officers and I have disclosed, based upon our most recent 

evaluation, to NRRlT's auditor and the NRRlT 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 NRRlT'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 significandy affect internal controls subsequent to the date of our 

most recent evaluation, including any corrective actions with regard to significant 

deficiencies and material weaknesses. 

~"'~'-'~'I Sl , Qo \2- , January 31, 2012 

aS~~,6~L. 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 2011, 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, 2011. 

(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, 2011, (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 mle 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 significandy affect internal controls subsequent to the date of our 

most recent evaluation, including any corrective actions with regard to significant 

deficiencies and material weaknesses. 

c2. 

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 2011, 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 

untme 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 misleadiog 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, 2011. 

(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, 2011, (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. 

:x;.1.,UV',t 3/, 010/.7 j ; 

January 31, 2012 

A/ye:Mr 

Neil E. Kotras 

Senior Accounting Officer 
 

 APPENDIX H
UNITED STATES OF AMERICA 

RAILROAD RETIREMENT BOARD 

844 NORTH RUSH STREET 

CHICAGO, ILLINOIS 60611-2092 I 

I 

BoARD MEMBERS: 

:MICHAEL S. SCHWARTZ, CHAIRMAN OCT 21 2011 WALTER A. BARROWS, LABOR MEMBER 


JEROME F. KEVER, MANAGEMENT MEMBER 


The Honorable Timothy F. Geithner 

Secretary of the Treasury 

Washington, D.C. 20220 

Dear Mr. Secretary: 

In accordance with Section 23(b) ofthe Railroad Retirement Act of 1974, we certify the 

Account Benefits Ratio for fiscal year 2011 to be 4.81. 

Chapter 22, Subchapter E, Section 3241 ofthe 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 of tax which are applicable 

for the following calendar year for rail employers, employee representatives, and 

employees. For your information, we estimate the lO-year Average Account Benefits 

Ratio, rounded to the next highest mUltiple of 0.1, to be 6.5. 

Sincerely, 

'ffJ~ J..i"iqn~~ Michael S. sc:;;:;8 

uJ~A.f;~ 

Walter A. Barrows 

~~ ~Ift~ 

Jerome F. Kever 

a Ponied on recycled paper 
Federal Register / Vol. 76, No. 223 / Friday, November 18, 2011 / Notices 71623 

opportunity to comment on proposed 

and/or continuing information 

collections, as required by the 

Paperwork Reduction Act of 1995, 

Public Law 104–13 (44 U.S.C. 

3506(c)(2)(A)). Currently, the IRS is 

soliciting comments concerning Form 

1099–SA, Distributions From an HSA, 

Archer MSA or Medical Advantage 

MSA. 

DATES: Written comments should be 

received on or before January 17, 2012 

to be assured of consideration. 

ADDRESSES: Direct all written comments 

to Yvette Lawrence, Internal Revenue 

Service, room 6129, 1111 Constitution 

Avenue NW., Washington, DC 20224. 

FOR FURTHER INFORMATION CONTACT: 

Requests for additional information or 

copies of the form and instructions 

should be directed to Allan Hopkins at 

(202) 622–6665, or at Internal Revenue 

Service, room 6129, 1111 Constitution 

Avenue NW., Washington, DC 20224, or 

through the Internet, at 

Allan.M.Hopkins@irs.gov. 

SUPPLEMENTARY INFORMATION: 

Title: Distributions From an HSA, 

Archer MSA or Medical Advantage 

MSA. 

OMB Number: 1545–1517. 

Form Number: 1099–SA. 

Abstract: This form is used to report 

distributions from a medical savings 

account as required by Internal Revenue 

Code section 220(h). 

Current Actions: There are no changes 

being made to the form at this time. 

Type of Review: Extension of a 

currently approved collection. 

Affected Public: Business or other forprofit organizations. 

Estimated Number of Responses: 

25,839. 

Estimated Time per Response: 8 min. 

Estimated Total Annual Burden 

Hours: 3,618. 

The following paragraph applies to all 

of the collections of information covered 

by this notice: 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless the collection of information 

displays a valid OMB control number. 

Books or records relating to a collection 

of information must be retained as long 

as their contents may become material 

in the administration of any internal 

revenue law. Generally, tax returns and 

tax return information are confidential, 

as required by 26 U.S.C. 6103. 

Request For Comments: Comments 

submitted in response to this notice will 

be summarized and/or included in the 

request for OMB approval. All 

comments will become a matter of 

public record. Comments are invited on: 

(a) Whether the collection of 

information is necessary for the proper 

performance of the functions of the 

agency, including whether the 

information shall have practical utility; 

(b) the accuracy of the agency’s estimate 

of the burden of the collection of 

information; (c) ways to enhance the 

quality, utility, and clarity of the 

information to be collected; (d) ways to 

minimize the burden of the collection of 

information on respondents, including 

through the use of automated collection 

techniques or other forms of information 

technology; and (e) estimates of capital 

or start-up costs and costs of operation, 

maintenance, and purchase of services 

to provide information. 

Approved: November 14, 2011. 

Allan Hopkins, 

Tax Analyst. 

[FR Doc. 2011–29796 Filed 11–17–11; 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 2012 as required 

by section 3241(d) of the Internal 

Revenue Code (26 U.S.C. section 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 2012 apply to compensation paid 

in calendar year 2012. 

FOR FURTHER INFORMATION CONTACT: 

Kathleen Edmondson, 

CC:TEGE:EOEG:ET1, Internal Revenue 

Service, 1111 Constitution Avenue NW., 

Washington, DC 20224, Telephone 

Number (202) 622–0047 (not a toll-free 

number). TIER 2 TAX RATES: The tier 

2 tax rate for 2012 under section 3201(b) 

on employees is 3.9 percent of 

compensation. The tier 2 tax rate for 

2012 under section 3221(b) on 

employers is 12.1 percent of 

compensation. The tier 2 tax rate for 

2012 under section 3211(b) on employee 

representatives is 12.1 percent of 

compensation. 

Dated: November 9, 2011. 

Victoria A. Judson, 

Division Counsel/Associate Chief Counsel, 

Tax Exempt and Government Entities. 

[FR Doc. 2011–29789 Filed 11–17–11; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF VETERANS 

AFFAIRS 

[OMB Control No. 2900-New (VA Form 10– 

0515)] 

Agency Information Collection (Spinal 

Cord Injury Patient Care Survey) Under 

OMB Review 

AGENCY: Veterans Benefits 

Administration, Department of Veterans 

Affairs. 

ACTION: Notice. 

SUMMARY: In compliance with the 

Paperwork Reduction Act (PRA) of 1995 

(44 U.S.C. 3501–3521), this notice 

announces that the Veterans Benefits 

Administration (VBA), Department of 

Veterans Affairs, will submit the 

collection of information abstracted 

below to the Office of Management and 

Budget (OMB) for review and comment. 

The PRA submission describes the 

nature of the information collection and 

its expected cost and burden; it includes 

the actual data collection instrument. 

DATES: Comments must be submitted on 

or before December 19, 2011. 

ADDRESSES: Submit written comments 

on the collection of information through 

http://www.Regulations.gov or to VA’s 

OMB Desk Officer, OMB Human 

Resources and Housing Branch, New 

Executive Office Building, Room 10235, 

Washington, DC 20503, (202) 395–7316. 

Please refer to ‘‘OMB Control No. 2900- 

New (VA Form 10–0515)’’ in any 

correspondence. 

FOR FURTHER INFORMATION CONTACT: 

Denise McLamb, Enterprise Records 

Service (005R1B), Department of 

Veterans Affairs, 810 Vermont Avenue 

NW, Washington, DC 20420, (202) 461– 

7485, FAX (202) 461–0966 or email 

denise.mclamb@va.gov. Please refer to 

‘‘OMB Control No. 2900-New (VA Form 

10–0515).’’ 

SUPPLEMENTARY INFORMATION: 

Title: Spinal Cord Injury Patient Care 

Survey, VA Form 10–0515. 

OMB Control Number: OMB Control 

No. New (VA Form 10–0515). 

Type of Review: New Collection. 

Abstract: Information collected on VA 

Form 10–0515 will be used to determine 

spinal cord patients’ satisfaction with 

VA rehabilitation and health care 

system. 

mstockstill on DSK4VPTVN1PROD with NOTICES

 

 APPENDIX I 







 

 APPENDIX J
NATIONAL RAILROAD RETIREMENT INVESTMENT TRUST

BOARD OF TRUSTEES

FEBRUARY 1, 2011 TO JANUARY 31, 2012 

BIOGRAPHICAL INFORMATION

CHAIR: 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 32 years of professional experience, first in the 

private practice of law, and for the past 27 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 $1.7 billion 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 labormanagement 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 three separate terms since the Trust’s inception on February 1, 2002. 

Walter A. Barrows was International Secretary-Treasurer of the Brotherhood of 

Railroad Signalmen (BRS), having been elected to this position in 1999 and reelected in 

2002, 2006 and 2010. He started his railroad career in 1974 with the Norfolk & 
2 

Western Railroad and later served the BRS as the General Chairman and General 

Secretary-Treasurer for the Norfolk Southern General Committee. Prior to being elected 

as International Secretary-Treasurer, he served as a Trustee on BRS' Grand Board of 

Trustees. He attended Kent State University and the George Meany Center for Labor 

Studies (National Labor College). He also served as Trustee of the BRS 401(k) plan. As 

BRS' International Secretary-Treasurer, he had primary responsibility for BRS finances 

and oversaw all BRS investments. Mr. Barrows served on the Board beginning on 

February 1, 2004. He resigned from the BRS, as well as from his position on the Board, 

effective September 30, 2011 after being appointed by the President and confirmed by 

the Senate as the labor member of the U.S. Railroad Retirement Board. 

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. 

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 and 

2009. 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 
3 

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 38 years 

of experience within the railroad industry, has been active in union leadership for 34 

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 of 

the Los Angeles County MTA pension plan with over $600 million in assets, the Los 

Angeles County TCU Health and Welfare Plan, and the TCU 401(k) 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. 

Richard G. Patsy is Assistant Vice President Pensions and Investments of CSX 

Corporation. He is responsible for the investment of the company’s $1.8 billion defined 

benefit pension plan, $1.6 billion 401(k) defined contribution plan, $1.3 billion operating 

fund and a $200 million captive insurance company portfolio. Mr. Patsy has 20 years of 

investment experience, the last 15 of which have been with public and private pension 

plans. His areas of expertise include all aspects of investment management, specifically 

fixed income portfolio management and trading, asset allocation, and cash 

management. He also has earned the Chartered Financial Analyst (CFA) designation 

from the CFA Institute. Mr. Patsy is retired from the United States Navy (Reserve 

Component) as a Captain with over 30 years of service. He is a graduate of Penn State 

University and holds a Master’s in Business Administration from the State University of 

New York at Albany. Mr. Patsy has served on the Board since February 1, 2011. 

William F. Quinn is the chairman and founder of American Beacon Advisors, a $45 

billion investment management firm responsible for managing the American Airlines 

pension funds as well as assets from external clients including the American Beacon 

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 
4 

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. 

Alec Vincent is Assistant Vice President Finance and Treasurer of Burlington Northern 

Santa Fe, LLC. He oversees the Company’s employment benefit plan investment, 

corporate finance, and cash management functions, including oversight of $3.6 billion in 

employee retirement funds. Mr. Vincent has 21 years of experience in rail industry 

financial management positions. His areas of expertise include the execution of capital 

markets transactions, the structuring of commercial banking facilities, corporate liquidity 

management, interest rate derivative hedging, structured finance, and developing cash 

management solutions. Mr. Vincent also manages the Company’s relationships with the 

credit rating agencies and commercial lenders. 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. 

William C. Walpert is National Secretary-Treasurer of the Brotherhood of Locomotive 

Engineers and Trainmen (BLET), a Division of the Rail Conference of the International 

Brotherhood of Teamsters. As National Secretary-Treasurer, he is in custody of all 

funds of the BLET and has 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 nonqualified 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 
5 

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. 
6 

NATIONAL RAILROAD RETIREMENT INVESTMENT TRUST

BIOGRAPHICAL INFORMATION

INVESTMENT STAFF AS OF SEPTEMBER 30, 2011 

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. Before joining GWU, she served as Assistant Treasurer of the Episcopal 

Church of America from 1995 through 1999, 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. 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 

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. 
7 

 

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 in the Treasury 

group at T. Rowe Price Associates, where he was responsible for compliance, financial 

reporting and accounting policy for the T. Rowe Price mutual fund products. Previously, 

he spent seven years in the audit practice of PricewaterhouseCoopers, where he 

managed several large asset management engagements in the Baltimore/DC Metro 

area. Neil earned a BBA degree in accounting and economics from Loyola University 

Maryland in 1997, and an MBA in finance from the Robert H. Smith School of Business 

at the University of Maryland College Park in 2007. Mr. Kotras is a Certified Public 

Accountant. 
8 

Other Staff Members (in alphabetical order) 

Annita Biondo On October 1, 2007, the Trust hired Annita Biondo to serve as a 

Financial Analyst – Operations and Accounting. Prior to joining the Trust, Ms. Biondo 

worked as a Tax Associate at RSM McGladrey. Previously, she worked at General 

Motors and other corporations in finance and human resources. Ms. Biondo received a 

BA degree from Indiana University of Pennsylvania and an MBA degree from 

Marymount University. 

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 over 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. 

Rebecca Codori On June 1, 2010, Rebecca Codori joined the Trust as Administrative 

Assistant. Ms. Codori previously worked for the Federal Communications Commission as 

a government contractor serving as Manager and Information Specialist of licensing for 

eight years. 

Courtney C. Macdonald 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. 
9 

Macdonald received a BA in economics from Johns Hopkins University in 2005 and is a 

CFA charterholder. 

Liz Fisher On December 3, 2007, Liz Fisher joined the Trust as Senior Investment 

Analyst – Real Assets. 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. 

Greg Johnsen On April 16, 2010, Greg Johnsen joined the Trust to serve as the 

Director of Risk Management. Previously he worked in Georgia Pacific’s pension 

investment group in Atlanta, GA. Prior investment management experiences include 

positions as the chief investment officer of an independent investment manager, and as 

the deputy fund manager and head of external US equity manager research for a 

middle-eastern sovereign wealth fund. Mr. Johnsen taught investment management 

theory in an MBA program and served as an officer in the United States Marine Corps 

with a combat command tour. He is a graduate of St. John’s University (MN), and a 

Chartered Financial Analyst. 

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 
10 

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. 

Andrew Kim On October 1, 2007, the Trust hired Andrew Kim to serve as Investment 

Analyst for Public Markets. Prior to joining the Trust, Mr. Kim worked in the Capital 

Markets group at Cambridge Associates. Previously, he worked at Citigroup Asset 

Management within the fixed income department. Mr. Kim holds a BS in industrial 

engineering and operations research with a concentration in economics from the School 

of Engineering and Applied Sciences at Columbia University. Mr. Kim is a CFA 

charterholder. 

Maureen McCarthy joined the Trust as an Operations Advisor on January 10, 2005, 

and on October 1, 2006 she was named as Senior Operations Advisor. 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, and serves as the Director 

of Non-US Equity. Mr. McCormack has over 20 years of investment management 

experience. Prior to joining the Trust, he was Vice President for Connors & Company, 

an investment consulting firm. Previously, Mr. McCormack was Director of Global 

Equity for the DuPont Trust and worked for BellSouth Corp. for ten years as Associate 

Director of Trust Asset Management. Before joining BellSouth, he was at the Southern 
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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. 

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, focusing on Non-US Equity. Prior to joining the Trust, Mr. 

Toms worked in the Multifamily Capital Markets group at Freddie Mac. 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.

Clayton Viehweg On February 2, 2005, the Trust hired Clayton Viehweg to serve as 

Senior Investment Advisor for Fixed Income. On October 1, 2006, Mr. Viehweg was 

named Director - Global Fixed Income, which includes responsibility for the Trust’s 

commodity portfolio. Prior to joining the Trust, Mr. Viehweg worked at The World Bank 

in its Pension and Investments Department and at MedStar Health, where he was 

responsible for the investment management of its endowment, pension, and insurance 

captive portfolios. Mr. Viehweg received a BA in economics from the University of 

Maryland and an MBA in finance from Indiana University. 
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Caixia Ziegler joined the Trust on July 1, 2004 as Senior Investment Advisor for US 

Equity, and on October 1, 2006 she was named Director of Global Real Assets. Prior to 

joining the Trust, Ms. Ziegler worked at United Technologies Corporation in its Treasury 

Department, where she was overseeing public and private equity investments for the 

company’s pension and savings plans. Ms. Ziegler earned her CFA designation in 2002. 

She received a BBA degree in international business and finance from Xiamen University 

in China, and an MBA in finance from Wake Forest University. 
NRRIT 

National Railroad Retirement Investment Trust 

1250 Eye Street, N. W 

Suite 500 

Washington, DC 20005