Dear Member:
 
 
       Recent developments and instability in the financial markets are quite likely causing you concern as a participant in the local 490 pension fund as well as your personal
annuity account.
       As a trustee of both of these funds, I feel you should be aware of our current status.
As has been widely reported, much of what we are experiencing now can be attributed to an
increased mortgage default rate among residential homeowners. A relaxation of loan qualification standards and the mistaken assumption that home values would continue to increase without
interruption or decline led to the creation of investments with significant default risks. As a result the landscape of the financial services industry has changed swiftly and dramatically.
      As a trustee, I am encouraged by the speed, creativity and decisiveness with which the Federal Reserve, the Treasury and Congress are attempting to respond to these complex issues. As a taxpayer, I am frustrated as to how these institutions were allowed to create such a mess with
little or no regulations.
      I have been in constant contact with our financial advisors and their advice has not wavered. Stick with quality, always diversify, and invest for the long term. This is the advice that we have always adhered to and will continue with this strategy to help our current portfolio weather the current market condition.
We have called for a trustees meeting for Friday, Oct 17, and will be discussing with our financial advisor if we should make any adjustments to our current portfolio.
      I will update the membership of this meeting at our regularly scheduled union meeting
on Nov. 6th.