7 Appendix: Charts of Trend Analysis/Example Projections12

In the charts that follow, the heavy black curve represents the course of the Fund’s net assets. Note the inflection point in each curve: this is the point after which more and more effort (higher benefit cuts, greater investment returns, or capital infusions) must be done to prevent the Fund from entering an irreversible “death spiral”. Please note that the 25% benefit reduction is hypothetical — if one occurs, it could be larger or smaller than this. We do believe the projections indicate that, if the fund should survive its near-term capital challenges over the next 5-10 years, there is reason to believe it could have a solid future.

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12In regard to the projections contained in this section, except where noted, all the underlying data and derivative trends are based on data from the Fund’s form 5500 filings going back to 1992. While the results are highly robust, the extra granularity observable from the specific demographics of the fund’s participation base would add a bit to the accuracy, but not greatly and for sure to a much lesser extent in the first 10 years or so of the projections. In this respect the projections may be slightly pessimistic. On the other hand, since almost all established trends are also gaining momentum in the wrong direction, they might well be too optimistic.