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• Utilization of accounts by Plan demographic,
• The prudent applicability of this Investment Policy Statement as written, in light of prevailing facts and
circumstances.
Monitoring will utilize the same investment selection criteria used in the original selection analysis. Unusual, notable, or
extraordinary events will be communicated by the investment manager and/or vendor on a timely basis to the
Committee. Examples of such events include portfolio manager or team departure, violation of investment guidelines,
material litigation against the investment management firm, or material changes in firm ownership structure and
announcements thereof.

If overall satisfaction with the investment option is acceptable, no further action is required. If areas of dissatisfaction
exist, the investment manager must take steps to remedy the deficiency. If over a reasonable period the manager is
unable to resolve the issue, removal of the investment option may result.

For supported asset classes, an investment manager “score card” will be maintained and documented (see addendum)
to substantiate acceptable levels of manager performance and appropriate style characteristics. Based upon objective
criteria, derived from Modern Portfolio Theory concepts, each fund will receive a score reflecting its overall
performance.

If a fund fails to meet the criteria standards, as determined by its score, it will be placed on a “watch list.” (In the event a
fund receives a score which is below that of “watch list” status, or experiences extraordinary circumstances which may
render it inappropriate to maintain, it may be considered for removal at the earliest administratively reasonable date.) If
this fund continues to remain on “watch list” for the following three quarters, or four of the following seven quarters, the
fund should be considered for possible removal.

If the fund meets criteria standards for four consecutive quarters, it may be removed from the watch list.

Asset Allocation funds and/or accounts (risk-based or age-based) will be scored and monitored using the previously
described guidelines. Unlike other funds which are monitored and scored individually, these funds should be evaluated
as a group. Due to the unique importance of these professionally managed and diversified vehicles for participants in
the plan, funds or accounts failing to achieve criteria standards will be carefully reviewed before removal from the plan
(in the absence of a reasonable alternative). In addition, funds with short time history should be evaluated qualitatively.

Target-Date (age-based) funds or accounts will have strategies that allow the funds or accounts to grow more
conservative over time until a certain retirement date or life expectancy date. This roll down process is commonly
referred to as a “glide path”. The glide path associated with a set of target-date funds should be reviewed to make
sure it is appropriate, and continues to be appropriate, for the Plan and Plan’s participants.

Investments where no score is applied due to specialty focus, short time history or other unique circumstances should
be reviewed using a qualitative framework.

The foregoing investment monitoring criteria shall not, under any circumstances, be taken as definitive, conclusive, or
controlling for removal, termination, or continuation of an investment option. All determinations should be made by the
Committee, in its sole discretion, taking into consideration all relevant facts and circumstances.

The City retains full responsibility for the offering and monitoring of any self-directed brokerage account(s) offered as an
investment option, which will be reviewed periodically as determined by the City based on criteria determined by the
City. Special considerations should be contemplated and discussed before allowing a self-directed brokerage account as
an investment option.

Part VIII. MANAGER REMOVAL
An investment manager (i.e., fund) may be removed when the Committee has lost confidence in the manager’s ability
to:

• Achieve performance, style, allocation, and/or risk objectives.
• Maintain acceptable qualitative standards (e.g., stable organization, compliance guidelines).

If the investment manager has failed to adhere to and/or remedy one or both of the above conditions, the fund should
be considered for removal from the plan.

Any decision by the Committee to remove such a fund will be made on an individual basis, and will be made based on
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