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Risk and diversification strategies shall be reviewed and revised, if necessary , on a regular basis in light of the current and projected market condition and the Master Trust Fund' s needs . Assets in the Master Trust Fund shall be diversified among equities, fixed income and real estate to minimize overall portfolio risk consistent with the level of expected return and thereby improve the long-term return potential of the Master Trust Fund ' s assets . The Master Trustees reserve the right to add additional diversification by retaining multiple Managers or portfolios , upon Master Trustee approval and amendment to this policy, to further minimize portfolio risk or to maintain the level of expected return. Managers shall be selected to fulfill a particular diversifying role within the Master Trust Fund' s overall investment structure . It is the express intent of the Master Trustees to grant each Manager substantial discretion over the assets under its control . XI. CUSTODIAN The Custodian shall hold all actively managed or non-indexed assets of the Master Trust Fund . The Custodian will operate in accordance with a separate agreement with the Master Trustees . All securities shall be held with a third party, and all securities purchased by, and all collateral obtained by the Master Trustees shall be properly designated as an asset of the Master Trustees . No withdrawal of securities , in whole or in part, shall be made from safekeeping except by the Master Trustees or their designee . Securities transactions between a broker-dealer and the custodian involving purchase or sale of securities by transfer of money or securities must be made on a "delivery versus payment" basis , if applicable, to ensure that the Custodian will have the security or money, as appropriate , in hand at the conclusion of the transaction. XII. DEFINED BENEFIT PLAN SPECIFICATIONS These provisions relate to the investment of the assets of the Defined Benefit Pension Plan Trust and the portion of the Other Post-Employment Benefit Plan Trust relating to other post-employment benefit plans that are defined benefit plans . A. Investment Obiective and Exsected Annual Rate of Return . The primary objective is to seek long-term growth of capital and income consistent with conservation of capital . Necessary liquidity will be maintained to meet payout requirements . Emphasis is placed on achieving consistent returns and avoiding extreme volatility in market value . As of October 1 of each year, the Master Trustees shall determine for the defined benefit plans in the Master Trust Fund the total expected annual rate of return for the current year, for each of the next several years and for the long-term thereafter . The expected annual rate of return for the current year and long-term thereafter is 7 . 5 % , until amended by the Master Trustees. This determination must be filed promptly with the Department of Management Services, the Administrator, Master Trustees, and the actuaries, if any, for the Plans . Specific Plan provisions may supersede this expected rate of return by approval of the Administrator and Plan actuary . Be Asset Allocation and Portfolio Composition . Assets of the Master Trust Fund shall be invested in a diversified portfolio consisting of equity and debt. Although cash is not Page 6 of 19 Revised June 1 , 2007