QUESTIONS AND ANSWERS REGARDING ACQUISITION OF WASHINGTON MUTUAL BY JPMORGAN CHASE

What change recently occurred with Washington Mutual? On September 25, 2008, Washington Mutual was closed by the Office of Thrift Supervision and the Federal Deposit Insurance Corporation was named receiver. Subsequent to the closure, JPMorgan Chase acquired the assets and most of the liabilities, including covered bonds and other secured debt, of Washington Mutual Bank from the FDIC.

A press release from the Federal Deposit Insurance Corporation (FDIC) was issued September 25, 2008. The FDIC indidated that “all depositors are fully protected.” The Chairman of the FDIC, Sheila Bair, indicated further that “there will be no interruption in services and bank customers should expect business as usual…” The press release may be viewed at the website: http://www.fdic.gov/news/news/press/2008/pr08085.html

How does this impact the investment options in the Deferred Compensation Plan? The deposit assets of Washington Mutual Bank, including those held within the City of Los Angeles Deferred Compensation Plan, have been acquired by JPMorgan Chase & Co.

Who is JPMorgan Chase? JPMorgan Chase & Co. is a global financial services firm with assets of $2.0 trillion and operations in more than 60 countries. The firm is active in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management, and private equity.

Do I need to do anything? No action is required by participants due to this transaction. Participants who wish to continue investing in the Liquid Savings Account and Certificates of Deposit do not need to take any action. If you wish to change your investments or your future contributions, you may do so via the Plan website, www.cityofla457.gwrs.com or by contacting the call center with at 888-457-9460.

What will happen to my 457 account at Washington Mutual? Participants can continue to access your accounts today just the way you've accessed them in the past, such as via the plan website. We anticipate that a name change will occur in the future, although the exact timing of this change is unknown at the time of posting this information.

Is there any impact to the rates of return? All current rates of return will continue to apply. For instance, the current quarterly rate for the Liquid Savings still applies, and the rates on any Certificate of Deposit purchased in the past will continue to apply until maturity. Future rates will be set by the JP Morgan Chase Public Funds team.

Does FDIC insurance still apply to these investments? Yes. In the Deferred Compensation Plan, combined participant assets in the Liquid Savings and Certificates of Deposit continue to be insured up to $250,000 by the FDIC. In addition to FDIC insurance, investments are now backed by JPMorgan Chase.

What if I have more than $250,000 in the Liquid Savings and Certificate of Deposit investments? In California, the Local Agency Security Program (LASP) provides for additional protection for covered deposit products on amounts over the FDIC limit. Savings institutions are required to place as collateral with the State a minimum of 110% of amounts that exceed the FDIC limit, in the form of approved government securities. This protection was in place prior to the acquisition of Washington Mutual by JPMorgan Chase, and will continue to be in effect.

Who may I contact with further questions? Additional information regarding the Washington Mutual Liquid Savings Account and Certificates of Deposit (and all other options in the Plan) is available on the Plan’s website, www.cityofla457.com. In addition, participants may contact the call center with questions at 888-457-9460.