To: Tony Bottalico

From: Ronald Flomsbee

The ACRE members would like to see a quarterly report on the pension money. How much money went into the account from the 3% we are paying, where the money is being invested. We also want a list of the name's of the ex-employees receiving pensions from this fund. The reason there should be a three man committee overseeing the money, so we don't have any shortfall of the funds. This should be separate from any other funds the MTA has because we funded this fund and only our people by law can receive funds from this pension. The MTA cannot put this money in any other funding or borrow our money.

As you know, we are paying 3% for the new pension plan. The MTA is saving 7% by not putting anymore money into Vanguard. Plus a 0% in the first year equals 13% of our money. The MTA is saving $3.90 an hour on each employee and $5.85 per hour on each employee on overtime.

Tony, as an MTA Board Member, you should be pushing for the MTA members. The MTA could eliminate 10,000 jobs. The MTA could rent out 345 & 347 Madison Avenue, stop paying rent at 420 Lexington Avenue and build at 125 th Street Station with an overhead an overhead bridge to and from the platforms.

Tony, you have to remember we ran Jim Phelan out of town when he offered us 3% signing bonus the first year and then 3%, 3%, 3%. Phelan's first contract was 5%, 5%, and 5% and 3% in Vanguard. The second contract was 5%, 4 ½%, 5% and 1% in Vanguard. This is a total of 33-½% for six years. You have not been close with your 24% for 12 years.