As mentioned in previous newsletters, the Program will be distributing proceeds from the PBA Fair Fund Settlement. This distribution is a result of a Securities and Exchange Commission’s (SEC) settlement agreement with Pilgrim Baxter Associates (PBA) regarding improper trading.

The distribution will be paid to participants who invested in the PBHG Growth fund between June 1, 1998 and December 31, 2001 and were calculated to be harmed by the market timing activities during this period. Individual distribution amounts will be calculated by Boston Financial Data Services, the fund administrator selected by the SEC. Only participants with a distribution amount of at least $10 will receive a distribution. A distribution date has not been set but is anticipated to occur before year-end. Once the distribution date is set, a notice will be provided on the Program’s web site at www.ohio457.org.

Eligible participants who still have an open Program account will have their distribution invested into their account and will be mailed a written notification of their transaction. The distribution will be separately itemized on the fourth quarter 2007 statement. Participants can visit the Program's web site after the distribution date and view their transaction history to confirm their distribution.

Eligible participants who no longer have a Program account will have their distribution paid by check, which will be mailed to their home address. These participants may request that their distribution check be cancelled and rolled over to another pre-tax retirement plan.

Participants will be provided access to additional information about the PBA settlement and Program distribution. On the distribution date, a special call center and web site will be activated to help answer your questions. Representatives trained specifically on the details of this distribution will staff the call center. The web site will provide a summary of the proceedings and a page dedicated to answering frequently asked questions.