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General President Sullivan discusses the Fund Outlook for 2009

Brothers and Sisters,

This updates my recent cover letter. Many ask whether the recession and all the troubles in financial markets will change NPF’s Rehabilitation Plan. The answer is yes. At the Trustees’ March 2009 meeting, the Board changed the Alternative Schedule to require 7% annual increases in contributions for 2011 through 2017. This decision was made after a review of investment returns for 2008 in which the Fund, like almost all other Funds lost about 28%. Work levels were also flat for the year. Based on the 2008 market returns and work levels, the Trustees have also instructed the NPF’s actuary to seek a 10-year amortization extension, which is the maximum permitted by law. An amortization extension will give the Plan more time to improve funding. The Fund will also seek to extend its 10 year Rehabilitation Plan to 13 years.

Over the past several weeks, we have conferred with our actuarial consultant and our investment managers and advisers. We are continuously weighing the Fund’s options and prospects for the 2009 plan year. I will continue to report to you on this site. I and the other Trustees are especially grateful for your support in these challenging times.

Fraternally Yours,

Michael J. Sullivan

Chairman, Board of Trustees