AMENDMENT No. 1 to 02 LSO 0128.W4

This amendment changes the reduction in spending policy amounts from a reduction rate of ½% per year to ¼% per year.

Page 1-line 13     After "(iv)" delete balance of the line.

Page 1-line 14     Delete the line through "(vi)"; delete "and by".

Page 1-line 15     Delete the line through "(vi)".

Page 5-line 5      Delete "three".

Page 5-line 6      Delete "tenths percent (6.3%)" insert "five tenths percent (6.5%)".

Page 5-line 9      After "2004" insert "and each fiscal year thereafter".

Page 5-lines 10 through 12   Delete all new language and insert: "the amount specified in paragraph (iii) of this subsection shall be reduced by twenty-five hundredths percent (.25%) increments each fiscal year until the amount equals five percent (5%) of the corpus of the trust fund as of the first day of the fiscal year for fiscal year 2009 and each fiscal year thereafter.".

Page 5-lines 14 through 20   Delete.

Page 8-line 11     Delete "three tenths".

Page 8-line 12     Delete "percent (6.3%)" insert "five tenths percent (6.5%)".

Page 8-line 15     After "2004" insert "and each fiscal year thereafter".

Page 8-line 16     Delete all new language and insert: "the amount specified in paragraph (iii) of this subsection shall be reduced by twenty-five hundredths percent (.25%) increments each fiscal year until the amount equals five percent (5%) of the corpus of the account as of the first day of the fiscal year for fiscal year 2009 and each fiscal year thereafter.".

Page 8-lines 17 through 22   Delete.

Page 9-lines 1 through 3          Delete.  PARADY