Annual Return/Report of Employee Benefit Plan

Transcription

1 Form 5500 Department of the Treasury Internal Revenue Service Department of Labor Employee Benefits Security Administration Pension Benefit Guaranty Corporation Annual Return/Report of Employee Benefit Plan This form is required to be filed for employee benefit plans under sections 104 and 4065 of the Employee Retirement Income Security Act of 1974 (ERISA) and sections 6057(b) and 6058(a) of the Internal Revenue Code (the Code). Complete all entries in accordance with the instructions to the Form OMB Nos This Form is Open to Public Inspection Part I Annual Report Identification Information For calendar plan year 2016 or fiscal plan year beginning 01/01/2016 and ending 12/31/2016 A X a multiemployer plan X a multiple-employer plan (Filers checking this box must attach a list of This return/report is for: participating employer information in accordance with the form instructions.) X a single-employer plan X a DFE (specify) _C_ B This return/report is: X the first return/report X the final return/report X an amended return/report X a short plan year return/report (less than 12 months) C If the plan is a collectively-bargained plan, check here X D Check box if filing under: X Form 5558 X automatic extension X the DFVC program X special extension (enter description) E Part II Basic Plan Information enter all requested information 1a Name of plan ADJUSTABLE PLAN OF THE NATIONAL RETIREMENT FUND EFGHI EFGHI 2a Plan sponsor s name (employer, if for a single-employer plan) Mailing address (include room, apt., suite no. and street, or P.O. Box) City or town, state or province, country, and ZIP or foreign postal code (if foreign, see instructions) BD OF TRUSTEES-ADJUSTABLE PLAN OF THE NATIONAL RETIREMENT FUND D/B/A EFGHI 333 c/o WESTCHESTER AVENUE EFGHI WHITE PLAINS, NY ABCDE ABCDE CITYEFGHI AB, ST UK Caution: A penalty for the late or incomplete filing of this return/report will be assessed unless reasonable cause is established. 1b Three-digit plan number (PN) c Effective date of plan YYYY-MM-DD 01/01/2015 2b Employer Identification Number (EIN) c Plan Sponsor s telephone number d Business code (see instructions) Under penalties of perjury and other penalties set forth in the instructions, I declare that I have examined this return/report, including accompanying schedules, statements and attachments, as well as the electronic version of this return/report, and to the best of my knowledge and belief, it is true, correct, and complete. SIGN HERE Filed with authorized/valid electronic signature. YYYY-MM-DD 10/12/2017 VICTORIA SARTOR ABCDE Signature of plan administrator Date Enter name of individual signing as plan administrator SIGN HERE Filed with authorized/valid electronic signature. YYYY-MM-DD 10/13/2017 JAMES BRUBAKER ABCDE Signature of employer/plan sponsor Date Enter name of individual signing as employer or plan sponsor SIGN YYYY-MM-DD E HERE Signature of DFE Date Enter name of individual signing as DFE Preparer s name (including firm name, if applicable) and address (include room or suite number) Preparer s telephone number For Paperwork Reduction Act Notice, see the Instructions for Form Form 5500 (2016) v

2 Form 5500 (2016) Page 2 3a Plan administrator s name and address X Same as Plan Sponsor 3b Administrator s EIN ALICARE INC EFGHI 3c Administrator s telephone 333 WESTCHESTER AVENUE c/o EFGHI number WHITE PLAINS, NY ABCDE ABCDE CITYEFGHI AB, ST UK 4 If the name and/or EIN of the plan sponsor has changed since the last return/report filed for this plan, enter the name, 4b EIN EIN and the plan number from the last return/report: a Sponsor s name EFGHI 4c PN Total number of participants at the beginning of the plan year Number of participants as of the end of the plan year unless otherwise stated (welfare plans complete only lines 6a(1), 6a(2), 6b, 6c, and 6d). a(1) Total number of active participants at the beginning of the plan year... 6a(1) a(2) Total number of active participants at the end of the plan year... 6a(2) b Retired or separated participants receiving benefits... 6b c Other retired or separated participants entitled to future benefits... 6c d Subtotal. Add lines 6a(2), 6b, and 6c.... 6d e Deceased participants whose beneficiaries are receiving or are entitled to receive benefits.... 6e f Total. Add lines 6d and 6e.... 6f g Number of participants with account balances as of the end of the plan year (only defined contribution plans complete this item)... 6g h Number of participants that terminated employment during the plan year with accrued benefits that were less than 100% vested... 6h Enter the total number of employers obligated to contribute to the plan (only multiemployer plans complete this item) a If the plan provides pension benefits, enter the applicable pension feature codes from the List of Plan Characteristics Codes in the instructions: 1A 1A b If the plan provides welfare benefits, enter the applicable welfare feature codes from the List of Plan Characteristics Codes in the instructions: 9a Plan funding arrangement (check all that apply) 9b Plan benefit arrangement (check all that apply) (1) X Insurance (1) X Insurance (2) X Code section 412(e)(3) insurance contracts (2) X Code section 412(e)(3) insurance contracts (3) X Trust (3) X Trust (4) X General assets of the sponsor (4) X General assets of the sponsor 10 Check all applicable boxes in 10a and 10b to indicate which schedules are attached, and, where indicated, enter the number attached. (See instructions) a Pension Schedules (1) X R (Retirement Plan Information) (2) X MB (Multiemployer Defined Benefit Plan and Certain Money Purchase Plan Actuarial Information) - signed by the plan actuary (3) X SB (Single-Employer Defined Benefit Plan Actuarial Information) - signed by the plan actuary b General Schedules (1) X H (Financial Information) (2) X I (Financial Information Small Plan) (3) X A (Insurance Information) (4) X C (Service Provider Information) (5) X D (DFE/Participating Plan Information) (6) X G (Financial Transaction Schedules)

3 Form 5500 (2016) Page 3 Part III Form M-1 Compliance Information (to be completed by welfare benefit plans) 11a If the plan provides welfare benefits, was the plan subject to the Form M-1 filing requirements during the plan year? (See instructions and 29 CFR ) X Yes X No If Yes is checked, complete lines 11b and 11c. 11b Is the plan currently in compliance with the Form M-1 filing requirements? (See instructions and 29 CFR )... X Yes 11c Enter the Receipt Confirmation Code for the 2016 Form M-1 annual report. If the plan was not required to file the 2016 Form M-1 annual report, enter the Receipt Confirmation Code for the most recent Form M-1 that was required to be filed under the Form M-1 filing requirements. (Failure to enter a valid Receipt Confirmation Code will subject the Form 5500 filing to rejection as incomplete.) Receipt Confirmation Code X No

4 SCHEDULE MB (Form 5500) Department of the Treasury Internal Revenue Service Department of Labor Employee Benefits Security Administration Pension Benefit Guaranty Corporation Multiemployer Defined Benefit Plan and Certain Money Purchase Plan Actuarial Information This schedule is required to be filed under section 104 of the Employee Retirement Income Security Act of 1974 (ERISA) and section 6059 of the Internal Revenue Code (the Code). File as an attachment to Form 5500 or 5500-SF. For calendar plan year 2016 or fiscal plan year beginning 01/01/2016 and ending 12/31/2016 Round off amounts to nearest dollar. OMB No This Form is Open to Public Inspection Caution: A penalty of $1,000 will be assessed for late filing of this report unless reasonable cause is established. A Name of plan B Three-digit ADJUSTABLE PLAN OF THE NATIONAL RETIREMENT FUND plan number (PN) EFGHI C Plan sponsor s name as shown on line 2a of Form 5500 or 5500-SF BD OF TRUSTEES-ADJUSTABLE PLAN OF THE NATIONAL RETIREMENT FUND D Employer Identification Number (EIN) E Type of plan: (1) X Multiemployer Defined Benefit (2) X Money Purchase (see instructions) 1a Enter the valuation date: Month 01 Day 01 Year 2016 b Assets (1) Current value of assets... 1b(1) (2) Actuarial value of assets for funding standard account... 1b(2) c (1) Accrued liability for plan using immediate gain methods... 1c(1) (2) Information for plans using spread gain methods: (a) Unfunded liability for methods with bases... 1c(2)(a) (b) Accrued liability under entry age normal method... 1c(2)(b) (c) Normal cost under entry age normal method... 1c(2)(c) (3) Accrued liability under unit credit cost method... 1c(3) d Information on current liabilities of the plan: (1) Amount excluded from current liability attributable to pre-participation service (see instructions)... 1d(1) (2) RPA 94 information: (a) Current liability... 1d(2)(a) (b) Expected increase in current liability due to benefits accruing during the plan year... 1d(2)(b) (c) Expected release from RPA 94 current liability for the plan year... 1d(2)(c) (3) Expected plan disbursements for the plan year... 1d(3) Statement by Enrolled Actuary To the best of my knowledge, the information supplied in this schedule and accompanying schedules, statements and attachments, if any, is complete and accurate. Each prescribed assumption was applied in accordance with applicable law and regulations. In my opinion, each other assumption is reasonable (taking into account the experience of the plan and reasonable expectations) and such other assumptions, in combination, offer my best estimate of anticipated experience under the plan. SIGN HERE JONATHAN M. FELDMAN HORIZON ACTUARIAL SERVICES, LLC Signature of actuary Type or print name of actuary Firm name GEORGIA AVENUE, SUITE 700,, SILVER SPRING, ABCDE MD ABCDE UK Address of the firm Date Most recent enrollment number /10/2017 Telephone number (including area code) If the actuary has not fully reflected any regulation or ruling promulgated under the statute in completing this schedule, check the box and see X instructions For Paperwork Reduction Act Notice, see the Instructions for Form 5500 or 5500-SF. Schedule MB (Form 5500) 2016 v

5 Schedule MB (Form 5500) 2016 Page x 2 Operational information as of beginning of this plan year: a Current value of assets (see instructions) 2a b RPA 94 current liability/participant count breakdown: (1) Number of participants (2) Current liability (1) For retired participants and beneficiaries receiving payment (2) For terminated vested participants (3) For active participants: (a) Non-vested benefits (b) Vested benefits (c) Total active (4) Total c If the percentage resulting from dividing line 2a by line 2b(4), column (2), is less than 70%, enter such 2c percentage % Contributions made to the plan for the plan year by employer(s) and employees: (a) Date (MM-DD-YYYY) 12/31/2016 (b) Amount paid by employer(s) (c) Amount paid by employees (a) Date (MM-DD-YYYY) (b) Amount paid by employer(s) c) Amount paid by employees Totals 3(b) (c) 0 4 Information on plan status: a Funded percentage for monitoring plan s status (line 1b(2) divided by line 1c(3))... 4a 94.7% b Enter code to indicate plan s status (see instructions for attachment of supporting evidence of plan s status). If code is N, go to line 5.. 4b N c Is the plan making the scheduled progress under any applicable funding improvement or rehabilitation plan?... X Yes X No d If the plan is in critical status or critical and declining status, were any benefits reduced (see instructions)?... X Yes X No e If line d is Yes, enter the reduction in liability resulting from the reduction in benefits (see instructions), measured as of the valuation date... 4e f If the rehabilitation plan projects emergence from critical status or critical and declining status, enter the plan year in which it is projected to emerge. If the rehabilitation plan is based on forestalling possible insolvency, enter the plan year in which insolvency is expected and check here... 4f 5 Actuarial cost method used as the basis for this plan year s funding standard account computations (check all that apply): a e X Attained age normal X Frozen initial liability b f X Entry age normal X Individual level premium c g X Accrued benefit (unit credit) X Individual aggregate d h X Aggregate X Shortfall i X Other (specify): j If box h is checked, enter period of use of shortfall method... 5j YYYY-MM-DD k Has a change been made in funding method for this plan year?... X Yes X No l If line k is Yes, was the change made pursuant to Revenue Procedure or other automatic approval?... X Yes X No m If line k is Yes, and line l is No, enter the date (MM-DD-YYYY) of the ruling letter (individual or class) approving the change in funding method... 5m YYYY-MM-DD

6 Schedule MB (Form 5500) 2016 Page x 6 Checklist of certain actuarial assumptions: a Interest rate for RPA 94 current liability.... 6a % 3.28 Pre-retirement Post-retirement b Rates specified in insurance or annuity contracts... X Yes X No X N/A X Yes X No X N/A c Mortality table code for valuation purposes: (1) Males... 6c(1) (2) Females... 6c(2) d Valuation liability interest rate... 6d % % 6.00 e Expense loading... 6e % 15.6 X N/A % X N/A f Salary scale... 6f % X N/A g Estimated investment return on actuarial value of assets for year ending on the valuation date... 6g % 1.9 h Estimated investment return on current value of assets for year ending on the valuation date... 6h % New amortization bases established in the current plan year: (1) Type of base (2) Initial balance (3) Amortization Charge/Credit A A A Miscellaneous information: a If a waiver of a funding deficiency has been approved for this plan year, enter the date (MM-DD-YYYY) of 8a the ruling letter granting the approval... b(1) Is the plan required to provide a projection of expected benefit payments? (See the instructions.) If Yes, attach a schedule.... b(2) Is the plan required to provide a Schedule of Active Participant Data? (See the instructions.) If Yes, attach a schedule.... c Are any of the plan s amortization bases operating under an extension of time under section 412(e) (as in effect prior to 2008) or section 431(d) of the Code?... d If line c is Yes, provide the following additional information: YYYY-MM-DD X Yes X No X Yes X No X Yes X No (1) Was an extension granted automatic approval under section 431(d)(1) of the Code?... X Yes X No (2) If line 8d(1) is Yes, enter the number of years by which the amortization period was extended... 8d(2) 12 (3) Was an extension approved by the Internal Revenue Service under section 412(e) (as in effect prior to 2008) or 431(d)(2) of the Code?... X Yes X No (4) If line 8d(3) is Yes, enter number of years by which the amortization period was extended (not including the number of years in line (2))... 8d(4) 12 (5) If line 8d(3) is Yes, enter the date of the ruling letter approving the extension... 8d(5) YYYY-MM-DD (6) If line 8d(3) is Yes, is the amortization base eligible for amortization using interest rates applicable under X Yes X No section 6621(b) of the Code for years beginning after 2007?... e If box 5h is checked or line 8c is Yes, enter the difference between the minimum required contribution for the year and the minimum that would have been required without using the shortfall method or 8e extending the amortization base(s) Funding standard account statement for this plan year: Charges to funding standard account: a Prior year funding deficiency, if any... 9a b Employer s normal cost for plan year as of valuation date... 9b c Amortization charges as of valuation date: (1) All bases except funding waivers and certain bases for which the amortization period has been extended... Outstanding balance 9c(1) (2) Funding waivers... 9c(2) (3) Certain bases for which the amortization period has been extended... 9c(3) d Interest as applicable on lines 9a, 9b, and 9c... 9d e Total charges. Add lines 9a through 9d... 9e P 11FP 11P 11FP

7 Schedule MB (Form 5500) 2016 Page 4 Credits to funding standard account: f Prior year credit balance, if any... 9f g Employer contributions. Total from column (b) of line g Outstanding balance h Amortization credits as of valuation date... 9h i Interest as applicable to end of plan year on lines 9f, 9g, and 9h... 9i j Full funding limitation (FFL) and credits: (1) ERISA FFL (accrued liability FFL)... 9j(1) (2) RPA 94 override (90% current liability FFL)... 9j(2) (3) FFL credit... 9j(3) k (1) Waived funding deficiency... 9k(1) (2) Other credits... 9k(2) l Total credits. Add lines 9f through 9i, 9j(3), 9k(1), and 9k(2)... 9l m Credit balance: If line 9l is greater than line 9e, enter the difference... 9m n Funding deficiency: If line 9e is greater than line 9l, enter the difference... 9n o Current year s accumulated reconciliation account: (1) Due to waived funding deficiency accumulated prior to the 2016 plan year... 9o(1) (2) Due to amortization bases extended and amortized using the interest rate under section 6621(b) of the Code: (a) Reconciliation outstanding balance as of valuation date... 9o(2)(a) (b) Reconciliation amount (line 9c(3) balance minus line 9o(2)(a))... 9o(2)(b) (3) Total as of valuation date... 9o(3) Contribution necessary to avoid an accumulated funding deficiency. (See instructions.) Has a change been made in the actuarial assumptions for the current plan year? If Yes, see instructions..... X Yes X No

8 Schedule C (Form 5500) 2011 Page 1 SCHEDULE C (Form 5500) Department of the Treasury Internal Revenue Service Department of Labor Employee Benefits Security Administration Pension Benefit Guaranty Corporation For calendar plan year 2016 or fiscal plan year beginning 01/01/2016 A Name of plan ADJUSTABLE PLAN OF THE NATIONAL RETIREMENT FUND Service Provider Information This schedule is required to be filed under section 104 of the Employee Retirement Income Security Act of 1974 (ERISA). File as an attachment to Form and ending 12/31/2016 OMB No This Form is Open to Public Inspection. B Three-digit plan number (PN) C Plan sponsor s name as shown on line 2a of Form 5500 BD OF TRUSTEES-ADJUSTABLE PLAN OF THE NATIONAL RETIREMENT FUND D Employer Identification Number (EIN) Part I Service Provider Information (see instructions) You must complete this Part, in accordance with the instructions, to report the information required for each person who received, directly or indirectly, $5,000 or more in total compensation (i.e., money or anything else of monetary value) in connection with services rendered to the plan or the person's position with the plan during the plan year. If a person received only eligible indirect compensation for which the plan received the required disclosures, you are required to answer line 1 but are not required to include that person when completing the remainder of this Part. 1 Information on Persons Receiving Only Eligible Indirect Compensation a Check "Yes" or "No" to indicate whether you are excluding a person from the remainder of this Part because they received only eligible indirect compensation for which the plan received the required disclosures (see instructions for definitions and conditions) X Yes X No b If you answered line 1a Yes, enter the name and EIN or address of each person providing the required disclosures for the service providers who received only eligible indirect compensation. Complete as many entries as needed (see instructions). TACONIC CAPITAL ADVISORS L.P. (b) Enter name and EIN or address of person who provided you disclosures on eligible indirect compensation (b) Enter name and EIN or address of person who provided you disclosures on eligible indirect compensation (b) Enter name and EIN or address of person who provided you disclosures on eligible indirect compensation (b) Enter name and EIN or address of person who provided you disclosures on eligible indirect compensation For Paperwork Reduction Act Notice, see the Instructions for Form Schedule C (Form 5500) 2016 v

9 Schedule C (Form 5500) 2016 Page 2-1 x (b) Enter name and EIN or address of person who provided you disclosures on eligible indirect compensation (b) Enter name and EIN or address of person who provided you disclosures on eligible indirect compensation (b) Enter name and EIN or address of person who provided you disclosures on eligible indirect compensation (b) Enter name and EIN or address of person who provided you disclosures on eligible indirect compensation (b) Enter name and EIN or address of person who provided you disclosures on eligible indirect compensation (b) Enter name and EIN or address of person who provided you disclosures on eligible indirect compensation (b) Enter name and EIN or address of person who provided you disclosures on eligible indirect compensation (b) Enter name and EIN or address of person who provided you disclosures on eligible indirect compensation

10 Schedule C (Form 5500) 2016 Page 3-1 x 2. Information on Other Service Providers Receiving Direct or Indirect Compensation. Except for those persons for whom you answered Yes to line 1a above, complete as many entries as needed to list each person receiving, directly or indirectly, $5,000 or more in total compensation (i.e., money or anything else of value) in connection with services rendered to the plan or their position with the plan during the plan year. (See instructions). ALICARE INC (a) Enter name and EIN or address (see instructions) (b) Service Code(s) (c) Relationship to employer, employee organization, or person known to be a party-in-interest (d) Enter direct compensation paid by the plan. If none, enter -0-. (e) Did service provider receive indirect compensation? (sources other than plan or plan sponsor) (f) Did indirect compensation include eligible indirect compensation, for which the plan received the required disclosures? (g) (h) Enter total indirect Did the service compensation received by provider give you a service provider excluding formula instead of eligible indirect an amount or compensation for which you estimated amount? answered Yes to element (f). If none, enter OWNED BY PARTY-IN-INT ABCD Yes X No X Yes X No X Yes X No X (a) Enter name and EIN or address (see instructions) HORIZON ACTUARIAL SERVICES, LLC (b) Service Code(s) (c) Relationship to employer, employee organization, or person known to be a party-in-interest (d) Enter direct compensation paid by the plan. If none, enter -0-. (e) Did service provider receive indirect compensation? (sources other than plan or plan sponsor) (f) Did indirect compensation include eligible indirect compensation, for which the plan received the required disclosures? (g) (h) Enter total indirect Did the service compensation received by provider give you a service provider excluding formula instead of eligible indirect an amount or compensation for which you estimated amount? answered Yes to element (f). If none, enter NONE ABCD Yes X No X Yes X No X Yes X No X (a) Enter name and EIN or address (see instructions) BDO USA LLP (b) Service Code(s) (c) Relationship to employer, employee organization, or person known to be a party-in-interest NONE ABCD (d) Enter direct compensation paid by the plan. If none, enter -0-. (e) Did service provider receive indirect compensation? (sources other than plan or plan sponsor) (f) Did indirect compensation include eligible indirect compensation, for which the plan received the required disclosures? (g) (h) Enter total indirect Did the service compensation received by provider give you a service provider excluding formula instead of eligible indirect an amount or compensation for which you estimated amount? answered Yes to element (f). If none, enter Yes X No X Yes X No X Yes X No X

11 Schedule C (Form 5500) 2016 Page 3-12 x 2. Information on Other Service Providers Receiving Direct or Indirect Compensation. Except for those persons for whom you answered Yes to line 1a above, complete as many entries as needed to list each person receiving, directly or indirectly, $5,000 or more in total compensation (i.e., money or anything else of value) in connection with services rendered to the plan or their position with the plan during the plan year. (See instructions). HIRTLE, CALLAGHAN & COMPANY (a) Enter name and EIN or address (see instructions) (b) Service Code(s) (c) Relationship to employer, employee organization, or person known to be a party-in-interest (d) Enter direct compensation paid by the plan. If none, enter -0-. (e) Did service provider receive indirect compensation? (sources other than plan or plan sponsor) (f) Did indirect compensation include eligible indirect compensation, for which the plan received the required disclosures? (g) (h) Enter total indirect Did the service compensation received by provider give you a service provider excluding formula instead of eligible indirect an amount or compensation for which you estimated amount? answered Yes to element (f). If none, enter PARTY-IN-INT ABCD Yes X No X Yes X No X Yes X No X (a) Enter name and EIN or address (see instructions) ALIGRAPHICS (b) Service Code(s) (c) Relationship to employer, employee organization, or person known to be a party-in-interest (d) Enter direct compensation paid by the plan. If none, enter -0-. (e) Did service provider receive indirect compensation? (sources other than plan or plan sponsor) (f) Did indirect compensation include eligible indirect compensation, for which the plan received the required disclosures? (g) (h) Enter total indirect Did the service compensation received by provider give you a service provider excluding formula instead of eligible indirect an amount or compensation for which you estimated amount? answered Yes to element (f). If none, enter OWNED BY PARTY-IN-INT ABCD Yes X No X Yes X No X Yes X No X (a) Enter name and EIN or address (see instructions) ANDCO CONSULTING, LLC (b) Service Code(s) (c) Relationship to employer, employee organization, or person known to be a party-in-interest NONE ABCD (d) Enter direct compensation paid by the plan. If none, enter -0-. (e) Did service provider receive indirect compensation? (sources other than plan or plan sponsor) (f) Did indirect compensation include eligible indirect compensation, for which the plan received the required disclosures? (g) (h) Enter total indirect Did the service compensation received by provider give you a service provider excluding formula instead of eligible indirect an amount or compensation for which you estimated amount? answered Yes to element (f). If none, enter Yes X No X Yes X No X Yes X No X

12 Schedule C (Form 5500) 2016 Page 3-13 x 2. Information on Other Service Providers Receiving Direct or Indirect Compensation. Except for those persons for whom you answered Yes to line 1a above, complete as many entries as needed to list each person receiving, directly or indirectly, $5,000 or more in total compensation (i.e., money or anything else of value) in connection with services rendered to the plan or their position with the plan during the plan year. (See instructions). SCHULTE ROTH & ZABEL LLP (a) Enter name and EIN or address (see instructions) (b) Service Code(s) (c) Relationship to employer, employee organization, or person known to be a party-in-interest (d) Enter direct compensation paid by the plan. If none, enter -0-. (e) Did service provider receive indirect compensation? (sources other than plan or plan sponsor) (f) Did indirect compensation include eligible indirect compensation, for which the plan received the required disclosures? (g) (h) Enter total indirect Did the service compensation received by provider give you a service provider excluding formula instead of eligible indirect an amount or compensation for which you estimated amount? answered Yes to element (f). If none, enter NONE ABCD Yes X No X Yes X No X Yes X No X (a) Enter name and EIN or address (see instructions) AMALGAMATED BANK (b) Service Code(s) (c) Relationship to employer, employee organization, or person known to be a party-in-interest (d) Enter direct compensation paid by the plan. If none, enter -0-. (e) Did service provider receive indirect compensation? (sources other than plan or plan sponsor) (f) Did indirect compensation include eligible indirect compensation, for which the plan received the required disclosures? (g) (h) Enter total indirect Did the service compensation received by provider give you a service provider excluding formula instead of eligible indirect an amount or compensation for which you estimated amount? answered Yes to element (f). If none, enter OWNED BY PARTY-IN-INT ABCD Yes X No X Yes X No X Yes X No X (a) Enter name and EIN or address (see instructions) SCHUSTER AGUILO LLC (b) Service Code(s) (c) Relationship to employer, employee organization, or person known to be a party-in-interest NONE ABCD (d) Enter direct compensation paid by the plan. If none, enter -0-. (e) Did service provider receive indirect compensation? (sources other than plan or plan sponsor) (f) Did indirect compensation include eligible indirect compensation, for which the plan received the required disclosures? (g) (h) Enter total indirect Did the service compensation received by provider give you a service provider excluding formula instead of eligible indirect an amount or compensation for which you estimated amount? answered Yes to element (f). If none, enter Yes X No X Yes X No X Yes X No X

13 Schedule C (Form 5500) 2016 Page 3-14 x 2. Information on Other Service Providers Receiving Direct or Indirect Compensation. Except for those persons for whom you answered Yes to line 1a above, complete as many entries as needed to list each person receiving, directly or indirectly, $5,000 or more in total compensation (i.e., money or anything else of value) in connection with services rendered to the plan or their position with the plan during the plan year. (See instructions). SCHUSTER AGUILO LLC (a) Enter name and EIN or address (see instructions) (b) Service Code(s) (c) Relationship to employer, employee organization, or person known to be a party-in-interest (d) Enter direct compensation paid by the plan. If none, enter -0-. (e) Did service provider receive indirect compensation? (sources other than plan or plan sponsor) (f) Did indirect compensation include eligible indirect compensation, for which the plan received the required disclosures? (g) (h) Enter total indirect Did the service compensation received by provider give you a service provider excluding formula instead of eligible indirect an amount or compensation for which you estimated amount? answered Yes to element (f). If none, enter NONE ABCD Yes X No X Yes X No X Yes X No X (a) Enter name and EIN or address (see instructions) SS&C TECHNOLOGIES (b) Service Code(s) (c) Relationship to employer, employee organization, or person known to be a party-in-interest (d) Enter direct compensation paid by the plan. If none, enter -0-. (e) Did service provider receive indirect compensation? (sources other than plan or plan sponsor) (f) Did indirect compensation include eligible indirect compensation, for which the plan received the required disclosures? (g) (h) Enter total indirect Did the service compensation received by provider give you a service provider excluding formula instead of eligible indirect an amount or compensation for which you estimated amount? answered Yes to element (f). If none, enter NONE ABCD Yes X No X Yes X No X Yes X No X (a) Enter name and EIN or address (see instructions) (b) Service Code(s) (c) Relationship to employer, employee organization, or person known to be a party-in-interest ABCD (d) Enter direct compensation paid by the plan. If none, enter -0-. (e) Did service provider receive indirect compensation? (sources other than plan or plan sponsor) (f) Did indirect compensation include eligible indirect compensation, for which the plan received the required disclosures? (g) (h) Enter total indirect Did the service compensation received by provider give you a service provider excluding formula instead of eligible indirect an amount or compensation for which you estimated amount? answered Yes to element (f). If none, enter Yes X No X Yes X No X Yes X No X

14 Schedule C (Form 5500) 2016 Page 4-1 x Part I Service Provider Information (continued) 3. If you reported on line 2 receipt of indirect compensation, other than eligible indirect compensation, by a service provider, and the service provider is a fiduciary or provides contract administrator, consulting, custodial, investment advisory, investment management, broker, or recordkeeping services, answer the following questions for (a) each source from whom the service provider received $1,000 or more in indirect compensation and (b) each source for whom the service provider gave you a formula used to determine the indirect compensation instead of an amount or estimated amount of the indirect compensation. Complete as many entries as needed to report the required information for each source. (a) Enter service provider name as it appears on line 2 SS&C TECHNOLOGIES 15 (b) Service Codes (see instructions) (c) Enter amount of indirect compensation ALICARE (d) Enter name and EIN (address) of source of indirect compensation (e) Describe the indirect compensation, including any formula used to determine the service provider s eligibility for or the amount of the indirect compensation. RECORDKEEPING AND INFORMATION MANAGEMENT (a) Enter service provider name as it appears on line 2 (b) Service Codes (see instructions) (c) Enter amount of indirect compensation (d) Enter name and EIN (address) of source of indirect compensation (e) Describe the indirect compensation, including any formula used to determine the service provider s eligibility for or the amount of the indirect compensation. (a) Enter service provider name as it appears on line 2 (b) Service Codes (see instructions) (c) Enter amount of indirect compensation (d) Enter name and EIN (address) of source of indirect compensation (e) Describe the indirect compensation, including any formula used to determine the service provider s eligibility for or the amount of the indirect compensation.

15 Schedule C (Form 5500) 2016 Page 5-1 x Part II Service Providers Who Fail or Refuse to Provide Information 4 Provide, to the extent possible, the following information for each service provider who failed or refused to provide the information necessary to complete this Schedule. (a) Enter name and EIN or address of service provider (see instructions) (b) Nature of Service Code(s) SCHUSTER AGUILO LLC P.O. BOX ABCD SAN JUAN, SAN JUAN PR (c) Describe the information that the service provider failed or refused to provide SCHEDULE C CONFIRMATION REPLY ABCDE E E E E E (a) Enter name and EIN or address of service provider (see instructions) (b) Nature of Service Code(s) (a) Enter name and EIN or address of service provider (see (b) Nature of instructions) Service Code(s) (a) Enter name and EIN or address of service provider (see (b) Nature of instructions) Service Code(s) (a) Enter name and EIN or address of service provider (see (b) Nature of instructions) Service Code(s) (c) Describe the information that the service provider failed or refused to provide E E E E E E (c) Describe the information that the service provider failed or refused to provide E E E E E E (c) Describe the information that the service provider failed or refused to provide E E E E E E (c) Describe the information that the service provider failed or refused to provide E E E E E E (a) Enter name and EIN or address of service provider (see instructions) (b) Nature of Service Code(s) (c) Describe the information that the service provider failed or refused to provide E E E E E E

16 Schedule C (Form 5500) 2016 Page 6-1 x Part III Termination Information on Accountants and Enrolled Actuaries (see instructions) (complete as many entries as needed) a Name: b EIN: c Position: ABCD d Address: e Telephone: Explanation: EFGHI EFGHI EFGHI EFGHI EFGHI EFGHI a Name: b EIN: c Position: ABCD d Address: e Telephone: Explanation: EFGHI EFGHI EFGHI EFGHI EFGHI EFGHI a Name: b EIN: c Position: ABCD d Address: e Telephone: Explanation: EFGHI EFGHI EFGHI EFGHI EFGHI EFGHI a Name: b EIN: c Position: ABCD d Address: e Telephone: Explanation: EFGHI EFGHI EFGHI EFGHI EFGHI EFGHI a Name: b EIN: c Position: ABCD d Address: e Telephone: Explanation: EFGHI EFGHI EFGHI EFGHI EFGHI EFGHI

17 SCHEDULE H (Form 5500) Department of the Treasury Internal Revenue Service Department of Labor Employee Benefits Security Administration Financial Information This schedule is required to be filed under section 104 of the Employee Retirement Income Security Act of 1974 (ERISA), and section 6058(a) of the Internal Revenue Code (the Code). OMB No Pension Benefit Guaranty Corporation File as an attachment to Form This Form is Open to Public Inspection For calendar plan year 2016 or fiscal plan year beginning 01/01/2016 and ending 12/31/2016 A Name of plan B Three-digit ADJUSTABLE PLAN OF THE NATIONAL RETIREMENT FUND plan number (PN) EFGHI C Plan sponsor s name as shown on line 2a of Form 5500 D Employer Identification Number (EIN) BD OF TRUSTEES-ADJUSTABLE PLAN OF THE NATIONAL RETIREMENT FUND Part I Asset and Liability Statement 1 Current value of plan assets and liabilities at the beginning and end of the plan year. Combine the value of plan assets held in more than one trust. Report the value of the plan s interest in a commingled fund containing the assets of more than one plan on a line-by-line basis unless the value is reportable on lines 1c(9) through 1c(14). Do not enter the value of that portion of an insurance contract which guarantees, during this plan year, to pay a specific dollar benefit at a future date. Round off amounts to the nearest dollar. MTIAs, CCTs, PSAs, and IEs do not complete lines 1b(1), 1b(2), 1c(8), 1g, 1h, and 1i. CCTs, PSAs, and IEs also do not complete lines 1d and 1e. See instructions. Assets (a) Beginning of Year (b) End of Year a Total noninterest-bearing cash... 1a b Receivables (less allowance for doubtful accounts): (1) Employer contributions... 1b(1) (2) Participant contributions... 1b(2) (3) Other... 1b(3) c General investments: (1) Interest-bearing cash (include money market accounts & certificates of deposit)... 1c(1) (2) U.S. Government securities... 1c(2) (3) Corporate debt instruments (other than employer securities): (A) Preferred... 1c(3)(A) (B) All other... 1c(3)(B) (4) Corporate stocks (other than employer securities): (A) Preferred... 1c(4)(A) (B) Common... 1c(4)(B) (5) Partnership/joint venture interests... 1c(5) (6) Real estate (other than employer real property)... 1c(6) (7) Loans (other than to participants)... 1c(7) (8) Participant loans... 1c(8) (9) Value of interest in common/collective trusts... 1c(9) (10) Value of interest in pooled separate accounts... 1c(10) (11) Value of interest in master trust investment accounts... 1c(11) (12) Value of interest in investment entities... 1c(12) (13) Value of interest in registered investment companies (e.g., mutual funds)... 1c(13) (14) Value of funds held in insurance company general account (unallocated contracts)... 1c(14) (15) Other... 1c(15) For Paperwork Reduction Act Notice, see the Instructions for Form Schedule H (Form 5500) 2016 v

18 Schedule H (Form 5500) 2016 Page 2 1d Employer-related investments: (a) Beginning of Year (b) End of Year (1) Employer securities... 1d(1) (2) Employer real property... 1d(2) e Buildings and other property used in plan operation... 1e f Total assets (add all amounts in lines 1a through 1e)... 1f Liabilities 1g Benefit claims payable... 1g h Operating payables... 1h i Acquisition indebtedness... 1i j Other liabilities... 1j k Total liabilities (add all amounts in lines 1g through1j)... 1k Net Assets 1l Net assets (subtract line 1k from line 1f)... 1l Part II Income and Expense Statement 2 Plan income, expenses, and changes in net assets for the year. Include all income and expenses of the plan, including any trust(s) or separately maintained fund(s) and any payments/receipts to/from insurance carriers. Round off amounts to the nearest dollar. MTIAs, CCTs, PSAs, and IEs do not complete lines 2a, 2b(1)(E), 2e, 2f, and 2g. Income (a) Amount (b) Total a Contributions: (1) Received or receivable in cash from: (A) Employers... 2a(1)(A) (B) Participants... 2a(1)(B) (C) Others (including rollovers)... 2a(1)(C) (2) Noncash contributions... 2a(2) (3) Total contributions. Add lines 2a(1)(A), (B), (C), and line 2a(2)... 2a(3) b Earnings on investments: (1) Interest: (A) Interest-bearing cash (including money market accounts and certificates of deposit)... 2b(1)(A) (B) U.S. Government securities... 2b(1)(B) (C) Corporate debt instruments... 2b(1)(C) (D) Loans (other than to participants)... 2b(1)(D) (E) Participant loans... 2b(1)(E) (F) Other... 2b(1)(F) (G) Total interest. Add lines 2b(1)(A) through (F)... 2b(1)(G) (2) Dividends: (A) Preferred stock... 2b(2)(A) (B) Common stock... 2b(2)(B) (C) Registered investment company shares (e.g. mutual funds)... 2b(2)(C) (D) Total dividends. Add lines 2b(2)(A), (B), and (C) 2b(2)(D) (3) Rents... 2b(3) (4) Net gain (loss) on sale of assets: (A) Aggregate proceeds... 2b(4)(A) (B) Aggregate carrying amount (see instructions)... 2b(4)(B) (C) Subtract line 2b(4)(B) from line 2b(4)(A) and enter result... 2b(4)(C) (5) Unrealized appreciation (depreciation) of assets: (A) Real estate... 2b(5)(A) (B) Other... 2b(5)(B) (C) Total unrealized appreciation of assets. Add lines 2b(5)(A) and (B)... 2b(5)(C)

19 Schedule H (Form 5500) 2016 Page 3 (a) Amount (b) Total (6) Net investment gain (loss) from common/collective trusts... 2b(6) (7) Net investment gain (loss) from pooled separate accounts... 2b(7) (8) Net investment gain (loss) from master trust investment accounts... 2b(8) (9) Net investment gain (loss) from investment entities... 2b(9) (10) Net investment gain (loss) from registered investment companies (e.g., mutual funds)... 2b(10) c Other income... 2c d Total income. Add all income amounts in column (b) and enter total... 2d Expenses e Benefit payment and payments to provide benefits: (1) Directly to participants or beneficiaries, including direct rollovers... 2e(1) (2) To insurance carriers for the provision of benefits... 2e(2) (3) Other... 2e(3) (4) Total benefit payments. Add lines 2e(1) through (3)... 2e(4) f Corrective distributions (see instructions)... 2f g Certain deemed distributions of participant loans (see instructions)... 2g h Interest expense... 2h i Administrative expenses: (1) Professional fees... 2i(1) (2) Contract administrator fees... 2i(2) (3) Investment advisory and management fees... 2i(3) (4) Other... 2i(4) (5) Total administrative expenses. Add lines 2i(1) through (4)... 2i(5) j Total expenses. Add all expense amounts in column (b) and enter total... 2j Net Income and Reconciliation k Net income (loss). Subtract line 2j from line 2d... 2k l Transfers of assets: (1) To this plan... 2l(1) (2) From this plan... 2l(2) Part III Accountant s Opinion 3 Complete lines 3a through 3c if the opinion of an independent qualified public accountant is attached to this Form Complete line 3d if an opinion is not attached. a The attached opinion of an independent qualified public accountant for this plan is (see instructions): (1) X Unqualified (2) X Qualified (3) X Disclaimer (4) X Adverse b Did the accountant perform a limited scope audit pursuant to 29 CFR and/or (d)? X Yes X No c Enter the name and EIN of the accountant (or accounting firm) below: (1) Name: BDO (2) EIN: d The opinion of an independent qualified public accountant is not attached because: (1) X This form is filed for a CCT, PSA, or MTIA. (2) X It will be attached to the next Form 5500 pursuant to 29 CFR Part IV Compliance Questions 4 CCTs and PSAs do not complete Part IV. MTIAs, IEs, and GIAs do not complete lines 4a, 4e, 4f, 4g, 4h, 4k, 4m, 4n, or IEs also do not complete lines 4j and 4l. MTIAs also do not complete line 4l. a b During the plan year: Yes No Amount Was there a failure to transmit to the plan any participant contributions within the time period described in 29 CFR ? Continue to answer Yes for any prior year failures until fully corrected. (See instructions and DOL s Voluntary Fiduciary Correction Program.)... Were any loans by the plan or fixed income obligations due the plan in default as of the close of the plan year or classified during the year as uncollectible? Disregard participant loans secured by participant s account balance. (Attach Schedule G (Form 5500) Part I if Yes is checked.)... 4a 4b X X

20 c d Schedule H (Form 5500) 2016 Page 4-1 x Yes No Amount Were any leases to which the plan was a party in default or classified during the year as uncollectible? (Attach Schedule G (Form 5500) Part II if Yes is checked.)... 4c X Were there any nonexempt transactions with any party-in-interest? (Do not include transactions reported on line 4a. Attach Schedule G (Form 5500) Part III if Yes is checked.)... 4d X e Was this plan covered by a fidelity bond?... 4e X f Did the plan have a loss, whether or not reimbursed by the plan s fidelity bond, that was caused by fraud or dishonesty?... 4f X g h Did the plan hold any assets whose current value was neither readily determinable on an established market nor set by an independent third party appraiser?... 4g X Did the plan receive any noncash contributions whose value was neither readily determinable on an established market nor set by an independent third party appraiser?... 4h X i Did the plan have assets held for investment? (Attach schedule(s) of assets if Yes is checked, and see instructions for format requirements.)... 4i X j Were any plan transactions or series of transactions in excess of 5% of the current value of plan assets? (Attach schedule of transactions if Yes is checked, and see instructions for format requirements.)... 4j X k Were all the plan assets either distributed to participants or beneficiaries, transferred to another plan, or brought under the control of the PBGC?... 4k X l Has the plan failed to provide any benefit when due under the plan?... 4l X m If this is an individual account plan, was there a blackout period? (See instructions and 29 CFR )... 4m X n If 4m was answered Yes, check the Yes box if you either provided the required notice or one of the exceptions to providing the notice applied under 29 CFR n o Defined Benefit Plan or Money Purchase Pension Plan Only: Were any distributions made during the plan year to an employee who attained age 62 and had not separated from service?... 4o 5a Has a resolution to terminate the plan been adopted during the plan year or any prior plan year? If Yes, enter the amount of any plan assets that reverted to the employer this year... X Yes X No Amount:- 5b If, during this plan year, any assets or liabilities were transferred from this plan to another plan(s), identify the plan(s) to which assets or liabilities were transferred. (See instructions.) 5b(1) Name of plan(s) 5b(2) EIN(s) 5b(3) PN(s) EFGHI EFGHI EFGHI EFGHI EFGHI EFGHI EFGHI EFGHI c If the plan is a defined benefit plan, is it covered under the PBGC insurance program (See ERISA section 4021.)?... X Yes X No X Not determined If Yes is checked, enter the My PAA confirmation number from the PBGC premium filing for this plan year (See instructions.) Part V Trust Information 6a Name of trust EFGHI 6b Trust s EIN EFGHI 6c Name of trustee or custodian EFGHI EFGHI EFGHI 6d Trustee s or custodian s telephone number

21 SCHEDULE R (Form 5500) Department of the Treasury Internal Revenue Service Department of Labor Employee Benefits Security Administration Pension Benefit Guaranty Corporation Retirement Plan Information This schedule is required to be filed under sections 104 and 4065 of the Employee Retirement Income Security Act of 1974 (ERISA) and section 6058(a) of the Internal Revenue Code (the Code). File as an attachment to Form For calendar plan year 2016 or fiscal plan year beginning 01/01/2016 and ending A Name of plan B ADJUSTABLE PLAN OF THE NATIONAL RETIREMENT FUND EFGHI C Plan sponsor s name as shown on line 2a of Form 5500 BD OF TRUSTEES-ADJUSTABLE PLAN OF THE NATIONAL RETIREMENT FUND Part I Distributions All references to distributions relate only to payments of benefits during the plan year. 1 Total value of distributions paid in property other than in cash or the forms of property specified in the instructions... D OMB No This Form is Open to Public Inspection. Three-digit plan number (PN) Employer Identification Number (EIN) Enter the EIN(s) of payor(s) who paid benefits on behalf of the plan to participants or beneficiaries during the year (if more than two, enter EINs of the two payors who paid the greatest dollar amounts of benefits): 3 Number of participants (living or deceased) whose benefits were distributed in a single sum, during the plan year Part II Funding Information (If the plan is not subject to the minimum funding requirements of section of 412 of the Internal Revenue Code or ERISA section 302, skip this Part.) 4 Is the plan administrator making an election under Code section 412(d)(2) or ERISA section 302(d)(2)?... X Yes X No X N/A If you completed line 5, complete lines 3, 9, and 10 of Schedule MB and do not complete the remainder of this schedule. 6 a Enter the minimum required contribution for this plan year (include any prior year accumulated funding 6a deficiency not waived)... b Enter the amount contributed by the employer to the plan for this plan year... 6b If you completed line 6c, skip lines 8 and 9. 7 Will the minimum funding amount reported on line 6c be met by the funding deadline?... X Yes X No X N/A 8 If a change in actuarial cost method was made for this plan year pursuant to a revenue procedure or other authority providing automatic approval for the change or a class ruling letter, does the plan sponsor or plan administrator agree with the change?... X Yes X No X N/A Part III Amendments 9 If this is a defined benefit pension plan, were any amendments adopted during this plan year that increased or decreased the value of benefits? If yes, check the appropriate box. If no, check the No box.... X Increase X Decrease X Both X No Part IV ESOPs (see instructions). If this is not a plan described under Section 409(a) or 4975(e)(7) of the Internal Revenue Code, skip this Part. 10 Were unallocated employer securities or proceeds from the sale of unallocated securities used to repay any exempt loan?... X Yes X No 11 a Does the ESOP hold any preferred stock?... X Yes X No b EIN(s): Profit-sharing plans, ESOPs, and stock bonus plans, skip line 3. If the plan is a defined benefit plan, go to line 8. 5 If a waiver of the minimum funding standard for a prior year is being amortized in this plan year, see instructions and enter the date of the ruling letter granting the waiver. Date: Month Day Year c 12/31/2016 Subtract the amount in line 6b from the amount in line 6a. Enter the result (enter a minus sign to the left of a negative amount)... 6c If the ESOP has an outstanding exempt loan with the employer as lender, is such loan part of a back-to-back loan? (See instructions for definition of back-to-back loan.) Does the ESOP hold any stock that is not readily tradable on an established securities market?... X Yes X No For Paperwork Reduction Act Notice, see the Instructions for Form Schedule R (Form 5500) 2016 v X Yes X No

22 Schedule R (Form 5500) 2016 Page x Part V Additional Information for Multiemployer Defined Benefit Pension Plans 13 Enter the following information for each employer that contributed more than 5% of total contributions to the plan during the plan year (measured in dollars). See instructions. Complete as many entries as needed to report all applicable employers. a Name of contributing employer SEE ATTACHED b EIN c Dollar amount contributed by employer d Date collective bargaining agreement expires (If employer contributes under more than one collective bargaining agreement, check box X and see instructions regarding required attachment. Otherwise, enter the applicable date.) Month Day Year e Contribution rate information (If more than one rate applies, check this box X and see instructions regarding required attachment. Otherwise, complete lines 13e(1) and 13e(2).) (1) Contribution rate (in dollars and cents) (2) Base unit measure: X Hourly X Weekly X Unit of production X Other (specify): a Name of contributing employer b EIN c Dollar amount contributed by employer d Date collective bargaining agreement expires (If employer contributes under more than one collective bargaining agreement, check box X and see instructions regarding required attachment. Otherwise, enter the applicable date.) Month Day Year e Contribution rate information (If more than one rate applies, check this box X and see instructions regarding required attachment. Otherwise, complete lines 13e(1) and 13e(2).) (1) Contribution rate (in dollars and cents) (2) Base unit measure: X Hourly X Weekly X Unit of production X Other (specify): a Name of contributing employer b EIN c Dollar amount contributed by employer d Date collective bargaining agreement expires (If employer contributes under more than one collective bargaining agreement, check box X and see instructions regarding required attachment. Otherwise, enter the applicable date.) Month Day Year e Contribution rate information (If more than one rate applies, check this box X and see instructions regarding required attachment. Otherwise, complete lines 13e(1) and 13e(2).) (1) Contribution rate (in dollars and cents) (2) Base unit measure: X Hourly X Weekly X Unit of production X Other (specify): a Name of contributing employer b EIN c Dollar amount contributed by employer d Date collective bargaining agreement expires (If employer contributes under more than one collective bargaining agreement, check box X and see instructions regarding required attachment. Otherwise, enter the applicable date.) Month Day Year e Contribution rate information (If more than one rate applies, check this box X and see instructions regarding required attachment. Otherwise, complete lines 13e(1) and 13e(2).) (1) Contribution rate (in dollars and cents) (2) Base unit measure: X Hourly X Weekly X Unit of production X Other (specify): a Name of contributing employer b EIN c Dollar amount contributed by employer d Date collective bargaining agreement expires (If employer contributes under more than one collective bargaining agreement, check box X and see instructions regarding required attachment. Otherwise, enter the applicable date.) Month Day Year e Contribution rate information (If more than one rate applies, check this box X and see instructions regarding required attachment. Otherwise, complete lines 13e(1) and 13e(2).) (1) Contribution rate (in dollars and cents) (2) Base unit measure: X Hourly X Weekly X Unit of production X Other (specify): a Name of contributing employer b EIN c Dollar amount contributed by employer d Date collective bargaining agreement expires (If employer contributes under more than one collective bargaining agreement, check box X and see instructions regarding required attachment. Otherwise, enter the applicable date.) Month Day Year e Contribution rate information (If more than one rate applies, check this box X and see instructions regarding required attachment. Otherwise, complete lines 13e(1) and 13e(2).) (1) Contribution rate (in dollars and cents) (2) Base unit measure: X Hourly X Weekly X Unit of production X Other (specify): 999

23 Schedule R (Form 5500) 2016 Page 3 14 Enter the number of participants on whose behalf no contributions were made by an employer as an employer of the participant for: a The current year... 14a 0 b The plan year immediately preceding the current plan year... 14b c The second preceding plan year... 14c Enter the ratio of the number of participants under the plan on whose behalf no employer had an obligation to make an employer contribution during the current plan year to: a The corresponding number for the plan year immediately preceding the current plan year... 15a b The corresponding number for the second preceding plan year... 15b Information with respect to any employers who withdrew from the plan during the preceding plan year: a Enter the number of employers who withdrew during the preceding plan year... 16a b If line 16a is greater than 0, enter the aggregate amount of withdrawal liability assessed or estimated to be assessed against such withdrawn employers... 16b If assets and liabilities from another plan have been transferred to or merged with this plan during the plan year, check box and see instructions regarding supplemental information to be included as an attachment.... X Part VI Additional Information for Single-Employer and Multiemployer Defined Benefit Pension Plans 18 If any liabilities to participants or their beneficiaries under the plan as of the end of the plan year consist (in whole or in part) of liabilities to such participants and beneficiaries under two or more pension plans as of immediately before such plan year, check box and see instructions regarding supplemental information to be included as an attachment... X 19 If the total number of participants is 1,000 or more, complete lines (a) through (c) a Enter the percentage of plan assets held as: Stock: % 42 Investment-Grade Debt: % 13 High-Yield Debt: % 8 Real Estate: % 1 Other: % 36 b Provide the average duration of the combined investment-grade and high-yield debt: X 0-3 years X 3-6 years X 6-9 years X 9-12 years X years X years X years X 21 years or more c What duration measure was used to calculate line 19(b)? X Effective duration X Macaulay duration X Modified duration X Other (specify): Part VII IRS Compliance Questions 20a Is the plan a 401(k) plan? If No, skip b... X Yes X No 20b How did the plan satisfy the nondiscrimination requirements for employee deferrals under section 401(k)(3) for the plan year? Check all that apply:... 21a What testing method was used to satisfy the coverage requirements under section 410(b) for the plan year? Check all that apply:... X Design-based safe harbor Current year X ADP test Ratio X percentage test Prior year X ADP test X N/A X Average benefit test X N/A 21b Did the plan satisfy the coverage and nondiscrimination requirements of sections 410(b) and 401(a)(4) X Yes X No for the plan year by combining this plan with any other plan under the permissive aggregation rules?... 22a If the plan is a master and prototype plan (M&P) or volume submitter plan that received a favorable IRS opinion letter or advisory letter, enter the date of the letter / / and the serial number. 22b If the plan is an individually-designed plan that received a favorable determination letter from the IRS, enter the date of the most recent determination letter / /.

24 ADJUSTABLE PLAN OF THE NATIONAL RETIREMENT FUND Financial Statements and Supplemental Schedules For the Years Ended December 31, 2016 and 2015 (With Independent Auditor s Report Thereon) The report accompanying these financial statements was issued by BDO USA, LLP, a Delaware limited liability partnership and the U.S. member of BDO International Limited, a UK company limited by guarantee.

25 THE NATIONAL RETIREMENT FUND Financial Statements and Supplemental Schedules For the Years Ended December 31, 2016 and 2015 (With Independent Auditor s Report Thereon)

26 ADJUSTABLE PLAN OF THE NATIONAL RETIREMENT FUND Financial Statements and Supplemental Schedules For the Year Ended December 31, 2016 and 2015 Table of Contents Independent Auditor s Report 1-2 Financial Statements: Statements of Net Assets Available for Benefits as of December 31, 2016 and Statements of Changes in Net Assets Available for Benefits for the Years Ended December 31, 2016 and Notes to Financial Statements 5-13 Supplemental Schedules: Schedule H (Form 5500), Line 4i Schedule of Assets (Held at End of Year) as of December 31, Schedule H (Form 5500), Line 4j Schedule of Reportable Transactions For the Year Ended December 31, Page

27 Tel: Fax: Park Avenue New York, NY Independent Auditor s Report The Board of Trustees of the Adjustable Plan of the National Retirement Fund White Plains, New York We have audited the accompanying financial statements of the Adjustable Plan of the National Retirement Fund (the Plan ), which comprise the statements of net assets available for benefits as of December 31, 2016 and 2015, the related statements of changes in net assets available for benefits for the years then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Plan's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, information regarding the Plan s net assets available for benefits as of December 31, 2016, and changes therein for the year then ended, and its financial status as of December 31, 2015, and changes therein for the year then ended in accordance with accounting principles generally accepted in the United States of America. BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms. 1

28 Other Matter As discussed in Note 1 to the financial statements, beginning on January 1, 2015, the Legacy Plan of the National Retirement Fund (formerly National Retirement Fund) was frozen and the Plan was established. Report on Supplementary Information Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole. The supplemental schedules of assets (held at end of year) as of December 31, 2016 and the supplemental schedule of reportable transactions for the year then ended are presented for the purpose of additional analysis and are not a required part of the financial statements but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of Such information is the responsibility of the Plan's management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. New York, NY July 31,

29 ADJUSTABLE PLAN OF THE NATIONAL RETIREMENT FUND Statements of Net Assets Available for Benefits December 31, 2016 and Assets: Investments, at fair value (note 3): Money market fund $ 7,385,891 $ 3,995,000 Hedge fund of funds 11,953,160 5,505,883 Mutual funds 59,234,723 26,826,529 Limited partnerships 6,300,334 Total investments 84,874,108 36,327,412 Cash 75,934 83,369 Receivables: Contributions receivable from employers, net of allowance 5,120,143 3,057,644 Due from related parties 6,580,396 2,754,949 Pension Benefit Guaranty Corporation refund 2,176,044 Due from broker for securities sold 1,800,000 Total receivables 13,876,583 7,612,593 Prepaid benefits and expenses 37,800 Total assets 98,864,425 44,023,374 Liabilities: Drafts outstanding 5,413 11,468 Due to broker for securities purchased 2,000,000 Accounts payable and accrued expenses 265, ,790 Due to related parties Total liabilities 2,270, ,296 Net assets available for benefits $ 96,593,473 $ 43,910,078 See accompanying notes to financial statements. 3

30 ADJUSTABLE PLAN OF THE NATIONAL RETIREMENT FUND Statements of Changes in Net Assets Available for Benefits Years Ended December 31, 2016 and Additions: Employer contributions $ 52,275,269 $ 50,535,998 Interest income 102,973 59,256 Dividend income 2,186,703 1,936,216 Investment expenses (182,470) (49,508) Net appreciation (depreciation) in fair value of investments 3,163,618 (3,404,700) Total net investment income (loss) 5,270,824 (1,458,736) Total additions 57,546,093 49,077,262 Deductions: Benefits paid directly to participants 773,888 77,689 Fund service expenses 3,529,756 2,372,000 Professional fees 357, ,615 (Refund from) payments to the Pension Benefit Guaranty Corporation (62,808) 2,176,044 Insurance expenses 25,000 20,000 Other expenses 239, ,836 Total deductions 4,862,698 5,167,184 Net increase in net assets 52,683,395 43,910,078 Net assets available for benefits at: Beginning of year 43,910,078 End of year $ 96,593,473 $ 43,910,078 See accompanying notes to financial statements. 4

31 (1) Description of the Plan ADJUSTABLE PLAN OF THE NATIONAL RETIREMENT FUND Notes to Financial Statements Years Ended December 31, 2016 and 2015 The following brief description of the Adjustable Plan of the National Retirement Fund (the Plan ) is provided for general information purposes only. Participants should refer to the Plan documents for a complete description of the Plan s provisions which may vary by participating employers. (a) General The Plan was established with an effective date of January 1, 2015 pursuant to which the participants will accrue pension benefits under the Plan. The Plan is subject to the provision of the Employee Retirement Income Security Act of 1974 ( ERISA ), as amended. (b) Contributions Contributions to the Plan for benefits are made by employers, based on various methods, generally pursuant to collective bargaining agreements. Employer contributions are used to cover benefit and general and administrative expenses. Employer contributions exceeded the ERISA minimum funding requirements during 2016 and (c) Benefits Under the Plan, qualified participants are entitled to either a normal, reduced or a disability pension. The details of the vesting and benefit provisions are contained in the Plan document and may be obtained from the Plan administrator, who also maintains and distributes a Summary Plan Description. (2) Significant Accounting Policies (a) Basis of Accounting The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ( U.S. GAAP ). (b) Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires the Plan s management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and changes therein, disclosure of contingent assets and liabilities, and the actuarial present value of accumulated plan benefits at the date of the financial statements and changes therein. Actual results could differ from those estimates. (c) Valuation of Investments and Income Recognition Financial instruments are carried at fair value. Accounting Standards Codification ( ASC ) , Fair Value Measurement, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in a principal or most advantageous market (an exit price). Fair value is a market-based measurement that is determined based on inputs, which refer broadly to assumptions that market participants use in pricing assets or liabilities. These inputs can be readily observable, market corroborated, or unobservable. ASC established a fair value hierarchy, which prioritizes the 5

32 ADJUSTABLE PLAN OF THE NATIONAL RETIREMENT FUND Notes to Financial Statements Years Ended December 31, 2016 and 2015 inputs to valuation techniques used to measure fair value in three broad levels. Under ASC , assets and liabilities are classified in their entirety based on the level of input that is significant to the fair value measurement. Assessing the significance of a particular input may require judgment considering factors specific to the asset or liability, and may affect the valuation of the asset or liability and its placement within the fair value hierarchy. The Plan classifies fair value balances based on the fair value hierarchy as follows: Level 1 Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Valuation adjustments and block discounts are not applied to Level 1 instruments. Level 2 Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The asset s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. There were no significant changes in valuation techniques used in 2016 and Investment income is recognized when earned and consists of interest and dividends. Dividends are recorded on the ex-dividend date. Net appreciation (depreciation) includes the Plan s gains and losses on investments bought and sold as well as held during the year. Purchases and sales are recorded on a trade-date basis. (d) Relevant Accounting Developments In May 2015, the Financial Accounting Standards Board ( FASB ) issued Accounting Standards Update ( ASU ) , Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). ASU was issued to address diversity in practice related to how certain investments measured at net asset value ( NAV ) with redemption dates in the future (including periodic redemption dates) are categorized within the fair value hierarchy. The amendments eliminate the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. As such, certain fair value levelling disclosures are no longer required, although information must be disclosed so that users can reconcile amounts reported in the fair value hierarchy to the statement of net assets available for benefits. The amendments are effective retrospectively for annual reporting periods beginning after December 15, Early adoption is permitted. The Plan elected to early adopt ASU in In July 2015, the FASB issued ASU , Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): (Part I) Fully Benefit-Responsive investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient. Part I eliminates the requirements to measure the fair value of fully benefit-responsive investment contracts and provide certain disclosures. Contract value is the only required measure for fully benefit-responsive investment contracts. Part II eliminates the 6

33 ADJUSTABLE PLAN OF THE NATIONAL RETIREMENT FUND Notes to Financial Statements Years Ended December 31, 2016 and 2015 requirements to disclose individual investments that represent 5 percent or more of net assets available for benefits and the net appreciation or depreciation in fair value of investments by general type. Part II also simplifies the level of disaggregation of investments by general type that are measured using fair value. Plans will continue to disaggregate investments that are measured using fair value by general type; however, plans are no longer required to disaggregate investments by nature, characteristics and risks. Further, the disclosure of information about fair value measurements shall be provided by general type of plan asset. Part III provides a practical expedient to permit plans to measure its investments and investment related accounts as of a month-end date closest to its fiscal year for a plan with a fiscal year end that does not coincide with the end of a calendar month. The amendments in ASU are effective for reporting periods beginning after December 15, 2015, with early adoption permitted. Parts I and II are to be applied retrospectively and Part III is to be applied prospectively. The Plan elected to early adopt Part II in (e) (f) (g) Benefits Benefits due and paid from Plan assets have been included as benefits paid to participants in the statements of changes in net assets available for benefits. Benefits paid that are applicable to annuities due in the subsequent Plan year are included as prepaid benefits in the statement of net assets available for benefits. Administrative Expenses Administrative and investment related expenses are paid by the Plan. Risks and Uncertainties The Plan s investments consist of a variety of investment securities and investment funds. Investments in general are exposed to various risks, such as interest rate, credit, and overall market volatility risk. Due to the level of risk associated with certain investments, it is reasonably possible that changes in the value of the Plan s investments will occur in the near term and that such changes could materially affect the amounts reported in the accompanying statements of net assets available for benefits. Contributions to the Plan and the actuarial present value of accumulated plan benefits are reported based on certain assumptions pertaining to interest rates, and participant demographics, all of which are subject to change. Due to uncertainties inherent in the estimations and assumptions process, it is at least reasonably possible that changes in these estimates and assumptions in the near term would be material to the financial statements. (h) Accounting for Uncertainty in Income Taxes Under ASC , Accounting for Uncertainty in Income Taxes, a plan must recognize a tax liability associated with tax positions taken for tax return purposes when it is more likely than not that the position will not be sustained upon examination by a taxing authority. The Plan does not believe there are any material uncertain tax positions taken, and accordingly, has not recognized any liability for unrecognized tax benefits. The Plan has filed for qualification letters in U.S. and Puerto Rico. Additionally, the Plan will file Form 5500 Annual Return/Report of Employee Benefit Plan, as required, and all other applicable returns in jurisdictions where it is required. For the years ended December 31, 2016 and 2015, there were no interest or penalties recorded or included in the financial statements. The Plan is subject to routine audits by taxing jurisdictions. 7

34 ADJUSTABLE PLAN OF THE NATIONAL RETIREMENT FUND Notes to Financial Statements Years Ended December 31, 2016 and 2015 (i) Reclassification Certain amounts in the accompanying 2015 financial statements have been reclassified to conform to the 2016 presentation. The reclassifications did not impact net assets available for benefits or changes therein. (3) Fair Value Measurements The Plan s assets recorded at fair value have been categorized based upon a fair value hierarchy in accordance with ASC See Note 2 for a discussion of the Plan s policies regarding this hierarchy. A description of the valuation methods applied to the Plan s major classes of assets measured at fair value are as follows. Money Market Funds Money market funds are valued based on the NAV of the shares held by Plan. NAV is based upon the fair value of the money market fund s underlying investments. The Fund s investments in the money market funds can be redeemed immediately at the current NAV per share. There were no unfunded commitments as of December 31, 2016 and Mutual Funds The Plan has investments in mutual funds. For these investments, the Plan has ownership interest in the mutual fund but not in the individual securities held by the fund. The assets of each mutual fund consist primarily of shares of the underlying holdings. These mutual funds are invested primarily in fixed income and equity securities. Mutual funds are valued at the unadjusted quoted price which represents the NAV of the shares held by the Plan at year-end. Mutual funds that are actively traded on national securities exchanges are classified as Level 1. Hedge Fund of Funds The Plan invests with several hedge fund of funds managers. For these investments, the Plan has access to underlying managers but not in the individual positions of each manager. The hedge fund of funds are valued at NAV. NAV is based on the fair value of the underlying assets of the hedge fund of funds. A significant amount of the hedge fund of fund s investments consists of liquid, publicly-traded securities. The fair value of these investments is determined by each manager using either an in-house valuation team or a third-party administrative service. As part of its due diligence process, the Plan contacted each manager and reviewed their valuation policies and the controls surrounding the valuation process in accordance with ASC The financial statements of the investees are audited annually by independent auditors. 8

35 Limited Partnerships ADJUSTABLE PLAN OF THE NATIONAL RETIREMENT FUND Notes to Financial Statements Years Ended December 31, 2016 and 2015 The Plan invests in several limited partnerships. For these investments, the Plan owns a share of the companies or properties but not individual positions. The limited partnerships are valued at NAV or its equivalent. NAV or its equivalent is based on the fair value of the limited partnerships underlying investment. A significant amount of the limited partnership investments consists of equity, fixed income, real estate, debt, infrastructure and private equity fund managers. These investments are long-term investments, which require a commitment of capital for several years and do not have readily observable fair values. The transaction price is used as the best estimate of fair value at inception. Thereafter, valuation is based on an assessment of each underlying investment, incorporating valuations that consider the evaluation of financing and sale transactions with third parties, expected cash flows and market-based information, performance multiples and changes in market outlook, among other factors. The fair value of these investments is determined by each manager using either an in-house valuation team or a third-party administrative service. As part of its due diligence process, the Plan contacted each manager and reviewed their valuation policies and the controls surrounding the valuation process in accordance with ASC The financial statements of the investees are audited annually by independent auditors. The following tables present the level within the fair value hierarchy at which the Plan s financial assets are measured on a recurring basis as of December 31, 2016 and Quoted prices Significant in active other Significant markets for observable unobservable Balance at identical assets inputs inputs December 31, 2016 (Level 1) (Level 2) (Level 3) Assets: Mutual funds $ 59,234,723 $ 59,234,723 $ $ Other investments at NAV or equivalent: (1) Money market fund 7,385,891 Hedge fund of funds 11,953,160 Limited partnerships 6,300,334 Total investments $ 84,874,108 $ 59,234,723 $ $ Quoted prices Significant in active other Significant markets for observable unobservable Balance at identical assets inputs inputs December 31, 2015 (Level 1) (Level 2) (Level 3) Assets: Mutual funds $ 26,826,529 $ 26,826,529 $ $ Other investments at NAV or equivalent: (1) Money market fund 3,995,000 Hedge fund of funds 5,505,883 Total investments $ 36,327,412 $ 26,826,529 $ $ (1) Certain investments that are measured at fair vlaue using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy table. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy table to the amounts presented in the statement of net assets available for benefits. 9

36 ADJUSTABLE PLAN OF THE NATIONAL RETIREMENT FUND Notes to Financial Statements Years Ended December 31, 2016 and 2015 The following table provides a summary of the class, fair value redemption frequency, and redemption notice period for those assets whose fair value is estimated using the NAV per share or its equivalent for which the fair value is not readily determinable, as of December 31, 2016: Redemption Unfunded Frequency (if Redemption Investment Type Fair Value Commitments Currently Eligible) Notice Period Hedge fund of funds * $ 11,953,610 $ Quarterly 30 days prior to quarter-end Limited partnerships Hedge Fund (offshore) 3,785, ,000 Monthly 60 days notice Fixed income 2,514,953 Monthly 15 business days prior to the next monthly valuation date *Consists of various different types of hedge fund strategies including US Non-performing Credit Securities, U.S. Special Situations, Non-U.S. Long/Short Equities, U.S. Long/Short Large Cap, U.S. Long/Short Mid Cap, U.S. Activist, Non-U.S. Non-Performing Credit Securities, Merger Arbitrage, Non-U.S. Activist, Non-U.S. Special Situations, Non-U.S. Performing Credit Securities, Credit/Capital Structure Arbitrage, Real Estate Long/Short Equity, U.S. Event Driven, U.S. Long/Short Small Cap, Convertible Arbitrage, Equity Market Neutral, Non-U.S. Event Driven and U.S. Performing Credit Securities. (4) Actuarial Present Value of Accumulated Plan Benefits The actuarial present value of accumulated plan benefits is the present value of expected future payments for benefits to plan participants which have been accrued as of the valuation date. Accumulated benefits include amounts expected to be paid to (a) retired or terminated participants or their beneficiaries, (b) beneficiaries of vested participants who have died and (c) present participants or their beneficiaries. The actuarial present value of accumulated plan benefits as of January 1, 2016 is determined by an actuary from Horizon Actuarial Services, LLC and is that amount which results from applying actuarial assumptions to adjust the accumulated plan benefits to reflect the time value of money (through discounts for interest) and the probability of payment (by means of decrements such as for death, disability, withdrawal, or retirement) between the valuation date and the expected date of payment. Significant assumptions underlying accumulated plan benefits as of January 1, 2016 are as follows: Method of valuation Unit Credit Cost Method Assumed rate of return on investments and discount rate (net of Fund expenses) 6.00% for retirement benefits and retiree life insurance Mortality basis (non-disabled) RP-2000 Blue Collar Mortality Table with Scale AA Employee turnover Rates developed based on industry averages Retirement A varying rate from 5% to 100% ranging from age 55 to 71 Disability mortality Rates based upon social security experience Disability Rates based upon various insurance companies statistics These actuarial assumptions are based on the presumption that the Plan will continue. Were the Plan to terminate, different actuarial assumptions and other factors might be applicable in determining the actuarial present value of accumulated plan benefits. 10

37 ADJUSTABLE PLAN OF THE NATIONAL RETIREMENT FUND Notes to Financial Statements Years Ended December 31, 2016 and 2015 The accumulated plan benefit information as of January 1, 2016 was as follows: Actuarial present value of accumulated plan benefits: Vested benefits: Retired participants and beneficiaries $ 307,338 Inactive vested participants 3,462,527 Active vested participants 38,123,909 Total actuarial present value of vested benefits 41,893,774 Nonvested benefits 6,478,249 Total actuarial present value of accumulated plan benefits $ 48,372,023 The changes in actuarial present value of accumulated plan benefits as of January 1, 2016 were as follows: Actuarial present value of accumulated plan benefits at beginning of year $ Increase (decrease) during the year attributable to: Benefits accumulated and actuarial losses/(gains) 46,062,275 Increase for interest due to decrease in the discount period 2,387,437 Benefits paid (77,689) Actuarial present value of accumulated plan benefits at end of year $ 48,372,023 The Plan is not subject to the Pension Protection Act of 2006 zone status certification rules for the 2015 and 2016 Plan years. (5) Tax Status The Plan had received a determination letter from the Internal Revenue Service ( IRS ) dated August 5, 2016, stating that the Plan is qualified under Section 401(a) of the Internal Revenue Code ( IRC ) and, therefore, the related trust is exempt from taxation. Once qualified, the Plan is required to operate in conformity with the IRC to maintain its qualification. The Plan administrator believes the Plan is designed and being operated in compliance with the applicable requirements of the IRC, and therefore believes that the Plan is qualified and the related Trust is tax exempt. (6) Transactions With Related Parties Retirement benefits are administered for the Plan by Alicare, Inc. Plan service expenses of $3,509,756 and $2,362,000 represent amounts charged by Alicare, Inc. for administrative services conducted for the Plan for 2016 and 2015, respectively. Certain other funds serviced by Alicare, Inc. and Amalgamated Life Insurance Company, as well, are referred to as related parties in the accompanying financial statements. The relationship between Alicare, Inc. and the Plan is reviewed by a committee of Plan Trustees. Included in due from related parties is $6,563,416 and $2,729,129 from the Legacy Plan of the National Retirement Fund at December 31, 2016 and 2015, respectively. The Plan receives administrative services from entities affiliated with UNITE HERE and entities affiliated with Workers United, an SEIU affiliate. The Plan paid $45,260 and $34,046 to entities affiliated with UNITE HERE and entities affiliated with Workers United, an SEIU affiliate, during 2016 and 2015, respectively. 11

38 ADJUSTABLE PLAN OF THE NATIONAL RETIREMENT FUND Notes to Financial Statements Years Ended December 31, 2016 and 2015 The Plan maintains a banking and custodial relationship and invests in various products sponsored by the Amalgamated Bank (the Bank ). The Bank is a party in interest to the Plan and certain members of the Board of Directors of the Bank serve as union trustees of the Plan. Decisions governing the business between the Bank and the Plan are made by an oversight committee of non-conflicted trustees of the Fund. Hirtle, Callaghan & Co. and JP Morgan are parties in interest as defined by ERISA. These transactions qualifying as party-in-interest transactions which are exempt from the prohibited transaction rules of ERISA. (7) Plan Termination Although it has not expressed any intention to do so, the Board of Trustees has the right to terminate the Plan subject to provisions set forth in ERISA. In the event the Plan terminates, the net assets of the Plan will be allocated, as prescribed by ERISA and its related regulations, generally, to provide the following benefits in the order indicated: (a) Annuity benefits that former employees or their beneficiaries have been receiving for at least three years, or that employees eligible to retire for that three-year period would have been receiving if they had retired with benefits in the normal form of an annuity under the Plan. The priority amount is limited to the lowest benefit that was payable (or would have been payable) during those three years. The amount is further limited to the lowest benefit that would be payable under Plan provisions in effect at any time during the five years preceding Plan termination. (b) Other vested benefits insured by the Pension Benefit Guaranty Corporation ( PBGC ) up to the applicable limitations. (c) All other vested benefits (i.e., vested benefits not insured by the PBGC). (d) All nonvested benefits. Certain benefits under the Plan are insured by the PBGC. Generally, the PBGC guarantees certain vested normal age retirement benefits, early retirement benefits, and certain disability and survivor s pensions. However, the PBGC does not guarantee all types of benefits under the Plan, and the amount of benefit protection is subject to certain limitations. Vested benefits under the Plan are guaranteed at the level in effect on the date of the Plan termination. However, there is a statutory ceiling, which is adjusted periodically, on the amount of an individual s monthly benefit that the PBGC guarantees. Whether all participants receive their benefits at the Plan termination will depend on the sufficiency, at that time, of the Plan s assets to provide for accumulated benefit obligations and may also depend on the financial condition of the Plan sponsor and the level of benefits guaranteed by the PBGC. (8) Reconciliation of Financial Statements to Form 5500 The following is a reconciliation of net assets available for benefits per the financial statements to the Form 5500: 12

39 ADJUSTABLE PLAN OF THE NATIONAL RETIREMENT FUND Notes to Financial Statements Years Ended December 31, 2016 and 2015 December 31, Net assets available for benefits per the financial statements $ 96,593,473 $ 43,910,078 Accrued retirement benefits (20,421) Net assets available for benefits per the Form 5500 $ 96,573,052 $ 43,910,078 The following is a reconciliation of total additions and benefits paid per the financial statements to Form 5500: Year Ended December 31, Total additions per the financial statements $ 57,546,093 $ 49,077,262 Reclassified investment expenses for Form ,470 49,508 Total additions per Form 5500 $ 57,728,563 $ 49,126,770 Benefits paid per the financial statements $ 773,888 $ 77,689 Less accrued retirement benefits at beginning of year Add accrued retirement benefits at end of year 20,421 Benefits paid to participants per Form 5500 $ 794,309 $ 77,689 (9) Commitments and Contingencies Department of Labor Subpoena By letter dated April 20, 2017, the Department of Labor ( DOL ) stated that it concluded that the Trustees violated certain provisions of the ERISA, as amended. The DOL did not impose any penalty on the Plan or the Trustees in its April 20, 2017 letter. By letter dated May 25, 2017, the Plan responded to the DOL s April 20, 2017 letter and disputed certain findings by the DOL. The DOL subsequently requested further information from the Plan. The Plan has produced, and will continue to produce, documents and information to the DOL on a rolling basis. (10) Subsequent Events Spin-off - The Board of Trustees of the National Retirement Fund (the "NRF Trustees") determined that a spin-off of certain assets and liabilities of the Plan would be in the best interests of the participants and beneficiaries in the Plan. As such, the NRF Trustees approved, in principle, a spin-off of the assets and liabilities of the Plan with respect to participants who are, or were, represented by UNITE HERE for collective bargaining purposes ("UNITE HERE Participants") into a newly established Taft-Hartley fund, the UNITE HERE Retirement Fund (the "UHF") (the "Spin-off"). The Board of Trustees of the UHF intends to establish earlier than December 31, 2017, the Adjustable Plan of the UNITE HERE Retirement Fund, a multiemployer defined benefit pension plan designed to be a qualified plan under Section 401(a) of the Internal Revenue Code, to provide benefits to the UNITE HERE Participants. The parties to the Spin-off have reached an agreement in principle and are in the process of drafting an agreement setting forth the terms of Spin-off (the "Spin-off Agreement"). Before the parties execute the Spin-off Agreement and consummate the Spin-off, the transaction must be approved by PBGC. The parties to the Spin-off are in the process of preparing an application to submit to the PBGC for approval. The Plan s management has performed subsequent event procedures through July 31, 2017, which is the date the financial statements were available to be issued and there were no other subsequent events requiring adjustment to the financial statements or disclosures as stated herein. 13

40 SUPPLEMENTAL SCHEDULES

41 ADJUSTABLE PLAN OF THE NATIONAL RETIREMENT FUND EIN # Plan 002 Schedule H (Form 5500), Line 4i - Schedule of Assets (Held at End of Year) as of December 31, 2016 Identity of Issuer, Borrower, Principal I nterest Maturity Current Lessor or Similar Party Amount Shares Rate Date Cost Value HEDGE FUND OF FUNDS * HC ABS RTN OFFSHORE FUND II $ 4,016 $ 4,625,000 $ 4,756,744 * HC TTL RTN OFFSHORE FUND II 5,640 7,000,000 7,196,416 11,625,000 11,953,160 MUTUAL FUNDS * HC CAP TR COMMODITY REL SEC 306,575 2,407,546 2,654,941 * HC CAP TR EMERG MKT EQ PORT 394,292 6,028,691 6,131,247 * HC CAP TR FIXED INC OPP 1,168,910 7,946,348 7,890,140 * HC CAP TR INST VAL EQUTY 510,856 6,423,894 6,431,683 * HC CAP TR INSTITU GRWTH EQ 527,337 8,297,422 7,472,361 * HC CAP TR INSTITU INTL EQ 1,548,802 14,766,424 14,496,787 * HC CAP TR REAL EST SEC 341,241 1,111, ,773 * HC CAP TR US CORP FIXED INC 351,707 3,487,076 3,460,800 * HC CAP TR US GOVT FIXED INC 677,909 6,773,336 6,609,610 * HC CAP TR US MORTGAGE/ASSET BACK 323,710 3,186,574 3,104,381 60,429,047 59,234,723 LIMITED PARTNERSHIPS TACONIC SIDECAR OFFSHORE FUND , ,614 TACONIC SIDECAR OFFSHORE FUND ,297 1,113,992 TACONIC SIDECAR OFFSHORE FUND SPC II 747,223 1,271,750 TACONIC SIDECAR OFFSHORE FUND SPC IV 1,167,761 1,162,025 WA OPPORTUNISTIC STRUCT SECS PORT 2,500,000 2,514,953 5,580,628 6,300,334 MONEY MARKET FUND DREYFUS GOVERNMENT CASH MANAGEMENT 7,385,891 7,385,891 7,385,891 INTEREST-BEARING CASH * AMALGAMATED BANK OF NY 0.35 % 75,934 75,934 $85,096,500 $84,950,042 * Indicates party-in-interest See accompanying independent auditor' s report 14

42 ADJUSTABLE PLAN OF THE NATIONAL RETIREMENT FUND EIN # Plan 002 Schedule H (Form 5500), Line 4j - Schedule Of Reportable Transactions for the Year Ended December 31, 2016 (a) (b) (c) (d) (e) (h) (i) (j) Current Value of Identity Description of Asset, (Include Interest Rate Purchase Selling Cost of Asset on Net Gain or of Party Involved and Maturity in Case of a Loan) Price Price Assets Transaction Date (Loss) Category (i) - A Single Transaction in Excess of 5% of the Current Value of Plan Assets: BNY MELLON DREYFUS GOVERNMENT CASH MANAGEMENT $ 2,300,000 $ $ 2,300,000 $ 2,300,000 $ BNY MELLON DREYFUS GOVERNMENT CASH MANAGEMENT 2,400,000 2,400,000 2,400,000 BNY MELLON DREYFUS GOVERNMENT CASH MANAGEMENT 2,500,000 2,500,000 2,500,000 BNY MELLON DREYFUS GOVERNMENT CASH MANAGEMENT 2,300,000 2,300,000 2,300,000 BNY MELLON DREYFUS GOVERNMENT CASH MANAGEMENT 2,870,193 2,870,193 2,870,193 * HIRTLE, CALLAGHAN & CO. HC CAP TR FIXED INC OPP 2,500,000 2,500,000 2,500,000 * HIRTLE, CALLAGHAN & CO. HC CAP TR FIXED INC OPP 2,300,000 2,300,000 2,300,000 * HIRTLE, CALLAGHAN & CO. HC CAP TR INSTITU INTL EQ 2,610,000 2,610,000 2,610,000 * HIRTLE, CALLAGHAN & CO. HC TTL RTN OFFSHORE FUND II 2,250,000 2,250,000 2,250,000 WESTERN ASSET MANAGEMENT COMPANY WA OPPORTUNISTIC STRUCT SECS PORT 2,500,000 2,500,000 2,500,000 Category (iii) - A Series of Transactions Aggregating in Excess of 5% of the Current Value of Plan Assets: * AMALGAMATED BANK ENHANCED MONEY MARKET $ 46,853,127 $ $ 46,853,127 $ 46,853,127 $ * AMALGAMATED BANK INTEREST BEARING ACCOUNT 2,760,000 2,760,000 2,760,000 BNY MELLON DREYFUS GOVERNMENT CASH MANAGEMENT 36,825,071 36,825,071 36,825,071 BNY MELLON DREYFUS GOVERNMENT CASH MANAGEMENT 33,434,180 33,434,180 33,434,180 * HIRTLE, CALLAGHAN & CO. HC ABS RTN OFFSHORE FUND II 2,425,000 2,425,000 2,425,000 * HIRTLE, CALLAGHAN & CO. HC CAP TR COMMODITY REL SEC 1,774,872 1,774,872 1,774,872 * HIRTLE, CALLAGHAN & CO. HC CAP TR COMMODITY REL SEC 2,500,000 2,317,785 2,317, ,215 * HIRTLE, CALLAGHAN & CO. HC CAP TR EMERG MKT EQ PORT 4,449,553 4,449,553 4,449,553 * HIRTLE, CALLAGHAN & CO. HC CAP TR EMERG MKT EQ PORT 2,049,076 2,083,066 2,083,066 (33,990) * HIRTLE, CALLAGHAN & CO. HC CAP TR FIXED INC OPP 6,315,573 6,315,573 6,315,573 * HIRTLE, CALLAGHAN & CO. HC CAP TR FIXED INC OPP 280, , ,278 1,722 * HIRTLE, CALLAGHAN & CO. HC CAP TR INST VAL EQUTY 4,274,262 4,274,262 4,274,262 * HIRTLE, CALLAGHAN & CO. HC CAP TR INST VAL EQUTY 1,410,000 1,456,891 1,456,891 (46,891) * HIRTLE, CALLAGHAN & CO. HC CAP TR INSTITU GRWTH EQ 5,059,740 5,059,740 5,059,740 * HIRTLE, CALLAGHAN & CO. HC CAP TR INSTITU GRWTH EQ 1,560,000 1,624,593 1,624,593 (64,593) * HIRTLE, CALLAGHAN & CO. HC CAP TR INSTITU INTL EQ 9,796,177 9,796,177 9,796,177 * HIRTLE, CALLAGHAN & CO. HC CAP TR INSTITU INTL EQ 2,890,000 3,043,669 3,043,669 (153,669) * HIRTLE, CALLAGHAN & CO. HC CAP TR US GOVT FIXED INC 5,376,105 5,376,105 5,376,105 * HIRTLE, CALLAGHAN & CO. HC CAP TR US GOVT FIXED INC 230, , ,353 2,647 * HIRTLE, CALLAGHAN & CO. HC CAP TR US MORTGAGE/ASSET BACK 2,379,655 2,379,655 2,379,655 * HIRTLE, CALLAGHAN & CO. HC CAP TR US MORTGAGE/ASSET BACK 310, , , * HIRTLE, CALLAGHAN & CO. HC TTL RTN OFFSHORE FUND II 3,600,000 3,600,000 3,600,000 WESTERN ASSET MANAGEMENT COMPANY WA OPPORTUNISTIC STRUCT SECS PORT 2,500,000 2,500,000 2,500,000 * A party-in-interest as defined by ERISA There were no category (ii) and (iv) reportable transactions 15

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