The Deferred Compensation Plan

BART (Employer I.D. No. BK 9401552685) established the Deferred Compensation Plan effective January 1, 1981, and updated the Plan in its entirety three times, effective January 1, 1986, January 1, 1989 and January 1, 1997, respectively. The Plan is administered by the Investment Plans Committee (the “Committee”), which includes one representative from each of four employee unions representing BART employees and one representative from BART management.

How a Deferred Compensation Plan Works

A deferred compensation plan is an arrangement which allows you to set aside a portion of your pay, before taxes, to provide additional funds for your retirement. The amounts you defer are before-tax dollars and, therefore, reduce your current income taxes. You pay no income tax on the deferred income, or on earnings received on the deferred income, until the value of your account is paid to you. You become entitled to payment of these amounts when you terminate employment or at a later time at your election. All amounts deferred are held in trust under a Trust Agreement for your benefit.

The Committee has approved certain investment alternatives for the Plan. You may designate from among these alternatives how funds contributed on your behalf are to be invested. An account is established for you, and all contributions and the earnings on your share of funds contributed are credited to your account.

Administration of the Plan

BART and the Committee have entered into a contract with a financial institution to provide Trustee services for the Plan. The Committee has also entered into a contract with a plan record keeper to provide record keeping services for the Plan. In addition, the Committee has entered into contracts with various investment managers to provide investment services to the Plan. Representatives from the Plan Record Keeper are available to discuss the investment alternatives available to you and details of the Plan. Please refer to the plan contact page to locate the group contacts to answer your questions about the Plan. The Plan Record Keeper is not an investment advisor and cannot give you investment advice. If there is a change in the plan record keeper, the Committee will notify you and provide all pertinent contact information.

Should you have questions regarding which investment alternatives would be most appropriate for you, the Committee recommends that you seek advice from your personal accountant, tax advisor, investment or financial planner.

Terms Governing Both Plans

This Summary Plan Description is intended to provide you with basic information regarding the Deferred Compensation Plan and the Money Purchase Pension Plan. In the event of any inconsistency between the Summary Plan Description and the legal documents creating the Plans, the legal documents will govern. You may obtain a copy of the legal documents by contacting the Committee.