About Your Investments – Investment Options

The Credited Rate of the State of Kansas DCP Stable Value Option (9918 for State Employees and 9917 for City, county, local government employees) for the period October 1, 2008 through December 31, 2008 is 5.00%. The credited rate will be re-evaluated each quarter and has a minimum guarantee of 5.00% through December 31, 2008. The guarantee is based on the claims-paying ability of ING Life Insurance and Annuity Company.

You can choose from a menu of investment options that cover the risk/reward spectrum allowing you to select from conservative choices, moderate growth and income funds, or aggressive growth opportunities in both U.S. and international markets. International investing involves special risks such as currency fluctuation, lower liquidity, political and economic uncertainties, and differences in accounting standards.

The chart below shows the investment options available under the Plan. By clicking on the fund names listed, you can view one-page fact sheets for each option. Fund expenses are also included. The 3 or 4-digit fund code included in the third column of this chart is required for you to access your account on-line or via the VRU (800 number).

You can also access the Portfolio Expense Calculator to compare fund expenses for individual investment options or a portfolio of investment options.

Fund Code	Investment Option	Asset Class
9918 (State employees) 9917 (City, county, local government employees)	Stable Value Option	Stability of Principal
004	ING VP Intermediate Bond Portfolio - Class I	Bonds
791	Vanguard Target Retirement 2015 Fund – Investor Shares	Asset Allocation
926	Vanguard Target Retirement 2025 Fund – Investor Shares	Asset Allocation
793	Vanguard Target Retirement 2035 Fund – Investor Shares	Asset Allocation
794	Vanguard Target Retirement 2045 Fund – Investor Shares	Asset Allocation
795	Vanguard Target Retirement Income Fund – Investor Shares	Asset Allocation
1257	ING T. Rowe Price Capital Appreciation Portfolio – Institutional Class	Balanced
566	Vanguard Institutional Index Fund – Institutional Shares	Large Cap Value
1205	Allianz NFJ Dividend Value Fund – Institutional Shares	Large Cap Value
133	Fidelity VIP Contrafund Portfolio – Initial Class	Large Cap Growth
803	The Growth Fund of America – Class R-5	Large Cap Growth
1197	Vanguard Mid-Cap Index Fund – Institutional Shares	Small/Mid/Specialty
1209	Columbia Acorn Fund - Class A	Small/Mid/Specialty
2028	RiverSource Mid Cap Value Fund – Class R4	Small/Mid/Specialty
1198	Vanguard Small-Cap Index Fund – Institutional Shares	Small/Mid/Specialty
920	Baron Growth Fund	Small/Mid/Specialty
1313	Allianz NFJ Small Cap Value Fund - Institutional Class	Small/Mid/Specialty
735	Dodge & Cox International Stock Fund	Global/International
1314	Capital World Growth and Income Fund – Class R-5	Global/International

You should consider the investment objectives, risks, and charges and expenses of the investment options carefully before investing. Prospectuses containing this and other information, can be obtained by contacting your local representative. Please read carefully before investing.

Expenses

Expenses for each of the new options are identified on the chart “What Does it Cost to Participate?” Your actual expenses will depend on the specific funds you select.

The performance of each option, including that shown on the performance summary, is net of all fund expenses.

Total (gross) fund expenses are identified in the fund fact section of the fact sheet for each of the funds, available by clicking on the links included in the chart above.

None of the funds, except for the five Vanguard target date funds, have any additional fees or expenses. For each of the five Vanguard target date funds, there is an ING administrative expense of 0.29% .

Transfer Rules

Transfers are allowed among all investment options with the exception of ING StabilizerSM and the Self-Directed Brokerage Account (SDBA).

The product includes a limiting provision, called an “equity wash,” that applies to transfers between ING StabilizerSM and the SDBA. These two options are considered to be competing investment options. We are not currently enforcing this equity wash provision.

If this provision is enforced in the future, transfers would be limited as follows:

You can transfer from either one of these investment options directly into other investment options offered under the Plan.

Amounts must be transferred in whole percentages. There are no fees or charges for investment option transfers.

Self-Directed Brokerage Account

For those participants who prefer more flexibility beyond the choices in the core program, the Plan also includes a self-directed brokerage account (SDBA). Under the SDBA, participants will have access to more than 11,000 mutual funds. Transaction fees may apply depending on the funds selected; however, there are more than 1,000 funds that have no transaction fees*. There is an annual $50 fee for those participants who elect the SDBA; however, this fee is currently waived for Kansas participants. It may be assessed at a later date.

*No Transaction Fee (NTF) mutual funds are no-load mutual funds for which TD AMERITRADE does not charge a transaction fee. NTF funds have other fees and expenses that apply to a continued investment in the fund and are described in the prospectus. Funds held 90 days or less may be subject to a Short-Term Redemption Fee. This fee is in addition to any applicable transaction fees or fees addressed in the fund's prospectus.

Special transfer rules apply to the SDBA that include:

For State employees, the SDBA is offered through TD AMERITRADE. Click here for the TD AMERITRADE brochure; click here for the TD AMERITRADE commission schedule.

Brokerage services provided by TD AMERITRADE. TD AMERITRADE and TD Asset Management USA are affiliated through their respective parent companies. TD AMERITRADE, Division of TD AMERITRADE, inc., member FINRA/SIPC. TD AMERITRADE is a trademark jointly owned by TD AMERITRADE IP Company, Inc. and The Toronto-Dominion Bank. © 2007 TD AMERITRADE IP Company, Inc. All rights reserved. Used with permission TD AMERITRADE and TD Asset Management USA are independent entities and not corporate affiliates of ING Financial Advisers, LLC (Member SIPC).

For employees of cities, counties or other local participating employers, the SDBA offered is ING Ultimate. Click here for the ING Ultimate brochure; click here for the ING Ultimate commission schedule. Brokerage services for ING Ultimate are provided by ING Financial Advisers, LLC (Member SIPC).