2005 Retirement Strategy Fund

Fund Objective

The objective for each Retirement Strategy Fund is to achieve the highest total return over time consistent with its asset mix.

Investment Strategy

Retirement Strategy Funds are diversified asset allocation portfolios designed for people who want to leave ongoing investment decisions to an experienced portfolio management team. All you have to do is pick the Retirement Strategy Fund with the date closest to your expected target date for retirement (2055, 2050, 2045, 2040, 2035, etc). The management team adjusts the asset mix of your Retirement Strategy Fund over time to the allocation it deems appropriate for your age.

When you are far from your target date for retirement, most of the assets are invested in globally diversified equity portfolios. As you get closer to the target date for retirement, and continuing for 15 years beyond your target date for retirement, the management team gradually adjusts your Retirement Strategy Fund to a more conservative asset mix. That means fewer stocks and more bonds and short-term investments that can help generate income and protect your savings in retirement.

Investment Risk

Before investing for retirement, there are many factors to consider, including your time horizon, retirement needs, goals and assets (income and investments outside of those in your employer-sponsored retirement plan). You should view the Retirement Strategy Funds as one part of your entire plan for retirement income.

The Retirement Strategy Funds’ underlying investments include international companies, which involve such risks as currency fluctuations, economic instability and political developments. The portfolios also invest some of their assets in small and midsize companies. Such investments increase the risk of greater price fluctuations. In addition, the portfolios have a portion of their assets in bonds. Investments in bonds are subject to interest-rate risk, credit risk and inflation risk. As with all investments, there is a risk of not meeting your retirement income needs. Because the Retirement Strategy Funds are managed to specific retirement dates, you may be taking on greater risk if your actual year of retirement differs dramatically from what you estimated.

Past performance does not guarantee future results. You should consider the investment objectives, risks, charges and expenses of the Retirement Strategy Funds carefully before investing. The Retirement Strategy Funds are a customized product, not a registered investment company, and interests in the funds have not been registered with the Securities Exchange Commission. Therefore, there is no prospectus for these funds. The funds are only available in the Deferred Compensation Program, Judicial Retirement Account and Plan 3. For more information, please refer to the Plan 3 Investment Guide.

Please see Risks of Investing in the Funds for additional information.

Investment Manager

The Retirement Strategy Funds are provided by the Washington State Investment Board (WSIB) and managed by AllianceBernstein L.P. under contract to the WSIB.

AllianceBernstein designs and implements the asset allocation and actively manages the glidepath as well as the Short-Term Bond, High Yield Bond, Global REIT, International Stock, and U.S. Small and Mid Cap Stock investment components. Northern Trust passively manages the Inflation Protected Securities component. BlackRock Institutional Trust Company (BTC) passively manages the U.S. Large Cap Stock component. WSIB’s internal fixed income staff actively manages the Intermediate-Term Bond component.

Investment Restrictions

To protect funds in the Self-Directed Investment Program from the effects of excessive trading, a member transferring more than $1,000 out of a fund is required to wait 30 calendar days before transferring money back into that same fund. The 30 day window is based on the last time you made a transfer out of the fund. The restriction will not affect your regular contribution or the ability to leave state service and withdraw contributions and earnings from Plan 3. DRS periodically reviews trade data to identify excessive trading. If DRS determines that existing restrictions are not sufficiently addressing excessive trade practices DRS, at its discretion, may take additional action. DRS reserves the right to establish or revise restrictions to comply with federal or state regulations, or as circumstances indicate. For additional information, please refer to page 2 of the Plan 3 Investment Guide.

* Please note that performance is net of the Fund Management Fee and operating expenses for the funds. The Fund Management Fee includes the most current expenses (as of September 30, 2010) for the funds and may change. The Fund Management Fee does not include the Plan 3 record keeping fee of 0.0935% and the WSIB Expenses of 0.0209%, or the DCP Administrative fee of 0.1400% (as of July 1, 2010). Additional fee data is available online and in your Investment Guide.

**The Retirement Strategy Funds incepted on 10/3/08 except for the Retirement Strategy Fund 2055, which incepted on 1/4/2010. Periods greater than one year are annualized.

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