“And the spring comes slowly this way”

Samuel Taylor Coleridge

Dear Fellow Retirees and Friends:

We hope the New Year finds our members and their families in good health and good spirit. For our
members and families who are experiencing health issues we wish you well in the coming months.

The Middle Atlantic States have been experiencing a very mild winter with above average cool
nights and warm days. For those members who want a few days of warm weather, good food, and
a good time with old friends and colleagues join us for our 18th Annual Convention at the Country Inn
and Suites, French Quarter, 315 Magazine Street, New Orleans from 25 March to 29 March 2012. Our
evening banquet will be held at Mulate’s Cajun Restaurant, 201 Julia Street, New Orleans. Please see
the following pages for a schedule of events and attractions during Convention week.

We will be welcoming back an old friend, Rear Admiral Robert Bianchi, SC, U. S. Navy (Ret), as our guest
speaker during the Convention. Mr. Bianchi was selected as the first civilian Chief Executive Officer of
NEXCOM in January. We last had the pleasure of having Admiral Bianchi at our Convention in 2009
in Orlando, Florida. Admiral Bianchi will be unable to address our evening banquet on Wednesday, 28
March due to a prior commitment in Washington, DC. The Admiral has graciously offered to speak at our
Convention and we will plan on him speaking at our business meeting on Tuesday morning 27 March.

During Convention Week we look forward to Art LaValle’s presentation on the financial performance of
our Retirement Trust during 2011 and his expectations for 2012 and Paul Feuer will provide his timely
commentary on his and his colleagues working lives. We have invited Peggy Vitola and members of her
staff to provide an update on retiree benefits and assist with retirees who have questions regarding their
benefits.

The President and Congress are in the process of developing strategies and budget level for the
Department of Defense (DoD) for the next decade. These changes to DoD operational costs may impact
how our benefits are managed and administered. We will know the extent of these changes prior to our
Convention. During this time of major policy changes NEREA will remain in communication with other
entities representing the exchange community - NEXCOM, American Logistics Association, and AAFES
Retired Employees Association

Our scholarship program received a check for $10,500 from the American Logistics
Association (ALA) Hampton Roads Chapter at their December 2011 luncheon. We wish to thank
Mr. Cory Belkov, Chairperson of the ALA Hampton Roads Chapter Scholarship Luncheon for his work in
support of our Scholarship Fund.

NEREA’s Officers and Directors have been discussing the method of distribution for our Newsletter.
Expenses for printing and distributing the Newsletter are increasing every year. The discussions have
centered on: (1) shifting to e-mail distribution for the vast majority of NEREA members; (2) posting the
Newsletter on our web site -- NEREA.org, and (3) continued mailing of the Newsletter to members
who want a hard copy. Your Board will announce their decision at the Convention’s morning business
meeting.

We look forward to seeing you in New Orleans in March.

Sincerely,

Bill Harper