Frank Hoover Easterbrook

Vangpard 500 Index Fund (mutual fond) — Int/Div — VV...

Vanguard Pnme Money Market Fund (nm tual fund) — Int/Div — V

Vaugoard High-Yield Tax Exempt Fund — Int/Div — V

Vangoard Retirement Portfolio (mutual fund - blocked access) — Int/Div — V1]

First National Bank of Chicago (checking a ccount) — Interest

1. (Part III): I have received the approval of the Judicial Council of the Seventh

Circuit to teach at the University of Chicago. This income therefore is “outside

earned income” rather than an “honorarium” within the meaning of the Ethics

Reform Act of 1989. I accepted gross income exceeding the statutor

’

ations of the

cap (15% of

Levelll of the Executive Schedule) because, under §3(b) of the regu

Judicial Conference implementing this statute, “outside earned income” includes

only net taxable income, and therefore excludes pension contributions as well as

the “ordinary and necessary expenses paid or incurred in producing this

income.” Some of the income reported in Part III was contributed to a pension

plan through the University of Chicago as part of a salary reduction plan and

therefore does not count for statutory purposes. Moreover, the ordinary and

necessary expenses of producing the income—including the cost of commuting

between the courthouse and the Law Schoo], fees for parking at the University,

and the expenses of equipment and books for my Law School office—are

substantial. Net taxable income is less than the statutory maximum.

2. (Part V) The Union League Club extends to federal judges the privilege of

using the Club’s facilities without formal membership. During 2008 it charged

$70 per month for these privileges from January through June and $73.00 per

month from July through December. The Committee on Codes of Conduct has

concluded (Opinion 2071) that these signing privileges do not entail a gift

element.

3. (Part VII): Dividends and capital gain distributions from the mutual funds

marked “See Part VIII” are remvested automatically monthly. Shares were

urchased and sold in the Vanguard Prime Money Market Fund occasionally. I

treat this as a checking account, and as in

he

er transactions occurred in these

ast years I do not report these flows

(as opposed to year-end balances). No ot

undas.

4. (Part VII): While I was empl

ed full-time by the University of Chicago

preceding my appointment to

th

e

court, and again since 1992, pension

contributions under a defined contribution plan were made on my behalf. TIAA-

CREF holds the funds contributed before 1983 (value code N). Pension

contributions since 1983, and supplemental retirement annuity contributions

since 1982, are held by the Vanguard Group, which also holds pension

contributions made on my behalf during 1981-84 by Lexecon Inc., plus

IRA contributions during that period. “Vanguard Retirement Portfolio” is an

umbrella designation for these assets. Access to all funds in the Vanguard

Retirement Portfolio is blocked until I reach retirement age. Vanguard invests

these monies in four of its funds: Vanguard Money Market Reserves Prime

Portfolio; Vanguard Fixed Income Securities Fund Long-Term Corporate;

Vanguard Fixed Income Securities Fund High-Yield Corporate; and Vanguard

International Value Portfolio. Investments within the Vanguard Retirement

Portfolio may change from time to time, but only from one mutual fund to

another (never to stock in an individual firm), making a consolidated listing

desirable.