Russell Investment Company

Exhibit (h)1.3

                    , 2006

Xxxxxxx Investment Company

000 X Xxxxxx

Tacoma, WA 98402

Re: Amended Schedule 2.1 to Transfer Agency and Service Agreement

Dear Sirs:

Pursuant to Section 13.1 of the Transfer Agency and Service Agreement between Xxxxxxx Investment Company (“RIC”) and Xxxxxxx Investment Management Company (“RIMCo”) dated July 1, 2005, RIC hereby advises you that it is creating six new funds to be named 2007 Retirement Distribution Fund – A Shares, 2007 Retirement Distribution Fund – S Shares, 2007 Accelerated Distribution Fund – A Shares, 2007 Accelerated Distribution Fund – S Shares, 2007 Extended Distribution Fund – A Shares and 2007 Extended Distribution Fund – S Shares (the “New Funds”). RIC desires to amend Schedule 2.1 of the Transfer Agency and Service Agreement to reflect these changes. The fees to be charged by the Transfer Agent in return for its services shall be as set forth on Schedule 2.1 of the Transfer Agency and Service Agreement.

Please indicate your acceptance to act as Transfer Agent with respect to the additional classes of shares and the amendment of Schedule 2.1 by executing the acceptance copy of this letter agreement and returning to the undersigned.

Sincerely,

XXXXXXX INVESTMENT

MANAGEMENT COMPANY

By:

Xxxx X. Xxxxx

President

Accepted this      day of             , 2006.

XXXXXXX INVESTMENT COMPANY

By:

Xxxx X. Xxxxxxx

Treasurer and Chief Accounting Officer