presented fairly and ended in conformity with the accounting principles
generally accepted in the United States. The plan investments have increased
10 percent over the last year primarily due to the increase in the fair market
value. The net assets of the plan are up $5 million.
INVESTMENT REPORT: COLUMBIA MANAGEMENT’S
INVESTMENT PRESENTATION AS OF SEPTEMBER 30, 2010
NON-CERTIFICATED EMPLOYEES RETIREMENT PLAN
January 10, 2011
Volume 45
NCERP PARTICIPANT SPEAKS OUT AT THE
QUARTERLY COMMITTEE MEETING
Steven Kanterman requested the four highest annual salaries out of the
last 10 years rule, utilized when calculating the average annual
compensations, be re-evaluated and possibly changed to include the highest
four salaries within a 15 to 20 year time frame. Kanterman also wanted to
inform the NCERP Committee that some employees’ higher earnings years
were not during their last 10 years, especially in view of current conditions
of no salary increases. James Hayden reported that employees have been
identified who are in the specified category and forwarded to the actuary
for analysis. Don Schisler responded that he was unsure how many
employees this would affect. He said most companies use the five highest
earning years of earning out of the last 10 years to determine benefits, and
it is very unusual for an employer to go back more than 10 years. Schisler
stated that there would be additional costs to go back further than 10
years. Kanterman asked what the additional costs would consist of, and
Schisler stated there would be additional administrative costs to maintain
the data and reprogram the current plan but he was not sure of an exact
cost.
CLIFTON GUNDERSON’S ANNUAL AUDITOR’S
REPORT
Jennifer Behnke reported, at the NCERP Quarterly committee meeting;
November 10, 2010, this is the first year we have the NCERP audit report
finalized prior to the auditor’s presentation to the Board of Trustees (BOT)
meeting. In the past we have had the report in draft form and produced the
finalized copies after the BOT’s auditor’s presentation. She pointed out to
the NCERP Committee that this year’s auditing process was different; this
time the auditor’s were able to brief the BOT and then the NCERP
Committee in the preferred sequence, and she credited this to improved
coordination between all parties involved, including the plan’s coordinator,
the plan’s actuary, CBIZ and Clifton Gunderson.
Behnke stated that the audit of the NCERP retirement fund was
[AFFIX LABEL HERE]
At the quarterly committee meeting, Wilkinson opened his presentation by
stating that this has been an interesting quarter. There has been a 2 percent
economic growth that was recorded for the quarter with the year-to-date
growth at 3.1 percent. Economic growth is set to transition to a slower
growth rate. The housing activity has subsided in the aftermath of the
homebuyer incentive program. It’s expected the housing recovery will take
longer because of the negative equity among many home owners. Wilkinson
anticipates that interest rates will remain low.
Wilkinson also reported that unemployment rates have stayed steady at 9.6
percent and remains near a 26-year high and long-term unemployment still
remains a constant concern. He further informed the NCERP Committee that
there were 150,000–200,000 jobs created last month, but due to the issue
that these were seasonal positions the unemployment rate remained
unchanged. He also pointed out that many of the employed are being asked to
do more work with fewer employees and permanent employment is still an
issue of concern. The aspect of the uncertainties concerning health care costs
has also added to this slow economic recovery.
Wilkinson passed on to the NCERP Committee that the federal
government is planning to launch Quantitative Easing II (QE2) which is the
second round of easing and is to replace approximately $6 billion worth of
securities with cash over the next eight months. The first round was in the
middle of the crisis in 2008 when the government bought mortgages.
Wilkinson firmly believes this is a well anticipated move and because of this
action, the equities market has rallied.
Wilkinson strongly believes that the mid-term elections results were a
mandate from the voters indicating the government needs to come up with a
middle ground and get some work done. Now that the Republicans are in
charge of the House of Representative and the Democrats the Senate, the
stage could easily be set for gridlock, but he believes that the American public
won’t tolerate it. He also wanted to inform the NCERP Committee that it is
not only the United States who continues to struggle, the global economy is
also struggling and Ireland is the newest focus. However; this plan continues its
climb back due to a well diversified mix in its portfolio. The fund’s value
increased to $57,161,799 as of Sept. 30, 2010, up from the $54,010,816 that
was reported as of June 30, 2010. The plan increased 8.78 percent for the
quarter, up 6.63 percent year to date and is up 10.3 percent for the year.
REPORT
FROM
ACTUARY
At the last NCERP Committee meeting, Schisler introduced Jennifer
Hupperts who will be working with him on our account. Hupperts is also the
actuary who expedited the annual valuation process and was essential in
getting the actuarial data to the plan’s auditors, Clifton Gunderson, earlier than
previous audits.
Schisler provided his annual actuarial report and reminded everyone that the
data covers the fiscal year through June 30, 2010. He reported that the actual
asset return for the year was 12.8 percent which improved the funded
measures and reduced some of the deficit. However, the cumulative asset
return for the last three years due to the economic decline was -8.5 percent
versus the expected 25.1 percent (based upon a 7.75 increase per year)
increase based upon the actuarial assumption. He advised that the normal cost
of the plan has increased, the actual deficit has increased, and therefore, plan
improvements are not advisable until results improve.
Schisler reported that the accumulated benefits went from 104 to 112
percent. The total (past and future) benefits went from 63 to 70 percent. This
percentage previously was between 80-85 percent, prior to the market decline
in 2008. However, the plan has a history of surplus and deficit. Schisler stated
that this is common and he would only be concerned about the plan if we
continued to have an increasing deficit. The expected contributions increased
to 61 percent from 56 percent. The plan’s one-year shortfall is $566,000 due
to the losses that occurred in late 2008 and early 2009. Contributions would
need to be increased from 4 percent to 6.57 percent to decrease this deficit
quickly, however; this is not a recommendation, just an illustration. Asset losses
from previous years are still being smoothed over. The plan’s rebound of 12.8
percent is great, but unfortunately a complete rebound would require a 40
percent increase.
Lastly, Schisler wanted to remind the NCERP Committee there was no cost
of living allowance (COLA) on Jan. 1, 2010, but a 1.1 percent COLA increase
had been approved by the BOT for a Jan. 1, 2011, COLA for all eligible NCERP
retirees.
THE QUARTERLY UPDATES
Previous quarter ending Sept. 30, 2010, there were seven new participants
were added to the plan and seven employees were separated from the college.
Those that separated have received their returned contributions and interest,
combined amount totaled for $127,556.79.
During the same time frame three plan participants chose to retire and one
chose the annuity payments for life and two selected the lump sum payment
totaling $394,742.65. One of the plan’s retirees receiving annuity pension for
life has passed away, Marjorie R. Cuvar, who previously worked at the Cosand
Center.
NCERP’S ACCOUNTING SYSTEM
The fiscal year budget report as of Sept. 30, 2010, includes the following:
• Total budget for FY 2010: $393,175
• Total invoices paid at the end of quarter, plus encumbered charges as of
September 30, 2010: $81,274.70
• Balance of budget returned to trust as of June 30, 2010, after all bills paid:
$311,900.30
S
RETIREMENT INTERVIEW SCHEDULE
If employees would like an estimate of their retirement benefits, attend any
of the campus visits made by James Hayden, plan coordinator, ext. 5217.
Please call at least one week before the scheduled visit to ensure the
retirement assessment is complete. Every participant is encouraged to contact
Hayden at any time to obtain a retirement benefit assessment.
NCERP COORDINATOR’S PROPOSED SCHEDULE OF
CAMPUS VISITS
Date:
Jan. 6, 2011
Jan. 13, 2011
Jan. 20, 2011
Jan. 27, 2011
Feb. 3, 2011
Feb. 10, 2011
Feb. 17, 2011
March 3, 2011
March 10, 2011
March 17, 2011
March 24, 2011
April 7, 2011
April 11, 2011
April 21, 2011
May 5, 2011
May 12. 2011
May 19, 2011
May 26, 2011
June 2, 2011
June 9, 2011
June 16, 2011
July 7, 2011
July 14, 2011
July 21, 2011
July 28, 2011
Aug. 4, 2011
Aug. 11, 2011
Aug. 18, 2011
Sept. 1, 2011
Sept. 8, 2011
Sept. 15, 2011
Location:
Forest Park
Florissant Valley
Meramec
Cosand Center
Forest Park
Florissant Valley
Meramec
Forest Park
Florissant Valley
Meramec
Cosand Center
Forest Park
Florissant Valley
Meramec
Forest Park
Florissant Valley
Meramec
Cosand Center
Forest Park
Florissant Valley
Meramec
Forest Park
Florissant Valley
Meramec
Cosand Center
Forest Park
Florissant Valley
Meramec
Forest Park
Florissant Valley
Meramec
Time:
Noon
2 p.m.
2 p.m.
2 p.m.
Noon
2 p.m.
2 p.m.
Noon
2 p.m.
2 p.m.
2 p.m.
Noon
2 p.m.
2 p.m.
Noon
2 p.m.
2 p.m.
2 p.m.
Noon
2 p.m.
2 p.m.
Noon
2 p.m.
2 p.m.
2 p.m.
Noon
2 p.m.
2 p.m.
Noon
2 p.m.
2 p.m.
Locations are:
Cosand Center, Room 208, Florissant Valley, Training Center, TC-109;
Forest Park,VP Academic Affairs’ Conference Room; Meramec, BA-106;
M
T
W
T
F
S
NCERP COMMITTEE
MEETING SCHEDULE
The quarterly NCERP Committee meetings now are being rotated from
various campus locations. The tentative schedule is as follows:
Feb. 9, 2011, Cosand Center, 9:15 a.m.
May 11, 2011, Florissant Valley, 9:15 a.m.
Aug. 10, 2011, Meramec, 9:15 a.m.
Nov. 9, 2011, Forest Park, 9:15 a.m.
BENEFICIARY ACCURACY
Make sure beneficiary information on file for NCERP retirement
contributions is accurate. Failure to do so could result in retirement
contributions being paid to the employee’s estate versus having the
contributions going to loved ones. If there are questions or concerns, contact
James Hayden, plan coordinator, at ext. 5217.
UNOFFICIAL…
Countdown to Retirement: Are You Ready?
Where does the time go? Not long ago, you were starting your career and
had decades ahead of you before retirement. Now, retirement is around the
corner. Are you ready? These tips may help you prepare as the countdown for
retirement begins.
•
Crunch the numbers –
How much have you saved? How much will your various retirement
income sources provide? Will you meet your savings goal on time with
your present strategy? To find out, do some math.Your financial advisor
can help you run the calculations and, if need be, revise your strategy.
•
•
•
Check your benefits –
Contact the Social Security Administration and your employer for
details about retirement benefits. Find out how much you may expect
and what steps you need to take to begin receiving the money.
Think ahead –
Your income, expenses and tax situation may change when you retire.
Developing a budget or spending plan may help you manage your
money effectively and potentially help it last longer.
Update your overall financial program –
You may need to adjust your investment allocation, insurance
coverage, estate planning arrangements and more as you approach
retirement.Your financial advisor can help you review your situation
and make modifications according to your changing financial needs and
objectives.
St. Louis
Community
College
FLORISSANT VALLEY FOREST PARK MERAMEC WILDWOOD
IMPORTANT POINTS OF CONTACT:
Board of Trustees Appointment
Calla White
6688 Chesapeake Drive
Apartment C
Florissant, Missouri 63033
Phone: 314-355-9112
Term expires: BOT’s pleasure
Board of Trustees Appointment
Ruth Lewis
10455 Litzsinger Road
St. Louis, MO 63131
Telephone: 314-567-7098
Term Expires: BOT’s pleasure
Unit Representative
Kevin White
FP - Media Services
Phone: 314-644-9213
E-mail: kwhite@stlcc.edu
Term expires: June 30, 2013
Physical Plant
Mike Wibbenmeyer - Vice Chair
MC – Utilities/HVAC
Phone: 314-984-7749
E-mail: mwibbenmeyer@stlcc.edu
Term expires: Oct. 30, 2013
Non-Unit Representative
Vicki Lucido - Chair
FV - VP Academic Affairs' Office
Telephone: 314-513-4214
e-mail: vlucido@stlcc.edu
Term expires: June 30, 2011
Individuals with speech or hearing impairments
may call via Relay Missouri by dialing 711.
Any suggestions for improvements,
questions, comments or other concerns
about the retirement plan may be directed
to any of the NCERP Committee
representatives.
Any proposed agenda items may be sent
to James Hayden or the employee
representative 10 days prior to the meeting
date.
ACCOMMODATIONS STATEMENT
St. Louis Community College makes every reasonable effort to accommodate individuals with disabilities.
If you have accommodation needs, please contact the Access office at the campus where you are
registering at least six weeks before the beginning of the class. Event or other public service
accommodation requests should be made with the event coordinator or applicable location nondiscrimination officer at least two working days prior to the event or public service.
NON-DISCRIMINATION STATEMENT
St. Louis Community College is committed to non-discrimination and equal opportunities in its
admissions, educational programs, activities and employment regardless of race, color, creed, religion, sex,
sexual orientation, national origin, ancestry, age, disability, genetic information or status as a disabled or
Vietnam-era veteran and shall take action necessary to ensure non-discrimination.
In furtherance of the college’s commitment, grievance procedures for the prompt and equitable
resolution of complaints are set forth in the college’s designated Administrative Procedures.
This newsletter is designed to summarize and explain basic changes in the Non-Certificated Employees Retirement Plan and
provides updates on other related matters. Since it is only a summary, this newsletter does not cover the plan's provisions in detail.
Therefore, if there is any conflict between this newsletter and the plan document itself, the plan document will always govern. An
official copy of the plan is available for inspection in the Human Resources department at the Joseph P. Cosand Community College
Center, 300 South Broadway, St. Louis, Mo. and in each campus’ library during regular business hours.
100234 9/2010