NON-CERTIFICATED EMPLOYEES RETIREMENT PLAN
June 15, 2009 Volume 39
C OLUMBIA M ANAGEMENT ’ S I NVESTMENT
P RESENTATION AS OF M AY 13, 2009
At, the NCERP quarterly committee meeting held May 13,
2009, Mr. Wilkinson, Columbia
Management, Senior Portfolio
Strategist, opened his presentation by indicating the market and economy continue to unwind and has a dismal appearance. He feels there are uncertainties with the new government bailouts and the negative news is hurting the economy. The market reached its low on March 9, 2009, and for the
6th quarter in a row resulting in the negatives seen in the S&P 500. He reported there have been some signs of recovery, but it appears to be somewhat subdued. Wilkinson further speculated that the economic turn-around will be seen in 16 to 18 months. This recession began in December 2007, and since then over five million jobs have been lost with a reported
8.9 percent unemployment rate. Wilkinson wanted to bring to our attention that both automakers; Chrysler and GM have filed for bankruptcy and their stock prices are spiraling downward. He indicated that this is the longest post-war recession record and the banking/credit crisis is a little better as banks are starting to insure debt, causing a slight increase in the housing market. The stimulus package is finding its way into the economy, resulting in small pockets of economical stability. He further announced the credit spread; the ratio between good and bad loans is at a record high, but the situation does not seem as dire as it did in
February. There are some positive signs impacting the economy including a 30 percent increase in the stock market since March 9,
2009.
(continued on next column)
[AFFIX LABEL HERE]
Wilkinson placed emphasis on NCERP’s investment portfolio being divided with 60 percent in equities and
40 percent in fixed income. The equities market has been up and down over the last quarter and finished this quarter with a loss of only 1.16 percent, same as the annual losses. For the quarter, the plan is down
11.12 percent, and for the year the plan is down 38.23
percent. Financial analyst perceive that we have seen the bottom and the market has begun to rally and is up more than 6 percent in April; and as of Friday, May 8,
2009, it was up another 4.5 percent. As a result, the year-to-date losses are closer to breaking even almost a month and a half after the reporting period; March 31,
2009. Wilkinson feels that the portfolio diversification has definitely benefited NCERP during these economically challenged times.
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The plan’s actuary, Donald Schisler, has announced the Average Yield on One-Year Treasury Constant
Maturity Securities at 1.3 percent. He emphasized the importance as he explained the plan is currently using this rate in determining the rate of return on active employee’s contributions and interest for the past fiscal year ending June 30, 2009. Also, it further coincides with determining lump sum factors utilized for the upcoming fiscal year. He further explained when interest rates are lowered, the lump sum factors are also low and when interest rates are higher the lump sum factors are raised. At the current 1.3 percent rate, lump sum rates for the next fiscal will be definitely lowered. For those retiring after July 1, 2009, the lump sum factors will be lowered and will remain at the new lowered rate until the Average Yield on One-Year Treasury Constant
Maturity Securities are announced in April of next year to determine if lump sum factors will be decreased or increased.
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During the period of January 1 - March 31, 2009, there were 12 new participants added to the plan, with three employees terminating their positions. The returned contributions and credited interest for those three individuals totaled $2,258.90. During the same period, one plan participants chose to retire, effective
February 1, 2009, selecting a lump sum payment equaling approximately $159K. During this period there were no reported deaths of retirees receiving monthly annuity benefit pension.
NCERP’
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Fiscal year budget report as of March 31, 2008, includes the following:
• The total budget for 2008-2009 fiscal year:
$385,893.00
• Total charges that have been paid: $205,508.36
• Balance as of December 31, 2008: $159,953.64
NCERP C
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The proposed estimated budget for FY 2009/2010 was proposed by James Hayden with only few increases and he has stated that the expenditure will remain basically the same, he feels that since the lower total balances on the retirement account has decreased and the management fees should decrease accordingly and with only minor increases for salaries and benefits payments.
NCERP’s budget for July 1, 2009, through June 30, 2010, has been approved for $387,950, at the NCERP quarterly committee meeting May 13, 2009.
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If employees would like an estimate of their retirement benefits, please 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 the plan coordinator at any time to obtain a retirement benefit assessment.
NCERP C
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Date
June 18, 2009
Location
Meramec
Time
2 p.m.
July 2, 2009
July 9, 2009
July 16, 2009
July 23, 2009
Forest Park
Florissant Valley
Meramec
Cosand Center
August 6, 2009
August 13, 2009
August 20, 2009
Forest Park
Florissant Valley
Meramec
September 3, 2009 Forest Park
September 10, 2009 Florissant Valley
September 17, 2009 Meramec
September 24, 2009 Cosand Center
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.

October 1, 2009
October 8, 2009
October 15, 2009
Forest Park
Florissant Valley
Meramec
November 5, 2009 Forest Park
November 12, 2009 Florissant Valley
November 19, 2009 Meramec
December 3, 2009 Forest Park
December 10, 2009 Florissant Valley
December 17, 2009 Meramec
January 7, 2010
January 14, 2010
January 21, 2010
January 28, 2010
Forest Park
Florissant Valley
Meramec
Cosand Center
February 4, 2010
February 11, 2010
February 18, 2010
Forest Park
Florissant Valley
Meramec
March 4, 2010
March 11, 2010
March 18, 2010
March 25, 2010
Forest Park
Florissant Valley
Meramec
Cosand Center
Noon
2 p.m.
2 p.m.
2 p.m.
Locations are: Meramec , BA-105; Florissant Valley ,
Training Center, TC-109; Forest Park
,
Academic Affairs
Conference Room; Cosand Center, Room 208.
The quarterly NCERP committee meetings are now being rotated from various campus locations please take notice that a quarterly committee meeting will be soon coming to a location near you. The tentative time and dates are listed below:
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NCERP C
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August 12, 2009
November 12, 2009
February 10, 2010
May 10, 2010
Meramec
Forest Park
9:15 a.m.
9:15 a.m.
Cosand Center 9:15 a.m.
Florissant Valley 9:15 a.m.
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Please 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 ext. 5217.
Noon
2 p.m.
2 p.m.
Noon
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.
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What Separating Employees Need to Know?
Steps To Retrieve Retirement Funds
Employees leaving the college need to contact plan coordinator James Hayden (CC-Human Resources) to request to receive contributions. After this first step, participants have several options:
1. If vested, allow the contributions to remain in the NCERP fund.
2. Roll the contributions over to an IRA account.
3. Roll the contributions over to an employee’s retirement fund with the new employer (if they allow it).
4. Receive a check for the funds at your home address.
Employees taking the last option should be aware of certain tax consequences. Consult a tax professional for details.
After the plan coordinator has been notified, he will provide the necessary documents to be completed by the participant and returned to the plan coordinator. One of the documents does require the employee’s signature to be notarized, signed in front of the plan coordinator, or in front of a Business Office employee. The plan coordinator will further process these documents through the bank, which will disperse the retirement contributions and distributions according to the election made by the participant. Under no circumstances will payment be made before the payroll records have been closed out, usually three to four days after the participant has received his/her final pay.
Participants must be employed on a full-time basis for five years before becoming vested. Vested employees have the option to leave their contributions and interest in the
NCERP retirement fund until a participant meets the eligibility criteria for an early or regular retirement. At that time, the monthly annuity benefit or the lump sum option may be requested.
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Strive for Financial Security
If you’re put off by the term “financial planning” and wonder whether you could be financially secure, fear not.
The following simple steps can help take you there:
• Spend less than you make. Most people don’t. Fine-tune your expenses, so they fall below your take-home pay and leave something for savings. Aim for saving 10 percent.
• Gradually save more. Forget detailed budgets. Just save something first. Most people spend the amount they have available, so make that amount a little less.
• Payoff your credit card balances, and don’t charge unless it’s an emergency. This is one of the best decisions you can make. Make it a habit not to charge more than you can afford to pay-off on a monthly basis.
• Buy a home. Buying a house is a good investment for most people. It increases in value with no effort on your part other than maintenance. Often, you can buy a house with a small down payment. Check it out, and you may get a pleasant surprise.
• Put money aside in a “rainy day” fund for emergencies. In case you have a problem with income, you won’t have to take from your long-term-savings.
• Use company payroll deductions for painless savings.
• Consider buying index or mutual funds. The stock market earns better returns over time than other investments. Invest regularly in order to smooth out ups and downs in the market.
• Start now. Procrastination is the biggest enemy of wealth building. Invest it and forget it. Your money will grow on its own with little effort from you.
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C
:
Board of Trustees Appointment
Calla White
6688 Chesapeake Drive
Apartment C
Florissant, Missouri 63033
Phone: 314-355-9112
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, 2010
Board of Trustees Appointment
Ruth Lewis
10455 Litzsinger Road
St. Louis, MO 63131
Telephone: 314-567-7098
Term Expires: BOT’s pleasure
Non-Unit Representative
Vicki Lucido
FV - VP Academic Affairs' Office
Telephone: 314-513-4214 e-mail: vlucido@stlcc.edu
Term expires: June 30, 2011
Physical Plant
Mike Wibbenmeyer
MC – Utilities/HVAC
Phone: 314-984-7749
E-mail: mwibbenmeyer@stlcc.edu
Term expires: June 30, 2009
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.
Individuals with speech or hearing impairments may call via Relay Missouri by dialing 711.
St. Louis
Community
College
FLORISSANT VALLEY FOREST PARK MERAMEC WILDWOOD
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 non-discrimination 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 or status as a disabled or Vietnam-era veteran and shall take action necessary to ensure non-discrimination.
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.
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