being soft, unemployment and underemployment still being an area of large
concern, market stability is very uncertain. Spending appears stable, but it is at
subdued levels in contrast with past recoveries. Wilkenson ended his
presentation indicating we could be in for some very unpredictable times
ahead.
NON-CERTIFICATED EMPLOYEES RETIREMENT PLAN
September 20, 2010
Volume 44
NCERP COMMITTEE ENTERTAINS
QUESTIONS FROM NCERP PARTICIPANT
At the NCERP quarterly committee meeting, August 11, 2010, Kevin
White, the plan’s chair, presented the below listed e-mailed question to the
NCERP committee from NCERP participant, Pam Balloni, for discussion:
“I am aware that our retirement money is based on the best four of 10 years
service. Since we are not getting a raise this year and I am hearing it will only
get worse between now and 2012, is there any possibility that we can adjust
the retirement figures to best four out of 15 years? That way, the best four
years won’t drop off. I worked overtime several years ago and currently those
years are my best years. I do not want them to drop off.”
After much discussion the committee has agreed to discuss this topic further
when the NCERP committee comes together to consider plan enhancements.
ANNUAL STATE STREET BANK & TRUST
COMPANY’S FINANCIAL REPORT:
Christina Carpenter, Client Service officer, Specialized Trust Services, State
Street Bank and Trust, informed the committee that as of June 2009, the
ending market value of the college’s retirement fund was $48,888,731.73.
The ending market value as of June 30, 2010, was $54,024,529.73 which
indicates a gain of $5,135,798.00 and is a 10.51 percent increase compared
to the market value of the previous year. Carpenter stated that expenses
were lower in comparison with last year’s expenses, but attributed it to
experiencing the lower market values which creates lower expense costs.
This annual trust agency’s financial report was provided at the NCERP
quarterly committee meeting held at Meramec.
INVESTORS’ REPORT: COLUMBIA MANAGEMENT’S
INVESTMENT PRESENTATION AS OF JUNE 30, 2010.
Jim Wilkenson has reported to the NCERP committee that over the last
quarter the volatility of equities in the stock market have been at an all-time
low. Diversification of this plan’s portfolio has been able to sustain its value
during these critical times of market volatility. With the housing market still
[AFFIX LABEL HERE]
ACTUARY INFORMS COMMITTEE
COLA RATE PROPOSAL
OF
NEW
Donald Schisler, Towers Watson, informed the NCERP committee at the
August 11, 2010, quarterly committee meeting that the Consumer Price Index
(CPI) increased by 1.1 percent from June 30, 2009, to June 30, 2010. Under
NCERP, the committee may recommend a cost-of-living to the Board of
Trustees for retirees if the CPI increases is less than 4 percent for the year.
The committee voted to recommend Cost of Living Allowance (COLA) of 1.1
percent for the plan’s retirees who have been retired for at least four years as
of January 1, 2011, and who have not reached the plan’s maximum COLA
increase of 36 percent. There was no COLA increase for January 1, 2010, and
no increase in last year’s Social Security benefit, because the CPI actually
decreased from the prior year. Pending the Board of Trustees’ approval, the
COLA increase will tentatively go into effect January 1, 2011.
NEW CHAIRPERSON AND VICE CHAIRPERSON
At the recent NCERP quarterly committee meeting, August 11, 2010, the
NCERP committee elected Vicki Lucido, the committee’s new chairperson,
and Mike Wibbenmeyer was elected as the new vice-chairperson. The newly
elected chair and vice-chair will serve in their current positions until the
August 12, 2011.
THE QUARTERLY UPDATES
Previous quarter ending July 30, 2010, there were eight new participants
were added to the plan and six employees were separated from the college.
Those that separated have received their returned contributions and interest,
combined amount totaled slightly over $100K.
During the same time frame six plan participants chose to retire and one
chose the annuity payments for life and five selected the lump sum payment
totaling just under $2 million.
It is with regret we announce the passing of one of the plan’s retiree
receiving annuity pension, Margaret Brennan, who previously worked at
Meramec.
NCERP’S ACCOUNTING SYSTEM
The fiscal year budget report as of June 30, 2010, includes the following:
•
Total budget for FY 2010: $387,950
•
Total invoices paid at the end of fiscal year 2009/2010: $329,024.37
•
Balance of budget returned to trust as of June 30 2010, after all bills
paid: $58,925.63
Expenses for the plan continue to remain below the industry standard of
one percent of total value of the plan.
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:
Sept. 23, 2010
Location:
Cosand Center
Time:
2 p.m.
Oct. 7, 2010
Oct. 14, 2010
Oct. 21, 2010
Forest Park
Florissant Valley
Meramec
Noon
2 p.m.
2 p.m.
Nov. 4, 2010
Nov. 11, 2010
Nov. 18, 2010
Forest Park
Florissant Valley
Meramec
Noon
2 p.m.
2 p.m.
Dec. 2, 2010
Dec. 9, 2010
Dec. 16, 2010
Forest Park
Florissant Valley
Meramac
Noon
2 p.m.
2 p.m.
Jan. 6, 2011
Jan. 13, 2011
Jan. 20, 2011
Jan. 27, 2011
Forest Park
Florissant Valley
Meramec
Cosand Center
Noon
2 p.m.
2 p.m.
2 p.m.
Feb. 3, 2011
Feb. 10, 2011
Feb. 17, 2011
Forest Park
Florissant Valley
Meramec
Noon
2 p.m.
2 p.m.
March
March
March
March
Forest Park
Florissant Valley
Meramec
Cosand Center
Noon
2 p.m.
2 p.m.
2 p.m.
April 7, 2011
April 14, 2011
April 21, 2011
Forest Park
Florissant Valley
Meramec
Noon
2 p.m.
2 p.m.
May
May
May
May
5, 2011
12. 2011
19, 2011
26, 2011
Forest Park
Florissant Valley
Meramec
Cosand Center
Noon
2 p.m.
2 p.m.
2 p.m.
June 2, 2011
June 9, 2011
June 16, 2011
Forest Park
Florissant Valley
Meramec
Noon
2 p.m.
2 p.m.
3, 2011
10, 2011
17, 2011
24, 2011
Locations are:
Cosand Center, Room 208;
Florissant Valley, Training Center, TC-109;
Forest Park, VP Academic Affairs’ Conference Room;
Meramec, BA-105.
S
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 date, place and time are as
follows:
Nov. 10, 2010, Forest Park, 9:15 a.m.
Feb. 9, 2011, Cosand Center, 9:15 a.m.
May 11, 2011, Florissant Valley, 9:15 a.m.
August 10, 2011, Meramec, 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…
NCERP OFFERS MEMBERS RETIREMENT
SECURITY OTHER PLANS CAN’T:
Retirement plans generally fall under one of two categories – defined
benefit plans or defined contribution plans. Many individuals have a
combination of both types of plans in their retirement portfolios.
Understanding how these plans work is valuable in your retirement
planning efforts.
In a defined benefit plan, the amount of your benefit is determined by a
formula set forth in the plan document. The formula typically takes into
account the length of your service and your average pay over some
defined period of years, and benefits are payable for your lifetime. If you
retire early, there is usually an adjustment in your benefit to account for
the fact it will be paid for a longer period of years. Death benefits and
disability benefits are often provided by defined benefit plans, and you are
often allowed to elect a form of payment that provides a benefit to your
beneficiary following your death after retirement. The employer makes
contributions to a trust fund and is responsible to invest the funds
prudently to provide benefits to plan participants.
Defined contributions plans include 401(k)s, 403(b)s, 457 deferred
compensation plans, IRAs and more. Unlike defined benefit plans, defined
contribution plans provide a benefit based solely on the money you have
invested and the earnings on those investments. You determine the
amount you want to contribute and you have the flexibility to make
investment decisions. With that, you assume the investment risks. The
amount of your benefit can sometimes be difficult to determine given
that the amount depends on the success of your investment decisions.
The possibility also exists that you could outlive your funds with these
types of accounts since there is no guaranteed lifetime benefit.
NCERP is a defined benefit plan. With NCERP, your employer
withholds retirement contributions of four percent from your eligible
compensation each month, matches the amount and sends the funds to
the NCERP trust account. Eligible compensation includes all your
earnings as well as medical, dental and vision insurance premiums.
Your contributions are tax deferred and earn interest which is credited
each June 30 based on the previous June 30 balance. However, your
NCERP retirement benefit is not based on your accumulated
contributions. Instead, lifetime monthly benefits are calculated according
to a formula defined by the NCERP plan document, based on a multiplier,
your salaries (highest four in the last 10) and years of credited service.
Disability and survivor benefits and cost-of-living adjustments after
retirement are also payable to qualified members and beneficiaries.
Employer matching funds are not remitted specifically for you, and are
non-refundable to you or your employer. Although you always have the
right to withdraw your own contributions with credited interest when
you leave the college, you will forfeit the benefit provided by the college’s
contributions if you do so. All funds are held in a general reserve account
and are used to pay a lifetime monthly benefit or a lump sum equivalent
to retiring employees and beneficiaries of deceased members. If you are
vested when you leave the college, you should seriously consider leaving
your contributions in the plan because of the larger benefit that will be
available when you are eligible to retire.
• If you want to assume the investment risk and the risk of outliving
your money after you retire, you have the option to elect a lump
sum instead of lifetime payments. Many defined benefit plans do not
give you this option.
St. Louis
Community
College
FLORISSANT VALLEY FOREST PARK MERAMEC WILDWOOD
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
Physical Plant
Mike Wibbenmeyer - Vice Chair
MC – Utilities/HVAC
Phone: 314-984-7749
E-mail: mwibbenmeyer@stlcc.edu
Term expires: Oct. 30, 2010
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
Quick Facts About NCERP,Your Defined Benefit Plan:
• In defined contribution plans, you assume all the investment risk. In
NCERP, the College shares this risk with members by contributing
matching funds.
• Benefits are determined by a set formula, not your account balance.
• Your NCERP benefit is payable in full at age 60, which is earlier than
the normal retirement age of 65 in many plans. If you want to retire
earlier than 60, a reduced benefit is also available after you’ve
completed 25 years of service or reached age 55 and completed at
least five years of service.
• NCERP rewards long service by providing income based on the
length of your service.
• By determining benefits based on your average salary just before you
retire, NCERP protects your retirement benefit against inflation
while you are working.
• NCERP also protects your benefit against inflation after you retire by
providing cost-of-living increases.
• NCERP benefits are payable for your lifetime, providing lasting
security. You may also elect a payment form that provides a survivor
benefit to a beneficiary.
Unit Representative
Kevin White
FP - Media Services
Phone: 314-644-9213
E-mail: kwhite@stlcc.edu
Term expires: June 30, 2013
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