NON-CERTIFICATED EMPLOYEES RETIREMENT PLAN
September 11, 2009 Volume 40
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Steve Chiles, State Street Bank & Trust Specialized
Trust Services, provided an annual business update by first, assuring the NCERP committee the financial stability of State Street Bank & Trust. He stated that the global economy is slowly beginning to repair and that State Street Bank & Trust is a strong industry leader with ongoing expansion opportunities. Chiles expressed the fact that they operate globally is an advantage and this gives them the opportunity to cross-sell to existing customers. He asserted that State
Street Bank & Trust is a safe institution and operates as a strategic partner with their customers. Chiles feels that State Street Bank & Trust is well positioned in the current environment and can take the lead when we are in recovery.
Chiles further informed the committee that as of June 2008, the ending market value of the college’s fund was $58,344,302.52. The ending market value as of June 30, 2009, was $48,888,731.73 which indicates a loss of ($9,455,570.79) and is a 16.21 percent decrease compared to the market value of the previous year. Chiles stated that this was due to the decline in stocks and fixed income markets. He reported that the funds have increased since June 30, 2009. Chiles stated that the plan’s investment portfolio continues to be about the same; with a 60/40 split between equities and fixed income.
This annual trust agency’s financial report was provided at the
NCERP quarterly committee meeting held August 12, 2009, at Meramec.
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COLUMBIA MANAGEMENT’S INVESTMENT PRESENTATION
AS OF JUNE 30, 2009
Also at the recent quarterly committee meeting Mr. Wilkinson, senior portfolio manager, Columbia Management, opened his presentation by stating, “What a difference a quarter makes.” He stated that there is a lot of uncertainty as we come out of the
St. Louis
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FLORISSANT VALLEY FOREST PARK MERAMEC WILDWOOD
[AFFIX LABEL HERE] recession/depression which began in December 2007, something that we have not seen in our lifetime. He believes that the recession will probably end sometime in the second half of 2009.
Wilkinson indicated that the housing market, especially prices, has not yet stabilized. However, the level of homebuilding activity is now near the level of sales. This is the first time that this has happened in decades.
The government is offering incentives to new home buyers as well as the
“Cash for Clunkers” incentive to stimulate the economy. Inventory reduction will allow for an increase in inventory build-up.
Wilkinson informed the committee that one of the reflationary policies included holding the Federal Reserve interest rate is at zero percent and stress-testing the largest banks to identify those banks needing further capital and financial stimulus. He stated that the banks are passing these stress tests. Wilkinson confidently expressed that the
S&P 500 was up 50.2 percent for the quarter which is the largest jump since 1998. Since March 9, 2009, it has increased 38 percent and it increased 7.5 percent in July, which is the longest winning streak since
2007. Wilkinson believes that “less negative” has become the new positive outlook in the market.
Wilkinson shared that the labor market continues to contract with seven million jobs lost since December 2007. Over the last six months nearly 600,000 jobs have been lost monthly. Wilkinson stated that an unemployment rate of over 10 percent is most likely. He believes that the loss of jobs has been a result of global deleveraging and an attempt to cut debt. Wilkinson expects job growth to be slow as the expectations of current employees have grown to meet the jobs lost.
Wilkinson predicted that it can be expected that the recession will de-escalate at the end of this year and will be replaced by a sluggish, more positive environment with different problems. The housing market began the recession, followed by commercial debt due to the decline in spending with credit card debt to follow as people who have lost their income have depended upon their credit cards to pay their bills.
The plan year ended June 30, 2009, with a market value of
$48,813,396 which was down 14.58 percent for the year but was up 11 percent for the quarter and up 4.38 percent year-to-date. The plan also saw a five percent increase in the month of July. The plan’s portfolio
60/40 mix between equities and fixed income funds remained intact and has positively impacted the plan.
Wilkinson stated that this is the brightest outlook he has been able to provide in our last four meetings.
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The plan’s actuary, Donald Schisler, Towers Perrin, has reported to the
NCERP committee that the cost of living measured by the Consumer
Price Index (CPIU), as required by the plan, decreased by 1.4 percent during the year ended June 30, 2009. Therefore no COLA increases will be provided to the plan’s approximate 139 retired life-time annuity recipients. Each eligible participant will receive a letter of explanation, advising them of the situation to year’s end.
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During the period of April 1through June 30, 2009, there were nine new participants added to the plan and two employees who terminated their positions. The returned contributions and credited interest for those three individuals totaled $2,489.25. During the same period, three plan participants chose to retire effective April 1, 2009, and one retired June 1,
2009. There were three deferred vested retirees who began to receive benefits as April 1, 2009. Of the six plan participants who retired during the quarter, one opted for the 50 percent lump sum/50 percent lifetime annuity option, three opted for the lump sum payment, and two opted for the lifetime annuity. Also, there were three reported deaths of retirees receiving monthly annuity benefit pension.
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Fiscal year budget report as of June 30, 2009, includes the following:
• The total budget for 2008-2009 fiscal year: $385,893.00
• Total charges that have been paid: $300,300.82
• Balance as of June 30, 2009, after all bills paid: $85,592.18
NCERP’s administrative cost for the plan ended fiscal year 2009 under budget and also is below the industry standards of one percent of the total market value. New budget for fiscal year 2010 has been approved for $387,950 and will go into effect immediately.
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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.
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Date
September 17, 2009
September 24, 2009
Location
Meramec
Cosand Center
Time
2 p.m.
2 p.m.
October 1, 2009
October 8, 2009
October 15, 2009
Forest Park
Florissant Valley
Meramec
Noon
2 p.m.
2 p.m.
November 5, 2009
November 12, 2009
November 19, 2009
December 3, 2009
December 10, 2009
December 17, 2009
Forest Park
Florissant Valley
Meramec
Forest Park
Florissant Valley
Meramec
Noon
2 p.m.
2 p.m.
Noon
2 p.m.
2 p.m.

January 7, 2010
January 14, 2010
January 21, 2010
January 28, 2010
February 4, 2010
February 11, 2010
February 18, 2010
March 4, 2010
March 11, 2010
March 18, 2010
March 25, 2010
April 1, 2010
April 8, 2010
April 15, 2010
May 6, 2010
May 13, 2010
May 20, 2010
May 27, 2010
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
June 3, 2010
June 10, 2010
June 17, 2010
Forest Park
Florissant Valley
Meramec
Noon
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.
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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:
November 12, 2009
February 10, 2010
Forest Park
Cosand Center
9:15 a.m.
9:15 a.m.
May 10, 2010
August 11, 2010
Florissant Valley
Meramec
9:15 a.m.
9:15 a.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.
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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.
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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 distribute 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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NCERP Offers Members Retirement Security Other Plans Can’t:
Retirement plans generally fall under one of two categories – defined benefit plans or defined contributions. Many individuals have a combination of both types of plans in their retirement portfolios. It is valuable in your planning efforts to understand how these plans work.
NCERP is a defined benefit plan. With NCERP, your employer withholds retirement contributions of 4 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 are credited to your individual
NCERP account. Interest accrues on your contributions and is credited to your account each June 30 based on the previous June 30 balance. The amount of contributions in your account does not determine the amount of your benefit. Instead, lifetime monthly benefits are calculated according to a formula defined by the NCERP retirement committee, 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. These funds are held in a general reserve account and are used to pay lifetime monthly benefits or a lump sum equivalent to retirees and beneficiaries of deceased members.
Defined contributions plans include 401(k), 403(b), 457 deferred compensation plans, IRAs and more. Unlike a defined benefit plan, your benefit is based solely on the money you have invested and the interest earnings. 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.
QUICK FACTS ABOUT DEFINED BENEFIT PLANS:
• In most defined benefit plans, the employer assumes investment risk.
This risk is shared by NCERP employer and members since both groups contribute funds.
• Benefits are determined by a set formula, not your account balance.
• Benefit amount is based on pre-retirement final average salary.
• Provide more income for career employees-rewards for long service
• Protect benefits against inflation by providing cost-of-living increases.
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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
Non-Unit Representative
Vicki Lucido
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.
Unit Representative
Kevin White
FP - Media Services
Phone: 314-644-9213
E-mail: kwhite@stlcc.edu
Term expires: June 30, 2010
Physical Plant
Mike Wibbenmeyer
MC – Utilities/HVAC
Phone: 314-984-7749
E-mail: mwibbenmeyer@stlcc.edu
Term expires: Oct. 31, 2010
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 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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