NON-CERTIFICATED EMPLOYEES RETIREMENT PLAN
December 17, 2008 Volume 37
CLIFTON GUNDERSON ANNUAL
AUDITING REPORT, ENDING
JUNE 30, 2008
Nancy Jones of Clifton Gunderson,
LLP, the college’s auditors, indicated
the annual auditor’s report was
conducted in accordance with
auditing standards generally
accepted in the United States of America.
In her opinion, the financial statements represented
fairly, in all material respects, the financial status of
the Non-Certificated Employees Retirement Plan
of the Junior College District of St. Louis, St. Louis
County, Missouri, as of June 30, 2008.The changes
in the plan’s financial status for the year ended in
conformity with accounting principles generally
accepted in the U.S.
A brief summary of the audits financial highlights
are as follows; the net assets available for benefits
at the beginning of the year, July 1, 2007, equaled
$63,339,186, compared to the net assets available
as of June 30, 2008, totaled $58,309,484.This
represents a decrease over $5 million from the
previous year assets. The net depreciation of the
fair value of investments was ($4,921,392), interest
and dividends earned $1,767,171, less the
investment expenses of $135,430, resulting in the
total net investment income totaling ($3,289,651).
Also, contributions made by the college and
participants were $865,790 each, totaling
$1,731,580. Total deductions including benefits paid
to participants and administrative expenses add up
to $3,471,631, and the net decrease during the
[AFFIX LABEL HERE]
auditing period was ($5,029,702).
Also, in closing, Jones shared with the NCERP
Committee that the decreased value of investments as of
September 30, 2008, was decreased to $53,554,132. She
informed the committee that the decrease is a result of
$974,946 of distributions, with total contributions of
$485,818, investment income of $279,716 and a decline in
the fair market value of investment of $4,579,674, since
June 30, 2008.
The information was provided to the NCERP
Committee at their quarterly committee meeting held
November 13, 2008.
INVESTOR’S REPORT
COLUMBIA MANAGEMENT’S
INVESTMENT PRESENTATION
AS OF SEPTEMBER 30, 2008.
At the quarterly committee meeting held November
13, 2008, Jim Wilkinson, senior portfolio strategist from
Columbia Management, began his quarterly presentation by
stating, “The current market is trying is an
understatement.” Wilkinson acknowledged that we have
not experienced anything like this in 25 years – current
investment environment is reminiscent of the investment
environment of the 1920s-1930s which was not like any
other recession. Fortunately, some of the backstops from
that time period (1920s/1930s) have worked and some
things have gotten better.
Wilkinson stated that in the month of September 2008,
several major shifts occurred in the economy including the
government purchasing Fannie May and Freddie Mac,
Lehman Brothers filing bankruptcy, AIG receiving an $85
billion bail-out, the reserve fund being frozen, credit
markets seizing up and the country of Iceland filing for
bankruptcy.
Wilkinson believes the epicenter for this problem is the
home lending market. Falling home prices, tighter lending
standards and slumping net worth have impacted home
buying intentions. Unemployment rates may reach a high of
7.5 to 8 percent. As of early November 2008, the rate was
6.5 percent with more layoffs and cut-backs on the way.
The positive is that the dollar has strengthened and the
price of oil has decreased. Part of this is due to less oil
being used because of the economy. Gas can now be found
for less than $2 per gallon. On the negative,Wilkinson
strongly believes this will affect the U.S. export boom
because trade has been the main facet holding the
government up in the last year, but this support will likely
fade now that the financial crisis has gone global.
The benefit of this plan is that it has well diversified in
its asset allocation.Wilkinson further explained that the
fixed income sector is doing better than other sectors and
47 percent of the allocation is currently in this market.The
allocations are based upon the retirement committee’s
previous and careful decision making.
The asset value at the end of the quarter September 30,
2008, was $53,544,315 which is a $4.5 million decrease
since June 30, 2008.Wilkinson reminded the committee that
this pension plan is designed as a long-term benefit and in
the short term there will be bumps in the road, examples
being - today’s economy (November 2008), the 1999
technology bubble and the events of September 11, 2001.
The portfolio performance is down 14 percent year to date
and the global equity market is down 20 percent.Wilkerson
ended his presentation by stating that due to the asset
allocation – over time, this situation will all pan out.
THE QUARTERLY UPDATES
During the period of July 1-September 30, 2008, there
were 20 new participants added to the plan, and six
employees separated from the college.Their returned
contributions totaled $43,284.57. During the same time
frame, four plan participants chose to retire – two elected
to retire July 1, 2008, one chose August 1, 2008, and the
other selected September 1, 2008. One chose to receive
annuity payments for life without a contingent annuitant
option and the remaining three chose lump sum options.
Our condolences go out to the family of Irene E. Dennis, a
retired participant from Meramec, who passed away in
September.
NCERP’S ACCOUNTING SYSTEM
Fiscal year budget report as of September 30, 2008,
includes the following:
•
•
•
•
The total budget for 2008-2009 fiscal year:
$385,893.00
Total charges that have been paid: $57,488.19
Quarterly Encumbered charges: $20,412.50
Balance as of June 30, 2008: $307,992.31
RETIREMENT INTERVIEW SCHEDULE
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 COORDINATOR’S PROPOSED
SCHEDULE OF CAMPUS VISITS
Location
Forest Park
Florissant Valley
Meramec
Cosand Center
Time
Noon
2 p.m.
2 p.m.
2 p.m.
February 5, 2009
February 12, 2009
February 19, 2009
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 2, 2009
April 9, 2009
April 16, 2009
Forest Park
Florissant Valley
Meramec
Noon
2 p.m.
2 p.m.
May
May
May
May
7, 2009
14, 2009
21, 2009
28, 2009
Forest Park
Florissant Valley
Meramec
Cosand Center
Noon
2 p.m.
2 p.m.
2 p.m.
June 4, 2009
June 11, 2009
June 18, 2009
Forest Park
Florissant Valley
Meramec
Noon
2 p.m.
2 p.m.
Date
January
January
January
January
July
July
July
July
8, 2009
15, 2009
22, 2009
29, 2009
5, 2009
12, 2009
19, 2009
26, 2009
2, 2009
9, 2009
16, 2009
23, 2009
Forest Park
Florissant Valley
Meramec
Cosand Center
Noon
2 p.m.
2 p.m.
2 p.m.
August 6, 2009
August 13, 2009
August 20, 2009
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.
Points of contact: The NCERP committee representatives
are listed on the back panel of this brochure.
NCERP COMMITTEE
MEETING SCHEDULE
S
M
T
W
T
F
S
Plan participants are encouraged to attend the next
NCERP quarterly committee meeting, which will be held
at the Cosand Center, February 11, 2009, 9:15 a.m. 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:
February 11, 2009, CC
9:15 a.m.
May 13, 2009, FV
9:15 a.m.
August 12, 2009 MC
9:15 a.m.
November 11, 2009 FV
9:15 a.m.
BENEFICIARY ACCURACY
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.
UNOFFICIAL…
Restrain Your Holiday Spending:
According to the Illinois CPA Society, just as holiday
feasting can ruin your waistline, holiday spending can bust
your budget. Here are ways to plan your holiday
spending:
•
•
•
Review what you spent last year. Include amounts
you spent on gifts, decorating, entertaining, clothes
and travel. If you don’t have these records, try to
estimate what you spent.
Write a holiday budget. Determine a realistic
budget that meets your needs without going
overboard.Think of ways to reduce your costs
perhaps by some gifts and decorations.
Set Limits. Once you’ve made your gift list stick to
it. Decide beforehand how much you can afford to
spend on each person. Look for bargains or sale
items.
(continued on back panel)
•
If possible, avoid using credit. Paying in cash is a good
way to reduce your spending since most people think
more carefully when they pay with cash. A debit card is a
good alternative to a credit card, however, keep track of
your expenditures. If you choose to use credit, keep a
running tally of your balance to deter overspending. Be
sure to use a low-interest credit card.
The NCERP Committee would like to wish a happy holiday
season to each plan participant…
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
CC – TESS Systems Operations Office
Phone: 314-539-5058
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: June 30, 2009
Non-Unit Representative
Vicki Lucido
FV - VP Academic Affairs' Office
Telephone: 314-513-4214
e-mail: vlucido@stlcc.edu
Term expires: June 30, 2011
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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