N O N - C E RT I F I C ATED EMPLOYEES RETIREMENT PLAN
October 3, 2008 Volume 36
Annual State Street Bank and
Trust Company’s Financial
Report, ending June 30, 2008
A year-to-year comparison of plan values was provided by Mr. Davies, State
Street Retirees Services, at the
NCERP quarterly committee meeting, held on August 13, 2008, at the
Meramec campus. He emphasized
the contrast between the beginning
market value of the plan, $63,357,713.28, and the ending market value, $58,344,302.52; showing a $5M
deficit. That provides for a 7.91 percent decrease in
the plan’s value. Mr. Davies further speculated that
this market loss was probably attributed to the weak
performance of the stock markets that has been overly exposed to the home mortgage/foreclosures devastation. He also explained the result of the housing
crisis is spread evenly across many retirement plans
and we certainly are not alone in experiencing our
losses.
INVESTOR’S REPORT
Columbia Management’s
Investment Presentation as of
June 30, 2008.
Mr. Wilkinson, Columbia Management, Portfolio
Manager, began his quarterly presentation by stating
last year has been one of the toughest years he can
remember. The subprime home mortgage crisis has
impacted every financial investment sector across the
market, negatively. Beginning market value as of April
1, 2008, for the plan was $58,663,229 the ending market value as of June 30, 2008 was $58,347,675. That
includes net contributions withdrawals of $89,974,
earned income of $425,330 and the total change in
market value of $655,910.
[AFFIX LABEL HERE]
Mr.Wilkinson, reported that unemployment has increased
from five to seven percent with crude oil trading approximately $117/barrel, which is the same price crude was when
we were provided an investment report at the last meeting
May 14, 2008. He further shared with the retirement committee, that during the quarter, crude traded up to the mid $140s
and back down to $117 again, causing losses and still some
gains for the quarter, as the growth sector continued to muddle along.
Mr.Wilkinson also explained that last week (August 5) the
Federal Reserve met and kept the Federal funds rate target at
2 percent. This is their second meeting leaving rates
unchanged possibly signaling an end to this easing cycle. The
Federal Reserve next meeting is September 16, 2008, and
rates will probably still go unchanged.The plan utilizes well
diversified funds to invest in several assets classes including:
large stocks, small stocks, international stocks, and fixed
income; this helps to minimize the impact of volatility in the
market. Mr. Wilkinson has indicated that in this situation
patience is a virtue and one thing is for sure, “the market will
change and we anticipate that change will be for the better.”
The Quarterly Updates
The plan’s coordinator, Mr. Hayden has reported that during the
period of April 1 - June 30, 2008, 10 new participants were
a dded to the plan and seven employees separated from the
College. Their returned contributions totaled $87,753.66.
During that same period, three plan participants chose to retire
– all we re effective April 1, 2008. All elected to receive annuity
payments for life with no contingent annuity options. Also,
during the period there were no retiree deaths reported.
Election of Chair and Vice-Chair
The retirement committee annually elects chair and vice
chairperson at their meeting in August, per the NCERP plan
document. On August 13, 2008, the retirement committee
nominated and elected Ms. Calla White as the chair for the
NCERP retirement committee for fiscal July 1, 2008 - June 30,
2009. Mr. Mike Wibbenmeyer was also nominated and elected
as the vice chairperson of the NCERP retirement committee.
These positions will expire June 30, 2009.
NCERP’S Accounting System
Fiscal year budget report as of June 30, 2008, includes the
following:
•
The total budget for 2007-2008 fiscal year: $371,531
•
Total charges that have been paid: $336,912.97
•
Quarterly Encumbered charges: $0
•
Balance as of June 30, 2008: $34,618.03
Administrative expenses for the retirement plan are c u rrently budgeted at $371,531.00.Total expenses for the year
totaled $336,912.97, with $34,618.03 remaining in the budget at
fiscal year end. Cost of managing the plan for this year did not
exceeds the industry standards of one percent of value of the
plan (ap p roximately $57M).
NCERP COMMITTEE EMPLOYS
APPROVED BUDGET
(FY 2008/2009):
At the NCERP quarterly committee meeting, May 14, 2008,
the retirement committee approved the plan’s next fiscal year
budget. Previous year’s budget was approved for $371,531
and with a four percent increase (CPU-I for 2008) added for
inflation, the new approved budget for $385,893 has been
approved by the NCERP committee and will be in effect for
the upcoming quarter July 1, 2008 – September 30, 2008.
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
Date
October 9, 2008
October 16, 2008
October 23, 2008
Location
Florissant Valley
Meramec
Cosand Center
Time
2 p.m.
2 p.m.
2 p.m.
November 6, 2008
November 13, 2008
November 20, 2008
Forest Park
Florissant Valley
Meramec
Noon
2 p.m.
2 p.m.
December 4, 2008
December 11, 2008
December 18, 2008
Forest Park
Florissant Valley
Meramec
Noon
2 p.m.
2 p.m.
January
January
January
January
Forest Park
Florissant Valley
Meramec
Cosand Center
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.
Forest Park
Florissant Valley
Meramec
Noon
2 p.m.
2 p.m.
8, 2009
15, 2009
22, 2009
29, 2009
5, 2009
12, 2009
19, 2009
26, 2009
April 2, 2009
April 9, 2009
April 16, 2009
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.
Locations are: Meramec, BA-105; Florissant Valley,Training
Center, TC-109; Forest Park,Vice President, 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
Plan participants are encouraged to attend the next NCERP
quarterly committee meeting, which will be held at the Forest
Park campus, Room L-007, at 2:15 p.m. November 13, 2008.
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 13, 2008, FP
2:15 p.m.
February 11, 2009, CC
9:15 a.m.
May 13, 2009, FV
9:15 a.m.
August 12, 2009, MC
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…
What’s in Your Retirement Tool Box?
Have you ever fumbled through your toolbox only to find you
don’t have what you need to do the job? It’s not just frustrating – it can also derail your project until you find the right
tool.
Individual Retirement Accounts
At the end of 2007, Americans held a whopping $4.7 trillion
in IRAs according to the May 2008 Investment News. The
reason for the attraction is clear. IRAs:
• Offer a tax-advantaged way to sock away money for
retirement.
• Let you consolidate money from retirement accounts
stranded at former employers.
• Provide a wide selection of investing options, including
mutual funds, stocks, annuities, certificates of deposit
and savings accounts.
There are two major types of IRAs: traditional and Roth.
Traditional IRAs offer a potential tax deduction for contributions, but withdrawals are taxable. Roth IRAs have no
upfront tax benefit, but qualified withdrawals are tax free.
They also boast a little known feature that makes them
much more accessible than their traditional cousins: the ability to withdraw your contributions at any time without taxes
or penalties.
Which one is best? Most financial advisors favor the Roth.
Tax free withdrawals and greater liquidity make it a very
attractive option – if your income doesn’t disqualify you.
Singles are barred once their adjusted gross income hits
$116,000. Married couples are blocked at $169,000.
403(b)s and Other Employer Plans
Workplace retirement plans offer automated savings, tax
breaks and – if you’re lucky – matching employer contributions. Despite all that, almost a third of employees who are
offered such a plan fail to sign up, reports the Employee
Benefit Research Institute.
If your retirement plan includes matching contributions, as
NCERP does, take advantage of this opportunity because this
type of retirement plan is a dying entity. More specifically
the defined benefit plans are the best of all retirement plans
because it’s difficult for any investment to equal the automatic gain you get from an employer’s contributions.
Additionally, the benefit of utilizing a formula to calculate the
retirement benefits versus relying on market values at the
time of retirement is an added value also. Generally the formula will generally exceed both employer and employee contributions, plus the interest the retirement contributions
have earned.
Annuities
A Clear Goal
Efficient carpenters adhere to time-honored maxim: measure
twice, cut once. Just as accurate measurement can reduce
waste in the wood shop, a careful calculation of your retirement needs may prevent you from coming up disastrously
short when you’re ready to kick back.
Thanks to Web-based retirement calculators and personal
finance software, it only takes minutes to set goals and calculate the savings required to reach them. To stay on track, take
new “measurements” every few years or after significant life
events such as marriage, children, divorce or death.
With traditional pension plans becoming scarce, annuities are
a do-it-yourself option that transforms savings into income
that is guaranteed to last a lifetime. Some annuities let you
accumulate money over time and turn it into income later;
others let you turn a lump sum into a steady retirement
“paycheck” right away. If social security, pensions and military retirement pay aren’t going to cover all your regular
expenses in retirement, an annuity can fill in the gap.
continued on the next column…
Social Security and Medicare
Like a neighbor holding your ladder steady, the government provides two retirement tools meant to provide a safe foundation for
your golden years:
• Social Security provides a modest floor of retirement
income that you can start receiving as early as age 62. You
can increase your take by delaying benefits as long as age 70.
• Medicare is the government’s health insurance program fo r
people 65 or older. Like Social Security, it’s not a complete
solution. Many people are surprised to learn Medicare provides little or no coverage for nursing homes. That’s why
long-term care insurance is an important consideration.
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, 2008
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.
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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