--NON-CERTIFICATED EMPLOYEES RETIREMENT PLAN
September 26, 2011
Volume 48
ANNUAL STATE STREET BANK & TRUST
COMPANY’S FINANCIAL REPORT:
Christina Carpenter, Client Service Officer, Specialized Trust Services, opened
her annual presentation by stating the market value of the NCERP retirement
fund during the period of June 30, 2010, through June 30, 2011, has increased by
16.03 percent. However, the plan’s market value has lost some ground in the
past few weeks. When questioned by a NCERP participant as to where he
would be able to find the State Street Annual Trust Statement, Carpenter
apologized that it was not included in the presentation booklet, but she would
mail copies to James Hayden to distribute to those who would like to review
the State Street Annual Trust statement.
Carpenter informed the committee that as of June 2010, the ending market
value of the college’s retirement fund was $54,024,529.73. The ending market
value as of June 30, 2011, was $62,684,612.20 which indicates a gain of
$8,660,082.47, and is an increase compared to the market value of the previous
year. Carpenter stated that expenses were higher in comparison with last year’s
expenses, but attributed it to an increase in legal expenses and fees collected for
benefit payments were actually paid in current fiscal year (2011) but should have
been taken in the previous fiscal year (2010).
This annual trust agency’s financial report was provided at the NCERP
quarterly committee meeting held at the Cosand Center, Aug. 10.
columBia management’S inveStment
PreSentation aS of June 30, 2011:
Jim Wilkinson, Columbia Management, began his quarterly presentation by
stating that the U.S. economic concerns seem far greater than those of the plan
right now. Leading up to date our economy has experienced some turmoil. In
2007-2008, real-estate’s down turn with poor lending practices and securities
that were backed by the housing market, he further reminded the committee
that in 2009, the market got better with the stimulus packages, however, in
2010, there were global concerns when the tsunami hit Japan; and the increase
in market anxiety was caused by the PIIGS (Portugal/Ireland/Italy/ Greece/Spain).
Now in 2011, there is a new frustration – our own congress failing to govern by
inadequately raising the debt ceiling.
[AFFIX LABEL HERE]
Wilkinson also stated that the economy in the first half of 2011 only grew
.5 percent. We would need to increase jobs by 150,000 – 200,000 to decrease the
unemployment rate which remains stable around 9 percent and does not take into
account those businesses who are underemployed. Some people have given up
looking for employment and others who are currently working part-time but need
full-time employment which has failed to ignite the economy as needed. Wilkinson
strongly believes that with patience we will get through this and the plan’s
portfolio is set up to do so with 60 percent invested in equities and 40 percent
invested in fixed income.
Wilkinson explained further that the one-year return for the plan is 23.26
percent but when you look at the three-year return, 5.83 percent, and the fiveyear return is 5.56 percent, the plan’s return since inception is 9.29 percent, overall
pretty good performance. He added that there is no need to panic, patience is the
key, and the U.S. economy has had bumps over the years and has managed to
survive.
rePort
from
actuary
Julie Hupperts of Towers Watson, informed the NCERP committee at the
Aug. 10, quarterly committee meeting of the results of her evaluating information
from the United States Department of Labor, reporting the CPI-Index was up 3.6
percent. Under NCERP policy, the committee may recommend a cost-of-living
adjustment to the Board of Trustees (BOT) for retirees if the CPI increases is less
than 4 percent for the year. The committee voted to move forward and
recommend a cost of living allowance (COLA) of 3.6 percent for the plan’s
retirees who have been retired for at least four years as of Jan. 1, 2012, and who
have not reached the plan’s maximum COLA increase of 36 percent. There was
no COLA increase for Jan. 1, 2010, and a 1.1 percent increase for Jan. 1, 2011.
Pending the BOT’s approval the COLA increase will tentatively go into effect
Jan. 1, 2012.
new chairPerSon and vice chairPerSon
At the Aug. 10 NCERP quarterly committee meeting, 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 Aug. 8, 2012.
INCREASE IN CONTRIBUTIONS?
An important issue discussed at the recent NCERP quarterly committee meeting
was the possibility of an increase in the current 4 percent contribution rate by both the
active participants and the employer (the college), currently set at 8 percent. An e-mail
generated from an NCERP active participant, forwarded to Vicki Lucido, generated the
discussion and was basically compared to 14.5 percent contribution rate that is
currently being paid by college’s administrators and by the employer (the college). It was
pointed out that it may be more feasible to compare NCERP with the state of
Missouri’s Public Education Employee Retirement System (PEERS) Plan because this plan
is for non-certificated employees. It was later revealed that their current contribution
rate is 6.86 percent for the participants and 6.86 percent provided for the employer.
However, the NCERP committee decided to review the annual actuary report
prior to deciding if they would attempt to make a recommendation to the BOT.
Any participant who is for or against this increase in contributions should inform
their respective NCERP representative to voice their concerns.
THE QUARTERLY UPDATES
During the previous quarter ending July 30, 2011, there were 14 new
participants added to the plan and 12 employees separated from the college.
Those that separated have received their returned contributions and interest
for a combined total slightly over $40K.
In the same time frame, six plan participants chose to retire. Two chose the
annuity payments for life, while four selected the lump sum payment totaling just
over $1M. Two of the plan’s retirees receiving annuity pension have passed away;
Martha E. Bickel, who worked at the Forest Park campus; and Charles J. Disalvo,
who previously worked at the Meramec campus.
ncerP’S accounting SyStem
The fiscal year budget report as of June 30, 2011, includes the following:
• Total budget for FY 2011: $393,175.00
• Total invoices paid at the end of fiscal year 2010/2011: $338,273.33
• Balance of budget returned to trust as of June 30 2011, after all bills
paid: $54,901.67
Expenses for the plan continue to remain below the industry standard of 1 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:
Oct. 6, 2011
Oct. 13, 2011
Oct. 20, 2011
Location:
Forest Park
Florissant Valley
Meramec
Time:
Noon
2 p.m.
2 p.m.
Nov. 3, 2011
Nov. 10, 2011
Nov. 17, 2011
Forest Park
Florissant Valley
Meramec
Noon
2 p.m.
2 p.m.
Dec. 1, 2011
Dec. 8, 2011
Dec. 15, 2011
Forest Park
Florissant Valley
Meramec
Noon
2 p.m.
2 p.m.
Jan. 5, 2012
Jan. 12, 2012
Jan. 19, 2012
Jan. 26, 2012
Forest Park
Florissant Valley
Meramec
Cosand Center
Noon
2 p.m.
2 p.m.
2 p.m.
Feb. 2, 2012
Feb. 9, 2012
Feb. 16, 2012
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 5, 2012
April 12, 2012
April 19, 2012
Forest Park
Florissant Valley
Meramec
Noon
2 p.m.
2 p.m.
May
May
May
May
Forest Park
Florissant Valley
Meramec
Cosand Center
Noon
2 p.m.
2 p.m.
2 p.m.
1, 2012
8, 2012
15, 2012
22, 2012
3, 2012
10, 2012
17, 2012
24, 2012
June 7, 2012
June 14, 2012
June 21, 2012
Forest Park
Florissant Valley
Meramec
unofficial…
NCERP Offers Members Retirement Security Other Plans Can’t:
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 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 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.
•
Noon
2 p.m.
2 p.m.
Locations are:
Meramec, BA-105; Florissant Valley, Training Center, TC-109; Forest Park,VP
Academic Affairs’ Conference Room; Cosand Center, Room 208.
S
M
T
W
T
F
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 5 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.
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. 9, 2011, Meramec, 9:15 a.m.
Feb. 8, 2012, Florissant Valley, 9:15 a.m.
May 9, 2012, Cosand Center, 9:15 a.m.
August 8, 2012, 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.
•
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
imPortant PointS of contact:
Board of Trustees Appointment
Calla White
6688 Chesapeake Drive
Apartment C
Florissant, MO 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
FP - Media Services
Phone: 314-644-9213
E-mail: kwhite@stlcc.edu
Term expires: June 30, 2013
Physical Plant
Mike Wibbenmeyer - Vice Chair
MC – Utilities/HVAC
Phone: 314-984-7749
E-mail: mwibbenmeyer@stlcc.edu
Term expires: Oct. 30, 2013
Non-Unit Representative
Vicki Lucido - Chair
FV - VP Academic Affairs office
Telephone: 314-513-4214
e-mail: vlucido@stlcc.edu
Term expires: June 30, 2014
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. Documentation may
be required.
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.
100485 9/2011