NON-CERTIFIED EMPLOYEE RETIREMENT PLAN (NCERP)
COMMITTEE MEETING
May 9, 2012
MINUTES
CALL TO ORDER
Mrs. Vicki Lucido called the regular meeting of the NCERP Committee to order at 9:17 a.m., in
Room SC-25, on the Forest Park Campus.
Members Present
Others Present
Vicki Lucido, Vice Chairman
Ruth Lewis
Kevin White
Mike Wibbenmeyer
Calla White
Bruce Vogelgesang (ex officio)
Roy Shaneberger (ex officio)
Kimberly Mueller
Donald Schisler (Towers Perrin)
James Hayden, Plan Coordinator
Jim Wilkinson (Columbia Management)
Tim O’Neil
COMMENTS FROM PARTICIPANTS
None
APPROVAL OF MINUTES
Regular Meeting Minutes of February 8, 2012
Mrs. Lewis moved that the minutes of the regular meeting of February 8, 2012 be approved as
written. Ms. White seconded the motion, and the motion carried.
INVESTORS’ REPORT
Columbia Management’s Investment Presentation as of March 31, 2012.
Mr. Wilkinson stated that the economy is still the same as we trudge through a slow, prolonged
recovery process. The housing issues continue and the unemployment rate remains above 8 per
cent even though 115,000 people were put to work in May 2012. The international problems
continue with the French & Greek elections and Greece’s possible separation from the European
Union (EU). Back home the elections have caused a lack of commitment in congress, the Bush
tax cuts are about to expire, the debt ceiling and budgetary issues will all come to pass later this
year. There doesn’t seem to be any large increases in the market in the near future and believes
the historical interest rates will continue through mid-2013 or beyond. We have seen some relief
at the gas pump and this could help the economy as folks have been putting their discretionary
income into their gas tanks.
Mr. Wilkinson reported that the College plan continues to do well as the value increased from
$59,213,450 to $63,463,777 during the first quarter, up about 4 million dollars. The plan
remains a diversified mix; however, they are looking at the large caps stock to see if it is in the
best interest of the plan to move all large caps to the CMPF Large Cap Enhanced Core fund.
This will not affect the diversification of the plan.
Bruce Vogelgesang asked about the blue section on the chart on page 12 of the Columbia
Management report.
Mr. Wilkinson reported that this was Investment Grade Securities and the fund explanation can
be found on pages 42 & 43 of the Columbia Management Investment report.
Mr. Wilkinson stated that the College plan has done well versus the benchmark and was up 8.45
per cent for the quarter, 6.31 per cent for the year, 17.56 per cent for 3 years, 4.25 per cent for 5
years, 6.38 per cent for 10 years and 9.23 per cent since inception. The only time the benchmark
was higher than actual was at the 1 year point when the benchmark was 6.62 per cent and the
actual result was 6.31 per cent
Overall due to the plans diversification it continues to perform well.
REPORT ON NEW PARTICIPANTS/RETIREES/RETURN OF
CONTRIBUTIONS/DECEASED RETIREES
Mr. Hayden reported that during the period of January 1, 2012 – March 31, 2012 eleven (11)
new participants were added to the Plan and eight (8) participants separated from the College.
The returned contributions and credited interest for those individuals leaving the plan totaled
$20,621.92.
During the same period, seven (7) Plan participants chose to retire. Four (4) elected the Lump
Sum Option (totaling $442,615.22), amount included two (2) 50/50 options, five (5) chose the
Annuity for Life Option and two (2) of which chose the 50/50 option. There was one (1) retiree
deaths were reported during this period.
SUBMISSION OF BILLS
Mr. White made a motion, seconded by Mrs. Lewis, to ratify the payment of the six (6) bills
presented to the Committee during the reporting period. The motion carried. The bills included:
Towers Watson – Actuarial Services (01/01/12 – 03/31/12)
$17,500.00
Columbia Management Investment Services (01/01/12 – 03/31/12)
$33,864.16
State Street Retiree Services (01/01/12 – 03/31/12)
$ 1,561.75
State Street Corporation Company (01/01/12 – 03/31/12)
$ 12,139.43
Armstrong Teasdale (02/29/12)
$
St. Louis Community College – Reimbursement for Dell Laptop
$ 1,224.00
NADOZ Café (01/24/12)
$
105.00
NADOZ Café (02/08/12)
$
106.00
712.50
Ms. White made a motion, seconded by Mr. White to ratify the bills presented for payment.
REPORT FROM ACTUARY
Mr. Schisler had no report at this time.
UNFINISHED BUSINESS
Mr. Hayden presented the budget report ending March 31, 2012, reporting the budget for
FY2012 began at $398,431.00 and has a balance remaining of $138,931.59.
He reports to the committee that the 50 per cent annuity/50 per cent lump sum has many
favorable responses and the use of the newly purchased lap-top computer is working out very
well. He posed a question to Mr. Schisler concerning interest rates on NCERP participant’s
contributions. Mr. Schisler stated that he will have Mrs. Huppert’s get this information to Mr.
Hayden but does know that the interest rate will be less than the .03 per cent from last year and
this only affects the employees who take their contributions prior to retirement. Mr. Hayden
indicated he wants to ensure he has the information so annual statements can be completed and
mailed prior to July 30, 2012.
Mr. Vogelgesang reminded the committee the cut-off date of mid-September for the audit
completion and information provided by the actuary must be provided prior to that date. Mr.
Schisler stated they will stay with the same schedule that was utilized last year and will have the
information for auditors on time, as long as he obtains the appropriate data from Mr. Hayden.
Mr. Hayden indicated everything is on track to keep to last year’s schedule.
Mr. O’Neil asked where the annuity payments came from and how secure are these procedures?
Mr. Schisler stated that State Street sends payments to the employees only, but does not have
access to the funds; they make their earnings from the fees they charge for facilitating
transactions and providing monthly annuity checks.
NEW BUSINESS
Mr. Hayden presented a new budget for FY2013 of $395,725.00 for approval.
A motion was provided by Mr. White to approve the FY2013 budget as proposed, Ms. White
seconded the motion and the FY2013 budget was approved.
ADJOURNMENT
There being no further business, a motion was made by Ms. White and seconded by Mr. White to
adjourn the meeting. The motion carried and the meeting was adjourned at 9:50 a.m. The
meeting of the next NCERP Committee will take place on Wednesday, August 10, 2012 at 9:15
a.m. on the Florissant Valley campus.
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Chairman
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Administrator
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