SMP PARTICIPANTS AND AVERAGE ACCOUNT BALANCES as of June 30, 2012

Transcription

1 State Universities Retirement System of Illinois Serving Illinois Community Colleges and Universities 1901 Fox Drive Champaign, IL (217) (217) (FAX) To: SURS Board of Trustees From: Michael L. Sheppard, Assistant Deputy Director of the SMP Date: August 31, 2012, 2012 Re: Self Managed Plan (SMP) Update, Quarter Ending June 30, 2012 Self-Managed Plan Overview As of June 30, 2012 the average SMP participant s account balance was $57,500, based on 16,684 participants, 11,085 active and 5,599 terminated, with participants investments totaling $959,119, % of participants assets were invested with Fidelity and 42.1% with TIAA CREF. The average participant remains invested in 3.3 funds. 70,000 SMP PARTICIPANTS AND AVERAGE ACCOUNT BALANCES as of June 30, ,000 50,000 40,000 30,000 20,000 10,000 0 Avg Account Balance Participants During the second quarter of 2012, 14% of all participants employed with a SURS covered agency for six months or less chose the SMP, 24% chose Portable, 13% chose Traditional and 49% defaulted to Traditional. 13% of all SURS active participants are in the SMP.

2 10 yr. SURS Plan Elections by Quarter 70% 60% 50% Default Portable Self-Managed Traditional 40% 30% 20% 10% 0% Year / Calendar Qtr Academic personnel comprise approximately 61% of SMP active participants, 39% are Staff. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 9,568 5,857 ACTIVE SURS PARTICIPANTS ACADEMIC vs STAFF as of June 30, ,634 9,360 4,289 6,744 19,012 43,503 17,668 39,629 Traditional Portable SMP Default Total Academic Staff

3 28% of active SMP participants are part time and 72% full time. Tot. Active FULL TIME vs. PART TIME EMPLOYMENT as of June 30, % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 3,036 4,864 4,084 14,606 26,590 8,044 15,329 11,618 22,536 57,527 SMP Portable Traditional Default Total Full Time Part Time Education Two in office SMP Educational Seminars were conducted during the second quarter, April 12 and May 24. Approximately 90 participants were in attendance, including Heartland Community College, Kishwaukee College, Southern Illinois University Edwardsville, John Wood Community College and University of Illinois Extension, who logged in to a simultaneous webinar. University of Illinois Urbana and Chicago on campus seminars were conducted April 1 and April 14 respectively with approximately 75 participants in attendance. Webinars continue to be an enhancement for the SMP educational process. Social Security benefits, CMS annuitants Insurance information and SMP procedures are presented and discussed during each seminar. Fidelity and TIAA CREF representatives also offer education regarding current market conditions and retirement issues, fund choice and diversification. They offer and encourage one on one counseling and provide the opportunity to schedule individual counseling sessions. We continue to receive excellent assistance from the providers as well as excellent evaluations from the attendees. Fee Disclosure Recent Department of Labor (DOL), Fee Disclosure guidelines appear to be finalized. We are currently reviewing reporting options available with the providers, Fidelity and TIAA CREF. Even though SURS is a non ERISA plan and not required to provide enhanced fee disclosure to our participants, we plan to provide appropriate fee disclosure information by the end of the first quarter of We have been advised to monitor the outcome of ERISA plans Fee Disclosure procedures, as well as possible changes of DOL guidelines, before initiating our own.

4 Share Class Change and New Investment Option On June 20, the share class of five, currently offered Fidelity investment options, was changed to a new share class offering the same investment strategy and risk but with lower overall expenses. Also one new Fidelity investment was added to the investment lineup. The Fidelity Freedom K 2055 Fund was added to the existing Fidelity Freedom Fund series. Disability contributions Since the inception of the SMP plan in 1998, a disability reserve has been accumulated for the payment of disability benefits to SMP members. The SMP disability rate was set at 1.0% from Fiscal Year 1998 through Fiscal Year Actuarial experience studies based on the incidence of disability were conducted in 2008 and The 2008 actuarial study concluded that due to the experience and disability reserve accumulation, the disability rate could be reduced from 1.0% to 0.50% of payroll. The recommendation was adopted by the SURS Board of Trustees at the June 2008 meeting effective July 1, The 2012 actuarial study found a similar trend and recommended the disability rate be reduced from 0.50% to 0.40% of payroll. This recommendation was adopted by the SURS Board of Trustees at the March 2012 meeting effective July 1, This reduction meant that beginning July 1, 2012, 7.2% of the 7.6% state contribution was allocated to the participants accounts and 0.40% to the disability reserve.

5 SELF MANAGED PLAN Distributions Quarter ending June 30, 2012 Separation Refund Distributions Total Separation Refunds 164 $5,029,240 Total Lump Sum 65 1,108,042 Total Rollovers 97 3,894,563 Total QILDRO 2 26,635 Retirement Eligible Distributions Total Retirement Eligible ,543 Total Lump Sum ,905 Total Rollover ,638 Death Benefits Total Deaths 4 369,974 Reoccurring Benefits Total Reoccurring Benefits 55 1,857,197 Total Annuities 14 1,599,009 Total Disabilities ,188 Grand Total 259 $8,145,954

6 Emp ID SMP Actv. Part. Employer Name Ret. Elig. 1 Chicago State University Eastern Illinois University Governors State University Illinois Mathematics & Science Academy Illinois State University Northeastern Illinois University Northern Illinois University Southern Illinois University Carbondale Southern Illinois University Edwardsville University of Illinois Chicago 1, University of Illinois at Springfield University of Illinois Urbana 2, Western Illinois University Board of Governors of State Colleges and Universities Board of Governors Cooperative Computer Center Board of Regents Waste Management and Research Center Illinois Board of Higher Education Illinois Community College Board Illinois Community College Trustees' Association Southern Illinois University Foundation State Geological Survey State Natural History Survey State Universities Civil Service System State Universities Retirement System State Water Survey University of Illinois Alumni Association University of Illinois Foundation Southwestern Illinois College Black Hawk College Carl Sandburg College City Colleges of Chicago College of DuPage College of Lake County Danville Area Community College Elgin Community College Heartland Community College Highland Community College Illinois Central College Illinois Eastern Community College 76 13

7 62 Illinois Valley Community College John A Logan College John Wood Community College Joliet Junior College Kankakee Community College Kaskaskia College Kishwaukee College Lake Land College Lewis & Clark Community College Lincoln Land Community College McHenry College Moraine Valley Community College Morton College Oakton Community College Parkland College Prairie State College Rend Lake College Richland Community College Rock Valley College Sauk Valley College Shawnee College South Suburban College Southeastern Illinois College Spoon River College State Community College of East Saint Louis Triton College Waubonsee Community College William Rainey Harper College ,087 1,693 Exhibit 8

8 UKLM 7/02/12 MBODM12S Number of Refund Payments made during 4/01/2012-6/30/ :41:57 Calc Method: SMP Exhibit 8 Academic Employees Under 1 Year Between 1 & 2 Between 2 & 3 Between 3 & 4 Between 4 & 5 Over 5 Totals Under Age Age Age Age Age Age Age Age & Over Total Staff Employees Under 1 Year Between 1 & 2 Between 2 & 3 Between 3 & 4 Between 4 & 5 Over 5 Totals Under Age Age Age Age Age Age Age Age & Over Total ** END OF REPORT **

9 UKLM 8/24/12 MBODM12S Number of Refund Payments made during 4/01/2012-6/30/ :22:57 Calc Method: SMP Exhibit 8 Male Employees Under 1 Year Between 1 & 2 Between 2 & 3 Between 3 & 4 Between 4 & 5 Over 5 Totals Under Age Age Age Age Age Age Age Age & Over Total Female Employees Under 1 Year Between 1 & 2 Between 2 & 3 Between 3 & 4 Between 4 & 5 Over 5 Totals Under Age Age Age Age Age Age Age Age & Over Total ** END OF REPORT **