I understand it to be a $5 dollar increase with an additional $10 infrastructure fee Per Credit Hour is what they are still considering.

The information given to the board tonight is in the report that starts on page 67 of the online packet — http://www.mchenry.edu/board/15_16/packets/012816.pdf

The real taxpayer cost to operate community colleges is becoming more apparent now that they are required by GASB 68 to include in their financial statements, the state contributions to the pension fund(s) made on behalf of the employer.

SURS CAFR calls this, “Non-employer contributing entity contributions.”

In other words the disclosure is required for contributions made by the State of Illinois, to the pension funds, on behalf of the employer.

The employers themselves make contributions to SURS, but they are much less than the State contributions.

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In a nuance, SURS also offers a Self Managed Plan (SMP) that community college and university employees can opt into in lieu of the traditional defined benefit plan.

It’s anyone’s guess as to why a defined contribution option is not offered in the other pension systems; at least for new employees, if it was constitutional for SURS why would it not be constitutional for all plans; probably don’t want to divert any money from the Ponzi defined benefit pensions.

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The state contribution to SURS should have been a focus of last nights meeting.

It’s a big number.

More State money for pensions means less State money to educate kids.

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Like TRS, the State makes the majority of the employer (community college or state college) contribution to the SURS pension fund.

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Unlike TRS, SURS covers not only the people delivering the instruction and their administrators, but also many of the every day workers employed by the community colleges and state universities.

In the words of SURS, “SURS serves a diverse group of employees with occupations ranging from professors and teachers to clerical, building service workers and groundskeepers.”

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TRS = Teachers Retirement System of Illinois.

It is the pension system for local public preschool, elementary, middle, and high school teachers and administrators.

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In terms of MCC, GASB 68 (Government Accounting Standards Board 68) resulted in a State pension pickup disclosure in this mid year financial report.

GASB 68 first became effective with FY 2015 financial reports.

In other words, once again…

Akin to TRS, SURS “picks up” the majority of the “employer” contribution to the TRS pension fund (MCC being the employer).

That is a big amount even not including the unfunded liability (taxpayer IOU to the pension fund).

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Just like TRS, SURS is unsustainable due to legislative pension benefit hikes and local salary hikes, both of which increase the resulting pension an employee receives.

If we go back to the inception of these pension funds, legislative benefit hikes and all sorts of salary hikes occurred while the pensions were underfunded.

That’s dysfunctional and unsustainable and was not disclosed to taxpayers.

Adequate disclosure to taxpayers was severely lacking.

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Once again.

Effective Fiscal Year ending June 30, 2015 (FY 2015), employers (local community colleges, public universities, and public colleges) need to reflect state pension pickups (on behalf of the employer) in their financial reporting (Annual Fiscal Reports aka AFR, Comprehensive Annual Fiscal Reports aka CAFR, mid-year financial statements, etc.), per GASB 68 (Government Accounting Standards Board 68.

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MCC FY 2015 CAFR (for year ending June 30, 2015):

$25,319,865 Operating Funds Salaries

$09,640,555 Employer Pension Contribution made by the State on behalf of MCC to the SURS pension fund

$9,640,555 / $25,319,865 = 38% employer pension contribution on salaries.

Source: MCC FY 2015 CAFR.

http://www.mchenry.edu/finance/FY2015CAFR.pdf

http://www.mchenry.edu > A-Z Index > Board Meetings > Financial Reports

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For comparison, the FY 2015 SURS actuarial report states “SURS Contribution as a % of Total Payroll” was 35.71

Page 32 of pdf (page 21 of the document).

35.71% is not 38% so that’s a mystery.

http://www.surs.com/actuarial-valuation-reports-experience-studies

SURS has three plans:

1. Traditional Plan – a defined benefit plan
2. Portable Plan – a defined benefit plan
3. SMP Plan (Self Managed Plan) – a defined contribution plan

The Portable Plan and the SMP Plan were added with Public Act 90-0448 (PA 90-0448 aka PA 90-448) signed into law June 18, 1997 by Jim Edgar.

The portable benefit package and the defined contribution plan are available to all members whose employers elect to make the options available.

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Regarding the 35.71% in the previous comment.

“SURS Contribution” excludes SMP Contributions.

Thus, “SURS Contribution as a % of Total Payroll” excludes SMP Contributions.

Source:
State Universities Retirement System of Illinois
Actuarial Valuation Report
As of June 30, 2015
page 32 of the pdf (page 21 of the paper document)
http://www.surs.com/pdfs/invinfo/avr15.pdf
http://www.surs.com/actuarial-valuation-reports-experience-studies
http://www.surs.com > Investments > Reports > Actuarial Valuation Reports & Experience Studies > 2015 Actuarial Valuation Report