HomeMy Public PortalAbout2014 Audited Financials
THE METROPOLITAN ST. LOUIS
SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
FINANCIAL STATEMENTS
DECEMBER 31, 2014 AND 2013
Contents
Page
Independent Auditors’ Report........................................................................ 1 - 2
Management’s Discussion And Analysis ....................................................... 3 - 5
Financial Statements
Statements Of Fiduciary Net Position .................................................................6
Statements Of Changes In Fiduciary Net Position ..............................................7
Notes To Financial Statements ................................................................... 8 - 16
Supplemental Information
Historical Trend Information ............................................................................17
Investment Returns And Expense Ratios .................................................. 18 - 19
Independent Auditor’s Report
Board of Trustees
The Metropolitan St. Louis Sewer District
St. Louis, Missouri
Report On The Financial Statements
We have audited the accompanying Statement of Fiduciary Net Position of The Metropolitan
St. Louis Sewer District Deferred Compensation Plan and Trust (the Plan) as of December 31, 2014
and 2013, and the related Statement of Changes in Fiduciary Net Position for the years then ended,
and the related notes to the financial statements, which collectively comprise the Plan’s basic
financial statements as listed in the table of contents.
Management’s Responsibility For The Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement, whether due to
fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We
conducted our audits in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditors’ judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Board of Trustees
The Metropolitan St. Louis Sewer District
Page 2
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
fiduciary net position of The Metropolitan St. Louis Sewer District Deferred Compensation Plan and
Trust as of December 31, 2014 and 2013, and the changes in fiduciary net position for the years then
ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis on pages 3 through 5 be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational, economic,
or historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of
America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence to express an
opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming an opinion on the Plan’s financial statements.
The supplemental information which includes historical trend information and investment returns and
expense ratios are presented for purposes of additional analysis and are not a required part of the
basic financial statements. The supplemental information is the responsibility of management and
was derived from and relates directly to the underlying accounting and other records used to prepare
the basic financial statements. The supplemental information has not been subjected to the auditing
procedures applied in the audit of the basic financial statements, and accordingly, we do not express
an opinion or provide any assurance on it.
June 30, 2015
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
Page 3
MANAGEMENT’S DISCUSSION AND ANALYSIS
For The Year Ended December 31, 2014
This report consists of a series of financial statements related to The Metropolitan St. Louis Sewer
District’s Deferred Compensation Plan and Trust (the Plan). The Statements of Fiduciary Net
Position and the Statements of Changes in Fiduciary Net Position (on pages 6 and 7) provide
information about this Plan’s net position and changes in its net position during the year. These
statements are prepared using the accrual basis of accounting.
The Management’s Discussion and Analysis of the Plan’s financial performance provides an
overview of the Plan’s financial activities for the fiscal years ended December 31, 2014 and 2013.
Please read it in conjunction with the Plan’s financial section.
FINANCIAL HIGHLIGHTS
Plan Additions, Deductions And Net Position
Net position restricted for plan benefits exceeded $48.9 million at the end of 2014 and the net
position value increased by $2.9 million from that of December 31, 2013, due to the combined impact
of an increase in the overall value of equity investments that resulted from an increase in the various
markets and an increase in participant contributions. Contributions from participants were
approximately $3.0 million, which was a slight increase of $55 thousand as compared with prior year
contributions.
Net position restricted for plan benefits exceeded $46.0 million at the end of 2013 and the net
position value increased by $7.7 million from that of December 31, 2012, due to the combined impact
of an increase in the overall value of equity investments that resulted from an increase in the various
markets and an increase in participant contributions. Contributions from participants were
approximately $2.9 million, which was a slight increase of $161 thousand as compared with prior
year contributions.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
Management’s Discussion And Analysis (Continued)
Page 4
Percent Percent
Change Change
Employee Contributions $ 3,026 $ 2,970 1.89% $ 2,809 5.73%
Net Investment Income 3,677 7,864 -53.24% 4,056 93.89%
Total Additions $ 6,905 $ 11,027 -37.38% $ 7,026 56.95%
Percent Percent
Change Change
Distribution to Participants $ 3,862 $ 3,191 21.03% $ 2,625 21.56%
Administrative Fees and Legal Expenses 116 107 8.41% 100 7.00%
Total Deductions $ 3,978 $ 3,298 20.62% $ 2,725 21.03%
Percent Percent
Change Change
Net Position $48,929 $46,002 6.36% $38,274 20.19%
2014 2013 2012
2014 2013 2012
Plan Additions For 2014, 2013 And 2012 (In Thousands)
Net Position At December 31, 2014, 2013 And 2012 (In Thousands)
Plan Deduction For 2014, 2013 And 2012 (In Thousands)
2014 2013 2012
Participant Census
Employee participation in the Plan is on a voluntary basis. Plan participants are comprised of active
employees of the District, retirees or surviving spouses, and terminated employees with account
balances. Active employee participants are as follows:
Number Of Active
December 31 Participants
2014
2013
705
681
2012 662
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
Management’s Discussion And Analysis (Continued)
Page 5
Investment Aspects
Investment decisions are participant directed. The participants are offered a diversified portfolio of
investment options from which to select. These investment options represent a series of mutual funds
primarily sponsored and managed by the Vanguard Group. A breakdown of the participant directed
assets allocation as of the last day of the fiscal years ended 2014, 2013 and 2012 follows:
Fiduciary Responsibilities
The Board of Trustees and senior management are fiduciaries of the Plan and Trust. Fiduciaries are
charged with the responsibility of assuring that the assets of the Plan are used exclusively for the
benefit of plan participants and the beneficiaries.
Request For Information
This financial report is designed to provide the Board of Trustees, participants, investment managers,
and other interested parties with an overview of the Plans finances and accountability for the money
received. Questions concerning any of the information provided in this report or requests for
additional information should be addressed to:
Tim Snoke, Secretary-Treasurer
The Metropolitan St. Louis Sewer District
2350 Market Street
St. Louis, MO 63103-2555
Email: tsnoke@stlmsd.com
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
See the accompanying notes to financial statements. Page 6
STATEMENTS OF FIDUCIARY NET POSITION
2014 2013
ASSETS
Investments at fair value:
Mutual funds 43,701,018$ 40,852,248$
Annuity contracts 522,210 545,588
Total investments at fair value 44,223,228 41,397,836
Notes receivable from participants 1,164,887 1,222,979
Investments at contract value:
Common/collective trust 3,541,039 3,381,600
NET POSITION RESTRICTED FOR PLAN BENEFITS
December 31,
48,929,154$ 46,002,415$
For the Years
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
See the accompanying notes to financial statements. Page 7
STATEMENTS OF CHANGES IN FIDUCIARY NET POSITION
2014 2013
ADDITIONS TO NET POSITION ATTRIBUTED TO:
Investment income:
Interest and dividends on investments 1,719,254$ 904,639$
Interest income on participant loans 52,428 45,421
Net appreciation in fair value of investments 1,983,370 6,999,389
Total Investment income 3,755,052 7,949,449
Less: Investment expenses 77,905 85,591
Net Investment income 3,677,147 7,863,858
Employee contributions:
Elected deferrals 3,026,255 2,970,294
Plan expenses paid by employer 201,138 193,049
Total Additions 6,904,540 11,027,201
DEDUCTIONS FROM NET POSITION ATTRIBUTED TO:
Distributions to participants and beneficiaries 3,861,857 3,190,869
Administrative Expense 114,195 103,773
Legal Fees 1,749 3,960
Total Deductions 3,977,801 3,298,602
NET INCREASE 2,926,739 7,728,599
NET POSITION RESTRICTED FOR BENEFITS,
JANUARY 1 46,002,415 38,273,816
NET POSITION RESTRICTED FOR BENEFITS,
DECEMBER 31 48,929,154$ 46,002,415$
For the Years
Ended December 31,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
Page 8
NOTES TO FINANCIAL STATEMENTS
December 31, 2014 And 2013
1. Summary of Significant Accounting Policies
The significant accounting policies consistently applied by The Metropolitan St. Louis Sewer
District Deferred Compensation Plan and Trust (the “Plan”) in the preparation of the
accompanying financial statements are summarized below:
Basis of Accounting
The financial statements of the Plan are prepared under the accrual basis of accounting.
Estimates and Assumptions
The preparation of financial statements in conformity with U.S. generally accepted accounting
principles requires the Plan Administrator to make certain estimates and assumptions that
affect the reported amounts in the financial statements. Actual results could differ from those
estimates.
Investment Valuation and Income Recognition
The Plan’s investments in mutual funds are stated at fair value. Shares of registered
investment companies are valued at quoted market prices which represent the net asset value
of shares held by the Plan at year-end. Units of the Retirement Savings Trust are valued at
contract value.
Purchases and sales of investments are recorded on a trade-date basis. Interest income is
accrued when earned. Dividend income is recorded on the ex-dividend date. Capital gain
distributions are included in dividend income. Realized gains of $164,477 and $603,770 are
included in net appreciation in fair value of investments for the periods ended December 31,
2014 and 2013, respectively.
Payment of Benefits
Benefits are recorded when paid.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
Notes To Financial Statements (Continued)
Page 9
Subsequent Events
Management has evaluated subsequent events through June 30, 2015, the date through which
the financial statements were available for issue.
2. Description of the Plan
The following description of the Plan provides only general information. Participants should
refer to the Plan agreement for a complete description of the Plan’s provisions.
General
The Plan is a defined contribution benefit plan covering substantially all employees of the
District beginning on the first day of employment. The District’s Board of Trustees
established the Plan in September 1996. The first contributions were made in October 1996.
Plan provisions are established and may be amended by the District’s Board of Trustees. The
District does not contribute to the Plan.
All assets of the Plan are the sole property of the Plan and are not subject to the claims of
creditors of the District. The Plan Administrator issues a publicly available Summary Plan
Description. That information may be obtained by writing to The Metropolitan St. Louis
Sewer District, 2350 Market Street, St. Louis, MO 63103-2555.
Contributions
Under the plan provisions, employees of the District are eligible to contribute up to 100% of
their total compensation into the Plan, through payroll deferral, or any amount not previously
reduced or withheld from their total compensation. In accordance with the Internal Revenue
Code Section 457 as amended, the Plan limits an individual’s annual contribution (adjusted
annually) to $17,500 for the years ended December 31, 2014 and 2013. If the employee is
over the age of 50, they can contribute an additional catch-up contribution up to $5,500 for
the years ended December 31, 2014 and 2013. Underutilization catch-up of two times the
standard annual deferral applies within the three years prior to normal retirement, less
amounts deferred under the Plan. Amounts contributed by employees are deferred for federal
and state income tax purposes until received as a withdrawal or distribution from the Plan.
Participant Accounts
Each participant’s account is credited with the participant’s contribution and allocations of
Plan earnings. Allocations are based on participants’ account balances, as defined. There are
no forfeitures applicable to the Plan. Participants’ contributions are immediately fully vested.
At December 31, 2014 and 2013, 705 and 681 participants, respectively, actively participated
in the Plan.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
Notes To Financial Statements (Continued)
Page 10
Notes Receivable from Participants
Participants may borrow from their account a minimum of $1,000 up to a maximum equal to
the lesser of $50,000 or 50% of their vested account balance. Loans may not extend beyond a
term of five years except for the purchase of a principal residence. Loans are secured by the
balance of the participant’s account, bear interest at interest rates ranging from 4.25% to
9.25%, and are due at varying dates through February 2039. Principal and interest are paid
ratably through payroll deductions.
Investment Options
Upon enrollment in the Plan, a participant may direct elective contributions and rollovers in
any of the investment options available. The investment options consist of mutual funds and
common/collective trust funds. Employee contributions may be allocated to the Vanguard
accounts only, in 1% increments as the participant directs. No new contributions are currently
allowed to the Lincoln National annuity contract accounts.
Vanguard offers participants in the plan the following investment options:
Equity option: Vanguard Windsor II Fund, Vanguard Index 500 Fund, and Vanguard U.S.
Growth Fund - Investment objective is long-term capital appreciation.
Diversification option: Vanguard Small-Cap and Mid-Cap Index Fund and Vanguard
International Growth Fund - Investment objective is long-term capital appreciation.
Bond option: Vanguard Total Bond Market Index Fund - Investment objective is income
stability and conservation of principal.
Balanced option: Vanguard Balanced Index Fund - Investment objective is income,
conservation of principal and long-term growth.
Stable Value option: Vanguard Retirement Savings Trust - Investment objective is income
stability and conservation of principal.
Money Market option: Vanguard Prime Money Market Fund - Investment objective is
income while maintaining safety of principal.
Target retirement option: Vanguard Target Retirement 2010-2060 Funds - Investment
objective is capital appreciation and current income consistent with its current asset
allocation.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
Notes To Financial Statements (Continued)
Page 11
Distributions
Participants contributing to the Plan may receive benefits or withdraw the present value of
funds contributed to the Plan upon retirement, disability, or termination of employment from
the District or due to financial hardship as defined by the Plan, if approved by the Plan
Administrator.
Participants may select various payout options including lump sum or equal annual payments
over various periods. Participants may also elect to have the value of the account converted
into fixed or variable annuity contracts. All investments, including annuity contracts, remain
assets of the Plan until payments are made to the participants.
Administrative Expenses
All general administrative costs of the Plan are paid by The Metropolitan St. Louis Sewer
District (the “District”), except those attributable to participants’ choice of optional
investments or optional forms of benefit payments. These expenses are charged to the
respective participants’ account balance.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
Notes To Financial Statements (Continued)
Page 12
3. Investments
Investments held by custodians in the Plan’s name are as follows:
2014
Mutual funds:
Vanguard Group, Inc.
Windsor II Fund 9,012,432$ * 8,395,556$ *
Index 500 Fund 6,619,186 * 5,883,522 *
Vanguard U.S. Growth Fund 4,275,054 * 3,696,473 *
Balanced Index Fund 4,035,131 * 3,764,718 *
Mid-Cap Index Fund 2,631,528 * 2,321,702 *
Small-Cap Index Fund 2,471,301 * 2,626,751 *
Total Bond Market Index Fund 2,349,624 2,663,490 *
International Growth Fund 2,134,833 2,457,918 *
Target Retirement 2020 Fund 1,974,463 1,553,634
Target Retirement 2025 Fund 1,951,293 1,962,582
Prime Money Market Fund 1,173,059 1,067,287
Target Retirement 2030 Fund 970,921 796,514
Target Retirement 2035 Fund 915,424 670,194
Target Retirement 2015 Fund 859,556 1,106,997
Target Retirement 2010 Fund 722,630 624,381
Target Retirement 2040 Fund 543,660 454,754
Target Retirement 2045 Fund 512,292 383,392
Target Retirement Income 322,326 302,397
Target Retirement 2050 Fund 190,551 98,831
Target Retirement 2055 Fund 18,684 6,913
Target Retirement 2060 Fund 17,070 14,242
Total Mutual Funds 43,701,018 40,852,248
Common/collective trust:
Vanguard Group, Inc.
Retirement Savings Trust 3,541,039 * 3,381,600 *
December 31,
2013
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
Notes To Financial Statements (Continued)
Page 13
2014
Annuity contracts:
Lincoln National Life
Fixed earnings option:
Lincoln National Fixed 163,461$ 171,003$
Variable earnings option:
Growth & Income Fund 151,529 153,449
Special Opportunity Fund 130,768 149,450
Capital A ppreciation Fund 35,253 33,822
Social Awareness Fund 18,766 16,460
Midcap Growth 10,400 9,418
Equit y-Income Fund 4,486 4,380
Global Growth 4,261 4,210
International Fund 2,826 2,931
Money Market Fund 460 465
Total Annuity Contracts 522,210 545,588
$47,764,267 $44,779,436
December 31,
2013
* Represents 5% or more of the Plan’s net position at December 31, 2014 and 2013.
Certain participants with assets valued at $522,210 and $545,588 in 2014 and 2013,
respectively, are invested in a series of fixed and variable rate annuity contracts sponsored by
Lincoln National Life Insurance Company. The Lincoln National Life option was phased out
in 1992, and any balances represent undistributed participant balances. This option is no
longer available to new participants or for current deferrals.
Categories of Asset Risk - Debt Securities Interest Rate and Credit Risk
The Plan will minimize the risk that the market value of securities in the portfolio will fall due
to changes in general interest rates by selecting mutual funds for the investment portfolio that
manage credit quality and duration of fixed income investments.
The Plan will minimize credit risk, the risk of loss due to failure of the security issuer or
backer, by selecting mutual funds for the investment portfolio that manage their respective
fund under a predetermined average credit risk investment management policy.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
Notes To Financial Statements (Continued)
Page 14
The tables below provide information on the duration and credit ratings associated with the
Plan’s investment in debt-backed mutual funds, excluding obligations of the U.S. Government
or obligations explicitly guaranteed by the U.S. Government within these funds at
December 31, 2014 and 2013:
Average
Effective
Plan Investments Fair Not Duration
With Debt Securities Value Rated In Years
December 31, 2014:
Vanguard Group, Inc.
Balanced Index Fund $4,035,131 yes 5.66
Retirement Savings Trust 3,541,039 yes 2.50
Total Bond Market Index Fund 2,349,624 yes 5.50
Target Retirement 2020 Fund 1,974,463 yes 5.84
Target Retirement 2025 Fund 1,951,293 yes 5.84
**Prime Money Market Fund 1,173,059 yes 0.27
Target Retirement 2030 Fund 970,921 yes 5.85
Target Retirement 2035 Fund 915,424 yes 5.85
Target Retirement 2015 Fund 859,556 yes 5.42
Target Retirement 2010 Fund 722,630 yes 5.24
Target Retirement 2040 Fund 543,660 yes 5.85
Target Retirement 2045 Fund 512,292 yes 5.86
Target Retirement Income 322,326 yes 5.18
Target Retirement 2050 Fund 190,551 yes 5.85
Target Retirement 2055 Fund 18,684 yes 5.86
Target Retirement 2060 Fund 17,070 yes 5.85
Lincoln National Life
Fixed (annuity contracts) 163,461 yes *
Lincoln Money Market Fund 460 yes *
* Information is unavailable for this security.
**See First Tier section in the SEC Rule 2a-7 Money Market Reform.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
Notes To Financial Statements (Continued)
Page 15
Average
Effective
Plan Investments Fair Not Duration
With Debt Securities Value Rated In Years
December 31, 2013:
Vanguard Group, Inc.
Balanced Index Fund $3,764,718 yes 5.60
Retirement Savings Trust 3,381,600 yes 2.77
Total Bond Market Index Fund 2,663,490 yes 5.62
Target Retirement 2025 Fund 1,962,582 yes 5.68
Target Retirement 2020 Fund 1,553,634 yes 5.68
Target Retirement 2015 Fund 1,106,997 yes 5.35
**Prime Money Market Fund 1,067,287 yes 0.29
Target Retirement 2030 Fund 796,514 yes 5.68
Target Retirement 2035 Fund 670,194 yes 5.67
Target Retirement 2010 Fund 624,381 yes 5.11
Target Retirement 2040 Fund 454,754 yes 5.68
Target Retirement 2045 Fund 383,392 yes 5.68
Target Retirement Income 302,397 yes 5.03
Target Retirement 2050 Fund 98,831 yes 5.68
Target Retirement 2060 Fund 14,242 yes 5.69
Target Retirement 2055 Fund 6,913 yes 5.69
Lincoln National Life
Fixed (annuity contracts) 171,003 yes *
Lincoln Money Market Fund 465 yes *
* Information is unavailable for this mutual fund.
**See First Tier section in the SEC Rule 2a-7 Money Market Reform.
4. Risks and Uncertainties
The Plan invests in various investment securities. Investment securities are exposed to
various risks such as interest rate, market, and credit risk. Due to the level of risk associated
with certain investment securities, it is at least reasonably possible that changes in the values
of investment securities will occur in the near term and that such change could materially
affect the participants’ account balances and amounts reported in the Statement of Plan Net
Position.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
Notes To Financial Statements (Continued)
Page 16
Plan Termination
Although it has not expressed any intent to do so, the District has the right under the Plan to
terminate the Plan at any time. In the event of Plan termination, participants would remain
100% vested in their accounts.
5. Related Party Transactions
The Plan invests in shares of mutual funds managed by an affiliate of Vanguard Fiduciary
Trust Company (VFTC). VFTC acts as trustee for those investments as defined by the Plan.
Transactions in such investments qualify as party-in-interest transactions which are exempt
from the prohibited transaction rules.
6. Tax Status
The Plan received a favorable determination letter from the Internal Revenue Service on
June 23, 1999, indicating the Plan and its underlying trust are qualified under Section 457 of
the Internal Revenue Code. Although the Plan has been amended since receiving the
determination letter, the Plan Administrator believes that the Plan is currently designed and is
being operated in compliance with applicable requirements of the IRS.
SUPPLEMENTAL INFORMATION
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
See the accompanying independent auditors’ report. Page 17
HISTORICAL TREND INFORMATION
Employee Distributions
For The Contributions And To Participants Increase
Years Ended Expenses Paid Net Investment And Plan (Decrease)
December 31, By Employer Income (Loss) Expenses In Net Position
2014 $ 3,227,393 $ 3,677,147 $ (3,977,801) $ 2,926,739
2013 3,163,343 7,863,858 (3,298,602) 7,728,599
2012 2,969,056 4,056,818 (2,725,147) 4,300,727
2011 2,723,859 238,167 (1,886,224) 1,075,802
2010 2,674,626 3,420,763 (2,406,761) 3,688,628
2009 2,685,427 4,837,406 (972,044) 6,550,789
2008 2,723,760 (7,663,384) (1,168,917) (6,108,541)
2007 2,595,532 1,500,519 (1,442,611) 2,653,440
2006 2,479,067 2,790,431 (1,405,638) 3,863,860
2005 2,203,103 1,311,662 (670,007) 2,844,758
2004 2,050,893 1,909,831 (792,780) 3,167,944
2003 2,041,688 2,746,391 (1,238,629) 3,549,450
2002 2,133,784 (2,095,283) (1,819,333) (1,780,832)
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
See the accompanying independent auditors’ report. Page 18
INVESTMENT RETURNS AND EXPENSE RATIOS
An independent investment consultant, Pavilion, monitored investment performance of the various
options offered to the participants. Performance of the funds are measured net of the corresponding
expense ratios. Below is a table that reflects the funds available for employees to invest and their
one-year performance for the years 2014 and 2013 as compared to the appropriate benchmarks, as
well as their current expense ratios:
Funds / Benchmarks Expense Ratios 2014 2013
Prime Money Market Investment 0.14 0.0 0.0
Retirement Savings Trust 0.53 1.8 1.7
Short duration fixed income peer group 0.7 0.3
Ryan 3yr Guaranteed Investment Contract Rate 1.0 1.1
Total Bond Market Index 5.8 -2.3
Market duration fixed income peer group median 5.7 -1.8
Balanced Index 9.8 18.0
60% Equity/40% fixed peer group median 6.6 19.2
Windsor II 11.2 30.7
Russell 1000 Value 13.5 32.5
Vanguard 500 Index 13.5 32.2
Standard & Poor’s 500 13.7 32.4
U.S. Growth 13.1 35.5
Russell 1000 Growth 13.1 33.5
Mid Cap Index 13.6 35.0
Mid-cap equity peer group median 13.8 34.6
Small Cap Index 7.4 37.6
Small-cap equity peer group median 7.5 39.0
International Growth -5.6 22.9
MSCI AC World Index Ex USA -3.9 15.3
0.44
Returns Net of Fees*
0.2
0.24
0.36
0.17
0.24
0.24
0.47
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
See the accompanying independent auditors’ report. Page 19
INVESTMENT RETURNS AND EXPENSE RATIOS (Continued)
Funds / Benchmarks Expense Ratios 2014 2013
Vanguard Target Retirement Income 5.6 5.9
Vanguard Target Income Composite Index 5.8 6.0
Vanguard Target Retirement 2010 5.9 9.1
Vanguard Target 2010 Composite Index 6.1 9.5
Vanguard Target Retirement 2015 6.5 13.0
Vanguard Target 2015 Composite Index 6.8 13.5
Vanguard Target Retirement 2020 7.1 15.8
Vanguard Target 2020 Composite Index 7.4 16.3
Vanguard Target Retirement 2025 7.2 18.1
Vanguard Target 2025 Composite Index 7.4 18.6
Vanguard Target Retirement 2030 7.2 20.5
Vanguard Target 2030 Composite Index 7.5 21.0
Vanguard Target Retirement 2035 7.3 22.8
Vanguard Target 2035 Composite Index 7.6 23.4
Vanguard Target Retirement 2040 7.1 24.4
Vanguard Target 2040 Composite Index 7.6 24.8
Vanguard Target Retirement 2045 7.1 24.4
Vanguard Target 2045 Composite Index 7.6 24.8
Vanguard Target Retirement 2050 7.2 23.4
Vanguard Target 2050 Composite Index 7.6 24.8
Vanguard Target Retirement 2055 7.2 24.3
Vanguard Target 2055 Composite Index 7.6 24.8
Vanguard Target Retirement 2060 7.2 24.3
Vanguard Target 2060 Composite Index 7.6 24.8
0.18
0.17
0.17
0.18
0.18
0.18
0.18
Returns Net of Fees*
0.16
0.16
0.16
0.18
0.16
*The returns shown above are net of fees as reported by the managers.