4-2025 STLCC Valuation Report.pdf

NON-CERTIFICATED EMPLOYEES

RETIREMENT PLAN OF THE

JUNIOR COLLEGE DISTRICT

OF ST. LOUIS

ST. LOUIS COUNTY, MISSOURI

REPORT ON THE

ACTUARIAL VALUATION

AS OF

JULY 1, 2025

PLAN YEAR: JULY 1, 2024 THROUGH JUNE 30, 2025

FISCAL YEAR: JULY 1, 2024 THROUGH JUNE 30, 2025

October 2025

WTW Confidential

TABLE OF CONTENTS

Page

ACTUARIAL CERTIFICATION i

SECTION I SUMMARY OF THE ACTUARIAL VALUATION 1

TABLE 1 COMPARATIVE ACTUARIAL VALUATION RESULTS 3

TABLE 2 SUMMARY OF ACCUMULATED PLAN BENEFITS 4

TABLE 3 PLAN DISCLOSURE INFORMATION FOR FY ENDING JUNE 30, 2025 6

TABLE 4 GASB 68 PENSION EXPENSE AND DEFERRED OUTFLOWS AND 8

INFLOWS OF RESOURCES

TABLE 5 SUPPLEMENTARY INFORMATION 9

SECTION II PLAN ASSETS 11

TABLE 6 CHANGE IN VALUE OF PLAN ASSETS 12

TABLE 7 DISTRIBUTION OF NET ASSETS 13

SECTION III PARTICIPANT DATA 14

TABLE 8 SUMMARY OF PARTICIPATION 15

TABLE 9 PARTICIPANT RECONCILIATION 16

TABLE 10 ACTIVE PARTICIPANT ANALYSIS 17

SECTION IV ACTUARIAL METHODOLOGY AND ASSUMPTIONS 18

EXHIBIT A SUMMARY OF PRINCIPAL PLAN PROVISIONS 20

EXHIBIT B DESCRIPTION OF ACTUARIAL METHODS AND PROCEDURES 23

EXHIBIT C ACTUARIAL ASSUMPTIONS 25

EXHIBIT D GASB ASSUMPTION SETTING 29

EXHIBIT E ASSUMPTION RATIONALE 30

EXHIBIT F ASOP 51 33

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ACTUARIAL CERTIFICATION

This valuation has been conducted in accordance with generally accepted actuarial principles and practices. However, please note the information discussed below regarding this valuation.

Purpose of the valuation St. Louis Community College retained Willis Towers Watson US LLC (“WTW”) to perform an actuarial valuation of the Non-Certificated Employees Retirement Plan of the Junior College District of St. Louis for the purpose of determining the actuarial valuation results and evaluation of the projected funded status, including actuarial surplus/deficit, in order to monitor the long term financial health of the plan. Also included are the supplementary information and GASB 67/68 disclosure requirements as of the end of the Plan’s fiscal year.

Reliances

In preparing the results presented in this report, we have relied upon information regarding plan provisions, participants and assets provided by St. Louis Community College. We have reviewed this information for overall reasonableness and consistency, but have neither audited nor independently verified this information. Based on discussions with and concurrence by the plan sponsor, assumptions or estimates may have been made if data were not available. We are not aware of any errors or omissions in the data that would have a significant effect on the results of our calculations. We have relied on all the information provided as complete and accurate. The results presented in this report are directly dependent upon the accuracy and completeness of the underlying data and information. Any material inaccuracy in the data, assets or plan provisions provided to us may have produced results that are not suitable for the purposes of this report and such inaccuracies, as corrected by St. Louis Community College, may produce materially different results that could require that a revised report be issued.

Assumptions and Methods

The actuarial assumptions and methods used to determine the results presented in this report have been selected by the plan sponsor. WTW has evaluated the assumptions used and believes that they do not significantly conflict with what would be reasonable. In addition, we believe that the combined effect of assumptions is expected to have no significant bias. The results shown in this report have been developed based on actuarial assumptions that, to the extent evaluated by WTW, we believe do not significantly conflict with what would be reasonable. Other actuarial assumptions could also be considered to not significantly conflict with what would be reasonable. Thus, reasonable results differing from those presented in this report could have been developed by selecting different reasonable assumptions.

A summary of the assumptions and methods used is provided in Exhibits B and C. Note that any subsequent changes in methods or assumptions for the plan year ending June 30, 2025 (2024 Plan Year) will change the results shown in this report.

Nature of Actuarial Calculations

The results shown in this report are estimates based on data that may be imperfect and on assumptions about future events that cannot be predicted with certainty. The effects of certain plan provisions may be approximated, or determined to be insignificant and therefore not valued. Reasonable efforts were made in preparing this valuation to confirm that items that are significant in the context of the actuarial liabilities or costs are treated appropriately, and are not excluded or included inappropriately. The numbers shown in this report are not rounded, but this is for convenience only and should not imply precision, which is not a characteristic of actuarial calculations.

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If overall future plan experience produces higher benefit payments or lower investment returns than assumed, the relative level of plan costs or contribution requirements reported in this valuation will likely increase in future valuations (and vice versa). Future actuarial measurements may differ significantly from the current measurements presented in this report due to many factors, including: plan experience differing from that anticipated by the economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for the measurements (such as the end of an amortization period), and changes in plan provisions or applicable law. Due to the limited scope of our assignment, we did not perform an analysis of the potential range of such future measurements.

In our opinion, all calculations are in accordance with requirements of applicable governmental accounting standards, including GASB 67/68, and the procedures followed, and results presented are in conformity with applicable actuarial standards of practice. This valuation reflects our understanding of the relative provisions of GASB 67/68.

Limitations on Use

This report is provided subject to the terms set out herein and in our engagement letter dated September 25, 2025 and any accompanying or referenced terms and conditions. The information contained in this report was prepared for the internal use of St. Louis Community College and its independent accountants in connection with our actuarial valuation of the pension plan as described in Purposes of Valuation above. It is not intended for and may not be used for other purposes, and we accept no responsibility or liability in this regard. St. Louis Community College may distribute this actuarial valuation report to the appropriate authorities who have the legal right to require St. Louis Community College to provide them this report, in which case St. Louis Community College will use best efforts to notify WTW in advance of this distribution. Further distribution to, or use by, other parties of all or part of this report is expressly prohibited without WTW’s prior written consent. WTW accepts no responsibility for any consequences arising from any party other than St. Louis Community College relying on this report or any advice relating to its contents.

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Professional Qualifications

The undersigned consulting actuaries are members of the Society of Actuaries or other professional organizations and meet the “Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States” relating to pension plans. Our objectivity is not impaired by any relationship between the plan sponsor and our employer, Willis Towers Watson US LLC.

Corey Bruno, FSA, EA Director, Retirement

Jason R. Benbow, EA, FCA Director, Retirement

10/2/2025

WTW

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SECTION I

SUMMARY OF THE ACTUARIAL VALUATION

The July 1, 2025 actuarial valuation of the Non Certificated Employees Retirement Plan of the Junior College District of St. Louis, St. Louis County, Missouri determines the expense and funded status for the Measurement Period July 1, 2024 through June 30, 2025 to be reported in the employer’s June 30, 2025 financial statements. The valuation is based on:

■ employee data provided by the Ekon Benefits as of June 30, 2025;

■ statements of the retirement fund provided by State Street as of June 30, 2025;

■ plan provisions as described in Exhibit A, most recently restated effective with board approval in April

2020; plus reflecting the additional 4% one-time COLA for retirees effective January 1, 2024 and

■ actuarial methods and assumptions as specified in Exhibits B and C.

A comparative analysis of actuarial valuation results between the 2024 and 2025 Plan Years is summarized in Table 1.

A. CHANGES SINCE PRIOR YEAR

For all liability measures, one additional year of projected mortality improvement was used.

For GASB liabilities shown in Tables 3, 4 and 5, the discount rate was updated to reflect current census data, asset information, assumption changes and June 30, 2025 high-quality long-term municipal general obligation bond yields. The resulting discount rate remained at 7.25%.

B. CHANGE IN NORMAL COST

Activity during the plan year ended June 30, 2025 resulted in the following changes:

■ an increase of 1.35% in the normal cost accrual rate; and

■ an increase of $108,492 in the required normal cost.

Significant sources of change were as follows:

■ asset returns were greater than the expected rate of return, which decreased the required normal cost;

■ demographic experience increased the required normal cost;

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C. COLLEGE CONTRIBUTION

The funding policy of the College, in accordance with the provisions of the plan, has been to make annual contributions to the retirement fund equal to the employee contributions. These contributions equal 4% of active participants' compensation.

On this basis, the College contributions for the fiscal year ending June 30, 2025 are expected to exceed the normal cost. For the fiscal year ended June 30, 2024, the actual contributions made by the College exceeded the normal cost.

D. ACCUMULATED PLAN BENEFITS

The actuarial present value of total accumulated plan benefits increased by 3.3% during the 2024 Plan Year, from $64,254,558 to $66,390,830. During the same period, the assets available for benefits (market value) increased by 2.3% to $72,493,636. As a result, the assets available for benefits exceed the actuarial present value of accumulated plan benefits by about $6.1 million as of July 1, 2025, compared to a surplus of about $6.6 million as of July 1, 2024.

The accumulated benefit security percentage, which measures the percentage of the actuarial present value of total accumulated benefits covered by assets, decreased from 110% as of July 1, 2024 to 109% on July 1, 2025.

Information on the accumulated plan benefits is summarized in Table 2.

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TABLE 1

COMPARATIVE ACTUARIAL VALUATION RESULTS

7/1/2025 7/1/2024

A. ASSETS

Market Value $72,493,636 $70,875,874

Actuarial Value $70,762,018 $70,214,358

B. ACTUARIAL PRESENT VALUE OF BENEFITS

Actuarial Present Value of Future Benefits $77,550,238 $77,114,577

Actuarial Present Value of Vested Accumulated Plan Benefits $65,308,388 $62,402,882

Actuarial Present Value of Accumulated Plan Benefits $66,390,830 $64,254,558

Discount Rate 7.25% 7.25%

C. CONTRIBUTIONS

Normal Cost at Start of Plan Year $755,550 $647,058

Expected Contribution $596,997 $697,407

Surplus/(Shortfall) for Year ($158,553) $50,349

Present Value of Future Suprlus/(Shortfall) Contributions ($913,976) $297,078

Total Covered Compensation

(under assumed retirement age) $14,924,932 $17,435,182

Normal Cost as a Percentage of Covered Compensation 5.06% 3.71%

Contribution as a Percentage of Covered Compensation 4.00% 4.00%

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TABLE 2

SUMMARY OF ACCUMULATED PLAN BENEFITS

A. PARTICIPANTS

Number of Participants:

■ Vested Active Participants 153 186

■ Nonvested Active Participants 181 188

■ Transferred Participants 79 78

■ Vested Terminations 69 74

■ Disabled Participants 0 0

■ Retirees and Beneficiaries 286 277

■ Total 771 803

B. ACCUMULATED PLAN BENEFITS

Actuarial Present Value of Vested Accumulated Plan Benefits:

■ Active Participants $17,665,926 $17,065,710

■ Transferred Participants 6,517,363 6,415,268

■ Vested Terminations 4,478,396 4,667,000

■ Disabled Participants 0 0

■ Retirees and Beneficiaries 36,646,703 34,254,904

■ Total $65,308,388 $62,402,882

Actuarial Present Value of Nonvested Accumulated Plan Benefits $1,082,442 $1,851,676

Actuarial Present Value of Total

Accumulated Plan Benefits $66,390,830 $64,254,558

Plan Net Assets Available for

Benefits (Market Value) $72,493,636 $70,875,874

Accumulated Plan Benefits Surplus (Deficit) $6,102,806 $6,621,316

Accumulated Benefit Security Percentage 109% 110%

Investment Return Assumption 7.25% 7.25%

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TABLE 2

SUMMARY OF ACCUMULATED PLAN BENEFITS

(continued)

C. ANALYSIS OF CHANGE IN ACCUMULATED PLAN BENEFITS

(1) Actuarial Present Value of Accumulated

Plan Benefits as of 7/1/2024 $ 64,254,558

(2) Interest 4,427,515

(3) Distributions to Employees 6,484,230

(4) Additional Benefits Accumulated (including the effect of noninvestment experience) 4,192,987

(5) Change in Plan Provisions 0

(6) Change in Assumptions 0

(7) Actuarial Present Value of Accumulated

Plan Benefits as of 7/1/2025

(1) + (2) - (3) + (4) + (5) + (6) $ 66,390,830

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TABLE 3

PLAN DISCLOSURE INFORMATION FOR FISCAL YEAR ENDING JUNE 30, 2025

A. Change in Total Pension Liability 2025 2024

Total Pension Liability -- Beginnng of Year 70,387,231 72,895,558

Service cost 1,211,734 1,364,362

Interest 4,959,984 4,496,601

Differences between expected and actual experience 1,494,989 1,395,189

Changes in assumptions 0 (5,901,596)

Changes in benefits 0 1,414,178

Transfer Out 0 0

Benefit payments (6,484,230) (5,277,061)

Net change in Total Pension Liability 1,182,477 (2,508,327) Total Pension Liability -- End of Year 71,569,708 70,387,231

Year-End Discount Rate 7.25% 7.25%

B. Plan Fiduciary Net Position Market Value of Assets -- Beginning of Year 70,875,874 65,959,919

Accrued Contributions 0 0

Accrued Expenses 0 0 Plan Fiduciary Net Position -- Beginning of Year 70,875,874 65,959,919

Market Value of Assets -- End of Year 72,493,636 70,875,874

Accrued Contributions 0 0

Accrued Expenses 0 0 Plan Fiduciary Net Position -- End of Year 72,493,636 70,875,874

C. Change in Plan Fiduciary Net Position Plan Fiduciary Net Position -- Beginning of Year 70,875,874 65,959,919

Contributions -- employer 703,791 633,247

Contributions -- employees 703,791 633,247

Investment Income 6,939,399 9,054,054

Investment Expenses 0 0

Transfer Out 0 0

Benefit Payments (6,484,230) (5,277,061)

Administrative Expenses (244,989) (127,532) Plan Fiduciary Net Position -- End of Year 72,493,636 70,875,874

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TABLE 3 (continued)

PLAN DISCLOSURE INFORMATION FOR FISCAL YEAR ENDING JUNE 30, 2025

D. Net Pension Liability 2025 2024

Beginning of Year Net Pension Liability (488,643) 6,935,639

Plan FNP as a % of Total Pension Liability 100.69% 90.49%

Covered Payroll 17,435,182 14,552,334

Net Pension Liability as a % of Covered Payroll -2.80% 47.66%

End of Year Net Pension Liability (923,928) (488,643)

Plan FNP as a % of Total Pension Liability 101.29% 100.69%

Covered Payroll 14,924,932 17,435,182

Net Pension Liability as a % of Covered Payroll -6.19% -2.80%

E. Impact of 1% Decrease in Discount Rate on Total Pension Liability

1% Decrease - Beginning of Year 5,549,327 13,722,020

1% Increase - Beginning of Year (5,685,251) 1,094,475

1% Decrease - End of Year 5,087,467 5,549,327

1% Increase - End of Year (6,103,382) (5,685,251)

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TABLE 4

GASB 68 Pension Expense and Deferred Outflows and inflows of Resources

Reporting Date (Fiscal Year Ending) 6/30/2025 Measurement Date (End of Measurement Period) 6/30/2025 Valuation Date 6/30/2025 GASB 68 Pension Expense Service cost $1,211,734 Interest on Total Pension Liability 4,959,984 Employee contributions (703,791) Projected earnings on pension plan investments (4,948,967) Administrative Expenses 244,989 Change in plan terms 0 Changes in assumptions (1,924,771) Differences between expected and actual experience 1,206,220

Differences between projected and actual earnings on pension plan investments 1,543,168

Total Pension Expense $1,588,566

Balances at Fiscal Year Ended June 30, 2025 Deferred Outflows of Resources Deferred Inflows of

Resources Differences between expected and actual experience $1,609,635 $ -

Changes of assumptions 45,712 (1,960,630) Differences between projected and actual earnings on pension plan investments 3,137,916 (4,869,533)

Total $4,793,263 $(6,830,163)

Amounts of deferred outflows/(inflows) of resources to be recognized in pension expense for

Fiscal Year Ended June 30:

2025 $832,142 2026 (1,189,004) 2027 (1,281,953) 2028 (398,085) 2029 0 Thereafter 0

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TABLE 5

SUPPLEMENTARY INFORMATION

A. SCHEDULE OF FUNDING PROGRESS

Unfunded UAAL

Actuarial Actuarial Actuarial as a % Valuation Value of Accrued Accrued Funded Covered of Covered

Date Assets Liability * Liability (UAAL) Ratio Payroll Payroll 7/1/2003 $48,997,492 $45,926,000 ($3,071,492) 106.69% $19,577,063 -15.69% 7/1/2004 49,738,554 46,921,958 (2,816,596) 106.00% 20,388,956 -13.81% 7/1/2005 52,476,687 49,875,507 (2,601,180) 105.22% 20,419,217 -12.74% 7/1/2006 56,101,885 53,253,798 (2,848,087) 105.35% 21,147,515 -13.47% 7/1/2007 58,866,220 55,112,008 (3,754,212) 106.81% 20,868,836 -17.99% 7/1/2008 60,499,411 58,436,131 (2,063,280) 103.53% 21,040,740 -9.81% 7/1/2009 58,474,674 61,951,728 3,477,054 94.39% 22,609,390 15.38% 7/1/2010 60,299,169 62,552,831 2,253,662 96.40% 21,987,355 10.25% 7/1/2011 61,259,439 63,832,157 2,572,718 95.97% 21,316,608 12.07% 7/1/2012 63,492,676 66,620,833 3,128,157 95.30% 21,146,636 14.79% 7/1/2013 66,342,681 68,288,651 1,945,970 97.15% 21,702,329 8.97% 7/1/2014 70,015,163 69,851,645 (163,518) 100.23% 20,435,909 -0.80% 7/1/2015 73,020,348 70,922,817 (2,097,531) 102.96% 19,458,784 -10.78% 7/1/2016 74,057,204 75,670,940 1,613,736 97.87% 18,546,824 8.70% 7/1/2017 75,506,724 74,988,999 (517,725) 100.69% 18,876,189 -2.74% 7/1/2018 68,074,184 71,032,800 2,958,616 95.83% 16,083,608 18.40% 7/1/2019 69,324,132 76,378,908 7,054,776 90.76% 17,403,996 40.54% 7/1/2020 69,083,279 80,871,133 11,787,854 85.42% 16,832,353 70.03% 7/1/2021 73,577,427 68,965,351 (4,612,076) 106.69% 15,068,005 -30.61% 7/1/2022 70,802,671 71,545,623 742,952 98.96% 13,730,542 5.41% 7/1/2023 69,493,980 72,895,558 3,401,578 95.33% 14,552,334 23.37% 7/1/2024 70,214,358 70,387,231 172,873 99.75% 17,435,182 0.99% 7/1/2025 70,762,018 71,569,708 807,690 98.87% 14,924,932 5.41%

* Actuarial accrued liability as of 7/1/2003 was estimated based on available data

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TABLE 5 (continued)

SUPPLEMENTARY INFORMATION

B. SCHEDULE OF EMPLOYER CONTRIBUTIONS

Annual Excess / Rate of Plan Year Required Actual Percentage Excess / (Shortfall) Return on

Ending Contribution Contribution Contributed (Shortfall) % of Payroll MV Assets 6/30/2003 $747,749 $835,265 111.70% $87,516 2.8% 6/30/2004 803,213 854,285 106.36% 51,072 0.26% 13.7% 6/30/2005 871,222 838,334 96.23% (32,888) -0.16% 9.3% 6/30/2006 717,075 859,702 119.89% 142,627 0.70% 10.2% 6/30/2007 719,034 883,579 122.88% 164,545 0.78% 16.7% 6/30/2008 613,364 867,004 141.35% 253,640 1.22% -4.9% 6/30/2009 857,756 910,281 106.12% 52,525 0.25% -14.7% 6/30/2010 1,615,510 952,231 58.94% (663,279) -2.93% 12.8% 6/30/2011 1,445,501 943,147 65.25% (502,354) -2.28% 23.3% 6/30/2012 1,452,510 935,234 64.39% (517,276) -2.43% 3.0% 6/30/2013 1,514,233 898,320 59.33% (615,913) -2.91% 11.7% 6/30/2014 1,367,597 876,077 64.06% (491,520) -2.26% 15.4% 6/30/2015 1,045,243 842,284 80.58% (202,959) -0.99% 3.7% 6/30/2016 589,114 796,694 135.24% 207,580 1.12% 1.4% 6/30/2017 351,478 786,586 223.79% 435,108 2.31% 11.8% 6/30/2018 495,687 733,951 148.07% 238,264 1.48% 9.8% 6/30/2019 805,098 714,622 88.76% (90,476) -0.52% 5.1% 6/30/2020 1,019,038 687,910 67.51% (331,128) -1.97% 5.0% 6/30/2021 912,941 681,917 74.69% (231,024) -1.53% 25.6% 6/30/2022 108,758 610,341 561.19% 501,583 3.65% -12.6% 6/30/2023 (40,474) 616,134 -1522.30% 656,608 4.51% 9.7% 6/30/2024 397,645 633,247 159.25% 235,602 1.35% 15.4% 6/30/2025 647,058 703,791 108.77% 56,733 0.38% 10.2%

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SECTION II

PLAN ASSETS

Statements of the plan assets were provided by the trust company.

A. ASSET VALUES

As of June 30, 2024, the net market value of plan assets was $70,875,874. At June 30, 2025, the net market value had increased to $72,493,636. The change in the value of plan assets from July 1, 2024 to June 30, 2025 is summarized in Table 6.

As of June 30, 2025, the actuarial value of assets was $70,762,018. The asset smoothing method is described in Exhibit B of the Appendix.

B. ASSET DISTRIBUTION

As of June 30, 2025, equities comprised 63.0% of total invested assets on a market value basis, with the remaining 37.0% invested in fixed income items and cash equivalents. As of June 30, 2024, the percentage of total invested assets in equities was 62.0%.

The distribution of net assets as of June 30, 2024 and June 30, 2025 is shown in Table 6.

C. INVESTMENT PERFORMANCE

The annual rate of return on net plan assets during 2024/2025, before expenses, was 10.2% on a market value basis.

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TABLE 6

CHANGE IN VALUE OF PLAN ASSETS

Market Value

1 6/30/2024 Assets before reduction for contribution refunds payable $70,875,874

2 Contributions 1,407,581

3 Payments to participants (6,484,230)

4 Administrative expenses (244,989)

5 Transfer Out 0

6 Investment return 6,939,400

7 6/30/2025 Assets: (1) + (2) + (3) + (4) + (5) + (6) $72,493,636

8 Lump sums payable 0

9 Contribution refunds payable 0

10 Net Assets 6/30/2025: (6) + (7) + (8) $72,493,636

Rate of return (before expenses) 10.17%

Rate of return (after expenses) 9.81%

Actuarial Value

11 Expected Return based on Investment Return Assumption $4,948,967

12 Asset Gain / (Loss) during Fiscal Year $1,990,433

13 Recognition of Gains / (Losses) Unrecognized

Amounts Amount

Deferred 2025 $1,990,433 80% 2024 $4,419,342 60% 2023 $1,563,959 40% 2022 ($15,689,584) 20%

14 Deferred Asset Gain / (Loss) $1,731,618

15 Actuarial Value of Assets: (10) - (14) $70,762,018

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TABLE 7

DISTRIBUTION OF NET ASSETS

June 30, 2025 June 30, 20241

Market Value Percentage Market Value Percentage

Cash & Cash Equivalents $427,712 0.6% $1,417,517 2.0%

Fixed Income Fund 26,721,154 36.9% 25,515,315 36.0%

Small Cap Index Fund 7,807,565 10.8% 7,087,587 10.0%

Small Cap Growth Fund 0 0.0% 0 0.0%

International Value Fund 3,537,689 4.9% 3,543,794 5.0%

International Equity Fund 3,523,191 4.9% 3,543,794 5.0%

Large Cap Enhanced Core Fund 30,476,325 41.9% 29,767,867 42.0%

Accrued Income 0 0.0% 0 0.0%

Lump Sums Payable 0 0.0% 0 0.0%

Contribution Refunds Payable 0 0.0% 0 0.0%

Total $72,493,636 100.00% $70,875,874 100.00%

1 Allocations estimated based on allocations reported by Columbia Threadneedle

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SECTION III

PARTICIPANT DATA

EKON benefits provided employee data as of July 1, 2025.

A. PLAN PARTICIPATION

Since July 1, 2024, total participation decreased by 4.0% to 771 participants. A summary of participation as of July 1, 2025 is presented in Table 8. A reconciliation of participant changes during the 2024/2025 Plan Year is presented in Table 9.

B. ACTIVE PARTICIPANTS

There were 337 active participants as of July 1, 2025, a decrease of approximately 11.0% from the total of 374 as of July 1, 2024. The average attained age increased from 48.6 to 49.0 years old. Approximately 42% of the plan’s active participants are age 55 or older as of July 1, 2025, an increase from the previous valuation. Average compensation decreased from $47,601 as of July 1, 2024, to $45,572 as of July 1, 2025.

An analysis of active participant data is presented in Table 10.

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TABLE 8

SUMMARY OF PARTICIPATION

(JULY 1, 2025)

A. ACTIVE PARTICIPANTS

(1) Distribution by age and service:

Age Group Participants Service Participants

Under 25 6 Under 5 184 25 - 29 31 5 - 9 60 30 - 34 29 10 - 14 19 35 - 39 25 15 - 19 23 40 - 44 35 20 - 24 23 45 - 49 26 25 - 29 18 50 - 54 37 30 - 34 2 55 - 59 56 35 & Over 8 60 - 64 60 65 & Over 32

Total 337 Total 337

(2) Total annual compensation: $15,357,763

Total covered compensation: $15,357,763

B. INACTIVE PARTICIPANTS

Number of Annual Average Participants Benefit Annual Benefit

Retirees & Beneficiaries 286 $3,784,697 $13,233

Disabled 0 0 0

Transfers 79 526,292 6,662

Vested terminations 69 411,366 5,962

Total 434 $4,722,355 $10,881

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TABLE 9

PARTICIPANT RECONCILIATION

Deferred Benefits Retired and Vested

Actives Beneficiaries Disabled Terminations Transfers Total

Participants as of 7/1/2024 374 277 0 74 78 803

Corrections (23) 2 - (11) (13) (45)

New Entrants 63 - - - - 63

Rehires 1 - - - (1) -

Deaths - (7) - - - (7)

Lump Sums (18) - - (2) (3) (23)

Retirements (4) 14 - (5) (5) -

New Beneficiaries - - - - - -

Disabilities - - - - - -

Terminations:

■ Vested (13) - - 13 - -

■ Refunds - - - - - -

■ Nonvested (20) - - - - (20)

Transferred (23) - - - 23 -

Participants as of 7/1/2025 337 286 0 69 79 771

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TABLE 10

ACTIVE PARTICIPANT ANALYSIS

Number of Active Participants 337 374

Average Attained Age 49.0 48.6

Average Age at Hire 40.1 39.8

Average Annual Compensation $45,572 $47,601

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SECTION IV

ACTUARIAL METHODOLOGY AND ASSUMPTIONS

A. INTRODUCTION

The actuarial valuation of a defined benefit plan is comprised of two separate processes. First, the actuarial present value, as of the actuarial valuation date, of both current and projected benefits to be paid under the plan is determined. In determining the actuarial present value of these benefits, assumptions must be made as to the number of participants eventually receiving benefits, the amount of benefits to be paid, and the portion of the benefit obligation to be covered by future investment earnings.

Second, the financing of these benefit obligations on an advance basis is established. To determine the funding requirements of the plan an actuarial cost method is adopted. The actuarial cost method has a direct impact on the incidence of the funding requirements. The actuarial cost method allocates the actuarial present value of future employer contributions between the past and future, and thus establishes the Unfunded Actuarial Accrued Liability and the Present Value of Future Normal Costs, respectively. The actuarial cost method used for the valuation is described in Exhibit B.

B. ACTUARIAL ASSUMPTIONS

The true cost of a participant's pension benefit is not known until he or his beneficiary has received the final benefit payment. Consequently, the exact cost of plan benefits for the current employee group will not be determinable for 50 to 75 years. Since provision for this cost must be made prior to the exact determination, a model is established that will estimate the future cost of plan benefits. The model utilizes parameters which require assumptions as to the future occurrences of various events affecting the demographic profile of the employee group and the assets of the pension fund. Such actuarial assumptions include death, retirement, termination, disability, salary progression, cost-of-living increases and investment return. Current and long term economic factors, the nature of the employer's business, and significant features of the plan must be considered in the selection of a set of actuarial assumptions to assure the reasonableness of the results predicted by the actuarial assumptions.

While care is taken in the selection of actuarial assumptions, actual experience is expected to deviate from these assumptions over the short term. The suitability of actuarial assumptions is measured by how closely the experience of the plan, on a long term basis, conforms to projected results. Deviations from projected results are called actuarial gains and losses. Periodic actuarial valuations will measure the extent of these actuarial gains and losses as of an actuarial valuation date. If either actuarial gains or losses predominate, then it is possible that one or more of the actuarial assumptions is no longer appropriate. Thus, actuarial assumptions must be continually monitored for reasonableness and subsequent cost estimates may be modified accordingly. While individual actuarial assumptions are intended to be representative, it is the aggregate effect of all actuarial assumptions working together that determines their appropriateness.

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The actuarial assumptions used in the valuation are described in Exhibit C. In 2024, a five-year study of plan experience was completed and certain assumptions were modified to better reflect anticipated plan experience.

C. ACTUARIAL LIABILITIES

Actuarial liabilities include the actuarial present value of all future benefits and expenses. To determine the actuarial present value of all future benefits, the actuarial assumptions, plan provisions (described in Exhibit A) and current participant data are used to forecast the benefits to be paid. Each projected benefit payment is then discounted to the actuarial valuation date using the appropriate discount rate. These discounted payments are then summed to arrive at the total actuarial present value of benefits.

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EXHIBIT A

SUMMARY OF PRINCIPAL PLAN PROVISIONS

A. PLAN EFFECTIVE DATE

The Retirement Plan became effective July 1, 1969 for Non-Certificated Employees. The plan was most recently restated effective with board approval in April 2020.

B. PLAN ELIGIBILITY

Any non-certificated employee customarily employed by the College on a regular, permanent basis (at least 32 hours weekly and at least 9 months yearly) shall become a participant following 13 bi-weekly payroll periods of employment.

C. DEFINITIONS

Accrued Benefit: 1.55% of Average Annual Compensation multiplied by Credited Service after October 31, 1965 (“Membership Service”), in years and months, plus 0.775% of Average Annual Compensation multiplied by Credited Service prior to November 1, 1965 (“Prior Service”), in years and months.

Credited Service: Period of continuous service prior to the Effective Date plus period of continuous employment after the Effective Date, adjusted as follows for unused accumulated sick leave at termination/retirement.

Days of Months of Days of Months of Accumulated Credited Accumulated Credited Sick Leave Service Sick Leave Service

0 - 10 0 95 - 115 5 11 - 31 1 116 - 136 6 32 - 52 2 137 - 157 7 53 - 73 3 158 - 178 8 74 - 94 4 Over 178 9

Average Annual Average of the annual compensation received by a Member for the Compensation: highest 4 years of Credited Service during the last 10 years of Credited

Service.

D. NORMAL RETIREMENT BENEFIT

Eligibility: Attainment of age 60 and completion of 5 years of Credited Service.

Amount: Accrued Benefit determined on Normal Retirement Date.

Form: Life annuity, payable monthly.

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EXHIBIT A

(Continued)

E. EARLY RETIREMENT BENEFIT

Eligibility: Attainment of age 55 and completion of 5 years of Credited Service, or completion of 25 years of service at any age prior to 60.

Amount: Accrued Benefit determined as of the Early Retirement Date, actuarially reduced for early commencement of payments.

F. TERMINATION BENEFIT

Eligibility: 5 years of Credited Service.

Amount: Accrued Benefit determined on date of termination.

Benefit Commencement: Benefit deferred until age 60 or an actuarially reduced benefit commencing at the Early Retirement Date.

G. DEATH BENEFIT

(1) Prior to Retirement

Amount: Accumulated contributions with interest.

Form: Lump-sum payment.

(2) After Retirement

Amount and Form: Determined in accordance with the form of payment elected prior to retirement.

H. REFUND OF CONTRIBUTIONS

Eligibility: Termination of employment when no other benefit is payable, or election to withdraw contributions upon termination.

Amount: Return of employee contributions with interest. No benefit will be payable if an election is made to withdraw contributions.

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EXHIBIT A

I. DISABILITY

Eligibility: Receipt of disability benefits from Social Security or the St. Louis Community College Long Term Disability plan prior to attaining age 60, prior to receiving any retirement benefit under this plan, and after completing at least ten years of Credited Service.

Amount: Accrued Benefit determined on the Normal Retirement Date, based on Credited Service as if employment continued until normal retirement. Average Annual Compensation is determined assuming Compensation continued until normal retirement at the greater of the rate in effect at the time of disability or the compensation received during the last full calendar year of employment.

Benefit Commencement: Benefit deferred until age 60.

J. OPTIONAL PENSIONS

A Member may elect prior to the retirement date a reduced joint and contingent pension equal in value to the normal or early retirement benefit which is payable for life and continues at 100% or 50% thereafter as long as the surviving spouse lives. At the participant's election the pension to the member may increase to the amount of the normal or early benefit upon the spouse's death.

A Member may also elect a pension under the Social Security Leveling option, with a larger benefit payable prior to age 62 and a reduced benefit payable after age 62. In lieu of full monthly benefit payments, a retiree may elect to receive a lump-sum payment equal to either 100% (with no future monthly benefits) or 50% (with future monthly benefits reduced by 50%) of the actuarial present value of the monthly benefit.

K. CONTRIBUTIONS

Employee: 4% of annual compensation.

Employer: 4% of annual compensation.

L. COST-OF-LIVING INCREASES

Retirees may receive a cost-of-living increase after being retired three years if the Board of Trustees determines that the cost-of-living has increased from the prior year. Such increase shall be 4% if the cost-of-living has increased by 4% or more since the prior year. If the cost-of-living has increased less than 4% since the prior year the Board of Trustees will determine the percentage increase in retirement benefits. The maximum yearly increase is 4% and the total accumulated increases may not exceed 36%.

M. CHANGES IN PLAN PROVISIONS

None

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EXHIBIT B

DESCRIPTION OF ACTUARIAL METHODS AND PROCEDURES

A. ACTUARIAL COST METHODS

AGGREGATE ACTUARIAL COST METHOD (Tables 1 & 2)

(1) On the actuarial valuation date, the actuarial present value of future normal costs is the excess of the actuarial present value of projected benefits over the actuarial value of plan assets and the actuarial present value of future employee contributions. The actuarial present value of future normal costs is then divided by the actuarial present value of future valuation pay to determine the normal cost accrual rate. The normal cost accrual rate is then multiplied by the valuation pay of active employees included in the actuarial valuation whose attained ages are less than the latest assumed retirement age, and the administrative expenses assumed to be paid from plan assets are added to determine the normal cost for the valuation year.

(2) No unfunded actuarial accrued liability is developed.

(3) The actuarial gain (loss) is a measure of the difference between actual experience and that expected based upon the actuarial assumptions between two actuarial valuation dates. Under this actuarial cost method, the actuarial gains (losses) reduce (increase) future normal costs.

ENTRY AGE NORMAL COST METHOD (Tables 3, 4 & 5)

(1) A method under which the actuarial present value of the projected benefits of each individual included in an actuarial valuation is allocated on a level percentage of pay basis over the earnings and service of the individual between entry age and assumed exit age(s). The portion of this actuarial present value allocated to a valuation year is called the normal cost. The portion of this actuarial present value not provided for at a valuation date by the actuarial present value of future normal costs is called the Actuarial accrued liability.

B. ASSET VALUATION METHOD

The actuarial value of assets was set to the market value of assets as of June 30, 2013. Returns on the market value of assets (after June 30, 2013) that differ from the underlying expected return on the market value of assets will be recognized over five years. The actuarial value of assets may not be more than 120% nor less than 80% of the market value of assets as of the valuation date.

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EXHIBIT B

(continued)

C. CALCULATION PROCEDURES FOR ACTUARIAL

PRESENT VALUE OF ACCRUED BENEFITS

(1) An accrued benefit was determined for each participant based upon his benefit service and average annual compensation on the actuarial valuation date. For the calculation of average annual compensation, current pay was discounted in accordance with the pay increase assumption shown in Exhibit C.

(2) The actuarial present value of the accrued benefits was then calculated using the investment return assumption and decrements described in Exhibit C.

(3) The actuarial present value of vested accrued benefits was similarly calculated, recognizing only those benefits which were nonforfeitable, that is, payable even if the participant terminated his employment on the actuarial valuation date.

D. GASB Liability Calculation

Per GASB 67/68, the Total Pension Liability was calculated based upon a blended discount rate.

The blended rate was based upon the plan’s expected return on asset assumption and the high-quality long-term municipal general obligation bond yields.

Plan assets are projected forward for this purpose using projected benefit payments, administrative expenses, and expected contributions assuming expected asset returns. Future cash flows are discounted at the expected return assumption while plan assets are available to make benefit payments and at the municipal bond yield when plan assets are depleted and benefit payments would be made out of general employer funds. A single equivalent discount rate is then calculated.

E. CHANGES IN ACTUARIAL METHODS AND PROCEDURES

There were no changes to the actuarial methods and procedures since the prior valuation.

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EXHIBIT C

ACTUARIAL ASSUMPTIONS

A. STATEMENT OF ACTUARIAL ASSUMPTIONS

(1) MORTALITY: Separate rates for non-annuitants (based on Pri- 2012 “Employees” table without collar or amount adjustments and then projected forward with generational projection using adjusted Scale MP- 2021) and annuitants (based on Pri-2012 “Healthy Annuitants” table (participants and beneficiaries combined) without collar or amount adjustments, projected forward with generational projection using adjusted Scale MP-2021. The rate of future mortality improvement at any age for any year beginning on or after the valuation date is capped at 0.78%.

(2) TERMINATION OF Graded rates (see Sample Rates).

EMPLOYMENT:

(3) DISABLEMENT: Graded rates (see Sample Rates).

(4) RETIREMENT: Graded rates (see Sample Rates).

(5) BENEFIT COMMENCEMENT Age 60, or current age if greater.

DATE FOR VESTED

TERMINATIONS:

(6) BENEFIT ELECTION OF Refund of contributions if under 10 years

TERMINATED VESTED of service; benefit payable at 60 if 10 or more PARTICIPANTS: years of service at termination.

(7) LUMP SUM ELECTIONS 70% at retirement.

(8) MARITAL STATUS:

(a) Percent Married 100%

(b) Age Difference Males are assumed to be three years older than their spouses.

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(9) INVESTMENT RETURN:

(a) Contribution Requirement 7.25% per year, compounded annually.

Calculations

(b) Actuarial Present Value 7.25% per year, compounded annually.

of Accrued Benefit Calculation

(10) PAY INCREASES: 4.00% per year, compounded annually.

(11) ANNUAL INCREASE IN CPI-U 3.25%

(12) LUMP SUM INTEREST

RATE 4.50%

(13) EXPENSES: $175,000

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EXHIBIT C

B. SAMPLE RATES

(1) ANNUAL RATES OF DECREMENT:

Disablement Service Termination Males Females

0-1 20.0% 0.05% 0.08% 1-2 17.5% 0.06% 0.13% 2-3 15.0% 0.10% 0.22% 3+ 10.0% 0.16% 0.33% 0.29% 0.38% 0.56% 0.67% 1.00% 0.95% 0.00% 0.00%

(2) ANNUAL RATES OF RETIREMENT:

Age Rate

55-59 7.5% 60-62 15.0% 63 20.0% 64 15.0% 65-69 30.0% 70+ 100.0%

(3) ANNUAL RATES OF PAY INCREASE:

Rate of Annual Pay at Age 65 as a Age Annual Increase Percentage of Current Annual Pay

25 4.00% 480% 30 4.00% 395% 35 4.00% 324% 40 4.00% 266% 45 4.00% 219% 50 4.00% 180% 55 4.00% 148% 60 4.00% 122%

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C. CHANGES IN ACTUARIAL ASSUMPTIONS

■ None

Model Descriptions and Disclosures (in accordance with ASOP No. 56) Quantify

Quantify is the WTW centrally developed, tested and maintained Global actuarial valuation system. It is used to perform valuations of clients' benefit plans.

Quantify provides the ability to process data, calculate benefits and value benefit liabilities, develop results using applicable standards, and generate client reports.

Quantify parameters provide significant flexibility to model populations and plan designs. Various demographic, economic and benefit related assumptions exist for users to model multiple demographic and economic situations.

Plan liabilities are calculated based on standard actuarial techniques, developing actuarially reasonable results using the population and parameters entered. The calculation and presentation of liabilities in Quantify relies on the assumptions used and the reasonability of the assumptions selected.

Quantify incorporates standard liability methodologies that are intended to reasonably reflect a variety of economic or demographic conditions. The model itself does not evaluate any assumptions entered for reasonableness, consistency or probability of occurrence.

Quantify is designed specifically for these purposes, and we know of no material limitations that would prevent the system from being suitable for these intended purposes. The actuaries signing this report have relied on the actuaries who develop, test and maintain this system, and have also performed a limited review of results to ensure that system parameters have been set appropriately and plan provisions coded correctly.

Published Demographic Tables

Certain demographic tables described above are standard published tables or are based on standard published tables from models developed by organizations with the requisite expertise

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EXHIBIT D

GASB ASSUMPTION SETTING

Last Experience Analysis Used to Determine Actuarial Assumptions Date of Report: 5/15/2024 Experience Years: 7/1/2018 - 6/30/2023

Cash Flow Assumptions The following are summarized in the actuarial valuation reports for the applicable years:

Plan provisions used to calculate cashflows are described in Exhibit A.

Actuarial assumptions used to calculate cashflows are described in Exhibit C.

Actuarial methods and procedures used to calculated cashflows are described in Exhibit B.

Long Term Expected Rate of Return on Assets Asset Class Allocation Large cap stocks 40.0% Small cap stocks 10.0% International stocks 9.0% BarCap Aggregate bonds 39.0% Cash equivalents 2.0% Total 100.0%

20 years Projected Return with 3.25% CPI

Mean 25th percentile 50th percentile 75th percentile Return 6.72% 5.50% 6.70% 7.80% Less Investment Expenses -0.25% -0.25% -0.25% -0.25% Portfolio Effect 0.50% 0.50% 0.50% 0.50% Estimated EROA 6.97% 5.75% 6.95% 8.15%

Municipal Bond Rate Beginning of Year 3.93% End of Year 5.20% Source: Bond Buyer 20-Bond General Obligation Index

Years of Benefit Payments applies to Applicable Rate: Long Term EROA Municipal Bond Rate Beginning of Year 2024+ N/A End of Year 2025+ N/A

Weighted Average Discount Rate Beginning of Year 7.25% End of Year 7.25%

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EXHIBIT E

ASSUMPTION RATIONALE

MORTALITY

Mortality rates based on the current mortality table as defined by the Pension Protection Act of 2006, believed to be based on characteristics reasonably similar to the plan.

Since this is a mortality table based upon a peer reviewed study conducted by the SOA, we believe the assumptions selected do not significantly conflict with what would be reasonable.

TERMINATION

Termination rates were based on an experience study conducted in 2024, with ongoing consideration of whether any conditions have changed that would be expected to produce different results in the future.

For the reasons discussed above, we believe the assumptions selected do not significantly conflict with what would be reasonable.

DISABLEMENT

Disability rates were based on the 1987 Commissioners Group Disability Table, believed to be based on plan characteristics reasonably similar to the plan.

Since this table is based on a commissioned disablement study, we believe the assumptions selected do not significantly conflict with what would be reasonable.

RETIREMENT

Retirement rates were based on an experience study conducted in 2024, with ongoing consideration of whether any conditions have changed that would be expected to produce different results in the future.

For the reasons discussed above, we believe the assumptions selected do not significantly conflict with what would be reasonable.

BENEFIT COMMENCEMENT DATE

Deferred vested participants are assumed to begin benefits at age 60 which is the plan’s normal retirement date and was reviewed in the 2024 experience study

For the reasons discussed above, we believe the assumptions selected do not significantly conflict with what would be reasonable.

BENEFIT ELECTION OF TERMINATED VESTED PARTICIPANTS

For participants terminating from service, those with under ten years of credited service are assumed to elect a refund of employee contributions with interest in lieu of a deferred pension benefit. It was observed in the 2024 experience study that most participants with relatively short service periods elect a refund of contributions.

For the reasons discussed above, we believe the assumptions selected do not significantly conflict with what would be reasonable.

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EXHIBIT E (continued)

LUMP SUM ELECTIONS

The percentage of retiring participants assumed to take lump sums is based on an experience study conducted in 2024, with ongoing consideration of whether any conditions have changed that would be expected to produce different results in the future.

For the reasons discussed above, we believe the assumptions selected do not significantly conflict with what would be reasonable.

INVESTMENT RETURN

The expected return on assets assumption reflects the plan sponsor’s estimate of future experience for trust asset returns, reflecting the plan’s current asset allocation and the building block approach described on Exhibit D as selected by the plan sponsor at the time of the experience study conducted in 2024.

Willis Towers Watson’s determination that this assumption does not significantly conflict with what would be reasonable is informed by Willis Towers Watson’s Expected Return Estimator model and by analysis of recent and historical data, including the variability thereof, for CPI, GDP growth, and real returns on the various classes of assets held by the trust, and recent trends, and historical active management premiums experienced by the trust

PAY INCREASES

Assumed pay increases were chosen by the plan sponsor and represent the best estimate of future experience. Using a building block approach, this assumption was partially developed by expectations for future CPI increases, plus expectations for merit/promotion increases in pay. We relied on the plan sponsor for this assumption, as the plan sponsor has access to pertinent information related to their business and is in a better position to set this assumption.

However, we believe that the assumption chosen does not significantly conflict with what would be reasonable based on the assumed future CPI and GDP growth inherent in the other economic assumptions chosen, other than the discount rate.

CPI INCREASES

The selection of this assumption was informed by historical CPI changes, and consideration of consensus forecasts of future inflation rates.

For the reasons discussed above, we believe the assumptions selected do not significantly conflict with what would be reasonable.

LUMP SUM INTEREST RATES

The assumption for lump sum interest rates represents the best estimate of future plan experience. As defined by the plan, lump sums are paid based upon the greater of a 4.5% interest rate and current corporate bond rates less 1.9%. In choosing this assumption, consideration was given to currently prevailing interest rates and historical interest rate levels.

For the reasons discussed above, we believe the assumptions selected do not significantly conflict with

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EXHIBIT E (continued)

EXPENSES

The assumption for administrative expenses is based on recent plan experience, with ongoing consideration of whether any conditions have changed that would be expected to produce different results in the future.

For the reasons discussed above, we believe the assumptions selected do not significantly conflict with

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EXHIBIT F

Statement of funding-related risks of plan in accordance with ASOP No. 51

Potentially Significant Risks Associated with the Plan The following sections discuss certain risks associated with the plan. The specific risks discussed below do not represent a comprehensive list of all risks that could potentially affect the plan, its participants, the sponsor, or any other party. In our professional judgment, we believe these risks to be most relevant to the plan’s future financial condition. Not all possible sources of risk were considered. We have not evaluated the ability or willingness of the plan sponsor (or members of their controlled group) to make contributions to the plan when due, nor have we assessed the likelihood or consequences of potential future changes in applicable law. Nothing contained in this report is intended to provide investment advice.

The results shown in this report rely on assumptions regarding future economic and demographic experience. Actual future experience will deviate from the actuarial assumptions, and thus future actuarial measurements and future contribution requirements will differ (perhaps significantly) from the current measurements and contribution requirements presented in this report. Following is a discussion of some of the risks that have the potential to significantly increase the future contributions needed to satisfy legal requirements and secure the benefits of participants. While the discussion below focuses on elements that can increase contributions, contributions may also significantly decline, if these elements move in the opposite direction than discussed below.