HomeMy WebLinkAbout2014 - 27245 LBWL Lansing Board of Water and Light Employees' Defined Contribution Pension Plan 0614 Final Lansing Board of Water and Light
Employees' Defined Contribution
Pension Plan
Financial Report
with Supplemental Information
June 30, 2014
Lansing Board of Water and Light
Employees' Defined Contribution Pension Plan
Contents
Report Letter 1-2
Management's Discussion and Analysis 3-4
Basic Financial Statements
Statement of Net Position 5
Statement of Changes in Net Position 6
Notes to Financial Statements 7-12
Supplemental Information 13
Statement of Changes in Net Position by Fund 14-19
Independent Auditor's Report
To the Honorable Mayor, Members of
the City Council, and Commissioners
of the Board of Water and Light
Lansing Board of Water and Light Employees'
Defined Contribution Pension Plan
City of Lansing, Michigan
Report on the Financial Statements
We have audited the accompanying financial statements of Lansing Board of Water and Light Employees'
Defined Contribution Pension Plan (the "Plan") as of and for the years ended June 30, 2014 and 2013 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.
Auditor's 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 audits 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 auditor's 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.
I
To the Honorable Mayor, Members of
the City Council, and Commissioners
of the Board of Water and Light
Lansing Board of Water and Light Employees'
Defined Contribution Pension Plan
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the net
position of the Lansing Board of Water and Light Employees' Defined Contribution Pension Plan as of
June 30, 2014 and 2013 and the changes in its net position for the years then ended, in accordance with
accounting principles generally accepted in the United States of America.
Emphasis of Matter
As discussed in Note I to the financial statements, in 2014, Plan adopted GASB Statement No. 67,
Financial Reporting for Pension Plans. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplemental Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis on pages 3 and 4 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, which 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 audits were conducted for the purpose of forming an opinion on the financial statements that
collectively comprise the Lansing Board of Water and Light Employees' Defined Contribution Pension
Plan's basic financial statements. The statement of changes in net position by fund is presented for
purposes of additional analysis and is not a required part of the basic financial statements.
The statement of changes in net position by fund 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. Such information has been subjected to the auditing procedures applied in the audit
of the basic financial statements and certain additional procedures, including comparing and reconciling
such information directly to the underlying accounting and other records used to prepare the basic
financial statements or to the basic financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our opinion,
the statement of changes in net position by fund is fairly stated in all material respects in relation to the
basic financial statements as a whole.
! �, PGLC
September 2, 2014
2
Lansing Board of Water and Light
Employees' Defined Contribution Pension Plan
Management's Discussion and Analysis
Using this Annual Report
This annual report consists of two parts: (1) management's discussion and analysis (this section)
and (2) the basic financial statements. The financial statements also include notes that explain
some of the information in the financial statements and provide more detailed data.
Condensed Financial Information
The table below compares key financial information in a condensed format between the current
year and the prior two years:
2014 2013 2012
Assets held in trust:
Mutual funds $ 130,442,786 $ 109,882,178 $ 97,085,185
Stable value 33,607,203 32,243,585 30,547,019
Participant notes receivable and other 5,229,750 4,768,679 4,388,840
Net position $ 169,279,739 $ 146,894,442 $ 132,021,044
Changes in plan assets:
Net investment income $ 23,453,570 $ 16,035,621 $ 520,705
Employer and participant contributions 6,521,703 7,889,794 6,633,327
Benefits paid to participants (7,645,1 16) (9,097,209) (1 1,632,674)
Loan defaults and other increases 55,140 45,192 104,423
Changes in net position $ 22,385,297 $ 14,873,398 $ (4,374,219)
During fiscal year 2014, net investment income was $23.5 million.
Investment Objectives
The principal purpose of the Plan is to provide benefits at a normal retirement age; the Plan's
funds are selected to optimize return on a risk-adjusted basis within each asset class, to provide
an opportunity to create a well-diversified portfolio, to control administrative and management
cost, and to comply with relevant Michigan and federal law.
3
Lansing Board of Water and Light
Employees' Defined Contribution Pension Plan
Management's Discussion and Analysis (Continued)
The Plan allows each participant to direct the investment of the funds in his or her plan accounts.
The Lansing Board of Water and Light (the "BWL") will offer various investment options
(consistent with the investment policy statement), among which participants may choose to
invest their respective interests in the Plan. The BWL periodically reviews the performance of
investment options available to participants to ensure that each such option is meeting its
investment objectives.
Investment Results
The fiscal year ended June 30, 2014 saw a net investment income of $23.5 million. Total assets
held in trust at the end of the fiscal year were $169.3 million.
Future Events
The BWL has no current plans to revise the terms of its defined contribution pension plan.
Contacting the Plan's Management
This financial report is intended to provide a general overview of the Plan's finances and to show
accountability for the money it receives. If you have questions about this report or need
additional information, we welcome you to contact the office of Susan Devon, Chief
Administrative and Technology Officer, at P.O. Box 13007, Lansing, Michigan 48901-3007.
4
Lansing Board of Water and Light
Employees' Defined Contribution Pension Plan
Statement of Net Position
June 30
2014 2013
Assets
Participant-directed investments (Note 1):
Mutual funds:
Money market $ 117,793 $ 418,421
Bond and equity funds 16,556,877 16,438,836
Stock funds 60,617,315 51,617,791
Balanced funds 29,495,580 20,394,104
Growth funds 6,144,760 5,736,285
International funds 17,510,461 15,276,741
Total mutual funds 130,442,786 109,882,178
Stable value 33,607,203 32,243,585
Self-directed brokerage account 1,147,041 859,599
Total participant-directed investments 165,197,030 142,985,362
Participant notes receivable 4,082,709 3,909,080
Net Position $ 169,279,739 $ 146,894,442
See Notes to Financial Statements. 5
Lansing Board of Water and Light
Employees' Defined Contribution Pension Plan
Statement of Changes in Net Position
Year Ended June 30
2014 2013
Increase
Investment income:
Net appreciation in fair
value of investments $ 17,907,856 $ 12,924,636
Dividend income 5,545,714 3,1 10,985
Total investment income 23,453,570 16,035,621
Employer contributions (Note 1) 5,467,824 5,494,101
Participant rollover contributions 1,053,879 2,395,693
Interest from participant notes receivable 155,997 139,026
Other 114,992 110,424
Total increase 30,246,262 24,174,865
Decrease
Benefits paid to participants 7,645,1 16 9,097,209
Loan defaults 119,694 120,280
Participants' note and administrative fees 96,155 83,978
Total decrease 7,860,965 9,301,467
Change in Net Position 22,385,297 14,873,398
Net Position
Beginning of year 146,894,442 132,021,044
End of year $ 169,279,739 $ 146,894,442
See Notes to Financial Statements. 6
Lansing Board of Water and Light
Employees' Defined Contribution Pension Plan
Notes to Financial Statements
June 30, 2014 and 2013
Note I - Description of the Plan
The following description of Lansing Board of Water and Light Employees' Defined
Contribution Pension Plan (the "Plan") provides only general information. Participants
should refer to the plan agreement for a more complete description of the Plans
provisions.
General - The Plan was established by the Lansing Board of Water and Light (the
"BWL") in 1997 under Section 5-203 of the City Charter. Prior to its establishment, the
BWL sponsored a defined benefit plan (Plan for Employees' Pensions of the Board of
Water and Light - City of Lansing, Michigan - Defined Benefit Plan) in which substantially
all employees of the BWL were participants. Effective December 1, 1997, all active
participants of the defined benefit plan were required to make an irrevocable choice to
either remain in the defined benefit plan or move to the newly established defined
contribution plan (Lansing Board of Water and Light Employees' Defined Contribution
Plan). Those participants who elected to move to the defined contribution plan received
lump-sum distributions from the defined benefit plan, which were rolled into their
accounts in the new defined contribution plan. Of the 760 active participants who were
required to make this election, 602 elected to convert their retirement benefits to the
newly established defined contribution plan. As a result of this action, effective
December 1, 1997, the Board of Commissioners transferred $75,1 16,470 to the newly
established defined contribution plan, reflecting the plan participants' accumulated
benefits as of said date.
ICMA-RC, the plan administrator, controls and manages the operation and
administration of the Plan.
Contributions - For employees hired before January 1, 1997, the BWL is required to
contribute 15 percent of the employees' compensation. For employees hired on or after
January 1, 1997, the BWL is required to contribute 8.1 percent of the employees'
compensation. In addition, the BWL is required to contribute an additional 3.0 percent
of the employees' compensation for all employees who are not eligible to receive
overtime pay and 0.5 percent of the employees' compensation for all non-bargaining
employees. The Board of Commissioners of the Board of Water and Light - City of
Lansing may amend the Plan's provisions and contribution requirements.
7
Lansing Board of Water and Light
Employees' Defined Contribution Pension Plan
Notes to Financial Statements
June 30, 2014 and 2013
Note I - Description of the Plan (Continued)
Participant Accounts - Each participant's account is credited with the participant's
rollover contributions and withdrawals, as applicable, and allocations of the BWL's
contributions and plan earnings. Allocations are based on participants' earnings or
account balances, as defined in the plan document. Forfeited balances of terminated
participants' non-vested accounts are used to reduce future BWL contributions. The
benefit to which a participant is entitled is the benefit that can be provided from the
participant's account.
As of June 30, 2014, there were 822 participants in the Plan, of which 682 were active
employees. As of June 30, 2013, there were 825 participants in the Plan, of which 657
were active employees.
Vesting - Participants become vested in the BWL contribution and related earnings
after completing three years of service, at a rate of 25 percent each year. Participants
become fully vested after six years of service.
Investment Options - Participants may direct contributions in any of the following
investment options, which are administered by ICMA-RC. Since ICMA-RC is the
custodian as defined by the Plan, transactions in the ICMA funds qualify as transactions
with parties-in-interest.
Stable Value - Seeks safety of principal, adequate liquidity, and returns superior to
shorter maturity alternatives by actively managing a diversified portfolio of assets issued
by highly rated financial institutions and corporations as well as obligations of the U.S.
government or its agencies.
Balanced - Seeks both current income and capital appreciation by investing in a
combination of stocks, bonds, and money market instruments.
Growth - Seeks long-term capital appreciation by investing primarily in equity securities
of companies with above-average growth prospects. Current income is a secondary
concern.
8
Lansing Board of Water and Light
Employees' Defined Contribution Pension Plan
Notes to Financial Statements
June 30, 2014 and 2013
Note I - Description of the Plan (Continued)
International - Seeks long-term capital appreciation by investing primarily in equity
securities of issuers located outside of the U.S.
Stock Funds - Seeks long-term growth through capital gains, although historically
dividends have been an important source of total return. These funds primarily invest in
the common stocks of companies based in the United States. There are many options
for diversification within this category.
Bond and Equity Funds - Seeks to maximize current income with capital appreciation as a
secondary consideration by investing primarily in debt securities issued by the U.S.
government or its agencies and domestic and foreign corporations. They are not fixed-
income investments. Even when a mutual fund's portfolio is composed entirely of bonds,
the fund itself has neither a fixed yield nor a contractual obligation to give investors back
their principal at some later maturity date -the two key fixed characteristics of individual
bonds.
Self-directed Brokerage Account - Participants with a minimum account balance of
$35,000 may transfer from their fund accounts a minimum of $5,000 to a self-directed
brokerage account. Eligible investments are equity securities traded on U.S. exchanges
valued at greater than $5 and over 400 mutual funds from 18 investment management
companies. Participants pay a one-time set-up fee of$50.
Participant Notes Receivable - Participants may borrow from their fund accounts a
minimum of $1,000 up to a maximum of the lesser of $50,000 or 50 percent of their
account balances. Notes receivable are treated as transfers between the investment
fund and the notes receivable fund. Note terms range from one to five years or up to 20
years for the purchase of a primary residence. The notes receivable are secured by the
balance in the participant's account and bear interest at a rate commensurate with
prevailing rates as determined periodically by the plan administrator. Principal and
interest are paid ratably through payroll deductions.
Payment of Benefits - Upon termination of service, a participant may elect to receive
either a lump-sum amount equal to the value of the participant's vested interest in his or
her account, or choose from a variety of periodic payment options.
Change in Accounting - During the current year, the Plan adopted GASB Statement
No. 67, Financial Reporting for Pension Plans. This statement required certain
information to be included within the notes to the financial statements. As this
information was already included, there were no significant changes due to the
implementation of this standard.
9
Lansing Board of Water and Light
Employees' Defined Contribution Pension Plan
Notes to Financial Statements
June 30, 2014 and 2013
Note 2 - Summary of Significant Accounting Policies
Basis of Accounting - The financial statements of the Plan have been prepared using
the accrual method of accounting in accordance with Governmental Accounting
Standards Board (GASB) Statement No. 67, Financial Reporting for Pension Plans.
Use of Estimates - The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosures of contingent assets and liabilities at the date of the
financial statements and the reported amounts of additions and deductions during the
reporting period. Actual results could differ from those estimates.
Valuation of Investments and Income Recognition - The investments are stated at
market value based on closing sales prices reported on recognized securities exchanges
on the last business day of the year, or for listed securities having no sales reported, and
for unlisted securities, upon the last reported bid prices on that date. The mutual funds
are valued at quoted market prices, which represent the net asset values of shares held
by the Plan at year end.
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.
Participant Notes Receivable - Participant notes receivable are recorded at their
unpaid principal balances plus any accrued interest. Participant notes receivable are
written off when deemed uncollectible.
Expenses - The Plan's expenses are paid by the BWL as provided by the plan
document.
Regulatory Status - The Plan is not subject to the reporting requirements of the
Employee Retirement Income Security Act of 1974 (ERISA) as it has been established for
the benefit of a governmental unit.
10
Lansing Board of Water and Light
Employees' Defined Contribution Pension Plan
Notes to Financial Statements
June 30, 2014 and 2013
Note 3 - Investments
The pension trust fund is authorized by Michigan Public Act 314 of 1965, as amended, to
invest in certain reverse repurchase agreements, stocks, diversified investment
companies, annuity investment contracts, real estate leased to public entities,
mortgages, real estate, debt or equity of certain small businesses, certain state and local
government obligations, and certain other specified investment vehicles.
The Plan's deposits and investment policies are in accordance with PA 196 of 1997 and
has authorized the investments according to Michigan PA 314 of 1965, as amended.
Risks at June 30, 2014
Custodial Credit Risk of Bank Deposits - At the end of the year, the Plan has no
bank deposits.
Credit Risk - State law limits investments in commercial paper to the top two ratings
issued by nationally recognized statistical rating organizations. The Plan has no
investment policy that would further limit its investment choices. As of year end, the
credit quality ratings of debt securities (other than the U.S. government) are as follows:
Rating
Investment Fair Value Rating Organization
Mutual funds $ 130,442,786 Not rated Not rated
Stable value 33,607,203 AA S&P
Risks at June 30, 2013
Custodial Credit Risk of Bank Deposits - At the end of the year, the Plan has no
bank deposits.
Credit Risk - State law limits investments in commercial paper to the top two ratings
issued by nationally recognized statistical rating organizations. The Plan has no
investment policy that would further limit its investment choices. As of year end, the
credit quality ratings of debt securities (other than the U.S. government) are as follows:
Rating
Investment Fair Value Rating Organization
Mutual funds $ 109,882,178 Not rated Not rated
Stable value 32,243,585 AA S&P
II
Lansing Board of Water and Light
Employees' Defined Contribution Pension Plan
Notes to Financial Statements
June 30, 2014 and 2013
Note 4 - Plan Termination
Although it has not expressed any intention to do so, the BWL has the right under the
Plan to terminate the Plan subject to the provisions set forth in Article 12 of the Plan. In
the event of any termination of the Plan, or upon complete or partial discontinuance of
contributions, the accounts of each affected participant shall become fully vested.
Note 5 - Tax Status
The Plan is a prototype plan. The prototype plan has received a favorable opinion letter
from the Internal Revenue Service (IRS) that the prototype plan, as designed, is qualified
for federal income tax-exempt status. The Plan has not individually sought its own
determination letter.
12
Supplemental Information
13
Lansing Board of Water and Light
Employees' Defined Contribution Pension Plan
Statement of Changes in Net Position by Fund
Money Market Bond Funds
Year Ended June 30 Year Ended June 30
2014 2013 2014 2013
Increase
Investment income:
Net appreciation(depreciation)
in fair value of investments $ 485 $ 672 $ 449,026 $ (597,106)
Interest income - - - -
Dividend income - 2 555,414 818,952
Employer contributions 13,731 10,367 487,362 477,598
Participant rollover contributions - 3,553 33,403 14,921
Loan repayments 4,550 3,271 173,174 157,446
Interest from participant notes receivable - - - -
Other - - 13
Total increase, net of
realized and
unrealized gains
and losses 18,766 17,865 1,698,392 866,743
Decrease
Benefits paid to participants 64,086 64,224 536,673 519,536
Loans to participants 3,572 4,869 169,585 183,939
Loan defaults - - - -
Participants'note and
administrative fees 972 552 21,360 16,768
Total decrease 68,630 69,645 727,618 720,243
Net(Decrease) Increase Prior to
Interfund Transfers (49,864) (51,780) 970,774 146,500
Interfund Transfers (250,764) 294,155 (852,733) 2,652,578
Net(Decrease) Increase (300,628) 242,375 118,041 2,799,078
Net Position
Beginning of year 418,421 176,046 16,438,836 13,639,758
End of year $ 117,793 $ 418,421 $ 16,556,877 $ 16,438,836
14
Lansing Board of Water and Light
Employees' Defined Contribution Pension Plan
Statement of Changes in Net Position by Fund (Continued)
Stock Funds Balanced Funds
Year Ended June 30 Year Ended June 30
2014 2013 2014 2013
Increase
Investment income:
Net appreciation(depreciation)
in fair value of investments $ 9,532,529 $ 8,254,935 $ 3,198,720 $ 1,770,597
Interest income - - - -
Dividend income 3,874,276 1,273,144 558,296 425,615
Employer contributions 1,752,951 1,802,137 1,375,608 1,269,412
Participant rollover contributions 100,790 289,661 197,557 830,559
Loan repayments 602,678 619,254 349,248 370,113
Interest from participant notes receivable - - - -
Other 5 39 65 5,255
Total increase, net of
realized and
unrealized gains
and losses 15,863,229 12,239,170 5,679,494 4,671,551
Decrease
Benefits paid to participants 2,539,594 2,599,500 996,083 1,262,633
Loans to participants 634,522 640,159 367,726 497,315
Loan defaults - - - -
Participants'note and
administrative fees 31,744 31,247 12,891 9,530
Total decrease 3,205,860 3,270,906 1,376,700 1,769,478
Net(Decrease) Increase Prior to
Interfund Transfers 12,657,369 8,968,264 4,302,794 2,902,073
Interfund Transfers (3,657,845) (2,789,461) 4,798,682 (761,958)
Net Incease(Decrease) 8,999,524 6,178,803 9,101,476 2,140,1 15
Net Position
Beginning of year 51,617,791 45,438,988 20,394,104 18,253,989
End of year $ 60,617,315 $ 51,617,791 $ 29,495,580 $ 20,394,104
15
Lansing Board of Water and Light
Employees' Defined Contribution Pension Plan
Statement of Changes in Net Position by Fund (Continued)
Growth Funds International Funds
Year Ended June 30 Year Ended June 30
2014 2013 2014 2013
Increase
Investment income:
Net appreciation(depreciation)
in fair value of investments $ 1,053,965 $ 587,820 $ 3,063,853 $ 2,231,514
Interest income - - - -
Dividend income - 176,562 397,037 416,710
Employer contributions 588,556 609,029 535,453 595,157
Participant rollover contributions 9,045 - 31,217 148,746
Loan repayments 138,956 114,581 168,865 176,721
Interest from participant notes receivable - - - -
Other - - 22 -
Total increase, net of
realized and
unrealized gains
and losses 1,790,522 1,487,992 4,196,447 3,568,848
Decrease
Benefits paid to participants 266,068 308,879 712,842 873,697
Loans to participants 355,677 108,463 154,955 174,776
Loan defaults - - - -
Participants'note and
administrative fees 4,010 2,718 14,078 13,339
Total decrease 625,755 420,060 881,875 1,061,812
Net(Decrease) Increase Prior to
Interfund Transfers 1,164,767 1,067,932 3,314,572 2,507,036
Interfund Transfers (756,292) (476,252) (1,080,852) (1,662,094)
Net Incease(Decrease) 408,475 591,680 2,233,720 844,942
Net Position
Beginning of year 5,736,285 5,144,605 15,276,741 14,431,799
End of year $ 6,144,760 $ 5,736,285 $ 17,510,461 $ 15,276,741
16
Lansing Board of Water and Light
Employees' Defined Contribution Pension Plan
Statement of Changes in Net Position by Fund (Continued)
Total Mutual Funds
Year Ended June 30
2014 2013
Increase
Investment income:
Net appreciation(depreciation)
in fair value of investments $ 17,298,578 $ 12,248,432
Interest income - -
Dividend income 5,385,023 3,1 10,985
Employer contributions 4,753,661 4,763,700
Participant rollover contributions 372,012 1,287,440
Loan repayments 1,437,471 1,441,386
Interest from participant notes receivable - -
Other 105 226
Total increase, net of
realized and
unrealized gains
and losses 29,246,850 22,852,169
Decrease
Benefits paid to participants 5,1 15,346 5,628,469
Loans to participants 1,686,037 1,609,521
Loan defaults - -
Participants'note and
administrative fees 85,055 74,154
Total decrease 6,886,438 7,312,144
Net(Decrease) Increase Prior to
Interfund Transfers 22,360,412 15,540,025
Interfund Transfers (1,799,804) (2,743,032)
Net Incease(Decrease) 20,560,608 12,796,993
Net Position
Beginning of year 109,882,178 97,085,185
End of year $ 130,442,786 $ 109,882,178
17
Lansing Board of Water and Light
Employees' Defined Contribution Pension Plan
Statement of Changes in Net Position by Fund (Continued)
Stable Value Fund Brokerage Account
Year Ended June 30 Year Ended June 30
2014 2013 2014 2013
Increase
Investment income:
Net appreciation(depreciation)
in fair value of investments $ 609,278 $ 695,952 $ - $ (19,748)
Interest income - - 160,691 -
Dividend income - - - -
Employer contributions 714,164 730,401 - -
Participant rollover contributions 681,866 1,108,253 - -
Loan repayments 233,842 235,983 - -
Interest from participant notes receivable - -
Other 114,887 110,198 - -
Total increase, net of
realized and
unrealized gains
and losses 2,354,037 2,880,787 160,691 (19,748)
Decrease
Benefits paid to participants 2,529,770 3,468,740 - -
Loans to participants 122,602 255,109 - -
Loan defaults - - - -
Participants'note and
administrative fees 11,100 9,824 - -
Total decrease 2,663,472 3,733,673 - -
Net Increase (Decrease) Prior to
Interfund Transfers (309,435) (852,886) 160,691 (19,748)
Interfund Transfers 1,673,053 2,549,452 126,751 193,580
Net Incease(Decrease) 1,363,618 1,696,566 287,442 173,832
Net Position
Beginning of year 32,243,585 30,547,019 859,599 685,767
End of year $ 33,607,203 $ 32,243,585 $ 1,147,041 $ 859,599
18
Lansing Board of Water and Light
Employees' Defined Contribution Pension Plan
Statement of Changes in Net Position by Fund (Continued)
Participant Notes Receivable Total
Year Ended June 30 Year Ended June 30
2014 2013 2014 2013
Increase
Investment income:
Net appreciation(depreciation)
in fair value of investments $ - $ - $ 17,907,856 $ 12,924,636
Interest income - - 160,691 -
Dividend income - - 5,385,023 3,1 10,985
Employer contributions - - 5,467,825 5,494,101
Participant rollover contributions - - 1,053,878 2,395,693
Loan repayments (1,671,313) (1,677,369) - -
Interest from participant notes receivable 155,997 139,026 155,997 139,026
Other - - 114,992 110,424
Total increase, net of
realized and
unrealized gains
and losses (1,515,316) (1,538,343) 30,246,262 24,174,865
Decrease
Benefits paid to participants - - 7,645,1 16 9,097,209
Loans to participants (1,808,639) (1,864,630) - -
Loan defaults 1 19,694 120,280 119,694 120,280
Participants'note and
administrative fees - - 96,155 83,978
Total decrease (1,688,945) (1,744,350) 7,860,965 9,301,467
Net Increase(Decrease) Prior to
Interfund Transfers 173,629 206,007 22,385,297 14,873,398
Interfund Transfers - - - -
Net Incease(Decrease) 173,629 206,007 22,385,297 14,873,398
Net Position
Beginning of year 3,909,080 3,703,073 146,894,442 132,021,044
End of year $ 4,082,709 $ 3,909,080 $ 169,279,739 $ 146,894,442
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