Annual Report 2004 - Charles Stewart Mott Foundation

NOTES TO FINANCIAL STATEMENTS
Pension Benefits
Other Benefits
Amounts (in $000) 2004 2003 2004 2003
Benefit obligation at December 31 $ 21,614 $ 19,320 $ 8,329 $ 7,569
Fair value of plan assets at December 31 11,785 9,142 0 0
Funded status at December 31 $ (9,829) $(10,178) $(8,329) $ (7,569)
Accrued benefit liability as recognized
in the statements of financial position $ (5,276) $ (7,255) $(3,800) $ (2,769)
Intangible asset as recognized in the
statements of financial position 152 1,416 0 0
Net periodic benefit cost 1,665 1,665 1,198 1,023
Employer contributions 1,746 1,400 0 0
Benefit payments (249) (407) (167) (135)
The accumulated benefit obligation of the nonqualified pension plan was $1,329 and $1,306 as of
December 31, 2004 and 2003, respectively. The accumulated benefit obligation of the qualified plan was
$15,024 and $13,794 as of December 31, 2004 and 2003, respectively.
The assumptions used in the measurement of the Foundation’s benefit obligations are as follows:
Pension Benefits
Other Benefits
2004 2003 2004 2003
Discount rate 5.50% 5.75% 5.50% 5.75%
Expected return on plan assets 8.50% 8.50% N/A N/A
Rate of compensation increase 5.00% 5.00% N/A N/A
For measurement purposes, an initial annual rate of 10% in the per capita cost of health care was used.
The rate was assumed to decrease gradually each year to an ultimate rate of 5% by year 2015.
Defined Contribution (401k) Plan
In addition to the above, the Foundation maintains a 401(k) defined contribution retirement plan for all
eligible employees. The Foundation matches employee contributions up to $3,000 per year. For the years
ending December 31, 2004 and 2003, the Foundation contributed $248,798 and $257,060 to the plan,
respectively.
ADMINISTRATION & INVESTMENT EXPENSES
Administration Total
Investment Total
2004 2003 2004 2003
Salaries $ 6,921,574 $ 7,082,282 $ 1,748,148 $ 1,863,190
Other personnel costs 3,672,475 4,241,727 546,391 639,630
Operations 1,271,085 1,385,329 269,012 310,159
Professional fees 1,243,446 1,176,625 957,216 335,638
Travel and business expense 852,511 813,719 12,198 9,597
Publications and contract services 400,089 437,479 0 0
$14,361,180 $15,137,161 $ 3,532,965 $ 3,158,214
84 CHARLES STEWART MOTT FOUNDATION