NOTES TO FINANCIAL STATEMENTS Pension Benefits Other Benefits Amounts (in $000) <strong>2004</strong> 2003 <strong>2004</strong> 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, <strong>2004</strong> and 2003, respectively. The accumulated benefit obligation of the qualified plan was $15,024 and $13,794 as of December 31, <strong>2004</strong> and 2003, respectively. The assumptions used in the measurement of the <strong>Foundation</strong>’s benefit obligations are as follows: Pension Benefits Other Benefits <strong>2004</strong> 2003 <strong>2004</strong> 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 <strong>Foundation</strong> maintains a 401(k) defined contribution retirement plan for all eligible employees. The <strong>Foundation</strong> matches employee contributions up to $3,000 per year. For the years ending December 31, <strong>2004</strong> and 2003, the <strong>Foundation</strong> contributed $248,798 and $257,060 to the plan, respectively. ADMINISTRATION & INVESTMENT EXPENSES Administration Total Investment Total <strong>2004</strong> 2003 <strong>2004</strong> 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
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