Articulon News and Announcements

TCAR Supports Area Toy Drive

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MORRISVILLE, N.C. (December 18, 2012) – TheTriangle Commercial Association of REALTORS®, announced today that its December Showcase brought in more than 100 toys for the Capital City Clauses, a 501(c)(3) non-profit corporation. Its mission is to bring holiday cheer to Wake County children in need. All the toys benefit the Salvation Army Christmas Cheer Program.

The event was held December 12, 2012 on the 8th floor of One Bank of America Plaza and was sponsored by The Simpson Organization, which owns and manages the building, as well as Cassidy Turley, the leasing agent for the building. Along with tours of the available space, the Showcase included a presentation by Paul Reimel, economic development manager for the Downtown Raleigh Alliance.

About Triangle Commercial Association of REALTORS®: 
The Triangle Commercial Association of REALTORS® (TCAR) is one of 1,800 local associations of REALTORS® nationwide that comprise the National Association of REALTORS®. TCAR is the second largest commercial overlay board in North Carolina with 600 members and is accredited through the REALTORS® Commercial Alliance. The association was established in 1995, but began as a committee of the residential board in 1977. TCAR currently serves a 14 county area, including the Triangle, for real estate practitioners, appraisers, property managers, and other professionals allied with the real estate industry. For more information, visitwww.tcar.com.

 

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Left to Right: Rachel Hardin, Capital City Clauses President; Tim Lehan, Capital City Clauses Board of Directors Member Christina Coffey, TCAR Board of Directors Member

Construction Owners Report Project Disruptions Impact Industry

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RALEIGH, N.C. (December 17, 2012) – FMI, the largest provider of management consulting and investment banking to the engineering and construction industry, announces the release of its annual CURT Owners Survey. The report is based on surveying 45 member of the Construction Users Roundtable (CURT). CURT provides a national and international forum for the exchange of information, views, practices and policies of construction users from an array of industries and represents nearly $200 billion in capital and maintenance spending power. The 2012 survey reports that project disruptions, in the form of delays, cancellations and funding challenges, are having a significant impact on owners’ capital programs with 83 percent reporting project delays, 41 percent reporting project cancelations and 93 percent reporting the need to use self-funding for projects.

How capital program owners respond to both the current and future environment will significantly influence their ability to effectively plan, design, procure and manage capital projects. Based on survey responses, many capital-program owners have already begun the process of identifying future challenges and mitigating the impact. However, more than half are not confident in their responses to date.

The survey addresses:

  • Identifying future issues that may impact capital programs and the degree of preparedness to address those issues
  • The level of staffing changes during the past four years and anticipated staffing trends going forward
  • The degree of project disruptions affecting capital programs
  • The continued evolution of project delivery systems and procurement methods

To download a copy of the full report, click here. For reprint permission or to schedule an interview with the author, please contact Sarah Vizard Avallone at 919.785.9221 orsavallone@fminet.com.

About FMI:
FMI is the largest provider of management consulting, investment banking and research to the engineering and construction industry. We work in all segments of the industry providing clients with value-added business solutions, including:

  • Strategy Development
  • Market Research and Business Development
  • Leadership and Talent Development
  • Project and Process Improvement
  • Mergers, Acquisitions and Financial Consulting
  • Compensation Data and Consulting

Founded by Dr. Emol A. Fails in 1953, FMI has professionals in offices across the U.S. FMI delivers innovative, customized solutions to contractors; construction materials producers, manufacturers and suppliers of building materials and equipment, owners and developers, engineers and architects, utilities, and construction industry trade associations. FMI is an advisor you can count on to build and maintain a successful business, from your leadership to your site managers. For more information, visit www.fminet.com.

About Construction Users Roundtable (CURT):
An autonomous, not-for-profit organization, CURT strives to produce meaningful changes within the construction industry—promoting overall cost effectiveness; improving the way construction is planned, managed, justified and executed. Additionally, CURT works toward changing and improving what Owners allow, require and accept responsibility for on their global construction projects. Representing nearly $200 billion in capital and maintenance spending power, CURT is the premiere Owners’ organization and is recognized as a driving force behind continuous and significant improvement throughout the construction industry. For more information, visit www.curt.org.

Managing Employer-Sponsored Retirement Plans

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RALEIGH, N.C. (December 17, 2012) — The Employee Benefit Research Institute reports that less than 40 percent of Americans who worked in 2011 participated in employer-sponsored pensions or retirement plans. This is a major concern since Social Security alone is often not enough to maintain a person’s lifestyle after retirement. The ERISA practice group at Hughes Pittman & Gupton, LLP, one of the largest CPA firms headquartered and staffed in the Research Triangle Park region of North Carolina, recently sponsored two panel discussions with retirement-plan administrators to discuss this issue. The firm offers insights on how to increase enrollment in employer-sponsored plans.

During one panel discussion Dan Weeks, founder of BrightScope,® the leading independent provider of retirement plan ratings and investment analytics, shared that great 401(k) plans are comprised of five key elements:

  1. Low fees
  2. High company generosity
  3. High participation rates
  4. High salary deferral limits
  5. Large account balances

 

Many of these individual elements are dependent upon one another. For example, lower fees can result from larger account balances, which in turn are a result of higher participation rates. In addition, participation rates are often affected by how generous the company is and the amount that an employee is encouraged to contribute.

Other panelists offered several practical ways for employers to increase participation. Recommendations include:

  • Changing the matching contribution by the employer from a 50 percent match, up to six percent of an employee’s salary, to a 25 percent match, up to 10 percent of the employee’s earnings
  • Offering a target-date fund that automatically resets the asset mix (stocks, bonds, cash equivalents) in an individual’s portfolio, according to a selected time frame for retirement —This can be attractive to employees who do not wish to actively manage the risk and mix of their account
  • Establishing auto–enrollment — start at three percent of an employee’s salary and have it set to gradually increase over time
  • Adding a default fund option — A default fund is a super fund to which the employer can make contributions, if an employee does not make a plan choice

Employers need to be aware that there are some accounting responsibilities that come with offering retirement plan benefits. Because of this, it is important to engage in annual compliance auditing to help in preventing legal issues. A case in point is the March 2012 verdict where a U.S. District Court found ABB in violation of its fiduciary duty with respect to its 401(k) plan offerings. The court identified four violations:

  1. Failure to monitor recordkeeping costs and negotiate rebates from the trustee
  2. Failure to follow proper procedures and “mapping” assets moved from one fund to another
  3. Selection of share classes to be offered that had higher expenses than other available share classes
  4. Paying above-market fees for plan services in order to subsidize the non-plan corporate services provided by the fiduciary

In addition, as of May 31, 2012 new requirements by the U.S. Department of Labor obligate employee benefits administrators and their fiduciaries to increase the transparency of the fees and expenses paid by plan sponsors and participants. The law is designed to improve the ability of employers and their employees to make well-informed choices about their retirement plans.

Under the rules, plan fiduciaries are obligated to:

  • Give workers quarterly statements of plan fees and expenses deducted from their accounts
  • Give workers core information about investments available under their plan including the cost of these investments
  • Use standard methodologies when calculating and disclosing expense and return information to achieve uniformity across the spectrum of investments that exists in plans
  • Present the information in a format that makes it easier for workers to comparison shop among the plan’s investment options
The new requirements also include additional reporting obligations:

 

Regulation Disclosure From Disclosure To Effective Date Summary
Internal Revenue Service (IRS) Form 5500 Schedule C Plan sponsors of plans with 100 or more participants DOL and IRS Plan years beginning in and after 2009 Generally, the new rules require more detailed reporting of fees paid—directly or indirectly—to plan service providers from plan assets or participant accounts for the prior year.
Reasonable Contract or Arrangement Under Employee Retirement Income Security Act (ERISA) Section 408(b)(2)—Fee Disclosure Covered Service Providers (as defined in the new rule) Plan sponsors July 1, 2012 Generally, the new rules require point of sale disclosures describing fees and expenses incurred by plan fiduciaries from Covered Service Providers.
Fiduciary Requirements for Disclosure inParticipant-Directed Individual Account Plans—ERISA section 404(a)(5) Plan Sponsor Plan participants in participant-directed individual account plans subject to ERISA August 31, 2012 (for calendar year plans) Generally, the new rules require that additional fee disclosure be made to plan participants including both plan-related and investment-related fees and expenses.

Some experts claim the gloom and doom about the future of Social Security during campaign season was unwarranted. Believing instead that any change in benefits will likely be gradual. However, what we do know is that in June 2012, the average Social Security retirement benefit was $1,234 a month, or about $14,800 a year. This income alone will not afford most Americans the ability to maintain the same lifestyle that they enjoyed as part of the working population.

 Employer-sponsored retirement plans offer one of the most convenient ways for people to engage in saving for retirement. As employers work to differentiate themselves to recruit the best talent, benefit packages that include retirement savings plans will play an important role. However, these plans come with a need to comply with ever-changing regulation. To help employers make the best decisions on what plan options to offers, it is always advised to consult with a qualified CPA. The CPA can also assist with  reporting requirements and perform an annual audit of the plan to check for regulatory compliance.

About the Panel Discussions:

Hughes Pittman & Gupton, LLP; Comperio Retirement Consulting; and Parker Poe sponsored the two panel discussions with a keynote presentation by Dan Weeks, founder ofBrightScope®. Attendance included 63 CFOs, controllers, HR professionals and company presidents/CEOs.

The first panel of HR professionals included:

  • Claire Niver, Senior Vice President of Human Resources and Corporate Affairs at Pepsi Bottling Ventures
  • Kristin Overman, Manager of Human Resources at The Hamner Institutes for Health Sciences
  • Georgia Rothschild, Human Resources Manager at Precision Walls, Inc.
  • Amanda Mancuso, Chief of Staff at Scynexis Chemistry & Automation, Inc.

The second expert panel included:

  • Mark Livingston, Partner at Hughes Pittman & Gupton, LLP
  • Steve Long, Partner at Parker Poe
  • Jim Sotell, Managing Director at Comperio Retirement Consulting, Inc
  • Dan Weeks, Founder and COO of BrightScope

The event is part of an ongoing series of expert panels hosted by Hughes Pittman & Gupton, LLP. To learn about future panel discussion, contact Tim Tompkins at ttompkins@hpg.com.

 

Duplin County Schools Undertake Upgrades Expected to Cut Costs by $6.9M

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GREENSBORO, N.C. (Dec. 17, 2012) — Brady, a Trane independent office providing energy-efficient heating, ventilation and air conditioning systems, as well as comprehensive building solutions for commercial and industrial facilities across North Carolina, has begun facility improvements to enhance the learning environment in 15 Duplin County School buildings.

Trane is a leading global provider of indoor comfort solutions and services and a brand of Ingersoll Rand.School administrators expect the upgrades to generate $6.9 million in energy savings over the next 15 years while providing better lighting and temperature control. Upgrades were needed to replace aging equipment, improve the learning environment and reduce the consumption of fuel oil and water.Duplin County Schools funded the $4.6 million in upgrades with a performance contract, which allows the district to use future energy and operational savings to finance infrastructure improvements up front. Performance contracting is a funding option that provides measurable business results to support strategic objectives.

“We are excited to have the opportunity to make improvements in our buildings,” says Austin Obasohan, superintendent of Duplin County Schools. “Student achievement is our number one priority and we want all of our classrooms and buildings to provide a great atmosphere for learning and instruction. Being able to provide our students with an improved environment and to be better stewards of our natural resources by being more energy efficient at no cost to our tax payers is a winning combination.”

The improvements include lighting upgrades, new heating, ventilation and air-conditioning equipment, as well as building automation. When complete, the school system is expected to reduce its annual consumption by:

  • More than 1 million kWh of electricity and 20,730 therms of fuel oil the average annual usage by 69 households*
  • More than 2.9 million gallons of water the average annual usage of 114 people**

*Based on estimated average household usage according to the most recent Residential Energy Consumption Survey available from the U.S. Energy Information Administration,

**Based on estimated average per capita usage the most recent statistics available from the U.S. Geological Survey.

About Duplin County Schools:
Located in rural Eastern North Carolina, Duplin County Schools serves over 9,000 students in grades pre-kindergarten through 13th grade. Duplin County Schools is one of two school districts in the nation following a district-wide early college approach to seamless education. Through a partnership with James Sprunt Community College and the North Carolina New Schools Project, Duplin students are immersed in a college-going climate and culture beginning in pre-kindergarten. The goal for each child is college, career, and life success. For more information, visit duplinschools.net or call the office of public information at 910.296.6623.
About Brady:
Celebrating its 50th year, Brady is headquartered in Greensboro, N.C., with offices in Raleigh, Durham, Fayetteville, Wilmington and Charlotte. Founded in 1962 by Chairman Don Brady, the company remains a family owned enterprise, today employing 328 associates. The company works with building owners, facility managers, developers, architects, engineers and contractors providing sustainable, comprehensive building solutions for commercial and industrial facilities. Brady provides customers with a diverse range of solutions including building automation, energy conservation, green design, access controls, performance contracts, mechanical systems, parts and supplies, as well as responsible technical support. For more information, visit www.bradyservices.com or call (800) 849-1915.
About Ingersoll Rand:
Ingersoll Rand (NYSE:IR) advances the quality of life by creating and sustaining safe, comfortable and efficient environments. Our people and our family of brands—including Club Car®, Ingersoll Rand®, Schlage®, Thermo King® and Trane® —work together to enhance the quality and comfort of air in homes and buildings; transport and protect food and perishables; secure homes and commercial properties; and increase industrial productivity and efficiency. Trane solutions optimize indoor environments with a broad portfolio of energy efficient heating, ventilating and air conditioning systems, building and contracting services, parts support and advanced control. Ingersoll Rand is a $14 billion global business committed to a world of sustainable progress and enduring results. For more information, visit ingersollrand.com or trane.com.

Month 10: National Model Railroad Month

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The Crabtree Rotary Foundation in conjunction with the City of Raleigh Parks and Recreation, the Articulon team provided sponsorship, creative and public relations support for the 5th Annual Holiday Express. It was the third year the family-oriented festival includes a model train ride through Pullen Park to see an exciting display of holiday lights and decorations.