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Report of Independent Registered Public Accounting Firm	1
Financial Statements
Statements of Net Assets Available for Benefits	2
Statements of Changes in Net Assets Available for Benefits	3
Notes to Financial Statements	4-8

 

 

 

Note:    Schedules required by 29 CFR 2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security

             Act of 1974 (“ERISA”), as amended, have been omitted because they are not applicable.

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Report of Independent Registered Public Accounting Firm

 

To the Participants and Administrator of the

Ameren Corporation Employee Long-Term

Savings Plan - IBEW No. 702

 

In our opinion, the accompanying statements of net assets available for benefits and the related statements of changes in net assets available for benefits present fairly, in all material respects, the net assets available for benefits of the Ameren Corporation Employee Long-Term Savings Plan - IBEW No. 702 (the “Plan”) at December 31, 2004 and 2003, and the changes in net assets available for benefits for the years then ended in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

 

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

St. Louis, Missouri

June 13, 2005

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	2004			2003
Additions
Plan interest in Central Illinois Public Service Company
Master Long-Term Savings Trust (Note 6)	$	4,211,859		$	6,606,177
Participant contributions		3,155,261			3,176,552
Employer contributions		396,797			416,884
Plan transfer in (Note 1)		17,749			-
Total additions		7,781,666			10,199,613
Deductions
Benefits paid to participants		2,504,031			1,839,159
Administrative expenses		4,103			17,166
Plan transfer out (Note 1)		895			202,740
Total deductions		2,509,029			2,059,065
Net increase		5,272,637			8,140,548
Net assets available for benefits
Beginning of the year		40,933,588			32,793,040
End of the year	$	46,206,225		$	40,933,588

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

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Participant Loans

The Plan permits Participants to borrow from their accounts within the Plan. Such borrowings may be made subject to the following: (1) the minimum amount of the loan is $500, (2) the amount of the loan may not exceed the lesser of $50,000 or fifty percent of the vested amount in the Participant's account, (3) the loan will bear a fixed interest rate and repayments will be made through mutual agreement subject to certain statutory repayment time limits, and (4) such other rules and regulations as may be adopted by the Company. At December 31, 2004 and 2003, the interest rates on Participant loans ranged from 4.0 percent to 9.5 percent.

 

Vesting

The amounts in Participants' accounts, including Company contributions, are fully vested at all times.

 

Payment of Benefits

Upon termination of employment for any reason, a Participant will be entitled to receive the balance in the Participant’s account less the unpaid amount of any outstanding loan, including accrued interest. Generally, distributions will be made in a lump sum; however, in certain circumstances a Participant may also elect to receive his/her distribution in installments. Certain distributions may be deferred until a Participant reaches age 70 1/2, dies, or requests an earlier distribution, whichever occurs first.

 

Plan Transfers

For 2004, Plan transfers in and out represent amounts of the Participants’ account balances which were transferred between the Plan and the Ameren Corporation Employee Long-Term Savings Plan - IUOE No. 148 during the year. For 2003, Plan transfers out represent Participants’ account balances which were transferred from the Plan into the Ameren Corporation Savings Investment Plan. In each year, plan transfers were due to participants changing their participant status, such as transferring to a different collective bargaining unit or transferring from a collective bargaining unit to a management position.

 

Plan Termination

The Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants will become 100 percent vested in their accounts. Any unallocated assets of the Plan shall be allocated to participant accounts and distributed in such a manner as the Company may determine.

 

2.	Summary of Significant Accounting Policies

 

Basis of Accounting

The accompanying financial statements of the Plan are prepared on the accrual basis of accounting, except that benefit payments to participants are recorded upon distribution.

 

 

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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 disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of changes in net assets available for benefits during the reporting period. Actual results could differ from those estimates.

 

Investments

All investments held by the Master Trust are presented at fair value as of December 31, 2004 and 2003. The fair value of the Ameren Common Stock Fund was determined using year-end published market prices. Investments in equity securities and bonds are valued at published net asset market values including accrued income on the last business day of each year. Investments in the BGI Money Market Fund and Merrill Lynch Retirement Preservation Trust are valued at cost plus accrued income, which approximates market value. Participant loans are valued at cost which approximates market value.

 

Investment securities are exposed to various risks, such as interest rate, market, and credit. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is at least reasonably possible that changes in risks in the near term could materially affect the amounts reported in the Statement of Net Assets Available for Benefits.

 

Income

Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date. Gains and losses on security transactions are recorded on the trade date.

 

Administrative Expenses

In general, expenses to administer the Plan, including fees and expenses of the Trustee, are paid by the Company, except as provided for in the Plan provisions. All transaction fees of an investment fund are paid from the assets of that investment fund.

 

3.	Transactions with Parties-in-Interest

 

At December 31, 2004, the Master Trust held Company common stock for the Plan with a cost and market value of $12,098,501 and $13,178,433, respectively. During 2004, the Plan purchased shares at a cost of $2,326,091 and sold shares valued at $1,773,044.

 

At December 31, 2003, the Master Trust held Company common stock for the Plan with a cost and market value of $10,644,535 and $11,709,230, respectively. During 2003, the Plan purchased shares at a cost of $1,813,015 and sold shares valued at $1,087,511.

 

At December 31, 2004, the Master Trust held investments in various accounts for the Plan that are related to Merrill Lynch, the Plan’s Trustee. At December 31, 2004, these investments had a cost and market value of $21,368,536 and $23,144,986, respectively.

 

At December 31, 2003, the Master Trust held investments in various accounts for the Plan that are related to Merrill Lynch, the Plan’s Trustee. At December 31, 2003, these investments had a cost and market value of $11,182,491 and $13,518,178, respectively.

 

 

 

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These transactions are allowable party-in-interest transactions under Section 408(b)(8) of the ERISA regulations.

 

4.	Reconciliation of Financial Statements to Form 5500

 

The following is a reconciliation of net assets available for benefits per the financial statements to the Form 5500 at December 31, 2004 and 2003:

 

	2004			2003
Net assets available for benefits per the
financial statements	$	46,206,225		$	40,933,588
Amounts allocated to withdrawing Participants		(867	)		-
Net assets available for benefits per the Form 5500	$	46,205,358		$	40,933,588

 

The following is a reconciliation of benefits paid to Participants per the financial statements to the Form 5500 for the years ended December 31, 2004 and 2003:

 

	2004			2003
Benefits paid to Participants per the
financial statements	$	2,504,031		$	1,839,159
Add:   Amounts allocated to withdrawing
Participants during the current year		867			-
Less:   Amounts allocated to withdrawing
Participants during the prior year		-			-
Benefits paid to Participants per the Form 5500	$	2,504,898		$	1,839,159

 

 

Amounts allocated to withdrawing Participants are recorded on the Form 5500 for benefit claims that have been processed and approved for payment prior to December 31, but not yet paid as of that date.

 

5.	Federal Income Tax Status

 

The Company received a favorable determination letter from the Internal Revenue Service dated May 29, 2002, concerning the qualification of the Plan under federal income tax regulations. In addition, the Company also received a favorable determination letter from the Internal Revenue Service dated December 8, 1986, concerning qualification of the Master Trust under federal income tax regulations. Management believes that the Plan is currently designed and is being operated in compliance with requirements of the Internal Revenue Code and that the Plan is tax exempt as of the financial statement date.

 

6.	Participation in Master Trust

 

The Master Trust was established April 1, 1985, to serve as the funding vehicle for the Plan and for the other separate Employee Long-Term Savings Plan, which is for the members of the IUOE No. 148 collective bargaining unit employed by Ameren Energy Generating Company. At December

 

 

 

 

The following table presents the fair value of investments for the Master Trust at December 31, 2004 and 2003:

 

	2004			2003
Investments at Fair Value
Ameren Common Stock Fund	$	24,515,713		$	21,121,177
Merrill Lynch Equity Index Trust		16,484,217			14,761,489
Merrill Lynch Growth Equity Fund		9,995,595			9,010,167
AIM Premier Equity Fund		4,689,202			4,365,812
BGI Government Corporate Bond Index Fund		3,473,606			3,238,826
Merrill Lynch Global Allocation Fund		2,508,102			1,732,344
Merrill Lynch Balanced Capital Fund		1,366,341			1,242,312
Investments at Estimated Fair Value
Merrill Lynch Retirement Preservation Trust		5,787,683			5,570,523
BGI Money Market Fund		4,284,523			5,157,889
Participant Loan Fund		2,319,429			2,361,913
Total Master Trust investments	$	75,424,411		$	68,562,452

 

Investment income for the Master Trust for the years ended December 31, 2004 and 2003 is as follows:

 

	2004			2003
Interest and dividends	$	1,742,399		$	1,628,387
Net appreciation in fair value and estimated fair value
of investments		5,190,748			9,026,400
	$	6,933,147		$	10,654,787

 

 

 

 

 

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SIGNATURES

 

 

            The Plan.  Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused

 

this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

 

 

 

	AMEREN CORPORATION LONG-TERM SAVINGS PLAN -   IBEW NO. 702     AMEREN SERVICES COMPANY              (Administrator)
Date:  June 28, 2005	By:	/s/ Donna K. Martin
		Donna K. Martin
		Senior Vice President and Chief Human Resources Officer

 

EXHIBIT INDEX

Exhibit No.               Description   

   23                  Consent of Independent Registered Public Accounting Firm

 

 

 

 

 

 

 

 

 

 

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