CITY OF SAN DIEGO
RETIRED EMPLOYEES
ASSOCIATION
BOARD OF DIRECTOR’S RETREAT
FEBRUARY 13, 2004
MISSION TRAILS REGIONAL PARK VISITOR’S CENTER
PRESENT: Nancy Acevedo, Adam Saling, Bob Cain, Sylvia
Tatum, Joe Flynn, Judy Folsom, Bob West, Dave Wood, Alice Anglim, Don Robbins,
Charles Buchanan, John
Tsiknas.
ABSENT: Sharon Beach, Dave Crow, John Casey.
GUEST: Bob Headland
President Nancy Acevedo
called the meeting to order at 9:15 AM.
RETIREE ISSUES TASK FORCE
In the absence of Dave Crow,
Bob West reported that the RITF met three times in 2003. Although it was evident that there would be
no movement on increased benefits in the near term due to the Pension Fund
crisis, a dialogue was maintained with Larry Grissom and others regarding retiree
concerns including the 13th check, Corbett settlement payments and
health care insurance guarantees.
Nancy outlined a draft of a
letter to be sent to the Retirement Board from the RITF outlining major points
for 2004:
for health benefits
Don Robbins stated that he
felt continued health insurance coverage was the most important benefit
that may be in jeopardy and whether that shouldn’t be number one on the
list. After discussion it was agreed
that the letter would stress that Items I, 2 and 3 were of equal weight
and should not be considered in any priority order.
Nancy stated that the letter
to Mike McGhee regarding Supplemental COLA calculations in the absence of the
13th check was mailed on February 12.
Bob West reported that the HAC met four times in 2003
Items discussed included the
lower than anticipated use of the “Health Care Counsel” instigated by the
Retirement Office and whether it would be continued; rate increases; ability of
city retirees to switch to the COBRA health plan with reimbursement from the
city; and the myriad of different health care plans available (see massive open
enrollment period charts.) Costs could
probably be reduced if there were fewer plans with more enrollees in each one. But if the number of plans were reduced to a
few or even ONE- which one? The vast
array of ages, requirements and preferences will probably make any meaningful
consolidation unlikely.
Another item of concern to
retirees is the fact that, although over 5,000 retirees are affected, the “meet
and confer” sessions between the health insurance providers and active employee
groups are “confidential” and not open to the HAC or any retiree.
Since 2004 will be the second
year of a two-year contract with insurers, there will be no change in
providers; however, rates may increase.
It was agreed that plan
representatives would be invited to speak at the June General Member’s meeting
before open enrollment.
Charles Buchanan reported on printing costs for the “invitation letter” and the survivor benefits brochure as follows:
Invitation letter- 500 with
envelopes
Phoenix Printing & Mailing $225
City Print Shop 412
Survivor Benefits Brochure
(1,000)
Phoenix $180
City 195
The Board unanimously
approved Phoenix for both printing jobs.
Bob Cain will get the brochure
masters to Charles. Charles will verify
all telephone numbers before ordering printing.
The matter of Sharon Beach’s
problems with Social Security (she was required to notify SS of any increase in
income including COLA) was raised again and there were several opinions as to
why she was required to do this and the rest of us weren’t. It was agreed that a SS administrator be
invited to a future general member’s meeting to answer this and other SS
related questions.
Don Robbins brought up the
matter of our “mission statement” and the need to convince new retirees to join
our association through the invitation letter, especially in light of the
present possible “conflicting goals” between retirees and “actives.”
How does a person switch allegiances from one group to the other upon
retirement? It was generally agreed that
the letter should stress that, similar to a union, there is “strength in
numbers” and that an association of over 1,000 retirees gets more attention
than one lone retiree writing a letter or appearing before a Board or the City
Council. The social and educational
values of the association should, of course, also be stressed.
Someone brought up the fact
that a recent retiree friend had not received an invitation letter. Nancy will check to make sure the retirement
office is sending them out.
No pre-retirement seminars
have been scheduled as of this date.
The question of mailing to
retirees using the retirement office database was discussed. Judy Folsom said that the RO database was
improved and more flexible as to whose names could be extracted from the whole
for specific mailings. The privacy issue
still exists but if labels could be supplied at the office with association
members doing the envelope stuffing and applying postage could we take
advantage of their database? Nancy will
investigate.
The suggestion was made that the newsletter be enlarged from two pages to four. It was generally thought to be a good idea and the additional cost for printing (no additional postage) not being a strain on the budget what with the dues increase. Some suggestions for additional items in the newsletter:
list of new members, In Memoriam, printing the previous month’s meeting minutes verbatim, selected Board meeting items, 80 and over birthdays, more details on previous guest speaker’s comments, etc. Nancy asked all to think about additional items and a discussion and decision would be made at the next Board meeting in March.
It was suggested that e-mail
be used for disseminating the newsletter to members with computers to save on
postage. A good way to get out a
newsletter to a small group but if our association is “average” 40% will own
computers which is 400 members. Keeping
an up-to-date list of 400 e-mail addresses is a very big job and not one that
anyone wanted to take on. The issue of a
website as an alternative was raised.
John Tsiknas said he had a relative who could design a website. The Board approved $500 in the 2004 budget
for development of a website.
In the absence of Dora Garcia, Alice Anglim urged the newsletter editor to continue to stress the need to reserve luncheon reservation by the Friday
before the general meeting.
Bob Headland stated the audit committee had submitted their report to the Board at their February meeting. The books were in good order and the Board approved one recommendation to add an income/expense column to the monthly Reserve Fund accounting.
MEA-ACTIVE EMPLOYEES LIAISON
Alice Anglim passed out copies
of the slides used by Ron Sattoff in his
presentation to the Pension Review Commission showing Retiree benefit
enhancements since 1971.
Adam Saling recommended that the Board consider giving recognition awards for outstanding service to association members as well as “outside” people. This idea was favorably received and Nancy will appoint a committee to set guidelines for such awards in the future.
Chief among the Board’s accomplishments during 2003 were:
1.
The development
of a 2003 budget showing the need for higher dues
to cover anticipated expenses and obtaining the
approval the membership of a doubling of the dues to $1.00 per month.
2.
Approval of a
by-laws revision to provide for “affiliate membership” to include any person
participating in the DROP program or who has left city employment while
maintaining an account with the CERS while awaiting the age of retirement
eligibility.
3.
Preparation of a
Supplemental Benefit Issue Position Paper
4.
Switching the
newsletter printing and mailing to one supplier for considerable cost savings.
The 2003 actual expenses were reviewed and the 2004 budget finalized.
(copy attached) Major changes include a $500 reduction in Newsletter costs (which may increase if a third and fourth page are added), $100 increase in Sunshine Lady budget, $200 increase in Recognition awards budget and $500 for website development. The total budget estimate for 2004 is $17,170, with a $2,840 reserve. This does not include a projected $1,020 cost of Board liability insurance. The general consensus of the Board at present it not to purchase liability insurance. John Tsiknas will contact Alan Sumption, Jack Katz, or
Hal Valderhaug, retired city attorneys to ask their opinion.
Adam Saling quoted two of the specific purposes of the association from the Articles of Incorporation:
Adam stated his opinion that
the association and Board of Directors were not adequately promulgating these
specific purposes, citing individual efforts of people like Dave Wood, Jim
Gleason, Bill Corbett and others but decrying the efforts of the association as
a whole. Others referred to the
Retirement Issues Task Force, the Health Advisory Committee and various recent
position papers as evidence of joint efforts to “advance the social and
economic welfare” and “present the rights and interests of retired
members.”
After considerable discussion
it was moved and seconded to establish a policy to facilitate proper advocacy
of events affecting the retired membership and to appoint a committee to
formulate guidelines and a policy for furthering the advocacy of the City
Retired Employees Association with the committee to report to the Board at its
April meeting. Passed unanimously.
President Acevedo appointed
Adam Saling (chair), John Tsiknas, Judy Folsom, Charles Buchanan and Bob
Headland to the committee.
In light of the fact that some Corbett settlement payments are now 2 ½ years in arrears, the question of payment of monies due to a deceased retiree’s estate/heirs becomes ever more critical. The ordinance setting up the Corbett payments mentions payment of monies due a deceased retiree only if there is a “continuous beneficiary named”, usually meaning a spouse only. What about widows, widowers and single persons? Will (should) monies due them upon death revert back to the city? This must be clarified soon
As with the Corbett settlement payments, the question of whether health care insurance premiums are a vested right must be addressed as soon as possible.
In light of the current Pension Fund crisis and the many voices advocating a reduction in “exorbitant” city pension benefits as a means of solving the problem, it is imperative that the association be in the forefront of the fight to retain our current hard fought benefits and to counter those voices painting all city retirees as “double-dipping millionaires feeding greedily at the public trough at the expense of the taxpayer.”
The meeting was adjourned at 2:20PM.
Respectfully submitted,
Robert E. Cain
Secretary