TRA pension legislation was passed by the legislature, but vetoed by Governor Dayton. The governor’s rational for his veto, an unfair burden to retirees, puts the TRA and other MN pension plans in jeopardy.

The MN legislative plan was a stopgap measure for reaching TRA Sustainability. It’s only component on the stability component would have cut TRA COLA to 1%, from the 2% under current legislation. The financial package to address the

projected $106 million deficit would need to be addressed in the 2017 legislation session. The governor’s message was that it is unfair to place the burden on current retirees.

The governor has the authority to call for a special session. At this time legislation to deal with TRA’s sustainability issue is NOT on the agenda. As we know a ‘special session’s’ agenda and components are decided prior to the governor’s call for the session. Without consideration in a special session the sustainability MUST be considered in the 2017 session.

This presents TRA/REAM members with the task of being very knowledgeable and actively involved in the 2016 election campaigns. With both the MN House and Senate up for the election of 201 seats, we need to attend candidate’s rallies, pay attention to candidate’s speeches, and become involved in campaigns to elect our legislators. Involvement means that we ask the candidates what position they hold on MN public pensions. You know the facts and you need to continue with your educational expertise to inform/educate our candidates about MN public pensions. You need to eradicate pension myths.

Here are some key points to educate your candidates, or current legislator:

1. Teachers and other public pension members CONTRIBUTE to their pensions at 14%. Employers, whether state, city, county, or school district, contribute 17%. Investment returns, managed by the State Board of Investment, contribute 69%.

2. The MN state’s contribution to our pensions is 1.6%. This is less than the average state contribution nationwide, which is a 2.8%.

3. TRA MN pensioners receive, on average, $2300 per month for new retirees.

87% of MN pension receivers stay in Minnesota. Economic impact of Minnesota public pensions • $7 billion impact on state economy • 46,581 jobs • $1.2 billion annually in federal, state and local

revenue

4. MN pension have always been focused in working with the legislature to reform/modify pension plans to maintain sustainability.

5. MN Pension plans are transparent in reporting pension costs.

6. Defined Benefit plan costs are 46% lower than a 401 (k) plan of investment. To change from a defined benefit plan to a 401 (k) plan would cost nearly $3 billion over the next decade and we would very likely receive less money in our pension checks.

As REAM members it is vital that we know and provide correct answers in defense of our pensions. As your president, I contend that legislative candidates and incumbent legislators need education on pensions. It is our responsibility, as educators and receivers of these pensions, to discuss and educate our legislators and would be legislators of the benefits these pensions bring to every one of the counties they represent in the state of Minnesota. We cannot assume they know the figures or have the correct

PRESIDENT’S REPORT John Fisher, REAM President

Volume 54, No. 4 http://mnream.org July 2016

John Fisher,President of REAM

Continued on page 3

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It’s soon State Fair time. Chuck and I often have worked at the AARP booth for a few hours one of the fair days. Other REAM members also volunteer to help out. Why?

REAM is affiliated with the National Retired Teachers Association which is the group that started AARP. Both groups are retired people, or “soon- going-to-be retired folks who want to continue their quality of life into their retirement years as long as possible”, organizations. Our job is to help make retirement living as good as possible. Some of this requires legislative action. This means that new rules need to be established to help our loved ones, and maybe us in the future. It also means that planning for retirement has to begin early in life, but a plan is needed that would make it easier for our younger families to save for their retirement years. AARP is working on all of these issues, but they need help from us to get the job done.

This year there are several issues that need our help: • support for family caregivers • livable communities • broader access to retirement savings plans • Social Security tax relief

All of these topics would make good information for presentation at local REAM Units. Volunteers are needed to contact legislators and people running for office in this election. No experience is necessary. New volunteers are paired with experienced volunteers or AARP staff when meeting with their representative or other legislative leaders. When we work with AARP, we are not only working for retired teachers, we are helping everyone. We all get “old” sooner or later. We need help to prepare.

For more information go to the AARP website or email Erin Parrish, AARP Minnesota Advocacy and Outreach Director, at eparish@aarp.org or call 651.726.5644

EDITOR’S NOTES Anita Hellie, REAM Editor

Anita Hellie, Editor

REAM EXECUTIVE COMMITTEE

REAM OFFICERS

President: John Fisher1766 Linden Cove White Bear Lake, MN 55110651-653-9498johnffisher@hotmail.com

President-Elect:Lonnie Duberstein491 South Oak Drive Vadnais Heights, MN 55127(c) 651-328-1094651-429-8009duberlnm@q.com

Vice President: Paul Ehrhard2743 Rushmore Rd. Hastings, MN 55033651-319-0777prhrhard@gmail.com

Past President: Curt Hutchens614 N. Montrose Rd. St. Cloud, MN 56301 320-229-8806onthelake2@msn.com

REAM OFFICERS

Exec. Director: Chuck Hellie1129 Heritage Drive Northfield, MN 55057 507-301-3609cchellie@charter.net

Secretary: Karna Brewer431 Fremont St. Anoka, MN 55303 763-427-8595brewer.com2@juno.com

Treasurer: Gordon Wagner317 Waite Avenue S.St. Cloud, MN 56301320-249-2719gmkwagner2@gmail.com

COMMITTEE CHAIRPERSONS

Legislative Chairperson: Don Leathers304 19th St. NWAustin, MN 55912(c) 507-219-0592507-433-1119dleathers@cleggithy.com

Membership Co-Chair: Judy Resler651-484-6030jresler@comcast.net

Editor: Anita Hellie507-301-3609ahellie@charter.net

President-Elect Lonnie Duberstein and I were in Chicago May 2-5 at an NRTA (National Retired Teachers Association) Leadership Training Program. Much of the training was about Engaging Younger Members. Participants were from Alaska to Arizona, Mississippi to Virginia and Washington, D.C. to Rhode Island and New Hampshire and even Maine. Our meetings were in The Auditorium, a downtown Chicago office tower where one had to get a visitor’s pass after showing your driver’s license. With the pass a person at the elevators directed you to the correct elevator. There seemed to be more security than in previous NRTA Programs that I have attended in Chicago. Lonnie will be returning to Chicago for a follow-up Program in September.

Look for the Hotel Registration and Conference Registration in this issue of the REAM News. The 2016 Conference is at

the Alexandria Holiday Inn which is right off I-94 just to the south of the Alexandria Exit. Your local unit should consider sending someone as a delegate to report back to your local unit. Some units do help that person with reimbursement for registration, lodging and or mileage.

REAM has a new Logo, and we now have REAM polo shirts with the new REAM Logo. Paul Ehrhard is pictured with the new REAM polo shirt elsewhere in the REAM News. Contact your REAM Director or myself if you are interested in having a REAM polo shirt. This is good advertising for REAM. It makes the organization more visible.

We just returned from a family reunion north of Grand Forks – Alvarado, Minnesota, my wife’s hometown. We received a tour of the house where she grew up. The house is well maintained and is being restored to its 1915 looks with the modern updates that make for easy living in the 21st century. We stayed in Grand Forks at a new La Quinta Inns & Suites. This was the nicest La Quinta we have stayed in. We saved $20 per night using our AMBA Discount. We registered on line and when you get to the “Promo Code” you put in “AMBA” and then you see what you save. I plan to use “La Quinta” again this August in New Mexico. Minnesota has 9 La Quinta Inns & Suites. Four are located in Minneapolis, two in Bloomington, and one each in Brooklyn Park, Minnetonka and Rochester. REAM members can save using AMBA!

EXECUTIVE DIRECTOR’S REPORT Chuck Hellie, Executive Director

Chuck Hellie,Executive Director

information. REAM is working at protecting pensions for TRA/PERA retirees and we are working at protecting pensions for those who are currently in the system and will soon become retirees, and for TRA/PERA members who will start their careers in 2017. Your active involvement and voice in defense of Defined Pension Benefits is critical in this election year!

John Fisher, REAM President continued from page 1 REAM Membership Report as of June 2016 June 2015Total Membership 8773 7791

Total Members by Division C 1530 M 3152 NE 649 NW 552 SE 1307 O 955 SW 628

Encourage nonmembers to join REAM. Be sure to contact newly retired school personnel. REAM is working for YOU!

REAM MEMBERSHIP

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Lonnie Duberstein and Chuck Hellie attended the NRTA 2016 Leadership Training in Chicago in May.

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*Name (A) *Name (B)

*Address *Address

*City/State/Zip *City/State/Zip

*Phone *Phone

*eMail *eMail

Please PRINT how you want your name badge to appear!

*Name *Name

City/Unit City/Unit

*Required

REGISTRATION FOR HISTORICAL BUS TOUR ON MONDAY, SEPTEMBER 26Coach bus loads at 12:15 from hotel entrance – departs at 12:30

Coach bus tour - $10.00 per person A $__________ B $__________ (Cost includes coach bus, guide, the lakes & museum)

FULL CONFERENCE REGISTRATION:Full conference includes: registration, all meals, breakout sessions , taxes, service fees, and gratuities (not rooms). For $85.00. Late fee after 9/8/2016 is $100.00. A $__________ B $__________Meal choice selection:Monday dinner: #1 Pot Roast A_____ B_____

#2 Broiled Walleye

MAKE CHECKS PAYABLE TO: REAM TOTAL: A $__________ B $__________

PARTIAL CONFERENCE REGISTRATION:Partial conference includes either Monday and/or Tuesday, but does not include meals. It does include registration, breakout sessions, taxes, service fees, gratuities, and Tuesday’s snacks and door prize drawings. Fee before 9/8/16, $25.00, or late fee of $35.00 after 9/8/16.

REGISTRATION A $__________ B $__________ Monday dinner: #1Pot Roast A______ B______ $33.00 ea #2 Broiled Walleye A $__________ B $__________

Tuesday Breakfast $14.00 ea. A $__________ B $__________Tuesday Lunch $15.00 ea. A $__________ B $__________

MAKE CHECKS PAYABLE TO: REAM TOTAL: A $__________ B $__________

Photos will be taken at the 2016 Conference. Please sign that your image may appear in the REAM NEWSLETTER, REAM Website and/or REAM’s Facebook Page. Signature ____________________________________

MAIL REGISTRATIONS & CHECK TO: Kathy Ehrhard, 2743 Rushmore Rd, Hastings, MN 55033-3752 email: ms.kathye@yahoo.com phone: 651-319-0777

2016 REAM CONFERENCE REGISTRATION FORM

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1. Call Alexandria Holiday Inn at 320-763-6577.

2. Request the REAM Block of Rooms.

3. Room Rates: $72.99 + Tax (9.875%) = $80.20. Recreation Area Room Rates: $92.99 + Tax (9.875%) = $102.17

4. Have Credit Card Number ready.

5. REAM Block Rooms not booked by Monday, September 12 will be released to the general public.

REAM LOCAL UNITS

All local REAM Units are asked to donate a door prizefor the 2016 REAM State Conference in Alexandria.

2016 REAM CONFERENCE HOTEL ROOM RESERVATIONS

Rhonda Fochs, a newly retired teacher, will present “Lost Towns” onMonday, September 26 at 3 p.m. and Tuesday, September 27 at 8 a.m.during simultaneous breakout sessions at the 2016 REAM Conferenceat the Alexandria Holiday Inn September 26 and September 27. These lost towns are all over Minnesota.

“Speaking at the 2016 REAM Conference at the Alexandria Holiday InnSeptember 27 will be the new PERA (Public Employees Retirement Association) Executive Director Douglas Anderson and TRA (Teachers Retirement Association) Executive Director Laurie Hacking.”

Paul Ehrhard displays the new REAM Polo Shirt. Paul will speakat the 2016 REAM Conference on Tuesday, September 27 on“Membership Strategies” at 8 a.m.

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LEGISLATIVE INPUT INVITATION...

Tim Moynihan, Legislative Committee

Members . . . The Situation of our Pension Preservation Mission has changed. The Experience Study that was described by my colleague, Henry Carbonne, has changed the view of our Pension Sustainability. Legislation that was proposed and before the Legislative Pension and Retirement Commission (LPRC) was not passed as a bill . . . Instead . . . It was passed in Part . . . as an initiative that required only sacrifice by US . . . the Retirees. Fortunately, the Governor decided to line item veto that provision as being “Unfair”.

As of this writing, the prospect of a Special Session for our State Legislature is being negotiated. It is believed by this writer that a Pension Bill that enacts a “Shared” sacrifice Sustainability plan is unlikely. So . . . What should we Do Now??

We should be ProActive by Inviting Legislative Input. There are a fair number of Legislative Representatives who are NOT running for office in the Fall. Every Congressional seat, Senate or House, are up for election. We MUST make every effort to INVITE interaction from those who are running for a seat in the Legislature. Please consider this list of possible actions:

• Reach out to Candidates who are running for the first time. Invite them to your REAM gatherings (regular or not) to have dialogue about Pensions. Share with your members what is learned, so as to be instructive when they vote.

• Attend Town Hall gatherings where candidates are meeting with voters. Ask questions about their positions on Pension policy. Again, share what they say with your local membership.

• Invite Prospective Candidates, particularly those running for the first time, to meet and greet with you about issues important to retirees.

• Visit websites of Candidates to gain knowledge of their Public appearances so that Members can attend and be interrogative directly about Pension Policy. We are skilled at asking questions !!

• Write to Candidate websites about our concern for ongoing State Participation in the State’s longstanding record of Pension Excellence!

• Write to your local news publications as an OPED piece, as to how our State’s credit rating is somewhat dependant on the Pension systems Health and Well-being.

This is a short list. Hopefully it serves to give rise to Interactions that have Significance. This is not the time to sit idling by and hope that nothing will change and that your Pension will be ongoing as you know it. The entities that seek the end of Defined Benefit Pensions are working tirelessly towards that end. We can and will prevail IF . . . we Do what we Do . . . Our Diligence

Most Certainly . . . Vote . . . And do so as an Informed Voter . . . Thank you!!

REAM LEGISLATIVE REPORT: Henry Carbonne

What do you know about your current pension and COLA?

The Bill contained provisions to lower the retiree cost of living adjustment (COLA) from 2 percent to 1 percent for one year for TRA and from 2 percent to 1.75 percent for retirees in the Minnesota State Retirement System (MSRS) plan.

Shared responsibility “remains” an important principle in maintaining the soundness of Minnesota’s pension plans. The pension bill contained only one piece of the overall sustainability plans, placing sole responsibility for reducing the plans liability on current retirees. He went on to say “this is not fair, and I cannot agree to it.”

By vetoing the pension bill, TRA’s plan to reduce the investment assumption from 8.5% to 8% will not take place. This means that TRA will not be able to use the

lower assumption as required by the Minnesota statue that requires assumption to reflect the results of the recently completed experience study. Further, an 8.5% investment rate assumption is no longer reasonable according to TRA’s and the pension Commission’s actuaries and continued use of this assumption will understate funding and contribution deficiencies and may cause concerns for TRA’s auditors. This will also increase the unfunded liability.

In closing please check the following website to see who represents you, and then check with them to see how they voted on your pension.

https://www.leg.state.mn.us/leg/districtfinder

Thank you for taking the time to read this and remember REAM is working to protect your pension; however, “it takes all of us to make a village”.

IS YOUR PENSION SAFE???

MEMORIALS AND GIFTS — JULY 2016

IN MEMORY OF: FROM: AMOUNT:

MARILYN PAETZNICK ANDING PEARL HEITKE, PAYNESVILLE $10 JEAN DERUNGS CARLTON COUNTY RETIRED EDUCATORS $10 MARY DRENCKHAHN WINONA AREA RETIRED EDUCATORS $10 HENRIETTA PRIBYL BRAINERD AREA RETIRED EDUCATORS $10 TERRY RUSSI STILLWATER AREA RETIRED EDUCATORS ASSOC. $10 CHRIS TWAR STILLWATER AREA RETIRED EDUCATORS ASSOC. $10 JAN WOLF SAUK CENTRE/MELROSE REAM $10 MARY UNGER JOYCE WITTENHAGEN, ST. CLOUD $15 ROY BUTTERFIELD NORTH CENTRAL RETIRED EDUCATORS ASSOC. $10 BILL HACHEY NORTH CENTRAL RETIRED EDUCATORS ASSOC. $10 BILL SMITH NORTH CENTRAL RETIRED EDUCATORS ASSOC. $10 ART TOMS NORTH CENTRAL RETIRED EDUCATORS ASSOC. $10 AL WILLIAMS NORTH CENTRAL RETIRED EDUCATORS ASSOC. $10 CAROL HALVORSON WEST CENTRAL RETIRED EDUCATORS ASSOC. $15 GIFTS MERLE SYKORA CLEAR LAKE $25 LONNIE DUBERSTEIN VADNAIS HTS $15 IAN THOMAS MACGILLIVRAY WINDSOR, CO $50 ANONYMOUS $100

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Heredity is what makes the mother and father of teenagers wonder a little about each other.

The real problem of your leisure is how to keep other people from using it.

A chip on the shoulder indicates there is wood higher up.

Success come in cans…...I can…….We can.

At the REAM Conference in Alexandria there will be a Historical Bus Tour of the Alexandria Area. The tour includes several area lakes including Lake Le Homme Dieu, Lake Carlos, and Lake Darling. We will also visit the Kensington Runestone Museum and the Minnesota Lakes Maritime Museum. The tour is two hours in length and a person may have to choose between seeing the Runestone Museum or the Maritime Museum. The two museums are within a block of each other.

Ellsworth (El) Holm, an Alexandria REAM member will be serving as guide for the tour. The cost is $10.00. Sign-up on the 2016 REAM Conference Registration Form. The bus tour departs the Alexandria Holiday Inn at 12:30 pm on Monday, September 26.

REAM CONFERENCE BUS TOUR

PRSRT STDU.S. POSTAGE

PAIDBRAINERD, MNPERMIT No. 472

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P.O. Box 130547St. Paul, MN 55113

If you are retired or within 5 years of retirement as an educator (any school personnel) you are eligible for REAM membership.FOR AN EDUCATOR THE CHOICE IS EASY – JOIN REAM

MEMBERSHIP/RENEWAL APPLICATION - RETIRED EDUCATORS ASSOCIATION OF MINNESOTA, INC.

Legal Name ________________________________________________________________________________________________________________(Last) (First) (Middle)

Mailing Address (Street or Route Box) __________________________________________________________________________________________

City___________________________________________ State________________________________ Zip ____________________________________

Winter Address if different ____________________________________________________________________________________________________*If winter address is not known at this time, please notify us when you do know it, either by regular or e-mail: jresler@comcast.net.

Phone________________________ Email Address___________________________________

Please check appropriate box so that we can record accurately.

Make check payable to REAM. Mail payment and form to: REAM MEMBERSHIP, BOX 130547, ROSEVILLE, MN 55113.For membership card, enclose a self-addressed stamped envelope. www.mnream.org

CHECK MEMBERSHIP DESIRED:1. � $175 Life2. � $70 Five Year � New � Renewal3. � $15 Annual � New � RenewalMembership Year Sept. 1 to August 31

PENSION SOURCE:� TRA� PERA� St. Paul� Other

Represent all school retirees, present and future, certified and classified.Educate and inform all school personnel on matters related to the improvement of their economic and social status.Assist and work to strengthen local and regional units in every way possible.Monitor the actions of, and cooperate, with the legislature, all government units, and other organizations that deal with present and future retired school personnel.

REAM Statement of Purpose

www.amba.info

REAM STATEMENT OF PURPOSE

Represent all school retirees, present and future, certified and classified.Educate and inform all school personnel on matters related to the improvement of their economic and social status.Assist and work to strengthen local and regional units in every way possible.Monitor the actions of, and cooperate, with the legislature, all government units, and other organizations that deal with present and future retired school personnel.

1-800-258-7041 | www.amba.info

P.O. Box 130547St. Paul, MN 55113

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