DON’T SIGN THE PETITION!

 

REAVC PRESIDENT’S LETTER By Nancy Settle

The first action, or non-action, is the California Republican Party did not endorse the measure at their September Anaheim convention. The second is that DeMaio-Reed has withdrawn the measure after State Attorney General Kamala Harris’ office gave ballot measure language not to the liking of DeMaio-Reed. DeMaio-Reed has gone back to the drawing board and has crafted not one but two measures! The first, still called the Voter Empowerment Act, requires voter approval for any pension benefits for new government employees. Voter approval is also needed for increases in benefits of more than 50% for existing employees. The second, called the Government Pension Cap Act, limits government contributions to 11 percent of base compensation for new government employees and 13 percent for safety employees and prohibits government from paying half the total cost of retirement benefits unless voter approved. The Attorney General’s office has promised to “issue a title and summary that is based on independent analysis and gives voters a clear and accurate description of the proposed initiative.” If one or both of these measures proves to be acceptable to DeMaio-Reed they have 180 days to gather approximately 580,000 signatures to qualify the measure(s) for the ballot. There’s no limit to how many times DeMaio-Reed can revise and resubmit the measure but signatures must be verified by June 30, 2016 to meet the deadline for a 2016 ballot. These new proposals still do the same. They take pensions away from teachers, nurses, firefighters, and all other public employees. As clearly stated by Dave Low, they would “create billions of dollars in costs for the state’s pension systems; jeopardize the ability to attract and retain teachers, police officers and other public employees; and jeopardize a secure retirement for hardworking middle-class families.”

           Editor  Linda  Wyatt  Jorgenson  

           Email  info@reavc.org  

Retired  Employees  Association  of  Ventura  County,  Inc.  P  O  Box  7231,  Ventura  CA  93006    Telephone:  805/644-­‐7814  

“DEDICATED TO THOSE WHO HAVE ALREADY SERVED” SEPTEMBER/OCTOBER  2015  

R E A V C

DeMaio-Reed Measure “A small move in the right direction” has been made with the DeMaio-Reed Pension Measure, says Dave Low, Chairman of Californians for Retirement Security. Two telling actions have happened with this measure since the July/August REAVC Newsletter. You may recall the DeMaio-Reed Pension measure would eliminate pensions for all new public employees and restrict them to either 401(K) plans or nothing unless voters approve a benefits package. The measure would also close defined benefit retirement plans and prohibit paying debt, thereby eliminating the sustainability of California Public Employees Retirement System (CalPERS) and California State Teachers Retirement System (Cal STRS).

PRESIDENT’S LETTER

BY NANCY SETTLE

What’s Inside President’s Letter 1 See’s Candy Increase 6 Notice to Subscribers 9 Retirement Board News 2 Member Info 6 President’s Letter 10 Additional Ins Benefits 3 New Retirees 7 Public Pensions 10 Scholarship Recipients 4 New Members 7 In Memoriam 11 Luncheons 5 In Memoriam 8 Note to Survivors 11 Board Officers 5 Public Pensions 9 Retirement Board News 12 New Retirees 12 It Goes Too Far 13

Your REAVC Board continues to coordinate with local and regional employee’s unions, groups, and associations to keep these measures off the 2016 ballot and let people know the truth about the impacts. For further information see the California Retirement Security website at http://www.letstalkpensions.com/ Supplemental Insurance On to another topic, the question is “to offer additional insurance or not to offer it?” Your REAVC Board has been carefully reviewing results of a 16 County survey and considering whether or not to put forward a supplemental insurance package to be offered/advertised to REAVC members. Our Benefits/Insurance Committee Chair, Cindi Mathieu, has written an article for this newsletter and she wants your input. We really want to hear from you! So, don’t miss Cindi’s important article on page 3!

RETIREMENT BOARD NEWS By Art Goulet

VCERA’s portfolio was up slightly in July but dropped considerably in August, with the system’s assets amounting to $4.31 billion by the end of that month. The drop in August was not surprising since, in August, Wall Street suffered its biggest skid in four years. In the last newsletter I mentioned that, for the last fiscal year, the preliminary return was 1.5%, not including final returns on real estate (RE) or private equity (PE). In September, the Retirement Board received a report on all the final returns for last fiscal year, and the return was 1.7% net of investment fees. For the first time in a number of years, CalPERS and CalSTRS reported higher returns. To place VCERA’s changes for the year in dollar perspective, its investment assets grew from $4.26 billion to $4.34 billion over the past fiscal year, based on VCERA’s investment consultant’s performance summaries for the end of each fiscal year. Unfortunately, although such assets grew, the earnings were far below VCERA’s assumed rate of return of 7.75% At its annual retreat on September 16, the Retirement Board received an updated staff analysis and determination of which of the multitude of County and VRSD pay codes qualify as part of base pay or normal monthly rate of pay, for the purpose of establishing pensionable compensation for PEPRA employees (those hired after January 1, 2013). The analysis was done pursuant to the Board’s resolution adopted in November 2014, which permits plan participant pay items to be included as “pensionable compensation” if they are part of either the normal monthly rate of pay or the base pay of the member. Although the initial evaluation had been provided to all the unions and the County for their review, little comment had been received by the date of the retreat. Some comments were made at the retreat by the County and two union representatives, but there was no Board action. The staff will be meeting with the various parties over the ensuing month, with a final list including any changes resulting from those meetings expected to be provided to the Board at its meeting of October 19. As mentioned in my last report, it was previously opined by outside counsel that authority for determination of what comprises pensionable compensation is vested in the Retirement Board. However, that authority would not preclude any dissatisfied party from filing suit to set aside the Board’s decision as to any particular pay item. We are hopeful that, because of the workmanlike and deliberative approach taken by staff and outside counsel in developing their final

recommendation to the Board, no litigation will ensue or, if there is litigation, VCERA will prevail. There is some pending PEPRA-related litigation in some other counties, but none that I am aware of pertaining to pensionable compensation. The several concerning compensation involve disputes over “compensation earnable,” a term only applicable to pre-PEPRA employees. AB 1291, which would give the Board of Retirement the authority to hire the Retirement Administrator, Chief Financial Officer, Chief Operating Officer, Chief Investment Officer, and General Counsel as employees of VCERA and make them eligible to participate in the retirement plan was signed by the Governor, and will become effective on January 1, 2016. Between now and then, VCERA will be negotiating an agreement with the County to enable employees appointed pursuant to the Board’s new authority to continue to avail themselves of some of the County’s benefit programs, such as health insurance and deferred compensation. AB 1291 authorizes those employees to participate in the retirement system, so no agreement with the County is needed. Also at its retreat, the Board authorized the Retirement Administrator to engage outside counsel to assist VCERA in implementing AB 1291. At its September 14 meeting, the Board received a staff report informing it that the effort to implement a new Pension Administration System was back on schedule, with an anticipated go-live date in April 2016. This was good news because the project has been behind schedule for a long time, for a variety of reasons. As you may recall, I mentioned in the March-April Newsletter that the Board had adopted a new asset allocation. To date, it has not been implemented. Subsequent to the adoption, the Board hired the first ever Chief Investment Officer for VCERA. His name is Dan Gallagher, and he had a long distinguished career as CIO for the Los Angeles City Employees Retirement System, from which he had retired. As it turned out, retirement didn’t suit him, and VCERA was fortunate to have him apply. At the Board retreat on September 16, Dan presented his analysis of the adopted asset allocation, and proposed one somewhat different from that which had been adopted. The Board has taken his proposal under consideration.

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Additional Insurance Benefits

The issue of additional insurance (not medical supplemental insurance) has been discussed by your REAVC Board for over 2 years. The latest discussion was initiated by a proposal by the Pacific Group Agencies (PGA) to provide and administer additional insurance benefits for our members.

The additional benefits discussed in this article are not to be confused with Medicare supplemental insurance benefits.

PGA administers the following kinds of insurance: Dental; Personal Accident & Secure Travel; Vision; Legal Shield; Identity Theft Shield; PPO & HMO Pet Insurance; Car & Home; Term Life; Whole Life; Comprehensive Travel; and Hearing Health Care. If offered, the subscriber can elect to enroll for one or more benefit plans. PGA’s website may be found at pgagencies.com.

The services of PGA are not currently available to us. PGA administers these programs for an entire group or association. The main benefit of enrolling as a group is that the cost is usually less expensive than obtaining the same plan(s) individually. If we obtained the services of PGA the payment of premiums would be handled by VCERA based on retiree authorization.

REAVC has obtained information from other retiree associations in California and with few exceptions offer very positive reviews of the insurance coverage and the administrative services of PGA.

PGA would, if we subscribed, administer enrollment as well as provide administration for any questions, issues and/or problems retirees had. Your REAVC

Board members would not be involved in the administration of any insurance offerings or policies. The retiree associations report that PGA is responsive to retiree issues.

So what are the issues the board considers? Among the issues discussed are: who deals with administrative issues and problems; confidentiality; costs of premiums; and repeated/continuous mailing of brochures to our members? In the past, this issue has been tabled in order to obtain further information. Recently, a vote was taken and the Board was divided, half for and half against.

I have voted in favor of providing the option of additional insurance through the PGA to our members. I think that PGA has a very good record for providing insurance services to retiree groups. I think many retirees, myself included, need and want to have insurance to help defray costs of dental work, pet care, life insurance to name a few. I think the REAVC Board should offer it and allow each retiree the option to accept or decline the offered insurance coverage.

I think that your REAVC Board members should hear from you on this issue. There are a few ways to accomplish this. REAVC Board members’ phone number and email address are listed in this newsletter. You may contact whoever you want. You could talk to a board member at one of the quarterly luncheons; the next luncheon is on December1, 2015. Finally, you may call me or email me and I will submit your thoughts and ideas to the board at a regular meeting.

I look forward to hearing from you!

Cindi Mathieu Benefits Chair 2nd Vice President 805-525-2885 cindimathieu@outlook.com

 

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Michel le Nakagawa  

   In  her  words,  she  has  chosen  to  study  journalism  because  she  wants  to  make  sure  that  her  influence  as  a  journalist  is  honest.  She  wants  to  keep  her  audience  informed  of  the  truth  because  correct  knowledge  is  vital  for  the  world.    Heather  Burris,  her  journalism  teacher  at  Buena  described  her  as,  “one  of  the  most  self-­‐motivated  and  responsible  student  leaders  I  have  ever  met."  She  also  described  Michelle  as  organized,  well  rounded,  creative  and  passionate,  as  well  as  a  talented  writer  with  strong  technical  abilities  and  a  clear  understanding  of  the  tenets  of  journalism.    Her  sponsor  is  her  mother,  Patricia  Nakagawa  ,  who  was  employed  by  the  courts.    

 

Emerson Tunigold  

 

learned  how  to  build  sprayers  that  farmers  use  to  spray  their  crops.  This  summer,  he  is  working  for  an  auto  transport  company  servicing  the  semi  trucks  that  transport  the  cars.    

The  chair  of  his  department  at  Montana  State  described  Emerson  as  an  astute  young  man,  very  enjoyable  to  be  around  and  very  conscientious  about  his  education  and  studies.  

Emerson  is  sponsored  by  his  grandmother,  Constance  Casavan,  who  was  employed  by  the  Sheriff’s  Department.  

Note: A special thank you to the Ventura County Credit Union for their generous contribution to the REAVC Scholarship Fund. With their help we are able to assist these students with some of their college expenses.  

M ichelle  is  a  2015  graduate  of  Buena  High  School.  She  graduated  with  a  3.8  GPA  and  will  be  attending  San  Francisco  State  University  this  fall  where  she  will  be  majoring  in  journalism.      In  high  school  she  was  active  in  many  activities,  including  ASB  Sophomore  Class  Vice  President,  Cabinet  Secretary,  and  Journalism  Assistant  Editor  in  Chief.  She  also  participated  in  Polynesian  dance  performances  at  City  of  Ventura  events.    

By Susan Lacey

Emerson  graduated  from  Buena  High  School  in  2012  with  a  GPA  of  3.35.  He  then  attended  Ventura  College  for  two  years.  He  is  currently  enrolled  at  Montana  State  University  where  he  is  majoring  in  diesel  technology.  He  is  an  Eagle  Scout,  and  has  worked  as  an  intern  with  Ag  Trucks  and  Equipment,  Ventura  Machine  and  Hydraulic  and  Southern  California  Edison.  His  goal  is  to  learn  the  valuable  trade  of  Diesel  technology  while  also  obtaining  his  Bachelor  of  Science  degree.    Last  summer,  he    

Thank You Note from Michelle: “Dear REAVC members, Thank you so much for honoring me with your scholarship. Your generous gift will surely help me in my academic pursuits. I plan to use the money towards books and school supplies for my classes. I really appreciate your faith in me. Sincerely, Michelle Nakagawa”  

Thank You Note from Emerson: “Dear REAVC Scholarship Committee, Thank you for your kindness and generosity. It will come as a huge help for next semester’s tuition. I truly appreciate your support in helping me further my education. Sincerely, Emerson Tunigold”

 

LUNCHEONS By  Ray  Holzer  

 It  is  time  to  start  thinking  about  our  holiday  luncheon,  really!    The  luncheon  is  scheduled  for  December  1,  2015,  at  the  Poinsettia  Pavilion,  3451  Foothill  Road,  Ventura.    Lunch  is  served  at  noon  and  we  are  usually  finished  between  1:30  and  2:00  pm.    We  generally  do  not  have  a  speaker  at  the  holiday  luncheon  but  this  year  is  different.    Mike  Powers,  County  of  Ventura  CEO  will  be  giving  us  a  brief  state  of  the  county  message.    He  has  assured  me  it  will  be  good  news.    If  you  want  to  attend,  or  have  any  questions,  please  call  one  of  the  following  reservation  volunteers:      

Carol  “Mike”  Aalbers,  207-­‐1768,  retirdmike@gmail.com  Judy  Sewell,  654-­‐8304,  sewellj119@sbcglobal.net  Ray  or  Linda  Holzer,  644-­‐3702,  rayholzer2@aol.com    Reservations  will  be  taken  until  noon  November  25th,  or  until  we  reach  room  capacity.    If  you  leave  a  message,  or  email  and  do  not  hear  back  in  2  days  try  again.    Very  important,  if  you  have  a  reservation  and  cannot  attend  please  let  us  know,  even  the  day  of  as  we  usually  have  a  wait  list  for  the  holiday  event.    Carpool  if  you  can,  remember  Food  Share  and  leave  the  spaces  at  check  in  level  for  handicapped  folks.    Finally,  guests  are  welcome  at  $10  each  and  members  are  freeeee!.    

2015  REAVC  BOARD  OFFICERS  President  –  Nancy  Settle     805/658-­‐1507       nancycassbill@sbcglobal.net  1st  VP  –  Roberta  Griego     805/889-­‐7674       rrodriguez367@roadrunner.com 2nd  VP  –  Cindi  Mathieu     805/525-­‐2885       cindimathieu@outlook.com  Secretary  –  Will  Hoag       805/644-­‐3491       piffle@pacbell.net  Treasurer  –  Ray  Holzer     805/644-­‐3702       rayholzer2@aol.com Past  Pres  –  Art  Goulet       805/482-­‐9418       artgou@aol.com  Butch  Britt       805/987-­‐3312       Wbbritt@gmail.com    Paul  E.  Callaway     805/658-­‐1340       paul.callaway@roadrunner.com    John  Coushay       805/231-­‐1808       coush43@verizon.net    Jim  Crow       805/701-­‐8262       crowmegan@sbcglobal.net  Art  Goulet         805/482-­‐9418       artgou@aol.com  Don  Greenberg       805/642-­‐2915 liondongreenberg@gmail.com Luisa  Haskell       805/644-­‐3737       luisahaskell312@hotmail.com Susan  Lacey       805/644-­‐4284       lacey4kids@aol.com  Betty  McCollum     805/642-­‐5234       bjoe22@juno.com    Tom  McEachern     805/630-­‐8284       tandcmac1@yahoo.com Maryellen  Benedetto     805/647-­‐0292       maryellenbenedetto@aol.com    Associate  Member  Representative  

Linda  Wyatt  Jorgenson     805/642-­‐4676       lindaedra5@yahoo.com Executive  Assistant  

 

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 PRICE INCREASE

TIME TO GET YOUR SEE’S CANDY IS NOW  

  Due  to  the  increase  in  price  that  we  have  to  pay  to  purchase  SEE’s  Candy  Certificates,  we  will  be  raising  our  price  to  members  to  $15  each  effective  January  1,  2016.  However,  until  then  you  can  buy  them  for  holiday  gifts  or  for  any  other  purpose  at  the  current  price  of  $14  each.     We  sell  solely  as  a  benefit  to  our  members.  They  are  redeemable  for  one  pound  of  candy  or  a  standard  See’s  candy  box  at  any  SEE’s  store  or  outlet.       The   certificates   are   excellent   Christmas   or   other   holiday   gifts.   No   hassle   with   holiday   crowds,   wrapping   or  shipping.  They  are  easy  to  mail,  and  the  certificates  do  not  expire.       You  can  acquire  certificates  one  of  three  ways:               Purchasing  at  our  luncheons             Via  postal  service  @  REAVC,  PO  Box  7231,  Ventura,  CA  93006             Placing  your  order  over  the  phone  @  805/644-­‐7814     Remember  if  you  order  by  mail  or  over  the  phone,  include  extra  cost  for  mailing  for  large  orders  and  save  some  money  by  buying  before  the  end  of  the  year.                              

MEMBER INFORMATION and A THANK YOU TOO!

Our luncheons have continued to have great participation, which must mean you are enjoying what we are making available to you. However, we continue to have a problem with members who are not calling when they are unable to attend. We understand that you may have an unforeseen emergency or circumstances that don’t allow you to call and cancel, but a phone call would be appreciated from those of you who do not have extenuating circumstances. There is always the chance that someone will be unable to attend because you did not call and cancel your reservation(s). Please be considerate of your fellow members and take a moment to cancel your reservation if you are unable to attend.

As some of you may or may not know, I have been unable to attend the last few luncheons. In my absence ‘Mike’ Aalbers and Judy Sewell have been checking everyone in. Both of these ladies are doing a tremendous job and I hope each of you takes a moment and thanks them for their hard work. I so appreciate their assistance and know you do too. I would also like to extend a special thank you to Linda Holzer. Linda is always there to do whatever is required to make the luncheon a success for all of you. My sincere thanks to Linda. My thanks to everyone for their continued support of REAVC.

Linda

 

   

Chocolate  comes  from  cocoa  which  is  a  tree…that  makes  it  a  plant  which  means  …  chocolate  is  Salad!!!  

 

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Cecielia  A. Alexander Fire Brett Austin HCA Patricia  A. Blase Fire Thomas  J. Buckley HSA Josefina Ceniceros Public  Defender John  C. Eckert  Jr. Sanitation  District Maricella  L. Gonzalez HSA Lester  I. Leach Public  Works Christie  L. O'Neill Superior  Court Andrew  W. Poland Public  Works Mary  E. Rasmussen HCA Carol  A. Sandor HCA Arian Shaefer ISD Jennie  M. Whaley HSA  

2015 New Retirees

Pamela   Barnett  Michelle  M.   Bayles  Cindi  S.   Bouvier  Denise   Brennecke  Nancy   Broughton  Nanci   Carbonell  Karen  A.   Carpenter  Christina   Conaway  Anne  M.   Dana  Michelle  C.   Deleu  Susan   Di  Maio  Peggy  L.   Eads  Barbara   Easton  Ines  V.   Gonzalez  Sanjuana  L.   Gonzalez  Shala  J.   Gudino  Arlene  F.   Gutierrez  Harold  E.   Hanley  Doris   Harbison  Carmenchita  M.   Hart  Dale   Hawkins  Claude   Jung  Patrick   Kelly  Brent  L.   Kerr  Adria  R.   Lawson  Kelly  Ryan   Lindberg  Susan  L.   Lopez  Nancy  J.   Mahon  Gladys  V.   Mena  John  E.   Miller  Thomas   O'Malley  Luz   Orosco  Nancy  L.   Parker  Patricia  L.   Pedersen  John  M.   Pennington  Leslie  P.   Peterson  Steven  C.   Phillips  Maria  A.   Quijada  Celia   Ramirez  Marta  G.   Rea  Grasiela   Romero  Wayne  C.   Ross  Catherine   Schureman  James  R.   Stallings  Mary  R.   Stewart  Kurt  D.  Yolanda  David  Robert  L.  Hedi  

Thinnes  Tibbet  Torfeh  Wisma  Young  

 

2015 New Members

GOOD LUCK TO OUR NEW RETIREES

WELCOME TO OUR NEW

REAVC MEMBERS

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IN MEMORIAM We acknowledge the passing of the fol lowing. Our deepest sympathy is i s extended to their famil ies and fr iends.  

              No t ime on earth is long enough to share with those we love or to prepare our hearts for good-bye.    

Kenneth C. Ball

Mary C. Dillehay

Randall N. Drennen

Susan L. Dykstra

Mary E. Engelhardt

Judith F. English

Della A. Gleeson

Norman R. Hawkes

Susan Henderson

Ernest M. Holt

Donna C. Kuczek

Alice C. Norton

Vincent Poole

Janet Rowley

Stanley K. Takahashi

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NEW STATEWIDE INITIATIVE IS AN ALL OUT ATTACK ON PUBLIC PENSIONS!

BY MIKE DEBORD The  new  State-­‐wide  “initiative”  (that  will  soon  be  circulating  around  the  State  gathering  petition  signatures)  will  try  and  close  every  single  State  and  local  government  defined  benefit  retirement  plan  to  new  employees!    The  initiative,  titled  Public  Employees.    Pension  and  Retiree  Healthcare  Benefits”  would  apply  to  all  cities  and  counties,  school  districts,  special  districts,  boards,  commissions,  universities  and  State  government.    If  the  proponents  of  this  initiative  get  sufficient  signatures  by  February  8,  2016,  it  will  be  on  the  November  8,  2016  General  Election  ballot  as  an  amendment  to  the  State  Constitution.    The  proponents  of  this  initiative  submitted  their  proposal  to  the  State  Attorney  General  who  is  responsible  for  writing  the  “Title  and  Summary”  for  all  initiatives  submitted.    The  Attorney  General  says  in  their  Summary  of  this  initiative,  that  the  proposal  would:  

ü Eliminate  Constitutional  protections  for  vested  pension  and  retiree  healthcare  benefits  for  current  employees,  including  those  working  in  K-­‐12  schools,  higher  education,  hospitals  and  police  protection,  for  future  work  performed.  

ü Add  initiative  and  referendum  powers  to  the  Constitution  (so  voters  could  be  responsible)  for  determining  public  employee  compensation  and  retirement  benefits  

ü Would  bar  government  employers  from  enrolling  new  employees  in  “defined  benefit”  plans,  or  paying  more  than  one-­‐half  cost  of  new  employee’s  retirement  benefits,  or  enhancing  retirement  benefits,  unless  specifically  approved  by  the  voters.  

This  initiative  would  require  thousands  of  new  ballot  measures  at  taxpayer  cost  and  close  defined  benefit  retirement  plans  to  new  employees  even  though  they  have  the  lowest  fees  and  highest  investment  returns  compared  to  other  types  of  plans  such  as  401(k)’s.        

This  initiative  is  the  most  serious  threat  to  public  pensions  ever  put  forth  in  California!    It  creates  very  burdensome  and  expensive  barriers  for  local  government  to  continue  pensions  for  their  new  employees.    It  also  affects  existing  workers  and  can  affect  current  retirees  as  existing  retirement  plans  are  closed  to  new  employees.    We  need  your  help  to  try  and  defeat  this  initiative  which  would  undermine  all  public  sector  workers,  including  teachers,  nurses,  police  and  firefighters.    Please  don’t  be  fooled  by  the  proponents,  and  their  deep  pocket  supporters,  who  use  the  media  very  effectively  too  put  out  their  propaganda.    Tell  your  family  and  friends  not  to  sign  the  petition  for  this  destructive  initiative!    We  will  be  providing  future  updates  and  additional  information.    Thank  you  for  your  help!  

IMPORTANT – BE

SURE TO READ

NOTICE TO NEWSLETTER SUBSCRIBERS

The following articles were prepared for the July/August 2015 REAVC Newsletter. Due to a technical error, this newsletter issue did not get printed and mailed. We apologize for any problem this may have caused our members. We will do all that we can to avoid this happening again. We sincerely thank you for your continued support of REAVC. Sincerely, Linda Wyatt Jorgenson Editor

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President’s Letter Nancy Settle (July/August 2015 Newsletter)  Beware the “Voter Empowerment Act!” This measure is a Trojan horse that will undermine the retirement security of millions of California families with unknown costs to taxpayers under the guise of giving them more power (Dave Low, Chairman of Californians for Retirement Security). Dubbed the “Voter Confusion Act” by Brown and Noegel of the Public Retirement Journal, the authors are former San Jose mayor Chuck Reed and ex-San Diego council member Carl DeMaio. Funding has been provided in the past by billionaire John Arnold, former Enron executive based in Texas and their efforts promoted by the Koch Brothers Reason Foundation. Reed-DeMaio must gather 585,407 signatures within 6 months for this California constitutional amendment to be placed on the ballot. The proposed ballot measure would have a massive and sweeping impact on retirement security of teachers, nurses, fire fighters, peace officers and other public servants. Existing employees would be affected by the measure, death and disability benefits for firefighters, peace officers, and other public employees could be modified or eliminated, collective bargaining would be threatened, government employers would likely have to increase other benefits to attract and retain employees. The measure allows voters to cut the retirement benefits of current employees for future work performed. Defined benefit plans would be closed to new employees, unless approved by voters, but there is no guarantee of any new plan. The attack on public pensions is astounding and incredulous when one considers the fact that the average public pension in California is $26,000 per year. Pensions exceeding $100,000 amount to less than 2 percent of public pensions. The California Legislative Analysts Office (LAO) concluded: There is significant uncertainty as to the magnitude, timing, and direction of the fiscal effects of this measure and its effects on current and future governmental employees’ compensation.” The LAO review, submitted on July 2, 2015, can be read at http://www.lao.ca.gov/ballot/2015/150362.pdf . The Attorney General, Kamala Harris, must now give an official ballot title and summary which is expected on August 11, 2015. Tell your friends, neighbors, and co-workers NOT to sign the petition. Write letters to the editor of the local newspaper urging voters not to sign. Members of your REAVC Board are participating in

a local 30 member Californians for Retirement Security Committee. We will let you know what additional action may be needed on this issue. To learn more and get up to date information please go to the California Retirement Security Website http://www.letstalkpensions.com/ It’s that time of year again for nomination and election of the REAVC Board. Your REAVC Board members have served well for many years, some for longer than 10 years. Occasionally, Board members move from the area or choose not to be re-elected for a variety of reasons. We are always on the lookout for those of you that might be interested in volunteering or serving on the Board. REAVC is an organization of and for its members, so it is important that we have a “back-up” list of members willing to serve on committees and, potentially, become a member of the Board. Please contact me or any other member of the Board if you are interested.

Ò “Public  Pensions  Should  Not  Follow  Private  Sector  Failures!”      By  Mike  DeBord,  Co-­‐Chair  CRCEA  Retirement  Security  Committee  How  should  California’s  government  retirement  plans  be  funded?    Most  are  designed  to  be  “fully  pre-­‐funded,”  but  what  about  “pay-­‐as-­‐you-­‐go”  or  “partially  pre-­‐funded?”    The  challenges  facing  future  retirees  and  the  taxpayer  are  described  in  the  various  approaches  listed  below.    Social  Security  is  largely  a  “pay-­‐as-­‐you-­‐go”  program  where  current  workers’  pay  the  annual  cost  of  retiree  benefits.    Any  year’s  excess  income  goes  into  a  Trust  Fund.    But  when  the  cost  of  the  monthly  benefits  exceeds  the  income  from  payroll  taxes,  the  Trust  Fund  is  drawn  down  to  keep  the  checks  going.    Social  Security  reports  that  the  Trust  Fund  will  be  fully  exhausted  by  2034  and  without  changes  would  only  be  able  to  pay  77%  of  scheduled  benefits.    With  the  increase  of  retirees  and  fewer  American  workers  in  the  future,  this  program  faces  real  funding  problems!    Private  Sector  workers  have,  over  the  last  30  years,  been  losing  their  defined  benefits  plans.    Companies  discontinued  their  pension  plans  and  some,  not  all,  replaced  them  with  401(k)  plans  that  were  never  designed  to  be  a  retirement  plan.    This  scheme  is  woefully  underfunded  and  58%  of  private  sector  workers  now  have  no  retirement  savings.    This  “partially  pre-­‐funded”  approach  is  a  time  bomb  for  future  generations  and  will  significantly  increase  poverty  for  retirees.    It  will  have  severe  repercussions  for  state  and  local  governments  that  are  responsible  for  providing  services  to  the  elderly  who  won’t  be  able  to  support  

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themselves.    The  taxpayer  impact  of  these  short-­‐sighted  retirement  changes/losses  in  the  private  sector  will  be  huge!    Public  Sector  workers  still  have  defined  benefit  pensions  that  are  designed  to  pay  lifetime  retirement  benefits  and  be  “fully  pre-­‐funded”  (about  70%  from  investment  returns  with  the  remainder  from  employer  and  employee  contributions).    After  the  2007-­‐2008  financial  crises,  the  funding  levels  of  defined  benefit  plans  dropped  noticeably  but  are  now  improving  with  the  economic  recovery.    But  outspoken  pension  critics  jumped  on  the  projected  “unfunded  liability”  of  public  pensions  saying  they  could  total  up  to  $2-­‐$4  trillion  nation-­‐wide  (using  low  return  rate  assumptions  in  their  projections  instead  of  the  actual  higher  rates  of  public  pension  systems).    They  use  this  “unfunded  liability”  figure  to  persuade  the  public  to  vote  against  public  pensions.    But  the  real  question  is  “What  is  the  “equivalent  unfunded  liability”  for  the  private  sector?”    What  would  it  take  for  the  private  sector  to  be  on  par  with  the  public  sector  with  respect  to  retirement  assets?    That  shortfall  is  at  least  $29  trillion  –a  true  U.  S.  crisis  in  the  making!    So  tell  me  again  why  we  need  to  change  our  pre-­‐funded  public  retirement  systems  to  be  more  like  the  staggering  failures  in  the  private  sector???  

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IN MEMORIAM Edna M. Arnette Donald K. Barkemeyer Helen Boyd William J. Byrnes Nancy Carrier Larry L. Cox Martha Filegar Francis Gary Hickman Ron S. Holden Ingemar Macasieb Amanda Mc Clard William J. Dale D. Woodrow A.

Meade Miller Moldenhauer

Arthur H. Mortensen Alfred J. Mottola Mertice L. Nichols Relinda Agnes

Prado Riedmiller

Judie M. Irene

Sedell Smyly

William D. Winterbourne  

 

A  note  to  SURVIVORS.    We  need  your  help  in  trying  to  reach  out  to  other  Survivors.    Please  invite  Survivors  to  our  luncheons  and  share  the  value  of  membership  in  

our  organization.  

If  and  when  you  identify  a  Survivor  needing  assistance,  please  contact  a  board  member  and  we  will  try  to  find  

the  appropriate  help.    

THANK YOU! Maryellen  Benedetto  

Associate  Member  Representative        

A  note  to  SURVIVORS.    We  need  your  help  in  trying  to  reach  out  to  other  Survivors.    Please  invite  Survivors  to  our  luncheons  and  

share  the  value  of  membership  in  our  organization.  

If  and  when  you  identify  a  Survivor  needing  assistance,  please  contact  a  board  member  and  we  will  try  to  

find  the  appropriate  help.    

THANK YOU! Maryellen  Benedetto  

Associate  Member  Representative    

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RETIREMENT BOARD NEWS By

ART GOULET The ups and downs of VCERA’s investments continue! The month of May was flat, with the market value of the portfolio ending at $4.40 billion. June was a difficult month, with VCERA losing about 1.8% of its previous market value, and ending the fiscal year at $4.33 billion. At the end of the previous fiscal year, the investment market value was $4.26 billion, so there was a gain of approximately $69 million for the fiscal year. The Fund’s preliminary return, net of fees, was 1.5% for the year, not including real estate and private equity. I will update this number in the September-October newsletter, after VCERA receives the final quarterly report from our consultant, NEPC. The Board’s Investment Policy has been designed to produce a long-term total portfolio investment return of 7.75% (to be reduced to 7.50% at the beginning of the 2016-2017 fiscal year). Although VCERA failed to achieve the 7.75% return in the 2014-2015 fiscal year, the Fund has outperformed this target over the recent 3 and 5 year periods, with returns of 10.9% and 11.5%, respectively. In fact, since 1994, the average annual return has exceeded 8%.

VCERA’s Administrator, Linda Webb, completed her first six months in office, and the Board of Retirement evaluated her performance in a closed session on July 20. Subsequently in open session, she was granted a salary increase, indicative that the Board was satisfied with her performance thus far.

Also, on July 20, the Board received a preliminary evaluation of the multitude of County and VRSD pay codes to determine which pay codes qualify as part of base pay or normal monthly rate of pay, for the purpose of establishing pensionable compensation for those employees hired after January 1, 2013, the effective date of the Public Employees’ Pension Reform Act (PEPRA). It was an impressive piece of work done by VCERA staff and outside counsel. This evaluation is being provided to all the unions and the County for their review. After receipt of the stakeholders’ review comments, and any changes to the preliminary list that may be recommended by staff as a result of those comments, the list will be provided to the Board for its final determination. It was previously opined by outside counsel that authority for determination of what comprises pensionable compensation is vested in the Retirement Board. Interestingly, several items the

County had previously stated it considered part of normal monthly rate of pay have been preliminarily excluded. To the extent the County has not made retirement contributions on pay items ultimately included, it will have to make up the difference.

AB 1291, which would give the Board of Retirement the authority to hire the Retirement Administrator, Chief Financial Officer, Chief Operating Officer, Chief Investment Officer, and General Counsel as employees of VCERA and make them eligible to participate in the retirement plan has passed both houses of the Legislature and is awaiting the Governor’s signature. AB 663, which would create the position of an alternate for the public members of the Board of Retirement, has already been signed. Both bills would become effective on January 1, 2016.

The Board of Retirement will be dark during the month of August (the VCERA offices will be open). Upon their return in September, due to the Labor Day holiday, the Board will hold three meetings (including a Retreat) in an eight day period.

2015 NEW RETIREES

Cecielia A. Alexander Fire Brett Austin HCA Patricia A. Blase Fire Cindi S. Bouvier Library Services Denise Brennecke Animal Regulation Thomas J. Buckley HSA Nanci Carbonell Assessor Josefina Ceniceros Public Defender John C. Eckert Jr. Sanitation District Robert J. Garcia Sheriff Maricella L. Gonzalez HSA Lester I. Leach Public Works Thomas O'Malley Fire Christie L. O'Neill Superior Court Steven C. Phillips Child Support Andrew W. Poland Public Works Jose Pulido III Fire Celia Ramirez HCA Mary E. Rasmussen HCA Monica B. Robles HCA Theresa Sabedra Assessor Carol A. Sandor HCA Dawn Schneider Superior Court Deborah L. Schubert LAF Arian Shaefer ISD 12  

2015 NEW RETIREES

Kimberly B. Shropshire HCA Steven J. Sullivan Sheriff Bryan A. Vanden Bossche Fire Bonnie L. Walker CSS Jennie M. Whaley HSA Michael D. Wheat Sheriff Darla D. Wise Public Works Daryl R. Woodward HSA

The DeMaio/Reed Ballot Measure

It Goes Too Far

The ballot measure proposed by former San Jose Mayor Chuck Reed and former San Diego City Councilman Carl DeMaio is a dramatic attack on the retirement security of teachers, nurses, firefighters, police and other public employees. Disguised as the “Voter Empowerment Act,” the measure undermines benefits to existing and new employees. �It eliminates vested constitutional rights by gutting the “California Rule” that forbids reductions in benefits promised to current employees. �It eliminates pensions for all new public employees and restricts them to 401K style plans, or nothing at all, unless voters approve a benefits package. �It closes defined benefit retirement plans and prohibits paying debt, eliminating the sustainability of CalPERS, CalSTRS and other plans. �It eliminates current death and disability benefits for new firefighters, police and other public employees, and provides no guaranteed replacement of these important benefits. This ballot measure will harm California’s economy and cost taxpayers millions, perhaps billions. The LAO says there is “significant uncertainty” about its impact. �Every contract in the state – no matter what level of government – could be on the ballot, costing school districts, cities, counties and the state millions to hold these elections. �It will unleash lawsuits that will cost taxpayers millions as the provisions of the measure are litigated and could cost pension plans their tax exempt status as voters modify pension rules. �It will reduce retirement income for millions of Californians that fuels our economy. For example, the $12.7 billion CalPERS paid benefits results in $30 billion in economic activity. Some $4.5 billion is injected into our state’s economy from CalSTRS.

�Many public employees (for example, teachers, firefighters and police) do not receive Social Security; this measure will undermine the ability of retirees to live with dignity. The average pension for CalPERS retirees is just $2,784 per month; for CalSTRS retirees it is $3,639. �It will be difficult to recruit and retain teachers, firefighters, police officers and other public employees if promised benefits can be taken away. This ballot measure is unnecessary and will undermine reforms made by Governor Brown � Governor Brown and the Legislature have already passed major changes in the state pension systems. $100,000 benefits have been all but eliminated. Retirement age has been increased. These changes will save over $55 billion in retirement costs. �Public employees must now pay at least half of their pension costs. �This measure permits voters, without collective bargaining, to increase or decrease compensation and retirement benefits of government employees, undermining the ability of elected officials to bargain and agree on final contracts. It forces ballot box decisions on complex issues that should be settled at the bargaining table. �This measure is being funded by the same failed politicians and Wall Street bankers who drove the economy into ruin and who will profit from risky 401K style plans

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