T R E N D. (Thinking Retired Employees Need Direction) Retired Employees of Kern County. Volume MMIV-II March-April

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1 T R E N D (Thinking Retired Employees Need Direction) Retired Employees of Kern County Volume MMIV-II March-April Norman Briggs, President (661) Vicki Stronach, Editor (VStronach@bak.rr.com) Dear Retirees Not only is it a leap year it s a Presidential Election year with only 315 days remaining in the year! Remember to vote March 2 nd and November 2 nd. Your Board of Directors are already busy, having passed an operating budget for 2004, planning monthly programs and luncheons, exploring our tax exempt status regarding our political involvement in state and local elections and working with California Retired County Employees Association (CRCEA) on health insurance benefits and legislation favorable to we retirees. We are also looking at the benefits of setting up a centralized office for REOKC to better serve our members. If any of you have an interest in being involved with any of these issues or others, please contact myself or a Board member. We need all the help we can muster in managing this association of over 3,000 members plus spouses. The Board appointed Mary Lou Bennett in January to fill the directorship position vacant due to the death of Allan Choy. Allan devoted many years of service to REOKC and will be greatly missed. Thanks to Allan s dedication the Host/Hostess program has been a big success. Mary Lou has stepped up to fill this vacancy and we all thank her for volunteering to do her part and pick up the slack. She will be managing the Host/Hostess program, scheduling volunteers for the Information desk in the County Administration building as well as serving on our Board. She needs your help and more volunteers for this worthy program. If you missed February s lunch meeting you missed the opportunity to hear Greg Williams, California Highway Patrolman, who spoke on how to handle tire blowouts and prevent rollovers 1 don t brake don t remove your foot from the accelerator, but do increase your speed until the car is under control and then slow down and pull off the road. This behavior is contrary to your instincts but can save your life. Think about it. Another tidbit from Officer Williams on speeding if you travel 30 miles at 90 MPH rather than 55 MPH you save 20 minutes, speed kills, so slow it down as the modest savings in time is sadly offset by an accident. Jeanne Berkshire has already scheduled more interesting speakers in the coming months. Don t miss them and where else can you get a hot lunch for $4.00 (assuming you have payroll deduction)! Along with the programs the coming months menus are also in this issue of the Trend. CRCEA Spring Conference will be held in Visalia, March 22 through March 24, The cost is $15.00/person and is open to all. There will be information on new legislation that is proposed regarding the future of health care. The next KCERA Retirement Planning Seminar is scheduled for Thursday May 20, 2004 from 8:30 am until 12:00 noon. Doors will open at 8:00 am. If you know of anyone planning to retire be sure to recruit them for our association. I need to recognize our outgoing president s major contributions these past two years. David Merritt has devoted many hours and hard work to the benefit of REOKC and we owe him a great big Thank you. He will continue to help us as Past President and I know he will see that we continue in the positive direction he has laid out for us over the past few years. We sincerely appreciate your efforts David, thank you. In David s words get involved, we need your help. Remember our web site where you will find the Trend, present and past minutes of the Board and General membership meetings and other useful information. Until the next Trend be well and I hope to see you at the March 9 th meeting, Thank you, Norman R. Briggs

2 Your Retirement Board ~Your KCERA Board of Retirement is in the process of handling a number of items that affect you as a retiree.~ The first item is the selection of a new core-plus fixed income manager. The Board narrowed its selection down to three firms, PIMCO, Black Rock Investments, and Western Asset Management. After on site due diligence, the Board decided to hear presentations from Black Rock Investments and Western Asset Management. Both firms do an outstanding job in the fixed income area and either one would work well with KCERA, but after a long discussion, the Board voted to select Western Asset Management to manage the 200+ million in core-plus fixed income. For those members that are not familiar with core-plus fixed income, it is a mixture of Treasury, Agency, and Corporate bonds, Mortgage Backed Securities and Credit Instruments with a very small amount of High Yield Bonds, Emerging Market Bonds and Non-Dollar Assets added to the mix to add a higher yield at the same or lower risk. The second item involves personnel matters at KCERA. The Board of Supervisors has appointed a new member to the Board of Retirement, Mr. Ray Dezember, is replacing Mr. Brent Dezember whose term of office ended December 31, This added yet another new member to the Board that has had a 50% turn over in the past year and a half. Also on the personnel front, the Human Resource Committee continues to work on establishing guidelines and a timetable for the selection of a permanent Executive Director. With the addition of new Board members and their continuing education, and the search and hiring of a permanent Executive Director, your Board continues to spend many hours of their time to assure you, the members, that KCERA is functioning efficiently and that your retirement future is safe. The last item that I want to discuss is the COLA. The actuary for the Board, Public Pension Professionals, Inc., has provided to the Board the CPI-U for 2003 along with is recommendation for the COLA that will become effective with your payment in April Your Board of Retirement adopted the use of the Annual Average Consumer Price Index for All Urban Consumers (CPI-U) for the Los Angeles-Riverside-Orange County area as a basis for making its annual COLA adjustment. This index increased by 2.6% in 2003, which will allow for the payment of the full 2.5% COLA authorized by the Board of Supervisors and the Ventura II decision. This will also add 0.1% to your COLA bank. To remind all members, the Board of Supervisors adopted a COLA of 2% as allow by California Law in 1973, and the COLA was increased by 0.5% as a result of the Ventura II litigation making the total 2.5% effective April of each year. The first 2% of the COLA is paid by contribution from the County while the next 0.5% is paid from funds set a side in the SRBR reserve by the Court as part of the Ventura II litigation settlement. When, and if, the reserves are depleted, (some time period longer than 30 years) the County, as part of Ventura II settlement, has agreed to continue to fund the COLA at the 2.5% level. The actuary also provided a list by year of the balances of the COLA bank, if you are interested in what your retirement year banked amount is, you can contact me at the address below and I will sent you a copy. If you have any questions or need help with a retirement problem, you can contact me via the internet at jjdmario@aol.com. I hope to see you at one of the Retirement Board meetings; they are held the second and fourth Wednesdays of the month starting at 8:00 am on the 3 rd floor of the County Admin. Building at 1115 Truxtun Ave. in Bakersfield, CA. By John J. De Mario Ten Factors for Successful Aging 1. Sleep 7 to 8 Hours Per Night 2. Control Weight 3. Exercise 4. Limit Alcohol Intake 5. Don t Smoke 6. Eat Breakfast 7. Snack Seldomly 8. Become More Educated 9. Stay Socially Connected 10. Maintain Optimism and Happiness (Source: Minaker KL) 2

3 Community Service Retirees, through the Kern County s Volunteer Host/Hostess Program, have been providing friendly and knowledgeable assistance to visitors at the County s Administrative Building since The Information desk in the building is manned by volunteers in three-hour shifts: 9:00 a.m. to 12 noon 12 noon to 3:00 p.m. Monday through Thursday (closed all holidays) The recent reduction of volunteers has necessitated double work for some. New volunteers are desperately needed to maintain adequate coverage for this program. Experienced volunteers are the desk provide training. Copies of monthly schedules are mailed to all volunteers. Anyone interested in performing a rewarding and enjoyable community service should contact- Mary Lou Bennett, Host/Hostess Program During the month of January, 28 volunteers worked 84 hours assisting 966 visitors to the County Administrative Building. To those retirees who volunteer their time, THANK YOU Host/Hostess volunteers are needed for 3 to 6 hours a month at the County Administrative Building information booth. If you would like to volunteer contact Mary Lou Bennett at Point of Interest on the W.W.W. The site is home of The Bakersfield Californian. On this website there are things you would expect to find in the hardcopy newspaper Top Stories, Local News Stories, Classifieds, Movie listings and SO MUCH MORE. You can also find links to KBAK 29 The Eyewitness News Station for video news feeds on this site. Get to know Bakersfield a little bit better! 3 Mar. 9 REOKC Board Meeting 10:00 am Wilson Road Vets Hall Mar. 9 COMING EVENTS REOKC General Meeting 12:00 am Wilson Road Vets Hall *Special Guest Rusty Shoop from Channel 29 KBAK* Mar. 10 KCERA 8:00 am County Admin. Bldg. Mar. 24 KCERA 8:00 am County Admin. Bldg. *** Apr. 13 REOKC Board Meeting 10:00 am Wilson Road Vets Hall Apr. 13 REOKC Board Meeting 12:00 am Wilson Road Vets Hall *Jennifer Peters from the Center for the Blind & V.I.* Apr. 14 KCERA 8:00 am County Admin. Bldg. Apr. 28 KCERA 8:00 am County Admin. Bldg. LUNCHEON MENU March 9, 2004 BBQ Pit Beef Ranch Beans Green Salad & Dressing Apple Cobbler with Whipped Topping Rolls with Butter Ice Tea & Coffee April 13, 2004 Ham & Scalloped Potatoes Green Salad & Dressing Fresh Fruit Salad Pineapple Upside Down Cake Rolls with Butter Ice Tea & Coffee We hope to see everyone at the next meeting! If for no other reason, come for the food!

4 PAYROLL DEDUCTION FOR MONTHLY LUNCHEON SAVE A BUCK!! If you sign up for payroll deduction for your luncheon cost, you will only be charged $4.00 If you buy a ticket at the luncheon, it will cost $5.00. AUTHORIZATION FOR DEDUCTION RETIRED EMPLOYEES OF KERN COUNTY, INC. MEMBERSHIP DUES WELCOME! NEW MEMBERS OF THE RETIRED EMPLOYEES OF KERN COUNTY I hereby authorize and direct you to deduct five dollars ($5.00) per month from my pension warrant as an additional elective payment to the Retired Employees of Kern County, Inc. This deduction shall commence with the next pension payment. I understand that this authorization and membership in the Retired Employees of Kern County, Inc. organization is voluntary and may be revoked by me, in writing, at any time in the future. Stephen Gage Michael Lafave Virginia Miller Beatrice Mireles Jack Rutledge Judy Knox (spouse) Fire-Safety Sheriff-Safety Deferred KMC Sheriff Beneficiaries Name Social Security # Signature Date signed Application for Membership in REOKC and Authorization for Deduction of Dues I receive a retirement and/or survivor s allowance from Kern County. I hereby authorize the Kern County Employees Retirement Association to deduct from my monthly retirement benefits, dues of one-dollar ($1.00) per month for my membership in REOKC, and to pay such deductions monthly to that organization. Name (print) Address City State Zip Telephone ( ) WE WILL ALWAYS REMEMBER Deceased KCERA Members Marjorie Anderson Sheriff Harryette Bachmann KMC Marc Beauvais Parks Harold Booth KMC Allan Choy Public Works Joe Collins Muni Court Darlene Davis DHS Pete Dermer Deferred Thelma Fisher KMC Minnie Grose DA Mary McNamara Deferred Russell Moore Parks Linda Stamper DHS Harry Swanson Deferred Ruth Brooking (Beneficiaries) Wanda Davis (Beneficiaries) Meredith Denman (Beneficiaries) Pete Ehrhorn (Beneficiaries) Hector Herrera (Beneficiaries) SSN Signature Date 4

5 Retired Employees of Kern County 2004 Board of Directors Norman Briggs President Opal Hargis Director Jeanne Berkshire 1st Vice President Elinor Wells 2nd Vice President John DeMario Treasurer Delores Christian Director David Merritt Past President Ginger Mello Secretary Lois Maujer Director 5 Walter Stewart Director (Artist of Sketches)

6 REOKC ADOPTED BUDGET FY 2004 General Fund Special Fund Total INCOME Contribution - Homeless Shelter Dues Administrative 18,000 18,000 Special Fund 18,000 18,000 Total Dues 36,000 Interest Income Checking Money Market Savings Special Fund Total Interest Income KFCU Reimbursement 2,100 2,100 Lunch Tickets Door Sales 5,400 5,400 Payroll Deduction 2,016 2,016 Total Lunch Tickets 7,416 7,416 Misc. Income Total Income 28,038 18,600 46,638 EXPENSE Administrative Admin. Postage Admin. Printing Cost 1,000 1,000 Total Administrative 1,120 1,120 CRCEA Conference Expense 3,000 3,000 Dues 1,450 1,450 Total CRCEA 4,450 4,450 Insurance 1,000 1,000 Liaison Presidents Program Setup Public Relations Total Liaison 1,740 1,740 Luncheon Expense Bar-B-Que Christmas 2,700 2,700 Monthly 6,500 6,500 Total Luncheon Expense 9,700 9,700 Memorial/Gifts/Contributions Office Supplies Rental-Meeting Hall Web Site Expense Stipends Luncheon Admin Programs 1,200 1,200 Treasurer's 2,100 2,100 Trend Editor ,050 Total Stipends 4,620 5,250 Trend Cost Postage 2,400 3,600 6,000 Printing 3,120 4,680 7,800 Total Trend Cost 5,520 8,280 13,800 TOTAL EXPENSE 28,780 9,410 38,190 5 NET INCOME/LOSS (742) 9,190 8,448

7 Tax Bites Intangibles of Estate Planning A tax client of mine once said to me, Boy am I glad I won t be around when they read my will! I was taken by surprise. I asked him, Why? He responded by saying, Some members of my family won t be happy! I thought for a moment, and then I asked him, Is that your intent? No, was his reply. We reviewed his will together, identified the problem areas and discussed various options to address the potential inequities. Once his lawyer adjusted his will, we scheduled a meeting with his family so he could discuss his estate and intentions. Now he says he wouldn t mind being around at the reading of his will. Doesn t that make you think - Why would someone unintentionally create a lifetime of potential stress and bitterness between family members? I believe the answer lies in the fact that we don t like to talk about our death, our estate and the emotions that go with it. Responsible adults should take a no-nonsense approach to their estate planning. A thorough and complete estate plan is one of the best gifts you can give your family. It s your property and you have every right to bequeath it as you see fit. However, I believe that means you should communicate your intentions to your heirs and family before it is necessary to read your will! If that is an uncomfortable thought, perhaps you may need to rethink how you intend to distribute your estate? Remember, there are many ways to achieve the same results! First and foremost you must have an estate plan. Discuss the pros and cons of the various contractual instruments and tax issues, along with the mechanics of each with your tax and legal professionals. My intent today is to highlight the intangibles of estate planning, not the mechanics (a topic for a later date). I recommend the following: 1. Check your emotions at the door when planning your estate. By that I mean to be realistic and practical. 2. Be generous, reasonable and fair. 3. Do not use estate planning as a form of punishment. 4. You love your children equally, treat them equally. (OK, love is an emotion, I couldn t help myself). What is equal? Sometimes that is not so easy to identify! Be flexible. 5. Rewards are OK! (Acts of kindness, good deeds, achievements, etc.) 6. Consider the use of percentages of the total value of your estate, rather than specific pieces of property or sums of money. (Property values change over time and there may be less cash at the end due to medical and other expenses). Of course heirlooms are an exception. 7. Make sure you spend enough on yourself and your spouse! You don t want too much left over now, do you? 8. Estate plans are living documents and should be reviewed on a regular basis. The interval depends on your facts and circumstances. 9. Schedule a meeting with family and heirs to discuss your estate plan and intentions. You may want your tax and/or legal professional present to explain technical issues. 10. These are only recommendations; exceptions are expected, especially with complicated estates. For those of you who have your estates planned, I commend you. For those of you who don t, I hope this article gives you the motivation to call your lawyer and/or CPA to get started on one. Thomas P. McCarthy, Jr., CPA, MST 7

8 CRCEA UPDATE The California Retired County Employees Association (CRCEA) is holding their Spring Conference, March 22-24, 2004 at the Radisson Hotel in Visalia. This conference, hosted by the Tulare County Retired Employees Association, will feature many interesting and informative sessions beginning on Monday afternoon at 1:30 PM. The Welcome address will be given by Ms. Connie Conway, Vice Chair, Tulare County Board of Supervisors and will focus on The State Budget and Its Impact on Counties and County Retirees. Following that will be a Retirement Board Members Forum by Ira Summers, an expert in Public Pensions. A hospitality reception will be held from 5:30 to 7:00 PM and all are invited. Tuesday is the busiest and longest day of the conference starting with a continental breakfast at 7:00 AM with the first session beginning at 8:30 AM. The morning sessions will feature speakers on limited Returns on pension funds, CRCEA Health Care Plan and a legislative up date by Tom Branan, CRCEA s legislative consultant. Lunch will be on your own. The afternoon session will feature topics on SRBR, What Is It and How Does It Work by Robert Blum, a recognized authority on SRBR pension plans, and the new Medicare Prescription Drug Benefit, by Ms. Lourdes Maloney, Associate Regional Administrator, Division of Medicare Operations. Following the afternoon sessions, is the hospitality reception from 5:00 to 7:00 PM with a banquet and entertainment from 7:00 to 9:00 PM. Wednesday morning starts with a continental breakfast at 7:00 AM followed by the Business Session from 8:30 to 11:00 AM where the Financial and Committee Reports to the delegates are given. Approval of the Fall Conference will also be voted on which is expected to be in Fresno in October. Attendance Fees for the conference are $15.00 per person and $37.50 for the banquet. If any one wishes to attend all or part of the conference, they can call me at (661) or ejay@bak.rr.com for further information. Due to the short drive to Visalia, it is hoped that many of our retirees will attend. By Everett Julkowski, Delegate 8 CRCEA Legislative Update (AB979) CRCEA s bill is AB979 and we are co-sponsoring it with SACRS. It passed out of the Assembly Public Employees, Retirement and Social Security Committee by consent, on January 21, It is expected to be out of the Assembly and into the Senate Committee by the first week in February and could be on the Governor s desk by mid February. Our bill: 1. Allows retired members of the 37 Act Retirement Systems, who marry after retirement to purchase optional survivor benefit for their new spouse, at no cost to the retirement system. (SACRS portion) 2. Codifies the rights and privileges that are currently provided by some 37 Act systems to alternate members of the retirement board including training and compensation. (CRCEA portion) 3. Authorizes the board of retirement to elect to provide a post-retirement death benefit through a group life insurance policy if the cost of that policy to the system, county or district is equal to or less than the cost of other methods of providing the benefit. (CRCEA portion) 4. Allows for the payment of additional benefits to retirees for the County of the ninth class (Contra Costa) This bill does everything we want it to. First, this bill clarifies and standardizes the duties, privileges, and responsibilities of the alternate 8 th Board member including training and compensation. Secondly, it will allow the use of life insurance to provide the death benefit. This will be a win win for everybody. It will save the retiree beneficiary up to 25% taxes on the death benefit and the system cost of providing this benefit. The Bill is currently being rewritten and amended at the present time. CRCEA is unaware of any opposition to the bill in the Senate and expect it to pass out of the Senate on consent. It is felt that in as much as there is no cost or obligation to the State, the Governor will have no trouble signing it. Stay tuned for more in the next newsletter. By Everett Julkowski, Delegate

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10 March Luncheon Reservation March 9, 2004 at Noon, Southwest Veterans Hall, 1095 Wilson Road. If you wish, you may use this form to order tickets for this luncheon. Please send your check, made payable to REOKC, together with a stamped, self-addressed envelope to Doris Smith, 2500 Drake, Bakersfield, CA Deadline for reservations is the Wednesday prior to the luncheon. Phone reservations are not accepted. You may cancel your reservations by calling Doris at prior to the deadline. Cancellations after the deadline cannot be refunded. Member s name ($5.00) Spouse ($5.00) Guest ($7.00) Total tickets Amount enclosed $ April Luncheon Reservation April 13, 2004 at Noon, Southwest Veterans Hall, 1095 Wilson Road. If you wish, you may use this form to order tickets for this luncheon. Please send your check, made payable to REOKC, together with a stamped, self-addressed envelope to Doris Smith, 2500 Drake, Bakersfield, CA Deadline for reservations is the Wednesday prior to the luncheon. Phone reservations are not accepted. You may cancel your reservations by calling Doris at prior to the deadline. Cancellations after the deadline cannot be refunded. Member s name ($5.00) Spouse ($5.00) Guest ($7.00) Total tickets Amount enclosed $ Retired Employees of Kern County P.O. Box 3022 Bakersfield, CA PRST-ST U.S. POSTAGE PAID BAKERSFIELD, CA PERMIT NO. 349 March/April Time Dated Material Official Newsletter of The Retired Employees of Kern County Inc.