Directors Comments by Jon Orellana, Vice President/Acting President

Transcription

1 R E A C The Official Monthly Publication of the Retired Employees of Alameda County, Inc. P.O. Box 302, Oakland, CA VOLUME 37 NUMBER 11 NOVEMBER 2016 Directors Comments by Jon Orellana, Vice President/Acting President 2017 REAC Fall Luncheon The REAC Fall Luncheon was held on October 10, 2016, at the Meadows at Redwood Canyon Golf Course. The venue was well received, and the food and service was very good so we anticipate continuing to hold our event there. The luncheons provide an opportunity for members and guests to meet with retired coworkers and catch up on happenings in each other s lives and updates of interest to retirees. We were also introduced to our incoming alternate retiree board member, Nancy Reilly. She will be replacing Dave Safer, the current board member who did not seek reelection. We were privileged to have the ACERA chief executive officer, Dave Nelsen, speak at the event and were given insight into his plans for the future of ACERA with the direction of the board of trustees. He included an overview of how our pensions are funded and the impact of the investment earnings on the costs to the system. He explained how many people are not aware that the contributions of the retirees, while they were working, and the contributions of the employers make up approximately 25% of the funding, while approximately 75% comes from investment earnings. Therefore, investment performance is critical to the financial health of the retirement system. He also gave us some insight into how his view of service was developed early by experiences in his career. We are looking forward to a continued good working relationship with ACERA and its future under the leadership of Mr. Nelsen. Supplemental Retirees Benefit Reserve (SRBR) Status As of June 30, 2016, the ending balance of the SRBR account was approximately $861.6 million. The semiannual interest crediting was completed on August 24, The total interest crediting rate was 3.427% of regular earnings. The beginning balance as of January 1, 2016, was approximately $853.8 million. Deductions from the SRBR totaled approximately $21.5 million offset by interest earnings of approximately $29.3 million. The SRBR funds the non-vested retiree benefits such as medical, dental, vision, Medicare part B offset, and death benefits. continued on page 2 REAC Board Meetings November 14, 2016 (Monday) 9:30 am Ala. Cty. Health Care # San Leandro Blvd. San Leandro December 12, 2016 (Monday) 9:30 am Ala. Cty. Health Care # San Leandro Blvd. San Leandro reacwebsite@gmail.com ACERA Trustees Meetings November 17, 2016 (Thursday) 2:00 pm th Street, Oakland December 15, 2016 (Thursday) 2:00 pm th Street, Oakland Welcome New Members Stephen Amano Karen Johnson

2 Directors Comments continued from page 1 Marin County Decision You may have heard the results of a decision rendered by the First District Court of Appeals which upheld various portions of the Public Employees Pension Reform Act of 2013 (PEPRA) as it was applied in Marin County. The issues had to do with various items included in previous pensionable calculations used by various 1937 Act counties including Alameda, Contra Costa, and Merced and which was being challenged by various labor organizations in those counties. Marin County s case went ahead of the others which were combined and are currently in litigation. One of the conclusions reached by the Appeals Court was that future benefits received by active employees could be prospectively changed. This is different than previous conclusions reached by various courts. It has yet to be determined whether the decision will be reviewed by the California Supreme Court. Open Enrollment Periods for 2017 ACERA Group Insurance November 1 30, 2016 OneExchange Out of Service Area Early Retiree exchange coverage November 1 December 15, 2016 ACERA Investment Report ACERA reported in its September 2016 Performance Report that the fund had gained $26,894,682. The total fund returned.65%. The total market value of the fund at the end of September was $6,937,038,682. REAC Web Site We would like to request that you consider having access to an electronic copy of the newsletter rather than receiving a hard copy. If you choose this option, you will receive an telling you that a new version of the newsletter is available with each new publication along with a link to the document. You can then read it online. You can also read earlier issues on the web site. If you wish to opt out of receiving the newsletter in printed form, you will assist REAC by reducing postage costs and paper usage. Thank you for considering this as a way to assist us to keep down costs. OneExchange enrolled Medicare eligible members October 15 December 7, 2016 Minutes of the Meeting of the Board of Directors of The Retired Employees of Alameda County, Monday, October 10, 2016 The meeting was called to order at 9:40 am by Jon Orellana, vice president and acting president of the board, at the Meadows at Redwood Canyon Golf Course, Redwood Road, Castro Valley. Roll Call Present were Jon Orellana, Jessie Guiton, Jerry Jacobs, Gerry Dunn, Marian Breitbart, and Liz Koppenhaver. Mike Smart and Paul Reeves were excused. Also present were Jim Hartnett, director emeritus; members Nancy Reilly, Dave 2 November 2016 REAC News

3 Safer, Jack Sanders, and Dave Melander; Peter Albert, ACRE; and Michael Fara, ACERA. Previous Meeting Minutes The minutes of the September 12, 2016, board meeting were reviewed. It was moved by Gerry Dunn and seconded by Jessie Guiton that the minutes be approved as submitted. The motion was approved. Announcements and Communications Jon announced that Janet, Emily, and Marian will take the first shift at the REAC booth at the ACERA Health Fair on October 28, and Rosalie will take the second shift. Jessie volunteered to take the second shift as well. Jon and Jerry Jacobs will likely be there all day. Reports ACERA: Michael Fara reported on several presentations to the Retirees Committee Board meeting. Keenan reported on the political uncertainty regarding the Affordable Care Act, speculation regarding the viability of the Exchanges outside of California, as well as uncertainty regarding significant changes to how physicians will be paid for caring for Medicare beneficiaries. The Medicare changes will be phased in through 2021 and are intended to have payment based on the value of services rather than the volume of care. The Implicit Subsidy for medical premiums to early retirees not covered by Medicare is estimated to increase significantly in 2016 to an estimated $8.8 million (this equates to $549 per month per early retiree). This is the amount paid to the county by ACERA and funded through the SRBR and reflects the benefit of lower medical premiums for retirees by being included with the Active population. ACERA is considering alternative options for coverage, but in the past has been unsuccessful finding coverage for these retirees on a standalone basis. Premium increases in 2017 are 8.52% for Kaiser HMO, 0% for UHC HMO, 9.8% for UHC PPO, and 7.53% for Kaiser Senior Advantage. The Kaiser Senior Advantage premium for the Retiree Only category remains less than the MMA. Treasurer s Report: Jessie distributed copies of the September 2016 Treasurer s Report. Receipts were $5,585.78, and disbursements were $5, The checking account balance was $14, Gerry moved to accept, and Liz seconded the motion, which was accepted to reflect a minor correction to the expense categorization. CRCEA: The contract has been signed with the Hilton Garden Inn in Emeryville for the 2017 CRCEA Conference for October 23 25, Jerry continues to believe the net cost to REAC will be less than $10,000. He will continue to search for sponsors, and ACRE has agreed to be a sponsor. SACRS: Jon reminded the board that the SACRS Fall Conference will be held November 7 11, 2016, at the Renaissance Esmeralda Resort and Spa in Indian Wells, California. Jon will not be able to attend due to other commitments. Retirement Board: Ms. Nancy Reilly is unopposed to replace Dave Safer as the alternate retiree board member. Nancy retired in March from GSA, and her term will begin in January. She has already hit the ground running, attending meetings and starting the ascent of the steep learning curve. ACERA Investments: Marian had nothing to add to the previously distributed report. The October Investment Committee meeting has been cancelled. The board approved the committee recommendation to adopt the proposed timeline, search criteria, and evaluation matrix for ACERA s Passive Indices (U.S. and International Equities) manager search. Governor Brown signed Assembly Bill 2833, which addresses greater transparency for fees and expenses in alternative investment contracts. By doing this, California is taking the lead in imposing greater transparency requirements on public defined benefit plans. Heath Care: No update available. November 2016 REAC News 3

4 Activities: About 135 people attended the October luncheon. Membership and Recruitment: Membership at the end of September 2016 was at REAC News: Jon will include another notice in the REAC News encouraging members to opt for electronic delivery, which saves REAC money, is better for the environment, provides for faster delivery of the newsletter to members, and is more convenient by reducing the amount of paper one receives. Other Reports: There were no other reports. Old Business: There was no old business to discuss. New Business: The term is ending in March for Jon Orellana, Jerry Jacobs, and Paul Reeves. A nominating committee, which is chaired by Marian Breitbart and includes Gerry Dunn and Michael Smart, was formed to report back in November as to whether these directors will be running again. January s REAC News will report on which board members will be seeking reelection and solicit a letter of interest and support of ten members for anyone that would like to run for the board. We have purchased a sufficient number of See s gift certificates to once again qualify for discounted certificates for the membership. For the Good of the Order: Nothing new to report. Jon adjourned the meeting at 11:18 am. Respectfully submitted by Marian Breitbart Congratulations On Your Retirement ALHO, ROSEMARIE Effective: 3/31/2016 BAILES, SANDRA Effective: 8/29/2015 DEF CATTANEO, JOANNE Effective: 4/1/2016 EDWARDS, CYNTHIA Effective: 3/15/2016 Library GILKERSON, ALLEN P. Effective: 9/12/2016 Sheriff s Office DEF HOWARD, GWENDOLYN R. Effective: 1/30/2016 Behavioral Health Care Services HUNTER, STEVEN W. Effective: 4/1/2016 Assessor JACKSON, DORENE M. Effective: 10/1/2015 KONG, TERE Effective: 3/26/2016 MEES, DAVID A. Effective: 6/4/2016 Public Works Agency MOORE, JR., RICHARD P. Effective: 3/26/2016 District Attorney REILLY, NANCY Effective: 4/1/2016 General Services Agency ROSEN, LAURENCE N. Effective: 6/9/2016 DEF SPANO, ROSEMARY Effective: 8/21/2016 DEF WRIGHT, LONDON O. Effective: 4/14/2016 Probation 4 November 2016 REAC News

5 In Memoriam In deepest sympathy to the family and friends of the following retirees: BELLUOMINI, DINO D. 9/5/2016 Sheriff s Office BENNETT, JAMES M. 8/14/2016 General Services Agency CHAVEZ, RICHARD 9/9/2016 Sheriff s Office DEF CHINN, PETER 8/27/2016 CHRISMAN, IRENE 9/5/2016 Survivor of Ralph H. Chrisman GARDNER-WHITE, BRENDA 9/24/2016 GRUNWALD, MAUD 9/2/2016 Survivor of Gerald B. Grunwald HIBBARD, WALTER B. 8/15/2016 IRBY, ELIZABETH M. 8/22/2016 DEF KINCAID, DANITH LOUISE 9/12/2016 KRAUS, WALDTRAUT 9/7/2016 MANDERSON, JOHN R. 9/17/2016 Sheriff s Office MOONEYHAM, ANNA B. 9/7/2016 PARK, ELEANOR L. 9/25/2016 PERSOFF, RICHARD E. 9/12/2016 Survivor of Jessica W. Persoff SANDERS, ALTHA M. 9/14/2016 TRATAR, FLORENCE 8/31/2016 Survivor of Anton A. Tratar WACQUIER, BLANCHE C. 8/25/2016 Assessor WONG, STEVEN W. 9/12/2016 Public Works Agency The surviving spouse of a member is eligible for REAC membership. To enroll, call Jerry Jacobs, membership chair, at (510) November 2016 REAC News 5

6 REAC Officers and Directors Vice President, Acting President: Jon Orellana... (925) Secretary: Paul Reeves... (510) Treasurer: Jessie Directors: Marian Breitbart... (510) Gerry Dunn... (510) Jerry Jacobs... (510) Mike Smart... Liz Koppenhaver... (510) Rosalie Masuda... (510) Directors Emeriti: Emily Shea... (510) Ken Moresi... (510) Janet Waring... (510) Barbara Jean Hallisey... (510) Steve Scheinman... (925) James J. Hartnett, Jr... (925) Editor: Diane Sturgeon; Membership: Jerry Jacobs, (510) ; Printing and Mailing: Red Arrow Printing REAC S Mission The purpose of the Retired Employees of Alameda County (REAC) is to promote the common good and general welfare of Alameda County retired employees, subject to the County Employees Retirement Act of 1937, by promoting the interests of its members throughout the community by means of social, political, and educational activities that advance the social welfare of such retirees. Moving? Please fill out and mail this notice to the following address: Name: New Address: City/State: Date of Move: Old Address: REAC, P.O. Box 302, Oakland, CA or jjmjacobs@comcast.net Zip Code: Telephone: 11/2016 Also send change of address to ACERA: Alameda County Employees Retirement Association (ACERA) th St., Ste. 1000, Oakland, CA Phone: or Select Option 1 for the Retiree Benefits Unit (health, vision, dental, etc.) Retired Employees of Alameda County P.O. Box 302 Oakland, CA November 2016 Nonprofit org. U.S. Postage PAID Permit 4174 Oakland, CA ADDRESS SERVICE REQUESTED C A E R