Pennsylvania Municipal Retirement System Volume 16, Number 3 Fall 2002/Winter And the Survey Says

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1 1 Page 2 Page 3 Page 4 Page 5 Pennsylvania Municipal Retirement System Volume 16, Number 3 Fall 2002/Winter 2003 A full-service local government pension administrator with $935 million in assets I n an effort to better gauge our level of service, the Pennsylvania Municipal Retirement Board requested that staff prepare and distribute a customer service survey to our clients. PMRS mailed separate surveys to the three customer groups we serve: municipal contact people, active members and retirees. The main goal of the surveys was to allow municipalities and our membership to grade us in key areas of service delivery. They are also being used to help us identify those services that need improvement. The response to the surveys was very informative. The return rate was overwhelming. We thank everyone who participated. What follows is a synopsis of the individual surveys. The next step in our efforts is to decipher the results and to try and clearly interpret what our clients told us. In the next issue of Notes & News we will detail an action plan that will share how we will address the issues that were identified by our clients and how the PMRS staff and Board intend to bring about improvements in our delivery of service. Municipal Contact Survey Somewhat unique to our survey development, the municipal contact survey was designed after PMRS staff consulted with a sample of municipal contact people. Various contacts were called for their opinions on exactly what service areas PMRS needed to And the Survey Says focus the questions. Contacts were asked for ideas from both large and small plans and those newly enrolled as well as long time members. This was very helpful in capturing specific areas to focus our customer service assessment. It allowed our members to decide what services were to be gauged and how they should be examined. The survey was mailed in July to all municipalities participating in the System. Of the 605 surveys sent out, 428 were returned for a return rate of 71%, which far exceeded our expectations. A return rate of 20% or more is generally considered excellent. The numeric response shows an overall satisfaction level with PMRS at 4.12 out of a possible 5.0 (please see graph). Regarding the level of satisfaction with calling PMRS and receiving prompt and satisfactory answers, PMRS scored a 2.72 out of a possible 3.0. Contact experiences with the Accounting Division and the Membership and Municipal Services Division met expectations, with a score of 2 out of a possible 3. Perhaps more important than the numeric response, however, was the significant number of comments that were shared by the respondents. While not able to publish them all here, we would note that they have been very helpful in directing the System's assessment of service delivery. Clearly our areas of deficiency center on the timeliness of our response to inquiries; whether cost studies, financial reports, or general questions. We were told very strongly that where PMRS services need to improve are in the timeliness of providing our members needed reports. The need for more face-to-face meetings came in second, and better communication came in third. Quicker phone response to voice mail messages came in fourth with more information on the website last. Of the possible improvements sought, most people wanted to see a desk manual that explains pension related procedures. A directory of PMRS staff with addresses that indicated their related responsibilities came in second. Enhanced e-business services ranked third. Active Members Survey The survey for active members was mailed in late August. Of the 1,185 surveys that I Continued on Page 2 t is with deep regret that we announce the passing of Dr. Richard D. Derstine on November 2, Dr. Derstine was appointed a member of the PA Municipal Retirement Board on April 11, 2001 and represented the 2nd Class Townships. Dr. Derstine was a retired veterinarian, past president of the Pennsylvania State Association of Township Supervisors, as well as a township supervisor in West Rockhill Township, Bucks County. Our sympathy is extended to his family and his wisdom, support and friendship will be missed by everyone at PMRS. P.O. Box 1165, Harrisburg PA or

2 2 Page 1 Page 3 Page 4 Page 5 Survey Results (Continued from page 1) were randomly sent, we received 310 back for a 26% return rate. Again we found that numerically the measure of the responses was very positive about both our services and staff. However, there is always room for improvement, as indicated in some of the written responses. Most active members were aware that PMRS provides a toll free 800 telephone number (in Pennsylvania), a quarterly newsletter, a web site, benefit summaries (which describe their individual plan benefits) and the opportunity to attend preretirement seminars. The satisfaction level with these services was above average. The comments suggested that staff could improve communication with active members by simplifying explanations of the pension plan benefits and how they work. Active members would like to see more seminars and face-to-face meetings. It was consistently observed that since benefit summaries can sometimes be very confusing, meetings would be beneficial to all members. Payroll stuffers and quarterly newsletters were two items of customer service that the active members would like to see most. It was suggested that the information to be included in such publications should describe how individual pension plans work, clarification of PMRS policies and procedures, and PMRS investment information. Retired Members Survey In September PMRS mailed 500 surveys to randomly selected retired members of the System. We received 309 surveys, or 61% of those that were mailed. Of the retired members surveyed, 59% receive their retirement benefit check and/or pay stub the first day of the month. They are more than satisfied with the degree of staff courtesy and knowledge. In general, the retired members are the most satisfied group of clients that PMRS services. They did indicate that they would like to see increases in their retirement benefit checks and cost of living adjustments (COLAs). Most retired members would also like to see more information on PMRS investments and information helpful for retirees. They told us that PMRS could better serve its retired members by explaining excess interest, federal taxes and how cost of living adjustments (COLA) work. Where Do We Go From Here? The Board and the staff of the System take the suggested improvements and areas for improvement very seriously. We are currently assessing the survey comments and with the help of outside consultants, trying to glean how we can take measured steps to improve the services and meet our members identified needs. We anticipate sharing our action plan in the next edition of Notes & News. We will also keep you informed as progress is made. To all who took the time to respond to the survey, we want to say how much we value your input. If you would like a copy of any of the surveys and a more detailed summary of the results, please contact PMRS. Photos from the Recent PMRS Pre-Retirement Seminars Allentown, October 16 Steven Siegfried and PMRS Staffer Bob Eames State College, September 4 Harrisburg, November 6 Gerald and Janice Styer Mercer, September 25 Carl and Leanne Linquist Pre-retirement Team Staff Washington, September 24 2

3 3 Page 1 Page 2 Page 4 Page 5 T he Pennsylvania Municipal Retirement Board met on July 18, During this meeting, Richard Dahab, the System's investment consultant, reported that PMRS lost 3.3% during the second quarter of For the calendar year-to-date, the total fund lost 2.6%. Mr. Dahab said that although most investors were significantly damaged by the WorldCom situation, PMRS was not severely hurt. The Board was informed that an ad hoc cost of living increase was approved by the General Assembly for police officers and firefighters who retired prior to According to PMRS staff, approximately 150 retirees are eligible for the Cost of Living Adjustment (COLA). There is an offset for previous increases, which means that of the people who are eligible, only about 50% will actually get an increase after the offset is applied. (The increases were effective July 1, 2002 and the System made Recent PMRS Board Meetings retroactive payments in October.) The Board met again on September 12, During this meeting, the Board voted to hire LSV Asset Management, a large cap international value equity money manager. Also at this meeting, there was a letter request from the Auditor General, Robert P. Casey, Jr., that the Board consider the adoption of "initiatives to protect Pennsylvania investors and billions of dollars in state investments from conflicts of interest which may develop when financial firms provide both investment analysis and corporate investment banking services." There are seven requirements spelled out in this letter. The Board agreed that these principles would be incorporated into all dealings with money managers. If you would like a copy of the Auditor General's letter, please contact PMRS. The final 2002 meeting occurred on November 26. During this meeting, the Board approved the revision of the 1994 Stock Proxy Voting Guidelines. As shareholders in a company's stock, the Board has the right to vote their shares at an annual or special meeting that the company might have. The Board has decided to grant authority to vote at these meetings to the Institutional Shareholder Services (ISS). Because of this, the Board has developed the Proxy Voting Guidelines, which ISS must follow. If you would like a copy of these guidelines, please contact PMRS. Staff advised the Board that 33 new plans enrolled in the System in 2002 and three plans ceased participation. Also, 71 existing plans improved their pension benefits. The date for the next Board Meeting is January 30, Questions concerning PMRS or the Board's activities may be addressed by calling the Pennsylvania Municipal Retirement System at or or visiting the PMRS web site at T here are several new faces at PMRS that we would like to introduce to you. In June, Stephanie Vest joined us as a clerk typist. Stephanie replaced Alissa Noe, who moved to Alaska with her family (military transfer for her husband). For 13 years, Stephanie worked for the Disciplinary Board of the Supreme Court of Pennsylvania. She has also worked as a substitute teacher for Mulberry Child Care. Stephanie lives in Middletown and enjoys teaching Sunday School and swimming. In July, we welcomed Robert Porambo as our new descriptive statistician. Bob is a recent graduate of Elizabethtown College with a Bachelor of Science degree in Mathematics. While at Elizabethtown College, Bob achieved distinction as both a scholar and an athlete. He was awarded a Math Department scholarship and served as captain of the men's basketball team. He was also selected for the all-star team in the Middle Atlantic Conference for three years in a row. Originally from Bethlehem, Bob resides in Elizabethtown and enjoys basketball and golf in his spare time. This past year PMRS added a new field representative position in the Division of Membership and Municipal Services, which was filled by Tina Eisenhart. Tina had been the administrative officer in the Operations Division for many years. To fill this vacancy, we hired Doylene Shull who New Friendly Faces has 28 years of state employment experience. Doylene was a purchasing agent with the Department of Public Welfare. Doylene lives in Newport with her husband. She has two grown sons, Christopher and Cody. In her spare time, she likes to travel, exercise, and dine out. In November, PMRS welcomed Barbara Hutton as a clerk typist. Barbara brings a diverse background of private sector work experience to PMRS. She was employed with the Pennsylvania Association for the Blind, Freysinger Mazda/Hyundai, Messiah College, London Insurance Group and various employment assignments through Manpower, Inc. Recently Barbara completed an Associate Degree in Specialized Business from the Consolidated School of Business in York. She and her husband reside in Lewisberry and have two grown children, David and Wendi. Barbara enjoys cross-stitch and home decorating in her spare time. Back Row (left to right): Doylene Shull, Barbara Hutton, and Stephanie Vest. Seated: Robert Porambo 3

4 4 Page 1 Page 2 Page 3 Page 5 Happy Holidays From PMRS The Pennsylvania Municipal Retirement Board and its staff welcome the following pension plans that recently joined PMRS: Beaver County - Franklin Township Berks County - Centre Township Berks County - Centre Township Cambria County - Cambria County Conservation & Recreation Authority Clearfield County - Girard Township Columbia County - Municipal Authority of the of Catawissa Cumberland County - Middlesex Township Municipal Authority Jefferson County - Brockway Area Sewage Authority Mercer County - Wheatland Westmoreland County - Derry Wyoming County - Washington Township York County - Carroll Township Front Row (left to right): Kim Gorse-Manfred, Doylene Shull, Bob Eames, Renny Witmer, Tim Brulia, Di Castner, Diane Schwartz, and Tom Garrett. Second Row (left to right): Joy Lewis, Kathy Corradi, Sue Golembiewski, Stephanie Vest, Janis Rhodes, Barbara Hutton, Kris Gibboney, Tina Eisenhart, Linda Grier, and Lorain Payne. Third Row (left to right): Jim Allen, Toria Page, Ben Mader, Donna Miller, Ed Bechtel, Mike Mortimer, Bob Porambo, and Bill McGill. Missing from photo: Ben Hardison Congratulations to the following municipalities and authorities that recently improved their plan benefits: PMRS Questions?? Comments!! us at ra-staff@state.pa.us Office Hours: Monday through Friday 7:45 A.M. - 4:15 P.M. Notes & News is a quarterly publication of the Pennsylvania Municipal Retirement System (PMRS). It is printed in-house through the Department of General Services. The newsletter can be provided in alternate format upon request. If you have any questions or comments, please contact the Pennsylvania Municipal Retirement System toll-free in PA at Allegheny County - Wilkins Township Armstrong County - Manor Township Joint Municipal Authority Beaver County - Rochester Area Joint Bucks County - Bucks County Water & Bucks County - Plumstead Township Carbon County - Coaldale-Lansford- Summit Hill Cumberland County - South Middleton Township Dauphin County - Harrisburg City Firefighters Dauphin County - Hummelstown Delaware County - Concord Township Delaware County - Prospect Park Fayette County - Belle Vernon Municipal Authority Greene County - Richhill Township Lebanon County - Greater Lebanon Refuse Authority Lebanon County - Millcreek Township Lycoming County - Duboistown McKean County - Mt. Jewett McKean County - Mt. Jewett Authority Mercer County - Hermitage City Mercer County - Pymatuning Township Mercer County - Sharon City Montour County - Mahoning Township Somerset County - Berlin Washington County - Canton Township Washington County - Claysville Washington County - East Washington Westmoreland County - North Huntingdon Township Municipal Authority 4

5 5 Page 1 Page 2 Page 3 Page 4 Pennsylvania Municipal Retirement System Calendar Winter 2003 To help you plan your work schedule for the upcoming months, the calendar below lists state aid funding requirement due dates, dates when monies and reports are due at PMRS, approximate dates of major PMRS mailings, and PMRS meetings of general interest. December 30, January 30, February 27, and March 28 - Retirement checks mailed from PMRS (next to last business day of the month) December 31 - Legal deadline for payment of the 2002 Minimum Municipal Obligation (MMO) to each pension plan December Fourth quarter payroll reports mailed to member municipalities January Year 2003 municipal bills mailed from PMRS Mid January - AG-385 state pension aid certification and AG-490 ad hoc cost-of-living adjustment (COLA) reimbursement forms for retired police and firefighters mailed to municipalities from the Office of the Auditor General (Note: In January, PMRS also mails lists of individuals who received COLAs for your use in completing the AG-490 forms). January 30 - Pennsylvania Municipal Retirement Board meeting January 31 - Suggested deadline for paying 2003 Minimum Municipal Obligation (MMO) to prevent possible actuarial loss from investment income. However the legal deadline to pay the 2003 MMO is December 31, February 7 - Fourth quarter payroll reports due at PMRS March Pennsylvania Municipal Retirement Board meeting March 29 - Act 205 Report for distressed pension plans due at the Public Employee Retirement Commission March 31 - Deadline for filing state aid certification form (AG-385) with the Office of the Auditor General to be eligible for state aid April 1 - AG-490 and related forms due in the Auditor General's Office Pennsylvania Municipal Retirement System P.O. Box 1165, Harrisburg, PA Telephone: ; (in PA only) V/TT: ; (in PA only) Office Hours: Monday - Friday; 7:45 A.M. - 4:15 P.M. ra-staff@state.pa.us Visit our PMRS web site: