California Budget. Newsletter. RPEA Legislative Report page 3 Health Benefits pages 6-7 Diet & Health page 13. RPEA Member Benefits page 14

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1 Retired Public Employees Association of California Volume 11 Issue 1 Newsletter George Linn, Editor January / February 2011 RPEA Legislative Report page 3 Health Benefits pages 6-7 Diet & Health page 13 California Budget RPEA Member Benefits page 14 RPEA NEWSLETTER January / February

2 President s Message President s Report A Message From President Harvey Robinson Harvey Robinson RPEA President RPEA RPEAHQ@RPEA.com website RPEA NEWSLETTER Published 6 times a year by the Retired Public Employees Association of California, 300 T Street., Sacramento, CA Opinions expressed in articles are those of the writer and not necessarily those of RPEA. Send suggestions and comments to RPEA Headquarters, attention George Linn, Editor. Send changes of address to: RPEA HEADQUARTERS 300 T Street Sacramento, CA Attention: Changes of Address Published in Partnership with Designed By Marcus Media Group We have a new Governor, a candidate we endorsed and whose endorsement resulted in several hundred RPEA membership cancellations. It was the RPEA Board s belief that Jerry Brown best reflected our position of protecting CalPERS pension and health benefits. Governor Brown has inherited an approximately $28 billion dollar deficit through June 30, 2012 and additional deficits of some $20 billion for at least the following three fiscal years. With his intent to have an honest balanced budget, budget cuts will be severe and recommended tax increases will be placed on the ballot. The fiscal reality will have a significant impact on CalPERS. At its February 2011 meeting, the CalPERS Board will vote to possibly lower its 7.75% discount rate, the rate that reflects its expected rate of return on investment. A decrease of, say, 7.50% will increase employer retirement contributions at the state and local level; and, as such, will further impair budget flexibility. In the November 2010 election, 9 of 10 local initiatives passed whose primary purpose was to decrease retirement benefits for new hires or increase retirement contributions for existing employees. We should expect more of the same in Your RPEA Health Benefits Committee, chaired by Director of Health Benefits Joanne Hollender, has dedicated itself to resolving member concerns. CalPERS has met the challenge early by implementing federal health care reform as it affects its members. RPEA continues to monitor the fluidity of this federal reform as it impacts 2 RPEA NEWSLETTER January / February 2011 all of our members regardless of their health care coverage or lack thereof. CalPERS and some municipalities have continued to come under attack due to some of their bad practices. While reform legislation addressing placement agent practices has been signed, we will continue to sponsor or support legislation including that which prohibits inappropriate retirement pension spiking. The press has not been the friend of public employees and/or retirees. By casting a broad brush on the flagrant actions of the few generally the highly compensated the press s actions have tarnished the honorable profession of public service. It is the intent of the RPEA Public Relations Committee through its Chair, Al Darby, working with our Public Information Officer, Marketplace Communications, to formulate an active and effective response in 2011 representing the RPEA brand. Your March 1, 2011 CalPERS warrant/direct deposit advice will include a returnable card that encourages allowance recipients to ask for more information regarding retiree organizations. Please ask your non-rpea friends to return this card. Also encourage them to join RPEA to help shore up our declining membership base. It is with sadness that I mention the passing of Jerry McWherter, husband of our Vice President, Ann McWherter. Jerry has been Ann s strength as she performed the duties of her numerous positions with RPEA. We anticipate Ann s return as a valued member of the RPEA Board very soon.

3 Headline Text RPEA Legislative Update Jim Anderson, RPEA Director of Legislation WELCOME TO 2011! We can only hope it will not be like Since I didn t notice megabucks raining down on California when the clock struck midnight on December 31, I expect more negative talk about how public employees are taking advantage of the taxpayers. (Like we don t pay taxes too?) It seems to be the season for public employee bashing because some management folks abused the system (think City of Bell), and the Wall Street financial wizards screwed up. Various proposals keep coming up which affect public employee compensation and benefits due to the financial crisis. These are not new but have gained steam and present some new challenges. The underlying tenor is that taking benefits away from public employees will suddenly make the fiscal debacle go away. As one commentator said, If the states and local governments go bankrupt, we will do away with the unions and the defined benefit plans provided to government workers. How Successful is Bankruptcy? The City of Vallejo has been involved with their bankruptcy for about three years. During that time, they have reduced negotiated contracts with their employees, taken away health benefits from their retirees, and reduced their workforce by 40% since There has been no measure of this result on the livability of the citizens of Vallejo. Maybe somebody at Stanford could do a study to see if Vallejo is better off filing for bankruptcy, than simply raising some additional revenue. Federal Oversight? Another way to damage state and local governments has been a proposal by Congressman Nunes (R-California). He has introduced legislation (the Public Employees Pension Transparency Act) to require state and local pension programs to show how much unfunded liability exists in the pension plans. The reports are required to use a prescribed methodology likely to show the worse possible financial condition. Failure to make this disclosure will result in loss of tax exempt status for government bonds. If government cannot issue tax exempt bonds to finance infrastructure, it is likely that loss of credit status will force those governments into a bankruptcy situation. Sound familiar? This specific legislation died with the last congress, but is to be reintroduced soon. Constitutional Initiative? Californians for Fiscal Responsibility (Marcia Fritz) has not yet come out with their newest initiative. But, according to their press release, it is being prepared and will likely be more draconian than past efforts. They are inviting people to help prepare a constitutional amendment to totally reform the defined benefit plans and solve the problems in California s public pension system. (All at the same time, while they make cookies for the bake sale to aid the pension holders!) Governor s Plan? So what can we look forward to when the newly-inaugurated governor says, We will have to look at our system of pensions and decide how to ensure that they are transparent and actuarially sound and fair fair to the workers and fair to the taxpayers. Time will tell what he really means, especially when the CalPERS system has been lauded as being the most transparent of any public pension system and getting better. The timing of this report is such that the normal Legislative Tracking Chart will not be included. The new legislature has yet to introduce many bills that affect public employee benefits, and the U.S. Congress is just beginning. The new initiative filing season has not yet kicked into gear. In addition, the Board of Directors has yet to consider the Legislative Committee s recommended position on various legislative proposals. However, you can surmise from the previous discussion that there will be numerous actions that RPEA will need to consider and either support or oppose. So just remember... You don t stop laughing because you grow old. You grow old because you stop laughing. Let s be sure to find something to laugh about in Crankshaft 12/29/10 RPEA NEWSLETTER January / February

4 Legislative Update By Aaron Read & Patrick Moran January 10, 2011 marks either the beginning of a new era in California or the beginning of even more intensive squabbling between the political factions that have Balkanized the state economically, politically and socially GOVERNOR JERRY BROWN Only Neely Johnson, who once worked as a mule train driver and was responsible for obtaining the funding for the construction of the State Capitol when he became governor in 1856, has held California s chief executive position at a younger age than Jerry Brown. No one has been older. In addition, Jerry is only one of two people that have served three terms. Earl Warren is the other. The liberal Jerry Brown of the first term ( ) no longer exists. The now 72-year old Jesuit spent fifty minutes before the press on January 10th explaining that he has no desire to preserve any political capitol and will promulgate a balanced budget that does not rely on the gimmicks or tricks that pushed California deep into debt. BUDGET We are pleased to report that the proposed budget does not recommend any statutory change in the existing 100/90 formula for state annuitants or a suggestion of de-pooling for purposes of health plan redesign or premium negotiation. However, there are still several issues of concern. Included in his employee compensation proposal is a reduction to the escalating cost of state employee and retiree health care. The proposal includes the addition of a core health plan to the current benefit plan options for a savings of $72 million from the projected increase in the 2012 calendar year health rates. The core health plan would provide fundamental coverage at a lower premium. Through legislation, the California Public Employees Retirement System (CalPERS) would be directed to: Negotiate and add a core health plan option to the existing portfolio of health plans. Include a state representative in the health contract negotiations both for the purpose of shaping the core health plan option and identifying and advocating for more economical options within the existing plans. Governor Brown wants to call a special election this June in an attempt to extend the current taxes and revenues set to expire at the end of the fiscal year June 30th. The revenue extensions total approximately $12 billion and will alleviate the need for additional cuts. If passed by the voters, the extension would be for 5 years. The governor has increased the pressure on everyone by saying that he wants the Legislature, who has historically proven to be incapable of fashioning a budget in seven months, to accomplish the task by March. This allows him to get his revenue extension proposals, i.e. tax increases, before the voters in June. The longer it takes, the deeper the cuts will have to be. In addition, he also said that he will slaughter sacred cows in an attempt to garner some support for a June initiative that will extend a small increase in the Vehicle License Fee (VLF), a 1% increase in the sales tax and an income tax on high-end earners. This will all happen only if they can garner the necessary 2/3 vote to place these increases on the June ballot. Republicans have said they will not vote for it unless they get deeper cuts, more contracting out and increased pension reform of public employee pensions. At this time we have no details of the actual proposal, but we will keep you apprised. The budget is $84.6 billion. Governor Jerry Brown s first budget proposal during his second go around as Governor includes $12.5 billion in spending reductions, $12 billion in revenue extensions and modifications and $1.9 billion in actions to close the gap and provide for a $1 billion reserve. 4 RPEA NEWSLETTER January / February 2011

5 Legislative Update By Aaron Read & Patrick Moran Major spending reductions include $1.7 billion to Medi-Cal, $1.5 billion to California s welfare-to-work program (CalWORKs), $750 million to the Department of Developmental Services, $500 million to the University of California, $500 million to California State University, and $308 million for a 10 percent reduction in take-home pay for state employees not currently covered under collective bargaining agreements. We are still analyzing this section and will update you as we have more information. Brown also plans to trim state government operations by $200 million through a variety of actions, including reorganizations, consolidations and other efficiencies. It is going to be a complex walk across a loosely hanging tightrope. LEGISLATION As of this writing, there is one main bill of interest relating to pension spiking, SB 27 (Simitian). This is a reincarnation of his spiking reform bill that was vetoed by Governor Schwarzenegger last year. only by those paid-out to Wall Street executives. In short, they want their retirement calculations based on their entire salaries instead of the $245,000 IRS limit imposed by federal law. They claim they cannot recruit without it. In the wake of this circumstance, AB 7 (Portantino) has been introduced. It calls for a salary freeze for state employees whose base salary is greater than $150,000. This freeze would only remain in effect until January 1,2014 and would only apply to those state employees that remain in the same position or classification. There are some exemptions included in this bill, such as a person whose compensation is governed by an operative Memorandum of Understanding (MOU), a person who has been exempted by Executive order of the Governor, or a person whose salary is set pursuant to the California Constitution. Bills are continually being introduced, and we are reviewing them for potential impacts to RPEA and its members. We will keep you apprised along the way. SB 27 is the anti-spiking legislation that augments CalPERS anti-spiking legislation, SB 53, from It adds stronger accountability provisions for participating employers that include an ongoing audit process and penalty provisions for noncompliance; limits cash conversions of accrued employee benefits, as specified; prohibits final settlement pay from being included in retirement calculations; and, prohibits a retiree from returning to work as a retired annuitant or as a contract employee for a period of 180 days after retirement. This requirement will apply to anyone retiring on or after January 1, We couldn t end this column without mentioning the stupidity of the University of California s top executives. They are threatening to sue the UC pension fund unless their pension benefits are dramatically increased. Keep in mind that these are some of the state s highest paid executives with perks and benefits rivaled RPEA NEWSLETTER January / February

6 RPEA Health Benefits Update By Joanne Hollender, Director of Health Benefits Happy New Year! 2011 is expected to be an active year for pension and health news. One of the best ways for RPEA to be heard is to establish relationships with the news media. In November, President Harvey Robinson and I attended a presentation by the Sacramento Bee s seasoned political news editor, Dan Walters, who shared an entertaining history about California politics. RPEA is going to be monitoring Governor Brown s budget proposals, which may have an impact on retiree health benefits. In December I had the opportunity, along with other Public Relations Committee members, to meet with two newspaper reporters, Jon Ortiz, who writes the State Worker blog for the Sacramento Bee, and Lisa Vorderbrueggen, a political editor for the Contra Costa Times located in Walnut Creek. RPEA educated the reporters about the size and makeup of its membership base of 30,000. RPEA not only represents CalPERS State retirees, but also school and local agency retirees. RPEA emphasized the need for more balanced reporting, not just reports about a few individuals who are pension spiking. RPEA also shared that it supported the anti-spiking bill (AB 1987) that former Governor Schwarzenegger vetoed, and plans to support future legislation to stop pension abuses. CalPERS LONG TERM CARE PROGRAM CalPERS signed a two-year contract with the Long Term Care (LTC) Third Party Administrator, Univita Health, which began on January 1, Univita is lowering its administrative fees and waiving all Consumer Price Index (CPI) increases. CalPERS also signed a one-year time and materials contract with the actuarial vendor, United Health Actuarial Services (UHAS), which started January 1, Both contracts have renewal options. REQUEST FOR PROPOSAL CalPERS is preparing a Request for Proposal (RFP) for the LTC Program Third Party Administrator. Shooting Star Solutions, LLC is providing project management assistance with a target release date of June, The RFP will be discussed at the February CalPERS Board meeting. PRODUCT ANALYSIS AND APPLICATION PERIOD CalPERS, along with UHAS and Univita, has designed a new LTC product offering new terms, daily benefit amounts and married and preferred health discounts. UHAS has developed an analysis including migration scenarios of existing policy holders to the new product, which may reveal provisions in the RFP. The CalPERS Board will listen to the analysis and ideas for a future application period at the March, 2011 meeting. The plan is currently not accepting new enrollees. LONG-TERM CARE PROGRAM 2010 ANNUAL VALUATION REPORT The CalPERS LTC Program 2010 actuarial valuation as of June 30, 2010, was completed by UHAS. UHAS developed a projection of future cash flows and evaluated the adequacy of current assets and premium levels based on those cash flows. The 2009 annual valuation reported the base case deficit as (32.60%). The 2010 annual valuation reported the base case deficit as (86.52%) without the approved rate increases, (2.98%) with the approved rate increases and corresponding assumptions, and (18.85%) with the approved rate increases and corresponding assumptions but with a decreasing discount rate. Corrective actions for 2011 previously approved by the CalPERS Board, include LTC Program annual premium increases of 5% beginning July 1, 2011 for those members with LTC1 policies with lifetime coverage and inflation protection. 6 RPEA NEWSLETTER January / February 2011

7 RPEA Health Benefits Update The following is a summary of the conclusions based on various projections completed since the 2009 annual valuation: CONCLUSIONS The CalPERS LTC Program projection results continue to show deficits or breakeven results based on current assumptions, and thus fall short of the 10% margin goal by The results are reasonably consistent with past projections. The positive asset experience since the 2009 valuation was more than offset by the change in projected discount rate from 7.79% to 6.38%. The updated September 30, 2010 results are relatively consistent with the June 30, 2010, so the key findings remain unchanged. Based on current projections, underlying assumptions, and Program goals, additional corrective actions would be recommended in The full report including scenarios can be accessed on the CalPERS website. In December RPEA, along with other constituents, met with the CalPERS staff to express its concerns about the future of the LTC Program. RPEA will keep members updated about the status of the program. RETIRED PUBLIC EMPLOYEE VISION CARE AB 65 (Hayashi (D)), signed by former Governor Schwarzenegger, allows public agencies and classified school annuitants to pay for vision care benefits. Annuitant premiums are to cover administrative costs. Although the plan has slipped past its slated start date of January 1, 2011, RPEA continues to pressure CalPERS to implement the program. Although disappointing and slower than RPEA had hoped, CalPERS has agreed to: 1. Begin looking into how best to survey the membership. 2. Begin looking into the RFP process, especially the start-up funding aspect. 3. Develop a high level project schedule that allows CalPERS to determine what needs to be done & by when. RPEA will continue to report on the progress of this program. CALIFORNIA HEALTH LEGISLATION Former Governor Arnold Schwarzenegger signed nearly 750 bills in 2010, most of which went into effect January 1, 2011, including the following are healthrelated bills: AB 1602 and SB 900: Companion measures to create a state health insurance exchange - a key component of federal health care reform. (Pérez (D) and Alquist (D)) SB 1088: Requires health insurers to cover dependents through age 26. (Price (D)) AB 2244: Restricts health care insurers from refusing to sell or renew coverage to children with pre-existing conditions. (Feuer (D)) AB 2470: Prohibits health insurers from canceling insurance once a policy is issued, unless there is fraud or intentional misrepresentation. (De La Torre (D)) AB 52: Raises birth certificate copying fees by $2 to expand collection of umbilical cord blood that can be used in fighting blood and immune disorders. (Portantino (D)) SB 1163: Requires health plans and insurers to provide detailed actuarial information to the state before raising premiums. (Leno (D)) FEDERAL HEALTH CARE CHANGES As this article goes to press, one of the top items on Republicans list when they are in control of the U.S. House of Representatives is to undo one of the Democrats major achievements of the last Congress: the sweeping health system overhaul. The vote is expected to pass with overwhelming Republican support. But while House Republicans are likely to claim it as a major victory and campaign promise kept, it is unlikely to pass in the Senate, which remains controlled by Democrats. RPEA NEWSLETTER January / February

8 Stanford Study By Mil Pribble Stanford University Publication Claims CalPERS $297.3 Billion short CalPERS Says Stanford Study Misrepresents Facts. Stanford University dropped a megabomb into California politics last month by distributing a study alleging that CalPERS is $297.3 billion underfunded, a claim vehemently denied by CalPERS. The allegation was contained in an eight-page SIEPR policy brief written by five master s degree students titled Going For Broke: Reforming California s Public Employee Pension Systems, published by the Stanford Institute for Economic Policy Research. The students faculty advisor was Dr. Joe Nation, a member of the California Legislature from 2000 to The study is sheer fantasy erroneous assumptions, twisted logic, unjustified conclusions and unworkable proposals. The paper asks the reader to adopt its questionable assumptions as valid, then uses them arrive at real-life conclusions. Brushing aside the fact that CalPERS has averaged investment earnings of 8.4% over the last thirty years, the students state that the public pension system is wrong in complying with Governmental Accounting Standards Board (GASB) Statement #25, which requires public pension plans to rely on realistic expectations of earnings in determining their ability to pay long range pension obligations. The paper correctly points out that pensions are deferred compensation and cannot be reduced. The students say that since the pension obligations are fixed (therefore without risk ) there must be no risk in the investments. The entire paper hinges on this highly questionable premise. They believe risk-free investments can be found that would yield a return of 4.14% (good luck!) so they propose that CalPERS invest only in risk-free ventures. The smaller rate of return would require more assets to invest. On that basis the students calculated that CalPERS is underfunded by $293.7 billion. That established, the paper proposes the option that California public pensions be converted into a hybrid plan, substituting 401(k)-like benefits for defined benefit plans, regurgitating an idea previously proposed by the students client who requested the study, Governor Arnold Schwarzenegger. The study projects that under its proposals CalPERS will become at times overfunded. When that occurs it suggests that the excess funds be escheated to the State and earmarked to reduce the State s debt a nice thought except that it is unconstitutional. CalPERS funds are not public money. They are private property. CalPERS holds them in trust for the employees and retirees of over 3000 governmental entities for whom CalPERS acts as a common investment and administrative agent. Government cannot expropriate private property for public use, a quaint idea that had its origin on 15 June 1215 on a plain known as Runnymede when a king named John was persuaded, albeit under some coercion from his subjects, to sign the Magna Carta, wherein he agreed: Neither we nor any other royal official will take wood for our castle, or for any other purpose, without the consent of the owner. The founders of our nation recognized the right of eminent domain but provided in the Fifth Amendment to the United States Constitution, nor shall private property be taken for public use without just compensation. Stanford distributed this study to the media. Stanford s exalted reputation gave credence to this inept research. The New York Times commented An independent analysis of California s three big pension funds has found a hidden shortfall of more than half a trillion dollars, several times the amount reported by the funds. Similar stories were carried by major newspapers, news magazines and business journals throughout the United States. Columnists from George F. Will to Dan Walters pounced on the story, some citing the New York Times, others the Stanford University study itself. CalPERS responded in press releases, pointing out the brief s erroneous assumptions, inappropriate statistical methods, unacceptable accounting practices, use of obsolete data and factual inaccuracies. It seems strange that five students, all in their twenties, might well deprive millions of public servants of the fruits of their labor, but such is the influence of Stanford University and our nation s press. In distributing this misleading study under its imprimatur, Stanford University has done incalculable damage to California s political process and millions of public employees and retirees. Stanford cannot escape its ethical responsibility by a disclaimer that its mailouts reflect the views of the authors when it accompanies the paper with statements that the purpose of SIEPR is to inform policymakers and to influence their decisions with long-term policy solutions and its policy briefs are meant to inform and summarize important research by SIEPR faculty. The Constitution gives all of us the right of free speech. That does not include the right disseminate fantasy as fact or to shout FIRE! in a crowded theater when there is no fire. 8 RPEA NEWSLETTER January / February

9 Retirement Check Pay Days Retirement benefits are paid at the end of the month. For example, the payment you receive at the end of June is for your June benefits. For tax reasons, your December retirement check is always dated on the first day of the new year. The chart below shows you the pay days for Since checks are issued by the State Controller s Office, they determine the mailing dates. If you have direct deposit, your financial institution has until the close of the direct deposit date to place the funds in your account. Please contact your financial institution to find out what time it places your funds in your account. If your retirement check is mailed to you and you have not received it by the sixth of each month, or if you believe your check has been lost or stolen, you should contact CalPERS at: 888 CalPERS (or ) If you ve moved recently, or are planning to move, be sure to let CalPERS know. Purchasing Power Protection Allowance (PPPA) Factors for 2011 The CalPERS actuarial staff has developed the Purchasing Power Protection Allowance (PPPA) factors for Increases (or decreases) based on these factors will be included as part of the monthly retirement warrants to those retirees and beneficiaries who are entitled to receive the PPPA benefits. Eligibility for the PPPA benefit is based on the year of retirement, cost-of-living adjustments received, payment of one-time increases, and declining purchasing power that is measured by the United States City Average Consumer Price Index (CPI-U). If you have questions regarding these factors or the PPPA program, contact the CalPERS Benefit Services Division at P. O. Box , Sacramento, CA, or (toll free) Additional information is available at California Public Employees Retirement System RPEA NEWSLETTER January / February

10 Spotlight on Bob Van Etten, RPEA Area Director III RPEA Area Director III, Bob Van Etten, was born in San Francisco, California and grew up in the Bay Area. He attended the College of San Mateo and received a BA in Engineering from Chico State University. He proceeded to earn a Master s Degree from San Jose State University. Bob worked for the City of San Leandro for a time before spending 30 years with Santa Clara County in the Department of Land Development, Roads & Airports. He served as President of the Engineers & Architects, served on the Architectural & Site Approval Committee and as a staffer on the Planning Commission. Bob has been a volunteer with the National Ski Patrol at Sierra At Tahoe for 20 years. In the past three years he has hiked Half Dome three times. Bob became a member of RPEA in 2003 and has served as President of Chapter 075-TRI VALLEY, Assistant Area Director III and currently as Director of Area III. ADVERTISING DISCLAIMER: RPEA assumes no responsibility for and gives no guarantees, undertakings or warranties concerning accuracy, completeness of information/material contained in ads and/or defects or performance of products or services offered by these advertisers. RPEA does not accept any liability whatsoever arising from any errors or omissions. 10 RPEA NEWSLETTER January / February 2011

11 RPEA Membership Program By Dennis Cassella Director of Membership We are about to embark on the 2011 RPEA Card Insert Program. This is a membership recruitment effort that is conducted with the assistance of CalPERS and the State Coalition of Retired Employees (SCORE). RPEA is a member of SCORE. The Card Insert Program is one of our most significant membership efforts. In odd-numbered years (2011), CalPERS and the State Controller include an interest card with the March 1st retirement checks (or deposit advice for those with direct deposit). This brightly-colored, postcard-sized inquiry card is sent to all 480,000 retired persons who receive a CalPERS pension check. The card asks if the reader would like information from organizations such as RPEA who offer post-retirement representation and benefits to retirees. It also indicates that if you are already a member of RPEA it is not necessary to return the card. Another way to know if you are a member is that if you received this newsletter by mail to your home address, you do not need to return the card. Please ask your retired public employee friends who are not members of RPEA to return their interest card. It is one of the best favors you can do for them. As you well know, we need as many RPEA members as possible to have a strong voice in the Legislature and at the CalPERS Board of Administration. The reason this is important to RPEA is that CalPERS cannot provide the addresses of new retirees directly to RPEA. Our first and only direct method of contacting new retirees is through this program. RPEA staff receives back, through return mail, nearly 28,000 cards. Between 4,000 and 5,000 returned cards come from persons who are already a member of RPEA. Again, it is not necessary to return the card if you are already a member. This year we will be working with a marketing consultant, Lincoln Crow, to better tailor our responses and information for those who are newlyretired and those who have been retired for a few years. We also plan to pursue some marketing tests based upon regional messages where there are high concentrations of retired public employees. We will also be looking for membership enhancements that improve the value of an RPEA membership. We don t just do just a single mailing. We will be sending out materials well into mid-summer as issues of importance to RPEA, CalPERS, California and retirees rise up. It is important that Chapter and Area leaders work with our Headquarters Office to respond to requests for information. One of our best avenues for gaining new members is to have them attend a chapter meeting, be greeted and acknowledged, given a membership application and invited to come back. We can make this a successful 2011 Card Insert Program. The future of RPEA depends on it! After the cards begin to rush in, we batch them and send membership information to those who have requested it. Our first mailing happens in or around the third week of March. RPEA NEWSLETTER January / February

12 Public Relations Committee Turns Attention To A Formal Recruiting Program By Al Darby, Chair of RPEA Public Relations Committee At the October 2010 meeting the RPEA Board authorized a new approach to membership recruiting. This new approach adds an ongoing program wherein RPEA contracts with a membership recruitment firm to seek new members using techniques employed by professional recruiters. We will continue to pursue our usual CalPERS Card Insert recruitment program which occurs again in 2011, but with enhanced incentives. The new recruiting effort will go far beyond previous Card Insert Programs. The number of public employee retirees has risen due to pay cuts, furloughs and layoffs of many workers. Those eligible to retire are seriously looking at their retirement options sooner than they would if economic conditions were more normal. We must attract these new retirees to our rolls to rebuild our membership base and remain a strong voice for public agency retirees in the state legislature and at the local government level. In other related news, press releases are being developed from many sources related to California s public employee retirees. Our outside public relations firm, Marketplace Communications, has been very busy directing our efforts toward the most productive kinds of activities. Our goal is to issue two or three press releases per month. Press releases, opinion/ editorials, and other outreach efforts to newspapers, broadcast and social media (Facebook/Twitter) are designed to lift public awareness of RPEA and the efforts we are making to protect and enhance retired public employee pensions, health care and other benefits. All of these public relations efforts seek to brand RPEA as a force to be recognized as influential in public affairs by news agencies and within social media channels. (L-R) Harvey Robinson, RPEA President; Dennis Cassella, RPEA Director of Membership; Michael Perri, President of Lincoln Crow Strategic Communications; George Linn, RPEA Director of Communications & Newsletter Editor; Al Darby, Chair of RPEA Public Relations Committee. George Linn, RPEA Director of Communication, was recently appointed to the Economic Development Committee of Lakeport CA. A division of the Lakeport Redevelopment Agency, the committee s purpose is the retention, recruitment, and creation of business in Lakeport. 12 RPEA NEWSLETTER Jan / Feb 2010

13 Diet & Health By Mil Pribble BILL NUMBER & AUTHOR LEGISLATIVE INTENT CURRENT STATUS OUR POSITION FLU FACTORIES IN THE U.S.? of vegetable juice a few times The January 2011 issue of Scientific American devotes per week cut dementia risk by HR 235 (Berman (D) Proposes to repeal the Government Pending in House Ways Support six pages to the danger that U.S. Pension pig farms Offset are (GPO) breeding and Windfall 76%. Smoking & Means increases Cmte the the next worldwide flu epidemic Elimination virus and Program that (WEP) crucial provisions threat of dementia by up to of the Social Security Act lab results are not being shared with our Centers for 80% because of tobacco s toxic S Disease 484 (Feinstein Control. (D) The intermingling Proposes of to flu repeal viruses the Government from effects on blood vessels. High Pension Support birds to pigs to people is constantly Offset (GPO) producing and Windfall new Elimination blood pressure Pending increases Senate dementia Finance risk by 50%. A big Program (WEP) provisions of the Social Cmte combinations of flu genes resulting in mutations against waistline in midlife increases the risk of dementia years Security Act. which our bodies have few defenses. New types of flu later, according to a study of 6,000 people, so aim for a waistline of 35 or less inches for women and 40 for *These what s bills happening are still under in review order by to either prepare the Health new Benefits vaccines or Legislative men. (Article Committees in The Oregonian by Mehmet Oz and BILL each NUMBER year. For decades & AUTHOR the flu viruses LEGISLATIVE in pigs remained Mike Reizen of the daily TV The Dr. Oz Show and well INTENT CURRENT STATUS OUR POSITION stable, but for unknown reasons, in the late 1990 s known medical writers.) AB they 2 (De began La Torre to (D) evolve into new Individual forms health at care an coverage alarming spot bill relating to the Vetoed by the Governor. Watch Knox-Keene health care service plan. rate. Traditionally, large pig farms have tested for flu MINING THE JOURNALS California private employee savings program. Proposes AB and 125 had (De Leon the test (D) results analyzed to establish by industry IRA s and 401(k) s labs for that Sodium in our diet tends to raise blood pressure. private employees. Pending in ASM Appr Cmte Watch Identical to AB 2940 that failed passage in produced vaccines used on hogs. A program whereby Potassium lowers it. But equal amounts don t balance this knowledge was to be shared with the U.S. Center each other out. The recommended daily intake of Proposes to establish employee and employer Signed by the Governor as AB for 468 Disease (Hayashi Control D) has broken contributions down schedule because relating of to lack years of sodium service. for those Chapter over is 1500 mg. The minimum Watch of cooperation by the pork-producing industry, which, as recommended Pending amount in ASM of potassium Appr Cmte is 4700 milligrams. AB 1477 (Krekorian (D) Proposed school member death benefit increase of 2009, is phasing out pig testing altogether rather than So it takes over (two-year three bill) times the recommended amount Watch AB share 1743 (Hernandez this vital information. (D) and The CalPERS American placement public agents registered has of potassium to equal the upper limit on sodium. (UC Pending in the ASM PER&SS other co-authors lobbyists. Watch grown complacent about the danger of a pandemic like Berkeley Wellness Letter, December 2010) The average AB the (Ammiano flu outbreak (D)) that killed Public over retirement 50 million systems investments people. person consumes Pending about in the ASM 3500 to be assigned mg of sodium per day. to committee for hearings. predatory investment practices. Watch We hope we can soon report progress the politics of Many people think most of the sodium in our diet is Governor s pigs. In proposed the meantime, budget for it s not This too proposal late for would your split flu the shot. from table salt. health benefit pool Proposed That s bill was not not introduced true. Only as one 6% of Oppose our sodium the separation of the budget or trailer bills in recently Had a suggested trailer currently in CalPERS-PEMCHA so that actives of pools for health care You can get one at major chain pharmacies. Medicare comes from the table saltshaker. Twelve percent occurs approved budget agreement by the bill to move state active employees would be in one pool and retirees and contracting benefits, etc. We also legislature the Governor. However, pays for it. Here s a multiple to another state agency other than agencies choice would question be in another for you: naturally in foods and 5% is added during pool. the May budget revise may bring this oppose cooking, any efforts but to roll proposal again. back retirees benefits. CalPERS-PEMCHA Who needs a flu shot? a whopping 77% comes from packaged and restaurant (1) You. (2) You. (3) You. (4) All of the above. food, so cutting back on salt involves cooking more from scratch at home. (Consumer Reports on Health, April 2010). According to a recent Bloomberg News release the patent on Lipitor will run out in November, and we will be able to purchase it as a generic, saving many of us tons of money. Lipitor is the world s top-selling drug with $11.4 billion in sales last year. Lipitor sales declined by $2.5 billion last year as generic versions of Lipitor were introduced in Canada and Spain.Tomatoes are one of the few vegetables whose nutrient value is improved by cooking. In addition to vitamin C, fiber, potassium and iron, tomatoes provide lycopene, a powerful antioxidant. Lycopene offers some protection against cancer and slows the development of atherosclerosis that leads to heart disease; but, most importantly, these benefits become more available to the body when the tomatoes are cooked. So don t hesitate to stir a can of tomatoes into pasta dishes, soups, stews, casseroles and Mexican dishes. (Environmental Nutrition December 2010) Other require Federal new vaccines. & State Scientists Legislation need information - Pending about Position Recommendations* Proposed Ballot Measures Constitutional Amendments, Repeals, Rewrites LIFESTYLE, NOT DRUGS, HELP STAVE OFF DEMENTIA The jury is still out on what, if anything, we can do to prevent Alzheimer s disease. But, not all dementia is Alzheimer s. One of the leading types is vascular dementia. It happens when your brain cells can t get enough oxygen and blood sugar, frequently because the brain s blood vessels get clogged, a condition that we can prevent or even reverse by keeping our arteries clear. Physical exercise like walking or cardio rushes blood to the brain and releases substances that make cells multiply and connect. Eat Mediterranean style fresh vegetables, fruit, whole grains, olive oil, fish and nuts. In one study, men and women who ate the most produce had the least decline in brain function after ten years. Another study found those who had a glass RPEA NEWSLETTER January / February

14 RPEA Member Benefits RPEA Member Benefits include all the extras available to our members access to discounts on admission to theme parks, museums and aquariums; discounts on dental, health, home, life, auto and accident insurance. The biggest achievement of the RPEA Member Benefits Committee in 2010 was adding a new program we call DISCOUNTS GALORE, sponsored by Atriba, a one-of-a-kind network through which RPEA members can save money on countless goods and services. For example, if you re an RPEA member, you can now get: Discounts on car rentals at five different national chains: Hertz, National, Thrifty, Fox and Alamo A 40% discount on NetZero, a really fast dial-up internet service (only $8.95 a month) 25% off on monthly monitoring services of the Life Connect Medical Alert Systems, which combines personal emergency two-way voice communication, waterproof pendant or necklace, fall detection, smoke detection and carbon monoxide monitoring and protection. Discounts on travel and vacations (Right now the Destination of the Month is Cancun) Discounts on restaurants, pet medications, fitness centers, Dish Network satellite TV, Dell computers, etc There are hundreds no, thousands of items on which RPEA members can get discounts. How can you access these bargains? The easiest way is via the internet. Go to com and enter your member ID number from your plastic membership card. Explore the site. Use the SEARCH option to find what you want. No computer? Not online? No problem. Call and provide your member ID number. Tell the representative what you re looking for. If there is a PROMO CODE, be sure to mention it. RPEA offers no warranties Our role is merely to put you in touch with money-saving opportunities. The DISCOUNTS GALORE program is only one of our many member benefit offerings that enable our members to receive quality services and products at a discount. For more information on this or any other our member benefit programs call the RPEA Headquarters office at Automobile/Home Insurance - Liberty Mutual Insurance Co. Dental Plans - Ameritas Sensible Choice (all States) SelectDent Delta Care (California only) Atriba Discount Network Short Term Recovery Plan - The Hartford Family Legal Plan - Legal Club of America (all States) Hearing Plan - EPIC (all States) Long Term Care - John Hancock (most States) Medicare Supplement Plan - (A-J) Transamerica (all States) Prescription Drug Discount Plans - PreScrip Outlook Rx Travel Accident Plan - The Hartford (most States) Vision Plan - Vision Service Plan (VSP) (all States) VPI Pet Insurance Contact RPEA Headquarters at: To request information on: Insurance plans Certificates for Discounts See s Candy and/or Entertainment Admission Prices. Your Member Benefits Committee is constantly seeking new and improved discount benefit offerings. 14 RPEA NEWSLETTER January / February 2011 Discounts On: Alpine Club/Palm Springs Tram Aquarium of the Pacific California Academy of Sciences Gilroy Gardens Great America Knott s Berry Farm Legoland California Madame Tussauds of Hollywood Ripley s Believe It or Not Roaring Camp Railroad San Diego Zoo Wild Animal Park Sea World San Diego See s Candy Certificates Six Flags Discovery Kingdom Universal Studios

15 Membership Application RPEA NEWSLETTER January / February

16 Retired Public Employees Association 300 T Street, Sacramento, CA Toll Free Phone (916) Fax (916) rpeahq@rpea.com Non-Profit Organization PAID Permit No. 400 Laguna Niguel,CA CHANGE SERVICE REQUESTED RPEA Board of Directors Harvey Robinson - President 1277 Ridgeway Dr., Sacramento, CA Ph (916) Fax (NONE) hrobin6766@sbcglobal.net Ann McWherter - Vice President 8701 Valley Oak Lane, Elk Grove, CA Ph (916) Fax (916) almcw2864@surewest.net Marie Reed - Secretary/Treasurer 6796 Pocket Rd., Sacramento, CA Ph (916) Fax (916) marie.reed@comcast.net Ted Rose - Immediate Past Pres San Minete Drive, Livermore, CA Ph (925) Fax (NONE) seniorsmokey@yahoo.com Joanne Hollender-Dir. Health Benefits 3424 Java Dr., San Ramon, CA Ph (925) Fax (NONE) caljazzcat@att.net Dennis Cassella - Dir. Membership 205 Cypress Hill Dr., Grass Valley, CA Ph (530) Fax (SAME) henryv@nccn.net George Linn - Dir. Communications 53 Aquavista Way, San Francisco, CA Ph (415) Fax (415) gmlinn@aol.com Jim Anderson-Dir. Legislation 578 Via La Paloma, Riverside, CA Ph (951) Fax (951) waynesix@aol.com Al Darby- Dir. Member Svcs 2601 Pine Knoll Dr., #14, Walnut Creek, CA Ph (925) Ph (530) Fax : (SAME-Call before faxing) aldarby9@cs.com Milt Dobkin-Area Director I 619 Park Ave. Arcata, CA Ph (707) Fax (707) milton4@sonic.net Don Raffaelli - Asst. Director Area I 3433 Trinity St., Eureka, CA Ph (707) Fax (707) draffaelli@suddenlink.net Ernest Sandoval - Area Director II Dersch Rd., Anderson, CA Ph (530) Cell (530) Fax (NONE) papaernie@aol.com Robert Van Etten - Area Director lll 4401 Clovewood Lane, Pleasanton, CA Ph (925) Fax (NONE) bobvanetten@comcast.net Helen Segletes - Area Director IV 1800 Thelma Dr, San Luis Obispo, CA Ph (805) Fax (NONE) hsegletes@aol.com Robert Seigler - Area Director V P. O. Box 751, Norco, CA Ph (951) Fax (NONE) seiglerbob@charter.net Wes Stonebreaker - Area Director VI 1060 Country Club Dr., Riverside, CA Ph.(951) Fax (951) lindaandwes@aol.com Ted Thatcher - Area Director VII 4415 Park Green Ct., Sacramento, CA Ph (916) Fax (916) thatcher@macnexus.org Jerry O Keefe - Area Director VIII P. O. Box 18651, Anaheim, CA Ph (714) Fax (NONE) irishfree1916@aol.com Cleave Govan - Area Director IX 3621 Pinnate Dr., Las Vegas, NV Ph (818) Fax (NONE) cleavegovan@yahoo.com HQ STAFF: 7:30 am - 4:15 pm Joe Umiker, Office Manager joe@rpea.com Tanya Rakestraw, Asst. Mgr Tanya@rpea.com Radtana Lee, Accts. Payable Clerk Radtana@rpea.com Barbara Hernandez, Mem Svcs Receptionist Barbara@rpea.com Eric Hoffman, IT Tech Eric@rpea.com