Horizon News INSIDE THIS EDITION: COMING IN 2015! Member Self-Service-on-Line

Transcription

1 Volume 14 Fall 2014 A Newsletter for Active and Retired Members of the City of Baltimore Employees Retirement System INSIDE THIS EDITION: COMING IN 2015! Member Self-Service-on-Line MISSION STATEMENT The System is committed to protecting and prudently investing member assets and providing accurate and timely retirement benefits with quality service to members and beneficiaries.

2 Executive Director s Letter Volume 14 Fall 2014 Dear active members, retirees, and beneficiaries: The fall is here, and change is taking place all around you; in the weather, in the color of the leaves and at the ERS. So, it is fitting that, change is the theme for this issue of. If you applied for retirement benefits recently, you d have benefited from the efficient processing of your retirement, and the beautiful electronic copies of your retirement documents to take for your home files. This is the result of PensionPro, a new internet cloud based benefits administration system, recently implemented by the ERS to replace the old 35-plus years records management system. Read more about ERS new PensionPro system in this newsletter. A new Retirement Savings Plan, (RSP) was approved by the Mayor and City Council for employees hired or some former employees returning after July 1, Eligible members will have two retirement plan options to select from; RSP-Hybrid or the RSP-Non/Hybrid. Both options are discussed in this issue and during the ERS Retirement Education Seminars as scheduled. Also enclosed is information about Cost-of- Living-Adjustment for eligible retirees on January 1, TABLE OF CONTENTS New Cloud-Based Benefit Administration System... 3 Coming in 2015! Member Self-Service-on-Line... 3 New Retirement Savings Plan for New Hires... 4 Shoutout to Nichelle Lashley... 4 Health 101: Let s Talk Diabetes... 5 COLA Benefits Reminder... 6 Update Your Address... 6 Controlling Your Holiday Spending... 6 The staff of the Employees Retirement System is here to assist you. Call or visit our office to speak with a Benefit Analyst about your benefits or to schedule an appointment to apply for retirement. During non-office hours, please leave a short message on the voice message system. Your call will be returned on the next business day during working hours. OFFICE ADDRESS: OFFICE HOURS: 7 East Redwood Street 13th Floor Monday through Friday Baltimore, MD :30 a.m. to 4:30 p.m. PHONE: FAX: or WEBSITE: (Outside Baltimore) horizon@bcers.org THE ADMINISTRATION Roselyn H. Spencer, Executive Director Bernita James, Deputy Director Germaine Hughes, Benefits Manager THE BOARD OF TRUSTEES Finally, with the holidays just around the corner, we have included lifestyles articles on health and money that you will find especially beneficial. Make sure to read both Health 101 on Diabetes and Controlling your Holiday Spending. Also, don t forget to mark your calendar for the Lunch-Health Series coming up soon. As you enjoy this issue of, bear in mind that we love to hear from you. Tell us what is important to you and some topics that you would like for us to include in our next issues. Happy Holidays to you and your families. Sincerely, Joan M. Pratt, CPA, Chair Ex-officio member Comptroller City of Baltimore Deborah F. Moore-Carter, Vice Chair City of Baltimore Labor Commissioner Elected by Active Members Term expires 12/31/2015 Rosemary H. Atkinson Retired HOPE VI Community Builder, City of Baltimore Elected by Retired Members Term expires 12/31/2015 Dorothy L. Bryant Phlebotomist City of Baltimore Health Department Elected by Active Members Term expires 12/31/2015 Doris Y. Brightful Retired Community Health Nurse, City of Baltimore Health Department Appointed by the Mayor Term expires 12/31/2016 Jerome L. Sanders President, LVI Power, LLC Appointed by the Mayor Term expires 12/31/16 Thomas B. Corey Chief, City of Baltimore Minority and Women s Business Opportunity Office Elected by Active Members Term expires 12/31/ Roselyn H. Spencer Executive Director & CIO Every effort has been made to ensure that all plan information contained in this newsletter is correct. However, in case of any discrepancy, the policies and law (Article 22 of the Baltimore City Code) embodying the plan will govern.

3 Volume 14 Fall 2014 New Cloud-Based Benefit Administration System for ERS Out with the old and in with the new! ERS recently entered cloud-computing technology, earlier this year with its new Benefits Administration System (BAS) PensionPro. Implemented by the Pension Technology Group (PTG) out of Boston, Massachusetts, PensionPro is a Microsoft Windows cloud-based integrated solution customized specifically for ERS retirement benefits administration needs. Essentially, PensionPro replaces a COBOL based records management system that was in use for over 35 years. The main modules of PensionPro include; records maintenance, benefits calculators, processes, pension payroll, processing workflow, and reports. The BAS allows ERS staff to maintain and monitor the retirement database on an ongoing basis; to process retirement applications; and respond to benefits related inquiries with greater efficiency and security. It will also allow active members to have immediate access to certain benefit information and perform some self-service activities. Highlights of the BAS capabilities include: Consolidation of member s records management in one location allowing ERS staff to process retirement related requests and payments with accuracy. Provides conduit for disaster recovery and work continuity planning. Allows for direct import/export processes with third party software interfaces such as the City Payroll division and custody bank. Provides on-line-access for members to view certain retirement related information. Provides annual membership statements and allows for benefit estimate calculations at anytime. ERS Staff is now taking delight in the positive effects already being realized from PensionPro. They are meeting all critical deadlines with accuracy leaving time to focus on retirement education and one-on-one retirement consultation with active members. For now, the system is set up granularly, so that that individual groups and users will have access tailored to their specific needs and functions. While this is a new solution for ERS, we recognize that there is still more to be done. COMING IN 2015: Member Self-Service-on-Line Within the next few months, you ll be able to access important benefit information online, at your convenience without having to call the ERS. When the new Member Self-Service feature is added to the system, you ll be able to use your computer, smart phone, or tablet to look up general plan features, as well as your own personalized benefits information, including contributions and retirement benefit estimates. You ll also be able to access forms and generate reports from the portal. Of course, if you prefer, you ll still be able to call or visit the ERS to obtain your benefit information. You ll receive more information on how the system works just before roll-out. 3

4 Volume 14 Fall 2014 New Retirement Savings Plan For New Hires Employees hired on or after July 1, 2014, will have two new retirement plan options to choose from, due to legislation signed into law on May 7, The two plans are: Retirement Savings Plan(RSP)- Hybrid and Retirement Savings Plan (RSP)-Non Hybrid. The new plan was created as the result of a compromise between the Baltimore City Unions and Mayor Stephanie Rawlings-Blake to combine a 401(k)-style plan with a traditional pension plan. Here s how it works: Employees who choose the RSP-Hybrid option will participate in both the RSP and the ERS Class D Plan a defined benefit plan that is structured similar to the current C Plan : For the RSP defined contribution portion, the City contributes an amount equal to 3% of the employees annual salary. City contributions are vested after five years of service. For the ERS Class D defined benefit portion, membership begins after one year of service. At that time, employees contribute 5% of their annual salary. The annual normal retirement benefit under ERS Class D equals 1.0% x average final compensation x years of service. Hybrid members are vested in their ERS Class D benefit after 10 years of service. Employee contributions help fund the ERS Class D benefit; investment of Plan D funds are managed by the ERS Board of Trustees. Employees who choose the RSP-Non Hybrid option will participate in the Retirement Savings Plan (RSP) a defined contribution plan. Under this plan: Members contribute 5% of their annual salary, which is immediately vested. The City contributes an amount equal to 4% of the employee s annual salary and matches certain employee contributions to the City s Deferred Compensation Plan. City contributions are vested after five years of service. Members decide how they would like to invest all contributions, choosing among a number of different investment fund line-up. Those who do not make a choice between the two retirement plan options within the 150-day enrollment window will default into the Hybrid option. The traditional plan (ERS Class C ) will not be available to employees hired or returning to City employment after July 1, SHOUT OUT TO She s known as the go-to person for expert benefits knowledge, cheerleader of the benefits team, guidance counselor of the 13th floor, and leader of the ERS Events Committee. Is there anything that our Benefits Analyst Supervisor, Nichelle Lashley, can t do? Nichelle, who has been with the ERS for nine years, is known for her open-door policy and her eagerness to be of help to ERS staff and its members. As a Benefits Analyst Supervisor, Nichelle oversees, trains, and monitors the work of employees in the Benefits area and manages all aspects of the ERS retirement seminars. As the head of the Events Committee, Nichelle plans and implements social activities for the agency s staff throughout the year. The fun activities are eagerly anticipated and well-attended by staff who uses these events to bond with one another. The events have also contributed to creating a comfortable and friendly work environment. Outside of work, Nichelle is an active member of St. Francis Xavier Church, where she works with youth empowerment and education. She administers the Parish Scholarship Program, serves as a member of the Financial Council, and prepares the church s annual budget. Nichelle also enjoys spending time with her family, traveling and watching the Baltimore Ravens. For self advancement, Nichelle is pursuing her Master s Degree in public administration after winning a University of Baltimore fellowship, a competitive scholarship open to City employees. Nichelle is an exceptional employee. Her professionalism, patient manner, and responsiveness to my many urgent requests make her an invaluable employee, said Roselyn Spencer, Executive Director of the ERS. She is an enormous help to me and our members. This shout out is well deserved. Congratulations! 4

5 HEALTH 101 Let s Talk Diabetes In honor of American Diabetes Month (November), the City is hosting informational events open to all City employees see the sidebar for details. It s important for all of us to be informed about diabetes, as so many Americans have the disease--and the most prevalent type is preventable and possibly reversible at early stages. According to the American Diabetes Association: Approximately 30 million children and adults in the United States have diabetes, including 8 million people who are unaware that they have the disease. Nearly 2 million new cases of diabetes are diagnosed each year. About 86 million Americans have prediabetes, which is when glucose levels are higher than normal but not high enough to be type 2 diabetes. By 2050, as many as 1 in 3 American adults will have diabetes if we continue on this path. Diabetes occurs when the body does not produce enough insulin, a hormone that converts glucose to energy, which is produced from the food we eat. There are two types of diabetes: People with Type 1 diabetes do not produce insulin. Only 5% of people with diabetes (usually children and young adults) have type 1 diabetes. With Type 2 diabetes, the body is resistant to insulin. This is the most common type of diabetes and is most often diagnosed in adults. People with the highest risk are those who are overweight, have high blood pressure, have family members with diabetes, or who are African American, Latino, Native American, or Asian Americans/Pacific Islanders. Here are some prevention tips: Eat healthy foods such as plenty of fresh vegetables, fresh fruits and whole grains. Stay away from sugars such as high-fructose corn syrup and artificial sweeteners. Stay away from high-fat foods. Cut down on meat and dairy, or move to a plant-based diet. These tips will also help avoid high cholesterol. Exercise. Working out can help you maintain a healthy weight and lower your blood glucose, both of which can decrease your risk for diabetes. Get regular check-ups for early detection. For more information, visit the American Diabetes Association website at Volume 14 Fall 2014 Lunch Health Series The City of Baltimore Department of Human Resources is offering two Lunch Heath Series. You bring your lunch and DHR will provide the speaker. TOPIC: Diabetes Awareness and Prevention Program WHEN: Wednesday, November 5 12 pm - 2 pm WHERE: City Hall Rotunda 100 N. Holliday Street Diabetes is one of the city s top chronic diseases for much all our medical carriers which has remained pretty constant over the last several years. As a result, in support of National Diabetes Month, we focus on educational information specific to our workforce, said Lisa Evans, Wellness Manager of the Department of Human Resources. TOPIC: Diabetes Cooking Demonstration WHEN: Wednesday, November pm - 1 pm WHERE: 201 E. Baltimore Street 1st Floor Montebello Suite Pre-registration is required to sign up, visit cityofbaltimorewellnes.htm or call Lisa Evans at

6 Volume 14 Fall 2014 Retirees Corner COLA Increases Take Effect January 1, 2015 As we head into the last quarter of the year, it s a good time to inform you that eligible ERS retirees will receive the following cost of living adjustments (COLA) starting with their pay, January 1, 2015: 1.5% for retirees under age % for retirees 65 and over The following people are eligible for the January 1, 2015 COLA increase: Retirees and beneficiaries who have been receiving benefits as of June 30, 2013 As previously announced, variable benefit increases, which provided an additional payment over the annual COLA amount, were discontinued on June 30, Moved to a New Address Recently or Planning to Move In the Next Few Months? Have You Notified Us? Changes are coming to the City of Baltimore Medicare Part D Prescription Drug plan and we want you to know what they are! There are always going to be changes to the City of Baltimore s Health and Prescription Benefits each year during Open Enrollment. It is important that we know how to contact you to share information about these changes as well as any future changes to your health and prescription benefits. It is imperative that you maintain a current mailing address with your agency and retirement agency! Bear in mind that it is your responsibility to know about your benefits and the cost of your benefits each year. Controlling Your Holiday Spending As we approach the holidays, it s important to keep an eye on our spending or better yet, create (and stick to) a strict budget. Controlling spending is a valuable skill for everyone, but particularly for retirees on a fixed income and those saving for retirement. The holidays offer plenty of temptations to spend more money than you have, so it s an important time to focus on spending control. In November 2013, the National Endowment of Financial Education, along with Harris Interactive, surveyed 2,033 adults in the US about their holiday spending. The survey showed that 57% of consumers said they don t set or have a budget when deciding how much they will spend on holiday shopping. Remember the old adage, if it is on your back it is not in the bank. Sticking to a budget could lead to more savings and stronger retirement security. Tips on saving money around the holidays: Create a budget for holiday spending. Decide how much you can afford to spend on food, gifts, and decorations and commit yourself to these amounts. When you exceed your budget even a small amount, it can really add up over time. Make a grocery shopping list and stick to it don t be tempted to buy anything you don t really need. Shop smart. Look for bargains and sales. Be careful with coupon temptations. Buy only what is on your list and what you need and not something on sale with a coupon. Consider homemade gifts, such as baked goods, handmade crafts, and scrapbooks of memorable times. These can save you money and they are often more valued by the recipient than storebought gifts. Writing a heartfelt card or letter is a virtually cost-free (and meaningful) way to let someone know you are thinking of them over the holidays. 6

7 Volume 14 Fall 2014 Retiring soon? Learn about your ERS benefits and everything else you need to know about retirement such as: Benefit options and retirement eligibility Disability retirement eligibility Death/survivorship benefits Purchasing service Benefit estimates Retirement process and timeline Social Security benefits Retirement savings options Health care coverage upon retirement Living wills, power-of-attorney and estate planning 2015 Retirement Ready Seminars (RRS) will be held on the following Wednesdays from 9 am to 3 pm: January 21, 2015 February 18, 2015 March 18, 2015 April 15, 2015 May 20, 2015 June 17, 2015 September 16, 2015 October 21, Retirement Educational Seminars (RES) will be held on the following Tuesdays from 9 am to 1 pm: January 13, 2015 April 14, 2015 July 14, 2015 September 15, 2015 November 17, 2015 New to the ERS? Learn what your retirement plan will provide when you retire: ERS enrollment Membership service credit Disability retirement eligibility Death/survivorship benefits Purchasing service Credit for military service Beneficiary designation Benefit estimates Retirement savings options 7 East Redwood Street 13th Floor To register for either seminar, call There is NO COST to attend the seminars. An excused absence letter will be provided, though you are responsible for notifying your supervisor or agency head well in advance that you plan to attend the seminar.

8 7 East Redwood Street, 13th Floor Baltimore, MD FOR ACTIVE & RETIRED EMPLOYEES HEALTH CARE