REAVC PRESIDENT’S LETTER By Nancy Settle and industrious students and family members of our REAVC Membership. Board members Ray Holzer and Tom McEachern have provided us with interesting and timely speakers regarding such things as Estate Planning and County Health Services available to Retirees, and Past President and current Board member Art Goulet continues to keep us apprised of legislative issues. REAVC will become more actively involved in health insurance benefits and rates in the upcoming year. I thank all our Board members for their efforts and service throughout this past year and not to forget our talented newsletter editor and Executive Assistant Linda Jorgenson. I also thank you, our REAVC members, for your continued support! We had a full house at our December holiday luncheon. We had two guest speakers in addition to our scholarship awards. Our two speakers brought holiday cheer, positive messages and another good reason to be a REAVC Member. Mike Powers, County Chief Executive Officer, regaled us with all the positive programs and projects the County of Ventura has accomplished over the past year. The successes are many including a triple AAA credit issuer rating, expanded child protection services, new hospital wing, mental health rehab center, and for more good things read Ray’s article on page 2. In addition, Amy Towner, Chief Executive Officer of the Health Care Foundation of Ventura County, presented us with an opportunity for giving through a retirement check deduction. Similar to the “boomerang” program available to County employees, the campaign is directed at retired employees and will directly fund needed upgrades and improvements to the County Medical Center and Care Providers. Watch for the Health Care Foundation information and giving opportunity in the mail. Editor Linda Wyatt Jorgenson Email [email protected]Retired Employees Association of Ventura County, Inc. P O Box 7231, Ventura CA 93006 Telephone: 805/6447814 “DEDICATED TO THOSE WHO HAVE ALREADY SERVED” NOVEMBER/DECEMBER 2015 R E A V C I wish you all a very healthy and happy holiday! I am happy to announce the present slate of REAVC Board Officers and directors will continue their service for 2016. As we look back on the past year the REAVC mission of protection and enhancement of employee benefits has been our main focus. We all continue to monitor the two DeMaio - Reed initiatives that threaten retirement security. The California Attorney General has recently released the title and summary of both initiatives. If either one of the titles and summaries is to the satisfaction of the authors over 580,000 signatures must then be collected within 180 days to qualify for the November 2016 ballot. Read on to the rest of the newsletter for the titles and summaries of these initiatives. REAVC has also successfully continued the scholarship program chaired by Susan Lacey. It is always heartening to be able to help with educational expenses of talented What’s Inside President’s Letter 1 Scholarships 6 Luncheons 2 In Memoriam 6 Retirement Board News 2 CRCEA Conference Notes 6 DemaioReed Initiatives 3 New Members 7 REAVC Board Officers 4 New Retirees 8 2016 Calendar 5
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REAVC PRESIDENT’S LETTER By Nancy Settle and industrious students and family members of our REAVC Membership. Board members Ray Holzer and Tom McEachern have provided us with interesting and timely speakers regarding such things as Estate Planning and County Health Services available to Retirees, and Past President and current Board member Art Goulet continues to keep us apprised of legislative issues. REAVC will become more actively involved in health insurance benefits and rates in the upcoming year. I thank all our Board members for their efforts and service throughout this past year and not to forget our talented newsletter editor and Executive Assistant Linda Jorgenson. I also thank you, our REAVC members, for your continued support! We had a full house at our December holiday luncheon. We had two guest speakers in addition to our scholarship awards. Our two speakers brought holiday cheer, positive messages and another good reason to be a REAVC Member. Mike Powers, County Chief Executive Officer, regaled us with all the positive programs and projects the County of Ventura has accomplished over the past year. The successes are many including a triple AAA credit issuer rating, expanded child protection services, new hospital wing, mental health rehab center, and for more good things read Ray’s article on page 2. In addition, Amy Towner, Chief Executive Officer of the Health Care Foundation of Ventura County, presented us with an opportunity for giving through a retirement check deduction. Similar to the “boomerang” program available to County employees, the campaign is directed at retired employees and will directly fund needed upgrades and improvements to the County Medical Center and Care Providers. Watch for the Health Care Foundation information and giving opportunity in the mail.
Retired Employees Association of Ventura County, Inc. P O Box 7231, Ventura CA 93006 Telephone: 805/644-‐7814
“DEDICATED TO THOSE WHO HAVE ALREADY SERVED”
NOVEMBER/DECEMBER 2015
R E A V C
I wish you all a very healthy and happy holiday! I am happy to announce the present slate of REAVC Board Officers and directors will continue their service for 2016. As we look back on the past year the REAVC mission of protection and enhancement of employee benefits has been our main focus. We all continue to monitor the two DeMaio - Reed initiatives that threaten retirement security. The California Attorney General has recently released the title and summary of both initiatives. If either one of the titles and summaries is to the satisfaction of the authors over 580,000 signatures must then be collected within 180 days to qualify for the November 2016 ballot. Read on to the rest of the newsletter for the titles and summaries of these initiatives. REAVC has also successfully continued the scholarship program chaired by Susan Lacey. It is always heartening to be able to help with educational expenses of talented
What’s Inside President’s Letter 1 Scholarships 6 Luncheons 2 In Memoriam 6 Retirement Board News 2 CRCEA Conference Notes 6 DemaioReed Initiatives 3 New Members 7 REAVC Board Officers 4 New Retirees 8 2016 Calendar 5
LUNCHEON by Ray Holzer
Did you know: ü Ventura County, with 9,000 employees, is the second largest employer in the county. ü Ventura County is rated AAA by Standard and Poor’s, which is their highest bond rating! ü Our pension fund is funded at 82.7%, second best in the state. ü We have a “no kill” animal shelter. ü VCMC Family Practice Residency Program is rated no. 1 by US News and World Report. ü 75% of our deputies and 100% of all new deputies are trained to deal with the mentally ill.
You would have known these facts and many others had you attended the December 1st luncheon. Mike Powers, County CEO and guest speaker, gave us a glowing report on the state of the county and its many programs. Would you like to learn about senior fraud issues, etc? Then come to our next luncheon on February 2, 2016, where Marcy Snider of Adult Protective Services will discuss our safety and wellbeing. The luncheon starts at noon at the Poinsettia Pavilion, 3451 Foothill Road, Ventura. If you would like to attend, or have a question, please call or email one of our reservation volunteers. Carol “Mike” Aalbers, 207-‐1768, [email protected] Judy Sewell, 654-‐8304, [email protected] Ray or Linda Holzer, 644-‐3702, [email protected] Reservations will be taken until noon January 27, 2016, or until we reach room capacity. If you leave a message, or email and do not hear back in 2 days please try again! If you have a reservation and cannot attend let us know as soon as possible as our minimum, per meal, charge is the number we give the caterer January 27th
Carpool if you can, remember Food Share donations and leave spaces at the check in level for handicapped folks. By the way, the pavilion will have repaved the driveway and upper parking lot in time for our next luncheon.
RETIREMENT BOARD NEWS
By ART GOULET In my last report, I noted that in August, Wall Street suffered its biggest skid in four years. That skid continued in September. As a result, VCERA’s portfolio value dropped to $4.2 billion. However, in October the market bounced back, pushing the fund’s total investment return back into positive territory for the 1 year ending October 31. Because of the market’s dramatic recovery, the system’s assets ended the month back at $4.4 billion. The name of the game these days appears to be volatility, but the Board recognizes and is committed to its belief in long-term investment.
At its meeting of October 19, the Retirement Board dealt with finalizing pensionable compensation for post-PEPRA (the Public Employees’ Pension Reform Act of 2013) employees. After a comprehensive analysis of existing pay codes pursuant to the Board’s November 2014 resolution, using available information, feedback from stakeholders and the practical application of codes, the staff had submitted recommendations to “include” or “exclude” on each of the multitude of County and VRSD pay codes. Specifically, the include/exclude recommendations were on what should qualify as part of base pay or normal monthly rate of pay and be included in PEPRA pensionable compensation. The Board had also
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received written comments regarding the recommendations from VCDSA (Deputy Sheriffs), VCPFA (Firefighters), VCPPOA (Professional Peace Officers), SEIU, CNA (Nurses), and the County, as well as public comment at the meeting from SEIU, CNA and the County. In the final analysis, the Board approved all of the staff recommendations, except for their recommendation to not include market based premium pay (MBPP) and Y-rate pay. Although it was recognized that these pay items were really part of normal monthly rate of pay, the hurdle was that they were not included in a publicly available pay schedule, which PEPRA requires. The Board decided to include these items with a request that the Board of Supervisors create a publicly available pay schedule by July 1, 2016. Staff recommended a group of pay codes to be excluded in absence of pay code distinctions because the codes were being used both for situations that, in staff’s analysis, met the criteria and situations where it did not, such as bilingual pay when being bilingual is required by the job and when it is not. Potentially this leaves the door open in the future for more types of pay to be included if new distinct pay codes are introduced by the County or VRSD.
The final determination of what constitutes pensionable compensation for PEPRA employees is quite important since about 1700 of the about 8400 County employees who are members of VCERA are PEPRA employees and contributions on some of the pay codes included in pensionable compensation will have to be made retroactively by the employees and the County. Also, where a PEPRA employee has left County employ and has withdrawn his or her contributions, the County will still owe its contribution to VCERA on the pay codes not previously included by them.
While the unions did not get all pay codes they wanted included, VCERA has received no notice of litigation on the matter, as of this writing.
At its November 16 meeting, the Board received a joint recommendation from staff and the Board’s investment consultant, (NEPC), regarding a new asset allocation. I had earlier mentioned that the Board had adopted a new asset allocation prior to the March-April Newsletter, but put its implementation on hold subject to an analysis and recommendation from our new Chief Investment Officer. At the Board’s November 16 meeting, our new CIO and the general investment consultant proposed a revised long-term asset allocation mix. The joint proposal added a new, dedicated allocation to US Treasury bonds, a considerable increase in private equity, and minor increases in emerging markets equities and absolute return fixed income. To fund these changes, the allocation to global bonds will be eliminated, and there will be minor decreases in the allocation to U.S. large cap stocks and core bonds. These recommendations were based on NEPC’s both 5 – 7 year and 30 year capital market assumptions. The Board was unanimous in its approval of the recommendations.
Also at its November 16 meeting, the Board adopted Model Tax Compliance Regulations recommended by its outside Tax Counsel. This was necessary for VCERA to complete its Voluntary Compliance Program and to keep the retirement system’s tax-exempt status.
DeMaio Reed Initiatives Summary & Titles
The Attorney General of California has prepared the following title and summary of the chief purpose and points of the proposed measure: PUBLIC EMPLOYEES. PENSION AND RETIREE HEALTHCARE BENEFITS. INITIATIVE CONSTITUTIONAL AMENDMENT. Amends California Constitution to impose restrictions on pension and retiree healthcare benefits for new public employees, including those working in K-12 schools, higher education, hospitals, and police protection. Bars government employers from enrolling public employees hired after January 1, 2019 in defined benefit pension plans, from enhancing certain retirement benefits for such employees, and from paying more than one-half cost of such employees’ pension and
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retiree healthcare benefits, unless first approved by voters. Limits retirement boards’ ability to place financial conditions upon government employers that close defined benefit plans to new employees. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Significant effects —savings and costs—on state and local governments relating to compensation for governmental employees. The magnitude and timing of these effects would depend heavily on future decisions made by voters, Governmental employers, the Legislature, Governor, and the courts. (15-0076.) The Attorney General of California has prepared the following title and summary of the chief purpose and points of the proposed measure: PUBLIC EMPLOYEES. PENSION AND RETIREE HEALTHCARE BENEFITS. INITIATIVE CONSTITUTIONAL AMENDMENT. Amends California Constitution to impose restrictions on employer contributions toward cost of pension and retiree healthcare benefits for new public employees, including those working in K-12 schools, higher education, hospitals, and police protection. Bars government employers from contributing amount more than 11% of an employee’s base compensation (13% for safety employees) toward cost of pension and retiree healthcare benefits for public employees hired after January 1, 2019, and from paying more than one-half cost of such new public employees’ pension and retiree healthcare benefits, unless higher portion is first approved by voters. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Significant effects—savings and costs—on state and local governments relating to compensation for governmental employees. The magnitude and timing of these effects would depend heavily on future decisions made by voters, governmental employers, the Legislature, Governor, and the courts. (15-0077.) For additional information you can click on the following sites: https://www.oag.ca.gov/system/files/initiatives/pdfs/Title%20and%20Summary%20%2815-‐0076%29.pdf https://www.oag.ca.gov/system/files/initiatives/pdfs/Title%20and%20Summary%20%2815-‐0077%29.pdf?
I don’t trip over things, I do random gravity checks!
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Note: Dates for the Board of Retirement Disability and Business meetings were not available at printing time. We will include those in our next newsletter.
JANUARY Brd of Retire Disability Mtg 5 REAVC Board Mtg Brd of Retire Bus Mtg 27 Resv cutoff date for luncheon
FEBRUARY Brd of Retire Disability Mtg 2 Gen Membership Luncheon 5 Articles Due Brd of Retire Bus Mtg REAVC BOARD-‐NO MEETING
MARCH Brd of Retire Disability Mtg 1 REAVC Board Mtg Brd of Retire Bus Mtg
APRIL 1 Articles due Brd of Retire Disability Mtg Brd of Retire Bus Mtg 26 Resv cut off for luncheon REAVC BOARD – NO MEETING
MAY Brd of Retire Disability Mtg 3 General Membership Luncheon Brd of Retire Bus Mtg REAVC BOARD – NO MEETING
JUNE Brd of Retire Disability Mtg 7 REAVC Board Meeting 10 Articles Due Brd of Retire Bus Mtg
JULY 1 Scholarship apps due for Sept Luncheon Brd of Retire Disability Mtg Brd of Retire Bus Mtg REAVC BOARD – NO MEETING
AUGUST 2 REAVC Board Meeting 5 Articles due 31 Resv cut off for luncheon Board of Retirement-‐No Meeting
SEPTEMBER 6 General Membership Luncheon (scholarships awarded) Brd of Retire Disability Mtg Brd of Retire Bus Mtg REAVC BOARD – NO MEETING
OCTOBER Brd of Retirement Disability Mtg 4 REAVC Board Meeting 7 Articles Due 8 Scholarship apps due for December Luncheon Brd of Retire Bus Mtg
NOVEMBER Brd of Retire Disab ility Mtg Brd of Retire Bus Mtg 30 Resv cut off for luncheon REAVC BOARD – NO MEETING
DECEMBER Brd of Retire Disability Mtg 6 General Membership Luncheon (scholarships awarded) 13 REAVC Board Meeting 16 Articles Due Brd of Retire Bus Mtg
To all of our REAVC Members: Thank you for your continued support this past year. I’d like to extend my
personal wishes to each of you for a Happy and Healthy New Year. Stay safe, enjoy the holidays, and be sure to take care of one another. Sincerely, Linda and Sidney
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2016
Cole Settem … graduated from Moorpark High School in 2014 and is presently attending California Lutheran University where he is majoring in Business Administration. He was on the Academic Dean’s List for the Fall and Spring Semesters, he received a Scholar Athlete Award for the Fall Semester, and the Principal’s award with a 4.0 GPA while in Soccer. He is a peer advisor at CLU, and an Administrative Assistant at Global Building Services, Inc. Cole states that he is blessed with a loving and supportive family and that education is the most important thing in his life. He aspires to be not just a businessman, but a true leader who can spread ideas to his peers while setting the standard for success. Cole’s grandfather is Phil Settem who is retired from Public Works.
Savannah Rodriguez … is a graduate of Channel Islands High School and is currently attending Ventura and Oxnard Colleges where she is studying mechanical engineering. She is a physics, math and chemistry tutor for Oxnard College as well as a chemical prep lab aide. She is on the Dean’s list and she is also an intermediate cellist. Savannah states that she has always been fascinated with the way things work. As she grew older, this curiosity never dulled and is the reason she wants to pursue a career in mechanical engineering. She plans to transfer to a four year school next fall to obtain her Bachelors in mechanical engineering. She believes that education shapes the way you think. She quotes Albert Einstein, who said, “Education is that which remains behind when all we have learned in school is forgotten.” Savannah’s mother is Sylvia Rodriguez who is retired from the District Attorney’s office.
IN MEMORIAM We acknowledge the passing of the fol lowing. Our deepest sympathy is extended to their famil ies and fr iends. Sandra Ahern
Betty C. Black Tomas Chavez Margot Daniel Bobby J. Hill William L. Hinkle Elsie C. Peterson Ann B. Schlange Mildred Spiker
Remembering with you the l ife of someone so dear
Our
Scholarship
Winners
Comments from Jim Crow regarding the CRCEA Conference he attended in Stockton
There were several speakers that discussed the so called “Voter Empowerment” proposal that is being promoted by Chuck Reed, former Mayor of San Jose and Carl DeMaio, a former councilmember of San Diego. These two politicians are championing a Statewide initiative approach to eliminate retirement security for all new employees that choose to work in the public sector, including law enforcement, fire fighters, and teachers. If this initiative is approved by the voters the defined benefit retirement system will be eliminated for all new hires. This legislation would not immediately affect retirees and employees that are currently in the system. Pension funding, and benefits would certainly be affected if new employees are not contributing to the retirement fund. With the closing of the defined benefit retirement system the public agencies would adopt the so called “defined contribution” retirement system. Adrian Van Houten, SJCRA Board of Retirement, presented a movie titled Front Line, the Retirement Gamble. This movie pointed out that with this retirement system the employee bears all the risk, and generally does not have the knowledge or 6
experience to make prudent financial decisions and that stock brokers do not have a fiduciary duty to their customers. In many cases the brokers will recommend stocks that pay them high commissions, however, buying that stock may not be in the best interest of their client. The big brokerage firms and banks (through their lobbyists) have cancelled any attempt to pass legislation to protect the consumers by establishing a fiduciary responsibility. The most popular, and promoted investment vehicle for the small investor is mutual funds. The sellers of these funds and the promoters do not disclose the commissions and fees that are charged. These charges basically “eat up” more than half of any earnings. A broker, in the movie, said that index funds are the best policy for small investors, however, the commissions and fees to the brokers is small thus they’re not the type of investment they would promote. We also had a speaker, Kathy Marshall, author of Discover California Gold, who passed along some information that may be of interest to those of you who would like to learn more about your family tree. If you have interest in pursuing this subject you can reach me at 805/701-‐8262 or send me an email at [email protected] Another enjoyable and informative conference. We would love to have some of our members attend. Call me, let’s talk! Jim Crow
WELCOME ! 2015 NEW MEMBERS
Cecielia A. Alexander Fire Michael J. Bowles M. Catherine Crowley-‐Pfaff VCMC Stella Fasub Behavioral Health Christine S. Heckeman Survivor Thomas R. Johnston HCA Donald R. Lake HCA Susan Lapes RMA Barbara Michels Anastacia Takahashi Survivor Cheryl Winters VCMC Sandra T. Zatz Probation
Remember, that happiness is a way of
travel, not a destination.
…Roy Goodman
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2015 NEW RETIREES
Mary H. Allport HCA Paul T. Arnold HSA Sue M. Barry HSA Lynnell J. Bouchard GSA Michael Bowles HCA James A. Bullington Sheriff Kathleen Carson HCA Maria Cervantes HSA Joyce L. Cheney Probation Janet E. Collinge HCA Mary C. Crowley-Pfaff HCA Anthony J Cuccio PW Clarice A. Deal Treasurer Rosa M. Delgadillio HSA Susan L. Di Maio CEO Robert Estrada, Jr. HCA Stella Fasulo HCA Marie E. Fenley HCA Jose L. Garcia GSA Arthur R. Garcia, Sr. Public Works Ellis L. Green GSA Rita Hallett HCA Cheryl L. Halsey HCA Karen L. Hanson Sheriff Dale C. Hawkins HCA Beverly A. Jackson Co Clerk Recorder Pamela J. Johnson Clerk Recorder Thomas R. Johnston HCA Wendell D. Krell GSA Troy A. Kuhlman Harbor Dept Susan D. Lapes RMA Adria R. Lawson HCA Alicia R. Lodstrom HSA Roy V. Marsh, Jr. Public Works Thomas D. Mashburn GSA Daniel J. McClure ITS Barbara A. Michels HSA Linda M. Moyer RSD Vicenta T. Muldong HCA Edward F. Niedzwiecki Airports Barbara L. Page APCD Leslie P. Peterson Assessor Delilah A. Phelps HCA Frank G. Ramirez Superior Court Neilia Raymundo HCA Meloney A. Roy HCA Yoshiye Sakamoto HCA Sonya L. Sheehan ISD Darrell L. Siegrist RMA Haydee L. Sigler Superior Court Norma Soto Assessor George Tellez HCA
2015 NEW RETIREES
Wendy H. Testa HCA David B. Torfeh Public Works Judith C. Weigand HCA Wade L. Wilson Sheriff Gregg J. Wilson Sheriff Roger P. Woodland RMA Robert S. Wright Sheriff Ellen C. Yoshimura HCA
TIME TO ENJOY THIS
WELL EARNED VACATION
REMEMBER TOO, IF GOD WANTED US TO TOUCH OUR TOES, HE WOULD HAVE PUT
