RPEA’s Endorsed Candidate Unseats CalPERS Board President

By Al Darby, President

In a stunning upset, Jason Perez, a Corona police officer and RPEA’s endorsed candidate, won the CalPERS Board seat held by long-time Board member and current Board President, Priya Mathur.  This places two members on the Board who are elected and represent active and retired CalPERS members who are committed to redirect CalPERS investment activities to more keenly focus on return on investment and less on divestment, environmental, social, and governance issues.  At 71% funded, the pension fund is not as “healthy” as it needs to be in terms of overall value and must be further enriched to fully back its pension promises.   An 80% funded level is considered healthy for a public pension fund. 

A new Chief Investment Officer and a new Chief Financial Officer have been added to the CalPERS staff in recent weeks.  Both of these new hires are considered to be highly qualified.  With them on-board we can expect new investment initiatives that will enhance return on investment and propel the fund back to the healthy level sooner than later—a very welcome condition.  We must also hold the discount rate at its current seven percent level to keep our contract agencies in a viable budgetary condition. 
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We’re happy to report that General Assembly 2018 was a huge success!  Congratulations to the following new State Board Officers:

 

  • Al Darby– PRESIDENT
  • Rosemary Knox– VICE PRESIDENT
  • Bill Wallace– DIRECTOR OF MEMBERSHIP
  • Lorenzo Rios– DIRECTOR OF PUBLIC RELATIONS
  • Randall Cheek – DIRECTOR OF LEGISLATION
  • Harvey Robinson - DIRECTOR OF HEALTH BENEFITS
  • Al Fillon– AREA DIRECTOR IV
  • Jim Anderson– AREA DIRECTOR VI

RPEA extends a special Thank You! to all of the volunteers whose efforts contributed to the success of this event.  We couldn’t have done it without you!

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This memorial video was prepared for General Assembly 2018 by RPEA’s Public Relations firm, Marketplace Communications in honor of former RPEA President, George Linn who passed away in June of this year.  Introduction by President Al Darby.

George Linn Memorial Video from RPEA HQ on Vimeo.

 

 

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RPEA MEMBERSHIP GROWS

During October, we added 437 new members. AMBIA brought most of them to us but our own efforts at chapter level, statewide programs and internet (digital) are paying off with new members as well.


 

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RPEA Continues to Assist Victims of the ‘LA Works JPA’ , Who Suffered Pension Cuts

We continue our efforts to assist these 60 plus retirees from this joint powers authority that canceled its CalPERS contract without paying the termination fee.   RPEA representatives have often spoken at CalPERS Board meetings about this issue, and we have a commitment to review this to possibly get some relief for these retirees. 

 

***UPDATE***

 

From: CalPERS
Sent: Wednesday, September 19, 2018 8:59:26 AM
Subject: Increase In Retirement Allowances for East San Gabriel Valley Members

Valued stakeholders -  as you know, when the East San Gabriel Valley Human Resources Consortium (ESGVHRC) – also known as LA Works – lost funding and ceased making their pension contributions, the CalPERS Board followed the law and terminated ESGVHRC’s contract and reduced benefits for members and retirees of the agency. 

The Miscellaneous Plan liabilities used to calculate the benefit reduction for ESGV, , HRC have,,now, decre, ased, resulting in an increase in retirement allowances for members

We are sending notification letters to members this week, and those increases will be reflected in the October 1, 2018 warrants. 

Thank you,

David Teykaerts | Stakeholder Strategy Manager | CalPERS |

MESSAGE FROM RPEA President Al Darby:

“RPEA has fought for these folks for almost two years to mitigate their pension reduction and prevent this from happening again. I spoke in public comment many times at CalPERS Board meetings in defense of these 60+ folks who lost 63% of their pension due to their employer’s failure to pay the CalPERS termination fee.  Now, they’re getting part of their lost pension back.  They are very grateful to RPEA for our efforts on their behalf. “

 

CalPERS Announces Health Care Open Enrollment

Open Enrollment takes place each fall. Open Enrollment 2018 will take place September 10 - October 5. Changes made during Open Enrollment 2018 will take effect January 1, 2019.  Call 888 CALPERS (888-225-7377) for information.  During Open Enrollment, you can:

  • Change your CalPERS health plan
  • Add eligible dependents
  • Remove dependents
  • Cancel your existing CalPERS health coverage
  • Enroll in a CalPERS health, plan if you don't currentlyhave coverage

If you aren't making changes to your coverage, no action is needed.  If you wish to have a paper explanation mailed to you, the CalPERS Customer Service phone number will handle your request. For more information, visit https://www.calpers.ca.gov/page/active-members/health-benefits/eligibility-and-enrollment/open-enrollment. (8/17/2018)

 

cid:image001.png@01D13669.DC06E380State Supreme Court Pension Decision

It is expected that the state supreme court will hear oral arguments in December on the ‘California Rule’ issue.  The Governor has shown great interest in this and hopes to see this case argued while he is still in office (his legal counsel is arguing then case - not the state AG).  Many of the issues involved relate to his 2012 pension reform act that became law on January 1, 2013.  This supreme court decision could have unfavorable consequences for most current public employees and retirees if the appellate court decisions are upheld.

cid:image001.png@01D13669.DC06E380State Supreme Court Hands San Diego City Workers A Pension Win 

San Diego miscellaneous workers were given a win in their fight to restore the defined benefit pension that was terminated in 2012 by a ballot initiative.  The court found that the Mayor did not negotiate pension issues with the city workers union prior to the initiative being placed on the ballot.  This violated public employee labor law.  (8/17/2018)

 

cid:image001.png@01D13669.DC06E380State Supreme Court Will Soon Decide the Future Course of California Public Pensions

We are anxiously awaiting the state Supreme Court ruling on several public pension cases that have been combined into one decision which is due later this year.  The worst-case scenario is the Marin County case in which the appeals court judge said that pensions only have to be reasonable and not have the same value at retirement as promised at the time of hire.  This could set in motion a steady decline in benefit structure as public agencies deal with the ‘ups and downs' of economic times and their budgets are strained during the 'down’ times.  We have seen this same scenario play out in the private sector where many corporations have cut promised pension benefits to former long-term employees.  Most public employees can ill afford pension cuts.  They are living on less than $36,000 per year now, and many do not receive Social Security.  Health care and drug costs are a major burden to many of these retirees.  Write to the court to express your strong support of the ‘California Rule’ that has kept public pensions safe.

 

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CalPERS Looks at Public Equity for Greater Return on Investment 

RPEA concerns about the “funded status" of the CalPERS pension fund, which has been stalled at about 70%, for two years, have been recognized (based on a recent report from the CalPERS CEO), and Investment Committee effort is being intensified.  One initiative is to embark upon a private equity venture that would make CalPERS the general partner which makes the return on investment much better.  A separate board would govern this private equity entity.  This new approach to investing has not been implemented, but it will probably be approved for an early 2019 start date.  Achieving high returns on investments has been more difficult in recent years, so innovative measures are needed to enhance conventional investment methods.


 

 

RPEA Membership is ONLY $5.00 a month. That's only $60.00 a year!

 


 

ABOUT RPEA

RPEA is a non-profit association of retirees and active employees who are members of the California Public Retirement System (CalPERS). Our mission is important:

 

  • RPEA represents all public employees - classifiedschools, public agencies, and state.
  • RPEA is liaison between retirees and CalPERS.
  • RPEA is a mutual protective association for allbeneficiaries of CalPERS.
  • RPEA fights to maintain our current pension and healthcare benefits and improve these benefits every year.
  • RPEA has local chapters in your area - attend meetingsto stay informed and hear interesting speakers.

While we encourage participation in one of our 80+ chapters, most of our members participate by reading our bi-monthly newsletter, giving us feedback on their needs and enrolling in one or more of our "members only" supplemental insurance programs.

At $5.00 per month, RPEA is a bargain that is hard to resist. You need us to fight to protect your earned pensions and benefits. We need you and you to support our fight to protect our pensions and benefits.

Who We Are

RPEA has over 23,000 members; with 80+ active chapters in California, Arizona, Nevada, New Mexico, and Oregon.

RPEA was founded in 1958 as an association to protect and enhance retirement benefits for all Public Employees who receive their pension or health benefits from the California Public Employees' Retirement System (CalPERS).

RPEA is the only statewide association representing all PERS Retirees: State, Classified School and Public Agency.

Why Join RPEA?

RPEA retains a professional lobbyist who represents our interest before the Governor, Legislators and CalPERS Board. We also have access to a federal lobbyist who keeps us informed on federal retiree issues.

RPEA continues an active and ongoing relationship with CalPERS serving on their Advisory , Committee concerning CalPERS plans and proposals. We also monitor every CalPERS Committee and frequently testify at these meetings on behalf of our members.

Every RPEA member receives a bi-monthly statewide newsletter with general information and legislative, and health care updates.

RPEA offers a variety of discount programs for our members.

RPEA Structure

The General Assembly is composed of Delegates from every chapter and is the governing body of the Association.

The authority and responsibility of the elected Board of Directors is defined in the Association's Bylaws and Policy File.  RPEA's State Board of Directors is currently comprised of:

OFFICERS

DIRECTORS

AREA DIRECTORS

President
Vice  President
Secretary/Treasurer
Immediate  Past President

Director of Membership
Director of  Public Relations
Director of Health Benefits
Director of  Legislation

9 Area  Directors

Each Area Director has a number of Assistant Area Directors who together manage and assist some 77 active chapters.