R E A V C · 2nd VP – Cindi Mathieu 805/525-2885 [email protected] Secretary – Will Hoag [email protected] 805/644-3491 Treasurer – rayhRay Holzer 805/644-3702 [email protected]

REAVC PRESIDENT’S LETTER BY NANCY SETTLE

REAVC members we need your help and donations! Volunteers are needed to assist with the registration table and preparing packets: Contact Anne Dana (805) 320-6408. Goodie Bag Gifts are needed, such as notepads, gift cards, snacks, etc. You can drop them off! Contact: Maryellen Benedetto (805) 647-0292, 260 Maple Court #101, Ventura, CA 93003 Door Prizes are needed such as backpacks, wine, hats, jewelry, gift certificates: Contact Anne Dana (805) 320-6408. As we head into the year we will keep our ears to the ground for a resurgence of the pension reform issue. We will also keep you apprised of the Long Term Care Insurance lawsuit against CALPERS which challenges the huge 85% rate increases. Note the May 2nd luncheon will be located at a new venue, the Wedgewood. We hope this will be a central location and easier access for everyone. Read on for more details from Ray Holzer.

Editor Linda Wyatt Jorgenson

Email [email protected]

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”

January/February 2017

R E A V C

It’s all about the upcoming CRCEA Spring Conference. The REAVC Board is getting busy with the upcoming CRCEA 2017 Spring Conference, April 24 - 26, 2017. More information and how to attend will be provided in an upcoming newsletter. The two day conference fee is $45.00 Join us for one or both of the two day speaker events. Come hear about how our pension system works with VCERA Retirement Administrator, Linda Webb, How to protect yourself from Zika and other pathogens with County Public Health Epidemiologist, Dr. Barbara Spraktes; High IQ for mental and emotional health with Scott Barash, Ventura Employee Assistance Program Administrator and National Parks Service special presentation on the Channel Islands National Parks among other presentations.

Welcome home Matey!

What’s Inside

Prez Letter 1 New Retirees 4 2017 REAVC Board 2 2017 Calendar 5 Luncheons 2 In Memoriam 6 New Retirees/Members 2 Scholarship Program 7

Retirement Board News 3 CA Rule at Risk 8

2017 REAVC BOARD OFFICERS

President – Nancy Settle 805/658-1507 [email protected] 1st VP – Roberta Griego 805/889-7674 [email protected]

2nd VP – Cindi Mathieu 805/525-2885 [email protected] Secretary – Will Hoag 805/644-3491 [email protected]

Treasurer – Ray Holzer 805/644-3702 [email protected]

Past Pres – Art Goulet 805/482-9418 [email protected]

Butch Britt 805/987-3312 [email protected]

Paul E. Callaway 805/658-1340 [email protected]

Ken Cozzens 805/647-2954 [email protected] Jim Crow 805/701-8262 [email protected]

Anne Dana 805/320-6408 [email protected] Art Goulet 805/482-9418 [email protected]

Don Greenberg 805/642-2915 [email protected]

Tom McEachern 805/630-8284 [email protected]

Maryellen Benedetto 805/647-0292 [email protected] Associate Member Representative

Linda Wyatt Jorgenson 805/642-4676 [email protected] Executive Assistant

Important Notice Our May 2, 2017, luncheon will not be at the Poinsettia Pavilion. We will be giving the Wedgewood Wedding and Banquet Center a try for this luncheon. It is located at 5880 0livas Park Drive in Ventura, looking out on the Buenaventura Golf Course. I am certain anyone who has been in the county for a while has been to an event at Wedgewood. The Wedgewood has 175 parking spaces, two stairs and a ramp! It is too early for reservations so I am just asking you to mark your calendars. Also, this venue is more expensive than the Pavilion and has rules about receiving an accurate count of attendees 10 days prior to the luncheon. There is a penalty to have additional attendees after our head count is submitted. We will need to be stricter about people calling after the deadline! If you have any questions give me a call, or email at 644-3702 or [email protected]

NEW RETIREES If you have not already done so, be sure to complete a membership application and mail to REAVC,

PO Box 7231, Ventura, CA 93006-7231. You can find a copy of the application on our web site at www.reavc.org or

email or call me (642-4676 or [email protected] )

Become a member SUPPORT REAVC

MEMBERS If you know a new retiree please do us a favor and ask if they have become members yet. It is

important to all of us. Don’t forget – ‘the more the merrier.’

NEW LOCATION

FOR

MAY 2ND

LUNCHEON

2

mailto:[email protected]

















http://www.reavc.org/


RETIREMENT BOARD NEWS By

ART GOULET

As our investment consultant predicted, the returns for November were positive, and the system’s assets

increased slightly to $4.60 billion from $4.58 billion and then to $4.66 billion in December. So, for the first half

of the current fiscal year, VCERA has earned 4.4%, net of fees, as compared to an assumed rate of return of

7.50% for the full fiscal year. However, there is no assurance earnings will continue at this pace for the

duration of the fiscal year. It is too soon to tell how global events, including the impact of policies adopted and

implemented by the new President and his administration may affect the markets and investment returns. We

will have to wait and see.

At its meeting of January 23, the Retirement Board received and approved the actuarial valuation (AV) for the

fiscal year ended June 30, 2016. The process requires that VCERA provide a copy of the draft AV to labor

unions and the county at least 30 days prior to approval of it, to allow time for comments. No comments were

received. The AV indicated that the system’s unfunded accrued actuarial liability (UAAL) decreased from $876

million in the previous fiscal year to $813 million, and the funded ratio of the plan increased from 83.1% to

84.9%. As you may recall, gains and losses are deferred over a 5-year period using a practice known as asset

smoothing, the purpose of which is to reduce the variation in employer contributions from year to year. This is

a very common practice that retirement systems employ.

On January 24, the Board of Supervisors reappointed Mike Sedell to his public member position on the Board

of Retirement for a three-year term beginning January 1. Additionally, they appointed Robert Bianchi who

previously served as the alternate public member, to fill the public member position vacated by Joe Henderson

in August, for the same term, and appointed Ed McCombs to the Alternate position vacated by Robert, also for

the same term. Peter Foy and Bill Wilson continue to fill the other two public member positions.

The Retirement Administrator has approved a contract change order (CO) providing for remediation of all

the remaining identified defects in the pension administration system by April 14, 2017, which is the one-

year anniversary of going live with the system. We’ll see if they accomplish that. From the information that

has been provided to me, it seems they are finally making good progress.

On February 6, the Retirement Board received and approved both the independent audit for the 2015-

2016 fiscal year and the Comprehensive Annual Financial Report for the same period. These will both be

available on the VCERA website in the near future.

As you are probably aware, immediately after the Form 1099Rs were mailed to all retirees and

beneficiaries, it was discovered that the Federal I.D. number shown on them was incorrect. All recipients

were notified of the error, and replacement Form 1099Rs were mailed on February 6. Please be sure to

dispose of the incorrect form. If you have not received a replacement form by now, call VCERA.

It is not yet official, but it appears that the COLA for Tier 1 and Safety employees will be 2% effective April

1. Those retirees who still have a COLA bank will receive a 3% increase. When the COLA is officially

approved, I will report what retirees (by date of retirement) will receive the additional 1%, and identify the

remaining COLA banks. Tier 2 retirees represented by SEIU will receive an increase of 2% in the portion

of their retirement benefit based on the years they made contributions of 2.63% of salary, if they did not

withdraw such contributions upon retirement, which they may do.

3

Renee Aguilar PD

Rose C. Alonzo-Koellhoffer ISD

Charles J. Barbosa Courts

Yvonne L. Becerra Library

Brenda Bell GSA

Michael S. Bell Sheriff

Andreas E. Benitez RS

Lisa M. Brown GSA

James S. Bucy GSA

Lucrecia Campos-Juarez HAS

Jose Cimafranca ISD

Joseph P. Clark RMA

Elizabeth Miller Cole CS

Eduardo J. Daduya Sheriff

John S. Dittmeier HAS

Darrell L. Erickson Sheriff

Robin H. Estes DA

Heather Evans HCA

Margaret Fris HCA

Joann C. Froemmling HCA

Carmen M. Gonzalez HCA

Kimberly Graves HCA

Rebecca C. Guay RS

Ana Rosa Guerrero HCA

Linda L. Hagan HSA

Glenna Hart HCA

Ronald C. Hemdon Sheriff

Vallery S. Henderson HAS

April C. Hernandez HCA

John Hoelker Sheriff

Luz Huezo HCA

Jose S. Hurtado Courts

Andrea J. Ingamalis HSA

Edwin R. Jacobe GSA

Fredrik Johnson PWA

Terri Kaper Sheriff

Eileen Katz HCA

Susan Kelly HCA

Deanna J. King Fire

Donna J. Kuonen HAS

RETIREMENT

HOW SWEET IT IS !!!

Kristie Lange Courts

Pan Dee Leachman PW

Joseph B. Lopez HAS

Rodolfo H. Lopez HCA

Sheila R. Lopez PW

Sheryl Low HCA

Vicarse P. Lugtu HCA

Monica J. McGrath Sheriff

John McLaughlin RMA

Penelope Miller Fire

Robert G. Mireless GSA

Robert L. Montgomery Fire

Maria Montoya HAS

Jane Nolan Fire

Javier D. Olmos CS

Raymond R. Padaoan Fire

Gary Peterson GSA

Harold J. Pierce CEO

Catherine J. Pierce CEO

John J. Popp Sheriff

Stanley E. Potts HCA

Kevin M. Quinn RMA

Rick H. Raives PW

Celina Ramirez HAS

Mary E. Reed ISD

Brenda F. Reeder Courts

Heather A. Ropa HCA

Nancy B. Schaefer CEO

Kristen A. Spilman Sheriff

Carol A. Robert

Stamey Steams

AAA Fire

Corby D. Stinnett PWA

Denise L. Susi RMA

Debbie Turner Probation

James Viera ISD

Jan L. West-Frias HCA

Darrell E. Wise Probation

4

2017 REAVC Calendar

JANUARY

2 Brd of Retire Disability Mtg

3 REAVC Board Mtg

Brd of Retire Bus Mtg

FEBRUARY

NO LUNCHEON FEBRUARY

7 Articles Due 6 Brd of Retire Disability Mtg

7 REAVC “Special” Board

(CRCEA Conference)

27 Brd of Retire Bus Mtg

MARCH

7 REAVC Board Mtg



APRIL

7 Articles due


And Brd of Retire Bus Mtg

CRCEA Conference-Ventura

April 24, 25 & 26

26 Resv cutoff for luncheon

REAVC Board – No Meeting

MAY


2 General Membership

Luncheon



JUNE


6 REAVC Board Meeting

9 Articles Due


JULY

3 Scholarship apps due for Sept

Luncheon


24 Brd of Retirement Bus Mtg


AUGUST


4 Articles due


SEPTEMBER

5 General Membership

Luncheon

(scholarships awarded)




OCTOBER


6 Articles Due

7 Scholarship apps due for

9 Brd of Retirement Disability

Mtg

December Luncheon


NOVEMBER


20 Brd of Retirement Bus Mtg



DECEMBER


AND Brd of Retire Bus Mtg

Luncheon(scholarships awarded)


15 Articles Due

2017calendar

Just another quote that could have been written for us, today…

“WISE MEN SPEAK BECAUSE THEY HAVE SOMETHING TO SAY; FOOLS BECAUSE THEY HAVE TO SAY SOMETHING.”

. . .PLATO

5

Harold P. Batelaan

Nannette G. Boling (HCA)

Elinor M. Buddes (Survivor)

Thomas R. Butler

Betty F. Cook (Library)

Patricia L. Hardy

Irmgard M. Hirsch (Hosp Nursing)

Marjorie A. Logan

Nick Maverakis

Henry Nakagawa

Betty Carl

Ryerson (Survivor) Torstenson (Sheriff)

In Memoriam

We acknowledge the

passing of the following.

Our Deepest sympathy is

extended to their families

and friends.

When you are sorrowful look again in your heart,

and you shall see that in truth you are weeping for

that which has been your delight.

…Khalil Gibran

6

REAVC Scholarship Program

An Excellent Member Benefit

By Don Greenberg

One of the benefits of REAVC Membership is that

members and associate members, and children,

grandchildren, or great grandchildren of members or

associate members, are eligible to receive scholarship

awards from REAVC. These “one-time” awards can be

anywhere from $1000 to $1250, depending on how

much scholarship money is available and the number of

scholarships awarded at the particular time.

Scholarship awards are made at our September and

December membership luncheons. The deadline for

submission of applications for the September awards is

July 1 each year, and October 15 for the December

awards.

We generally award 4 scholarships per year. Strangely,

sometimes we do not receive enough applications to do

that. Our program must be a “well kept” secret!

The funds for these scholarships come from a portion of

the dues paid by our REAVC members and from

donations. The Ventura County Credit Union has been a

big supporter of our scholarship program --- having

donated $1000 each year for a number of years. VERY

MUCH APPRECIATED. THANK YOU VCCU!

Given the rising costs of education, the REAVC Board

voted in 2014 to authorize awards from $1000 to

$1250. We would also love to be able to assist even

more deserving applicants and so will be looking at

ways to increase available funding.

REAVC is not a 501 (c) (3) nonprofit and so donations

are not tax deductible charitable contributions.

Nonetheless, some members may wish to donate from

time to time – or may know someone or an organization

that would contribute. No pressure. We just want you

to know that donations are welcome! If enough of us

put in a little, it could make a difference!

Full information on our scholarship program and

applications are available on the REAVC website –

specifically at http://reavc.org/scholarship-program

If you have questions, please feel

free to contact any REAVC officer or board member.

The current Scholarship Committee members are

Maryellen Benedetto, Tom McEachern, and Don

Greenberg.

7

WATCH FOR MORE INFORMATION REGARDING THE

UPCOMING CRCEA SPRING CONFERENCE BEING HELD AT

THE CROWNE PLAZA VENTURA BEACH HOTEL,

APRIL 24-26, 2017.

BE SURE TO MARK YOUR CALENDAR

PIER INTO

YOUR

FUTURE

http://reavc.org/scholarship-program

The Courts have not been kind to current public

employees recently! In two recent cases brought

by employee unions, the Courts have held that

pension benefits can be reduced for service not yet

rendered; i.e., for prospective service. A third case

is pending.

The “California Rule” is a legal doctrine that

pension benefits in effect the day a government

employee is hired must be honored throughout the

employee’s entire career, and cannot be reduced

without an offsetting benefit, not even on a

prospective basis (although benefits could be

increased, even retroactively). This

doctrine is based on a 1955 California

Supreme Court decision that stated

“changes in a pension plan which

result in disadvantage to employees

should be accompanied by comparable

new advantages.” (underline added).

In some subsequent cases, “should”

became “shall.” However, in the recent

cases that have been decided, the

appeals court opined there was a big

difference between “should” and “shall”

or “must.”

The first case, Marin Association of Public

Employees et al v. Marin County Employees’

Retirement Association et al, which was decided in

Division Two of the First District Court of Appeal

(August 17, 2016, A139610, the “MAPE decision”),

upheld the constitutionality of provisions of PEPRA

that applied to legacy members eliminating certain

pay items from compensation earnable, which had

previously been included. Importantly, inclusion of

these pay items was always optional with 1937 Act

retirement boards.

In reaching its decision, the Court found there was

no evidence of legislative intent to create a hard

and fast rule, such as the “California Rule” and that

the legislature had the implied authority to make

reasonable alterations, changes and modifications

in retirement plans that reduce or eliminate certain

aspects of a retirement benefit, so long as the

resulting pension is “reasonable”, and the changes

do not apply to already retired employees.

The second case, Cal Fire Local 2881 et al v.

California Public Employees Retirement System et

al, which was decided in Division Three of the First

District Court of Appeal (December 30, 2016,

A142793, the “Airtime decision”), upheld a

provision of PEPRA that repealed a 2003 law that

allowed employees to buy up to five years of non-

qualified service credit, known as “airtime”, to

increase the amount of service

used in calculating their pension

benefit. The Court found there

was no evidence that the 2003

legislation was intended to create

a permanent benefit and relied

heavily on the MAPE decision.

The MAPE decision has been

appealed to the California

Supreme Court, which has

agreed to hear it. As of this

writing, the Airtime decision has

not been appealed.

The third case, known as the “Consolidated

Cases,” was assigned to Division Four of the First

District Court of Appeal. It has been fully briefed,

and is waiting for oral argument to be set. It

involves many of the same issues as the MAPE

decision so it will be very interesting if the court

comes to a different decision. If they do, the

Supreme Court will decide which Division was

correct. If they don’t, the Supreme Court will

decide whether or not to uphold the MAPE

decision.

Thus far, there haven’t been any cases addressing

what a “reasonable” pension is. If the MAPE

decision is upheld, there most certainly will be, as

agencies attempt to reduce their pension

obligations.

“CALIFORNIA RULE” AT RISK? By Art Goulet

8

REAVC P O BOX 7231 VENTURA CA 93006 7231

Documents

R E A V C · 2nd VP – Cindi Mathieu 805/525-2885 [email protected] Secretary – Will Hoag [email protected] 805/644-3491 Treasurer – rayhRay Holzer 805/644-3702 [email protected]