Candy Aldridge, City of Houston Human Resources Deputy Director, provided attendees with a broad and detailed update on the future direction of the health benefits. The goals are to provide expanded coverage at a lower cost.
Rhonda Smith, Executive Director, HMEPS provided an historical and current financial overview of the Municipal Employees Pension status that demonstrated that the recent Houston Chronicle articles were misleading and incomplete.
One of many retirees in attendance asked pointed questions receiving detailed explanations.
Al Mays, ARHME Vice President and George Bravenec, ARHME President, listened attentively to the presentations. The General Meeting covered a wide range of topics. The key presentation was an overview of upcoming changes to the health insurance programs.
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The Association of Retired Houston Municipal Employees (ARHME) held a general membership meeting on January 24, 2011 at the E. B. Cape Center. Despite the rain, about 90 people were in attendance.
Mr. George Bravenec, President called the meeting to order at 11A.M. He commented that significant steps have been made towards establishing the 501(c) 3 status for the organization. He thanked Gloria Minick of Leach & Minick LLC for her efforts. She prepared and submitted all the required documents to the state and federal governments. ARHME is now registered with the state as a non-profit corporation. Approval from the Internal Revenue Service (IRS) is pending.
Once approved by IRS ARHME will have non-profit status for income tax purposes.
Mr. Bravenec acknowledged the two Houston Municipal Employees Pension System (HMEPS) trustees in attendance, Mr. Lonnie Vara and Mr. David Long. He also acknowledged former Councilmember Felix Fraga in attendance.
Candy Aldridge, Deputy Director with the Human Resources Department of the City of Houston was the featured speaker. She gave a presentation on the status of the city’s efforts toward securing a new contract for health and dental insurance for city employees and retirees. The city currently pays about $24 million a month for health insurance and the goal is to keep the plan cost flat for May, 2011. Currently in the process, they have narrowed down the selection to two finalists and the competition has been very intense.
Ms. Aldridge said that as everybody knows, the economy has been tight and accordingly, one of the goals of the city’s request for proposal process has been to keep the costs at the same level. To accomplish this it will take looking at a variety of solutions including smaller doctor networks, increased cost sharing at the time of service, or increased contributions from participants. The city hopes to retain familiar features from the current HMO and PPO plans although in different combinations and different plan choices. The plan model has not yet been approved by the mayor. As it stands right now, the effect of these changes on retiree monthly contributions has not been determined but a variety of plan choices may give some retirees some relief in their monthly contribution.
Ms. Aldridge also said that she doesn’t expect that the city’s current plans would be considered “Cadillac plans” and thus not taxable under the new national health care reform program.
Mr. Scott Otto, Information Systems Manager and Mr. Peter Koops, Communications Specialist both with HMEPS then gave a presentation on the new process to access individual account information online. This new feature called MYPENPAL is being provided as a result of the selection of State Street Bank and Trust as the new payroll provider. Retirees now have the ability to securely view their benefit payment history and 1099 information online as well as change their address or direct deposit information and change tax withholdings.
Mr. Lonnie Vara, Trustee with HMEPS was the next presenter. He discussed the national trend by state and local governments to look at different options to address it pension liabilities and the media attention it has drawn. He said that a lot of pension systems nationally experienced a decline in assets a couple of years ago due to the decline in the stock market. These systems are beginning to bounce back now but increasing pension liabilities have caused governments to consider alternate methods to provide pensions for its employees. One such alternative is a defined contribution plan. Similar to a 401k, the employee decides how much he or she wishes to contribute each month. This “contribution” would typically go into fund that invests in the stock market. This fund would appreciate over time and would theoretically be sufficient for pension purposes at the time of retirement.
He emphasized the importance of having an advocacy group like ARHME, particularly at the present time when the city is facing declining revenues and exploring various means to cut expenditures. An organization like ARHME can speak out on issues that effect municipal retirees. Elected officials are more likely to hear and act on concerns raised by a group as opposed to individuals.
A drawing was held for door prizes. Fifteen door prizes were awarded with values ranging from $15 to $80. ARHME thanks Denny’s, Home Depot, Kohl’s, Pappas Brothers, RMS Auto, Taco Cabana, and What-A-Burger for their generation donations. The meeting adjourned to a separate room where a pizza lunch was provided.
Posted February 4, 2011 |
Mr. Scott Otto, Information Systems Manager, HMEPS, gave a presentation on the new process to access individual account information online.
Lonnie Vara, HMEPS Secretary, Retired from City of Houston Human Resources Department, Retiree Trustee, commented on articles appearing in the Houston Chronicle. He pointed out that the Chronicle's information was over simplified with numerous flaws resulting in erroneous conclusions.
George Bravenec, ARHME President, made certain the numerous complex presentations stayed on schedule throughout the General Meeting.
Experienced hands of a retired attendee made notes of many timely, important and intricate pieces of information presented.
A common sight at ARHME meetings. Retired co-workers enjoying seeing and visiting with each other as they stay up to date on important issues that impact retired City employees.
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The Association of Retired Houston Municipal Employees (ARHME)
