The Association of Retired Houston Municipal Employees (ARHME) held a general membership meeting on June 20, 2011 at the E. B. Cape Center. Approximately 100 were in attendance.
In his opening remarks, ARHME President George Bravenec briefly discussed the recent tax exemption status that the organization received under section 501(c) (4) of the Internal Revenue Code. He explained the 501(c) designations and the difference between 501(c) (3) and 501(c) (4). He stated that a 501(c) (3) designation may be a better fit for our organization because it allows for not only tax exempt status for the organization but also makes contributions to the organization tax deductible. Both 501 (c) (3) and 501(c) (4) organizations are prohibited from participating in political processes and lobbying elected officials. The board is exploring the formation of a political action committee (PAC) which, in turn, will provide the ability to become active in political matters if we desired. A majority of the members in attendance indicated they were in favor of this idea as well as the possibility of deducting one dollar a month from their retirement check to support a PAC.
Mr. Bravenec introduced Mr. Lonnie Vara a trustee on the board of the Houston Municipal Employees Pension System (HMEPS). Mr. Vara indicated that he supports the idea of a PAC and that it could open doors to elected officials. Mr. Vara pointed out that with the national debate regarding government affordability of defined benefits plans like HMEPS, a PAC could provide an opportunity to inform elected officials of our position and that defined contribution plans may not be as affordable as some may think.
Also discussed were efforts to put together a dinner and social for members. Mr. Moe Mata, ARHME board member explained the steps taken to find a place to hold this event and the expense involved in trying to get it done at a reasonable price. The amount agreed on by a majority of the attendees was $20 per person.
Mr. Bravenec then introduced Rhonda Smith, Executive Director of the HMEPS, featured speaker of the meeting. Ms. Smith congratulated ARHME for its efforts and said it is an organization that has been needed for a long time. As the organization grows, HMEPS will have a viable, strong group of retirees who are interested and active in matters associated with their pension and benefits. She informed the group of several legislative bills that were introduced in the state legislature that could be detrimental to us but fortunately they did not pass. She advised that in two years the next session could be even more challenging as pensions become increasingly a part of political rhetoric and becoming involved in political matters would be a wise step to take.
Ms. Smith reported that for this fiscal year, the pension fund’s current return on investments is in excess of 22% and that HMEPS has recovered all the loss from 2008.
She also explained that although the city is laying off about 600 municipal employees this year, most have low tenure and therefore have had minimal affect on the workload at the pension office. She announced that HMEPS is moving into a new facility at 1201 Louisiana (old Metro building) and this move will save from $1 million to $1.5 million. Ms. Smith urged ARHME retirees to become strong advocates in the organization to keep and maintain the current pension plan. She stated that the defined benefits plan is the best plan for employee and employer.
After a question and answer period, Mr. Bravenec briefly addressed the city’s transition to a new health care vendor. Some retirees are still having problems with the transition to Cigna and there was a representative with the Human Resources Department available after the meeting to address their concerns.
Mr. Al Mays then gave a brief presentation on two proposed changes to ARHME’s Bylaws. One change was to include “educate” as part of the purpose of the organization and the other was to allow officers to serve in a position for more than four consecutive years. Both changes were approved overwhelmingly.
An election for four board positions was then conducted. Lonnie Vara, Bill Pugh, Moe Mata, and Showri Nandigiri were elected unanimously to these positions.
Following the election, drawings were held for sixteen door prizes. ARHME thanks RMS Auto Care, Pappas BBQ, and board members for their generous contributions. Those in attendance then enjoyed a pizza lunch. The meeting concluded at about one o’clock.
Al Mays, Vice President
The Association of Retired Houston Municipal Employees (ARHME)
