RECOM (Retired Employees City of Mesa) - Minutes of March 21, 2007, Meeting

Board Members Present: Kathy Barrett, John Gendron, Frank Mizner, Barb Seperich, John Smoyer, Chuck Wennerlund. Board Members Absent: Lin Adams, Fred Conway.

Members Present: John Ashley, Don Ayers, Pauline Backer, Fred Bollinger, Diane Brown, Richard Buck, Carl & Marge Buckels, Bob Butcher, Pat Dillard, Jo Ferguson, K. Fraser, Claire & Steven Goldberg, Joan Gregory, Sam Halverson, Peggy Haney, Nancy Mumpton, Win Orr, Bill Petrie, Marilynn Pitman, John Schleff, Nancy & Richard Skalitsky, Denny & Fran Spidel, Rudy Torres, Diane Tuccillo, Marilyn Warden.

Guests: Marilyn Orr, Jim Pavletich.

Introductions: The meeting was called to order by Seperich at 9 AM. First-time attendees Marilyn Orr and Claire Goldberg introduced themselves.

Speaker: Jim Pavletich, of the Social Security Administration (SSA), talked about the broad scope of SSA:
SSA determines someone's eligibility for Medicare, then turns the person over to the Medicare agency.

SSA encourages contact through their website; there are look-alike websites, so be sure to use the correct website - www.socialsecurity.gov.

Approximately 75% of every dollar that comes in goes back out to beneficiaries.
If you are currently receiving benefits or are 50-55 years old and nearing SSA eligibility, you are fine; those who are younger will be the ones to take the hit with SSA, if changes aren't made in the program.

Two things that might affect your SSA retirement benefits: Non-covered pensions (earned when you were not paying social security tax) and working from age 62 to your full retirement age (depends on year of birth). At full retirement age, you may work as much as you want, and it won't affect your benefits.

SSA is a "pay as you go system retirement system" - today's workers paying into the system are funding today's beneficiaries. Fewer workers paying into the system today limit the money available to pay out.

The mass number of "baby boomers" at or nearing benefit eligibility, and people living longer (and therefore receiving benefits for longer than they worked), has stressed the system. Therefore, SSA started collecting approx. 24% more than they currently need. This money is placed into an interest-bearing trust fund, which will continue to grow until approx. 2040, when the demands on the moneys will be so high, that the trust fund will be depleted. SSN will not go bankrupt, but benefits will be forced to be cut approx. 26% for every beneficiary. Contact your representatives at www.house.gov or www.senate.gov and tell them what you think should be done.

To cut costs, only one out of every eight SSA employees is replaced, so this affects services provided.

Since 1984, all federal representatives, judges, and employees have been paying into SSA.

Secretary's Report: Kathy reported for Lin and announced the City's Community Spirit Golf Tournament is looking for players and volunteers. Flyers were provided. Also, Roger Hester, a retiree from the Utilities department, passed away on 3/13, and his obituary was in today's paper.

Treasurer's Report: Chuck gave the Treasurer's report.

Employee Benefits Task Force: Barb said the 3/20 meeting was cancelled. The City is looking at a new philosophy for funding the trust fund, but no decisions have been made regarding premiums, etc. 

Legislative Update: John Smoyer provided a legislative update.

Nominating Committee: Bill Petrie reported the proposed candidates for the Board and asked for nominations from the floor. Frank Mizner nominated Jo Ferguson for a one-year Director position.

Announcements: John Gendron thanked Bill Petrie for serving as Chair of the Nominating Committee, and Barb thanked John Gendron for filling in for her at membership and Board meetings during the time she was unable to attend.

Next Meeting: April 18, 2007 - 9:00 AM, Community Room, Mesa Fire Station 201, NW corner of 1st St. and Mesa Drive. The speaker will be Don Deasy (Estate Planning), and the Board election will be conducted.

Future Meetings: May 16 - Chris Brady, Mesa City Manager.