We returned yesterday afternoon from the FREA Assembly which was held in Orlando. The official MCREA Delegates to the Assembly were Deborah Thomas and Judy Shostrom. Mildred Owens and I tagged along with them. David Brown was there in his position as FREA Trustee with his wife Carolyn. They both worked hard setting up the Country Store and the Chinese Auction. Ed Ethridge was there in his role as FREA Public Relations Chair. Fay Murphy also attended. She is Unit 7 Director and has been appointed Director of all the FREA Units. So, as you can see, MCREA was well represented at the state level.
The annual FREA Banquet was themed "Forging Florida Frontiers". In keeping with the theme, attendees were encouraged to dress up as Florida tourists with some comical results. Ed Ethridge won second place in the men's costume contest and a huge blown-up pink flamingo which he will probably place in a dark closet when he gets home. Judy, Deborah, Mildred, and I also dressed up in our version of tourists. Sadly, I realized that I always looked like a tourist in my regular clothes. Judy was clashing in her plaid shorts and flowered shirt, flamingo sunglsses, straw hat, and 1960's camera. Deborah was decked out in an Indian print maxi, sandals with socks, and a straw hat. Mildred had a Hawaiian shirt and straw hat.
Judy and Deborah
Mildred joins them.
Oh Ed, what have you become?On a more serious note, Esther Twitchell, FREA President, presented the check that will be given to Governor Rick Scott which represents the volunteer hours logged by FREA members, and their approximate monetary value to the people of Florida.
The worth of 507,482 hours is $11,058,032.78.
Fay and Howard at the Assembly. Fay chaired the Unit 7 meeting, participated
in the Memorial Service for membes who have died during the year, and delivered the Thought for the Evening and the Blessing at the Banquet on Thursday.
Highlights of the Assembly were the remarks of Sarabeth Snuggs, Director of the Florida Division of Retirement and Ash Williams, Executive Director of the State Board of Administration. Snuggs warned of changes to the retirement plans. She said that new teachers are asked to choose between the regular retirement plan and an investment plan. In previous years, teachers who did not choose would be in the regular retirement plan which was the default plan. However, legislators are planning to change the investment plan to the default position. It is important that new hires understand that change. Later, when Ash Williams was asked about the investiment plan, he said that the average investment accrued so far under that plan was about $50,254 total. Imagine retiring with only that much money.
Snuggs also reported that the retirement account is funded at 87.5% at the present time. This is after years of Legislative funding of 100% or more. She asked that we keep pressure on our Legislators to increase the funding to its former level. New plans for retirement have been suggested, such as a cash balance plan which would guarantee a level of interest on individual contributions and that balance would be a retiree's payment. Of course, with the fluctuation of the stock market, that idea could be a disaster to retirees. Another plan is some sort of hybrid plan which would incorporate the existing plan with a 1.0 interest credit rather than the 1.6 which we now have. Snuggs says the Florida Retirement System has always been a great recruitment and retention tool. (It seems to me that we as retirees now are probably safe from the Draconian plans of some members of the Legislature, but knowledge about their proposals will always be helpful. And who knows what they may do to us as well?)
She said that FREA's fight to keep the health insurance subsidy was instrumental in saving it. She ended her remarks by announcing that she is retiring herself this year. She assured us that the person who succeeds her will be drawn from the group who worked with her and that we will be in good hands.
Esther Twitchell, President, encouraged looking at The FREA website, http://www.frea.org/ which will keep you abreast of how your legislators voted on issues that concern us. Write, email, or call them to make your thoughts on legislation known. If they vote correctly, thank them. If they don't, chastise them. We are a huge voting blog and we vote.
Ash Williams discussed the investments that have been made in the stock market, in businesses, and buildings. The attempt is made to diversify the funds. The sum of the account as on Friday, June 1, was $121.6 billion. Each month, $500 million is paid out in retirement checks to members. The fund is affected by global economic growth and the lack thereof. When employer contributions were reduced in 2008, the funding level dropped.When the Legislature does not fully fund the pension plan, as if hasn't in the last three years, the interest which accrues compounds further, cutting into the account. The 2011 reduction in benefits should have reduced costs but it did not.
William said that he has had several productive conversations with the governor who, he says, wants to put the pension plan on good footing.
He also says that changes to the retirement plan for currently vested and retired employees are not likely. He said we should be on the lookout for changes in non-vested employees' retirement options.
This will be my last blog until September, so I wish you a lovely summer. Check out the new FREA website, at http://www.frea.org/ I think you will enjoy reading it. Anne Fagan of the FREA staff has done a great job making it interesting and readable.
Ellen
