Letter from the President of ARMSE
We have had National and State mid-term elections that have changed the complexion of the congress and the State legislature. At the National level, we have a shift in power in the House of Representatives that result in a split in power and ideology between the House and the Senate and Administration. At the State level, we have eighty new members in the House of Representatives and thirteen new Senators, all but one of which have moved from State Representative to Senator. What does all of this mean to us, as active employees and retirees of the State of Missouri?
Our Nation is currently operating with a 1.6 trillion dollar deficit and the State of Missouri is facing an 800 million dollar revenue downfall, as a result of the loss of federal stimulus funds. At the National level, the Congress, Senate and President are struggling over a 100 billion dollar cut in budgeted expenditures for fiscal 2011. At the State level, the Governor and State Legislature are seeking ways to offset the revenue downfall. Why are we in this budgetary crisis?
Both at the National and State levels, our legislative and administrative leaders have continued to spend, as if there was no end to the availability of money. They have forgotten who pays for their extravagancy and have paid absolutely no attention to advice of some of their predecessors, such as:
“The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work, instead of living on public assistance.”
Cicero, 55 B.C.
“Every step we take towards making the State our Caretaker of our lives, by that much we move toward making the State our Master.” Dwight D. Eisenhower, 34th president of the United States.
You may ask, “What can I do as an individual or ARMSE as a group?” First, each of us needs to make a commitment to reach out to and encourage our fellow retirees and active state employees to become members of ARMSE. MOSERS and IMPERS, combined, serve 122,866 active employees, retirees and terminated vested persons in their retirement systems. ARMSE has approximately 4,900 active members. As ARMSE increases our numbers, the more attention we receive from our elected officials and representatives.
Secondly, we can individually contact our elected Representatives and Senators, to make them aware of how important our benefits are to us and to the economy of our state. Ninety to ninety-five percent of state retirees spend their money in Missouri. Thirdly, we each should make a commitment to vote at each local, state and national election. “Your vote counts.” “My father once told me, “If you do not vote, you are not entitled to complain.” If we vote, those seeking office know that we are serious about our government. It is a shame that most of the issues and elected officials are determined by one-third or less of citizens of our nation. Let’s let them know “We mean business.”
ARMSE, through Nike Thompson, our Lobbyist, is keeping a vigilant eye on the activities of the legislature, to assure that legislation does not slip by that effects active employee and/or retiree benefits. One bit of good news, while it is not earth shattering, a 1.312% COLA is not all that bad. Both ARMSE and IMPERS retirees will get the increase this year. The yield on investments has improved in both retirement systems. In 2010, MOSERS yield was 16.9% and IMPERS was 12.9%. MOSERS currently is funded at 80.4%, while EMPERS is funded at 42.2%.
Let me encourage each of you to place September 26, 2011 on your calendars and make a concerted effort to attend our next ANNUAL MEETING, at the Capital Plaza Hotel, in Jefferson City on that date.
Have a great Spring.!!!!
James R.(Jim )Bowers
Letter from the State President
This will be the last letter from me as your State President. I have reached a decision not to seek a second term. May I, again, encourage each of you to consider making a reservation to attend the September 26, 2011 Annual Meeting. The annual meeting is your opportunity to fellowship with other retirees and hopefully future retirees. More importantly, it is your opportunity to meet and select the officers and board members you wish to lead ARMSE the next year. Without your presence and voice, the selection of officers and board members is left solely to a nominating committee of the current board. The question becomes: “Do we really care enough to step up to the plate?”
Upon taking office, I announced two goals I wished ARMSE to obtain during my tenure: To increase our membership to 6,000 members; and to improve communications with our membership. As in previous years, it appears we will fail to reach the same membership goal. It is very frustrating to know there are in excess of 122,000 potential members and ARMSE has difficulty recruiting such a small number. In past years, only one newsletter was distributed to the membership, each year. This will be the third newsletter posted to our website and the second to be circulated to our general membership. In addition, we currently have a contract with “The Link”, an organization that can and will distribute news spots, information articles and announcements through television, radio and/or printed media throughout our state. Their rates are reasonable and their use is entirely up to us. To this date, we have not utilized their services. Hopefully their services will be utilized in the near future.
“Commitment” is an evasive attitude to obtain. Each of us knows one or more retirees and/or active employees of the State of Missouri, that could and should be members of ARMSE, but again, “Do we really care enough to step up to the plate?” Even to get current members to commit to being officers and board members of local chapters and the state organization, is an extremely difficult task. Come on fellow retirees and active employees of the State of Missouri, “Let’s get with the program and let our congressional delegation and state legislators know we care about our benefits.”
James R. (Jim) Bowers
State President
On September 26, 2011, the Association of Retired Missouri State Employees (ARMSE) held its 42nd Annual Meeting in Jefferson City at the Capital Plaza Hotel.
The following is an overview of the morning session:
Susie Dahl, the Executive Director of MPERS stated that MPERS had a 21.8% or a $300,000,000.00 increase in its investments during the fiscal year 2011. She also pointed out if the market does not stabilize in 2012 it could be a tough investment year.
Dahl made it clear that MPERS do not have to worry about their retirement checks. The news media has been making reports saying state retirement systems are causing fiscal problems in Missouri’s state budgets when in fact state pensions account for less than 5% of the state budgets. She reported Illinois has not made a payment into their state retirement system since 1970 and that Missouri has never missed a payment into the retirement systems. The average Missouri state retirement is $22,000.00 annually.
Dahl spoke of MoDOT laying off some 1,100 employees, resulting with some taking early retirement and others taking retirement due to anticipated changes in the health insurance payments beginning in 2013.
In 2010 there were 58,200 state employees and in 2011 the number decreased to 52,000.
Dahl cited a court case in another state which says the state in under no contractual obligation to increase the pensions using COLAs. Missouri’s law says our benefits cannot be changed and the thinking is COLAs are also covered by law.
Jennifer Wilbers, Employee Benefit Manager for MoDOT and MSHP, stated that as of now the State pays 40% of the health insurance premium. Beginning January 1, 2012 the deductable on insurance is going to increase from $350.00 to $450.00. She noted she booklets that explained in more detail.
Gary Findlay, the Executive Director of MOSERS reported generally the same type of information as Susie Dahl. He remarked on how the workforce is declining and that there are now 6,000 employees less since 2008.
Guest speaker Linda Luebbering, the State Budget Director, spoke of how the state of Missouri is presently confronting and will be confronting very tight budgets in the coming years. Some programs will probably have to be cut.
The following is an overview of the afternoon session:
Guest speaker Dr. Gary R. Kremer gave a very interesting presentation on how Jefferson City became the capital of Missouri.
Nike Thompson, ARMSE lobbyist, gave a Legislative update report for the year 2011.
Bill Trimm gave the Financial Report, reporting a net income of $23,088.54.
Bill Trimm gave the Audit Report, reporting the practices used in preparing financial statements for ARMSE was satisfactory and accurate for all financial transactions performed for the 2010 calendar year.
Proposed Bylaws changes were presented by Bill Morgan. The changes were approved.
Larry Walker presented the goals for 2012 and they are as follows:
(1) Monitor and oppose any efforts to reduce medical and pension benefits for Retirees;
(2) Support legislation to fully fund MOSERS, MPERS retirement plans.
(3) Increase ARMSE membership.
Larry Walker, Chairman of the Nominating Committee, presented the following slate of Officers and Board members for election:
President: Jim O’Bryan
1st Vice-President: John Cushman
2nd Vice-President: Larry Walker
Treasurer: James Foster
Secretary: LaRae Clark
3 year term Board member: Faye Schmitz
3 year term Board member: Artis Porter
2 year term Board member: Don Mosley
2 year term Board member: John Colbert
1 year term Board member: Jim Campbell
1 term Board member: Bill Morgan
All were elected unanimously.
Sincerely,
Jim O’Bryan, President of ARMSE
