President’s Message

By Stan Coombs, President

The beginning of the year is always busy with housekeeping chores at RESDC, after the crescendo of year-ending activity the month before.

We have three new officers and a new board member for 2020. Readers have already been informed that I’m serving in the President’s spot for the current term. Chris Heiserman, after seven years as a board member and Second Vice-President, has assumed First Vice-President’s responsibilities. Janel Pehau, a seven-year veteran of the Board has filled the Second Vice-President’s spot, and Bruce SIlva, an attorney who retired in 2016 from the San Diego District Attorney’s Office, has been welcomed to fill a Board vacancy.

And even before the first day of 2020, much occurred that’s important for RESDC to track.

On December 18th, the Fifth Circuit Court of Appeals, in Texas, struck down the individual mandate provision of the Affordable Care Act (Obamacare), and while declining to rule against the rest of Obamacare, instead directed lower District Court Judge Reed O’Connor, who previously had ruled all of Obamacare to be unconstitutional, to sort it all out. O’Connor’s task is complicated by a legal theory he based his original ruling on, that the entire Act is so enmeshed with the now-prohibited mandate, that the entire law is unconstitutional.

We described O’Connor’s original ruling in the February 2019 NETWORK, indicating it had been appealed, and that all Obamacare provisions. . .coverage of pre-existing conditions, equivalent premiums regardless of pre-exiting conditions, basic coverage requirements, subsidized premiums, etc. . . could be lost depending on the appellate court’s determination.

But the new O’Connor rulings are also unlikely to be final. The case will probably get to the Supreme Court, given the lineup of state attorneys general insistent on eliminating Obamacare and the lineup of state attorneys general just as insistent on preserving it. Regardless, the final court ruling could pre-ordain another re-ordering of U.S. health policy and complicated changes for older Americans; important because surveys clearly show national health to be a top concern.

In another unhappy turn of events, Congress adjourned for the holidays without acting on controls for surprise medical bills, a situation described in a recent AXIOS news piece as, “. . .about as close to a slam-dunk as Congress gets in health policy. . .” Apparently both Republican and Democratic legislators competed to address the despised practice, even drawing President Trump to call for legislation to end it.

In a November 2019 NETWORK article, we described surprise medical bills as occurring when out-of-network medical practitioners treat insured patients at in-network medical facilities, and then directly bill them for treatment they thought was covered.

Two bi-partisan bills were proposed to control surprise medical billings during the year, by congressional Republicans and Democrats on two different committees. One of those would have set benchmark rates for out-of-network billings, based on averages charged by local providers, and required arbitration of higher cost disputes. The other took a different tack. Congressional leaders declined to take sides and no bill was passed out.

Reports have it there will be another try next spring, and meanwhile thousands of older insured Americans will receive pricy surprise medical bills from out-of-network practitioners, unfettered by protective regulations.

Then in November The New York Times described another startlingly dysfunctional program impacting parents and grandparents of college age children and grandchildren. We described the burgeoning education loan debt problem in the January 2018 edition of THE NETWORK, noting that total debt for the 44 million student borrowers rose to $1.3 trillion by 2015, including $64 billion in delinquent balances. And we said that student loan obligations are lifetime and notoriously difficult to discharge even through bankruptcy.

Turns out there’s another facet to that situation. A specialized U.S. Department of Education Public Service Loan Forgiveness Program, designed to attract folks to important but modest income jobs, was sold with a promise. Borrowers who faithfully made their payments and pursued their work could be forgiven their loan balance after ten years, and that simply hasn’t happened. Fewer than 1% of applicants depending on the promised relief received it, due to complicated rules, poor communications by contract loan servicers, bad record keeping and failure of the Department of Education to correct the problem.

In additional to this short sampling of serious retirement issues that’s cropped up, Chris Heiserman’s Pension Facts article, on page 2, discuses annuities as a possible option for retirees who don’t have defined benefit retirement available, and we encourage members to take advantage of scheduled RESDC events around the County, including the next RESDC Roundup at Hooley’s Pub in Grossmont Center, on February 19th; the North County General Membership Meeting at the North County Live Well Center in Escondido on February 26th; and we alert readers to the upcoming RESDC Theater Outing at the Old Globe, on March 27th, featuring Louisa Alcott’s “Little Women.”

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Pension Facts

Group Promotes Role of Annuities in Retirement Planning
By Chris Heiserman, Director

A survey done last year by the Alliance for Lifetime Income found that 80% of non-retired Americans were anxious about having enough savings to live on in retirement. The Alliance describes itself as a non-profit consumer education organization with a mission of helping Americans understand the need for “protected lifetime income.” It promotes the use of annuities as a key component of strategic retirement planning so retirees “don’t outlive their money.”

The issue of a retirement savings crisis in America has been the topic of numerous articles in THE NETWORK in recent months. As retirees with defined benefit public pensions, RESDC members fortunately are not seriously impacted by this on a personal level; however, the prospect of a large percentage of American households running out of money in retirement should concern all of us.

According to the U.S. Labor Department, three-fourths of working or retired Americans with an employer-provided retirement plan in 1975 were enrolled in a defined benefit program providing guaranteed lifetime income. By 2016 only about one-fourth of millions of employer-plan beneficiaries were in a traditional pension plan. This inexorable shift in workplace retirement over the past several decades from traditional pensions to defined contribution plans like 401(k) accounts has placed the responsibility for accumulating and managing their own retirement savings on individual workers. With 401(k) plans workers regularly set aside a portion of their earnings, choose how to invest it and hope for the best.

Admittedly, my superficial personal view on annuities has always been that they are a way for companies shedding liability by closing defined benefit retirement plans to purchase annuities from insurers for retirees. Turns out it is much more complicated, and this group of professionals suggests annuities should be an option for individuals within a workforce retirement savings plan. Annuities are insurance contracts that promise to pay you regular income over time. They can be purchased with a lump sum or a series of installments, and disbursements can begin immediately or in the future. There are three main types of annuities: fixed, variable, and indexed. Each one has a different level of risk and potential; obviously, using paid financial planning advisors is necessary to successfully navigate these waters.

The Alliance began as a consortium of life insurers and asset managers, including Jackson National Life, Nationwide, Prudential, and TIAA (Teachers, Insurance, and Annuity Association). The organization hopes to address the commonly perceived drawbacks of annuities: that they are too complex and involve both high fees and hefty surrender charges. The Alliance wants to help financial advisors simplify how annuities work for clients and shift the national retirement planning narrative to focus on lifetime income planning rather than just growing assets. For them “protected lifetime income” in retirement is guaranteed income in addition to any traditional pension benefits and Social Security.

The group has an informative website – www.retireyourrisk.org – with tools and resources, including a chart comparing annuities, bank CDs, stocks, bonds, and mutual funds. The site has several personal case studies of how individuals have incorporated annuities in their retirement planning. There is also a glossary of annuity-related terms, but at 19 pages it somewhat stretches the claim pledging simplification.

This is a niche interest that serious numbers-loving retirees may find elucidating. Still some retirement income experts are skeptical of the Alliance’s push to boost annuities as a retirement planning tool, largely because many pre-retirees and financial advisors have been concerned about their complexity. Also, a recent study by a financial services firm noted that the segment of households receiving income from annuities has fallen from 15% in 2016 to 13%.

Nevertheless, these professionals applaud the effort to educate people about the benefits of lifetime retirement income and say the material on the organization’s website is worth a look. They hasten to caution anyone researching the subject that the source of the information (the Alliance) has a strong pro-annuity bias.

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2020 Scholarships

By Carlos Gonzales, Scholarship Committee

The annual RESDC Merit Scholarship Program will award five $2,000 scholarships and one $750 community service scholarship, to graduating high school seniors in 2020. To be eligible, students must be a child, grandchild, step child, or step grandchild, of a RESDC member in good standing (as defined in our Bylaws).

The scholarship application forms are available online at: www.resdc.net/scholarship-program. Applications may also be picked up from our office at 8825 Aero Dr., Suite 205, San Diego, CA 92123. For questions, please call RESDC toll free at (866) 688-9229 or you may email us at: resdc@resdc.net.

The deadline to submit applications is Monday, March 2, 2020; applications postmarked after this date will not be considered. Final results will be communicated directly to individual participants at the beginning of June.

We suggest that applicants start this process early and coordinate all references for a complete and timely submittal. Incomplete application packages will not be considered.

All RESDC Scholarship applicants are also eligible to apply for the Theo and Evelyn Yakel Scholarship, which is available through The San Diego Foundation. In 2019, The San Diego Foundation awarded $2.2 million in scholarships, making The Foundation the largest private non-university scholarship provider in San Diego County. To apply for The Yakel Scholarship, students should go to www.sdfoundation.org and fill out the Common Scholarship Application.

A document verifying that the student’s sponsor is a RESDC member must be uploaded when applying for the Yakel Scholarship through the Common Scholarship Application. Please call the RESDC office at: (866) 688-9229 to obtain this signed document. The foundation will not accept an application without RESDC’s validation.

The filing period for the Yakel Scholarship closes on February 5, 2020 at 2:00 p.m.; results are usually out by June 1.

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February North County General Membership Meeting

Wednesday, February 26, 2020 9:30 – 11:30 AM
North Inland Live Well Center
649 West Mission Ave., Escondido, CA 92025

Our program will include presentations from two excellent community resources: Sharp Healthcare Disaster Preparedness and FACT SD – Full Access and Coordinated Transportation, Inc.

Sharon Carlson is a registered nurse and the system Director of Emergency Disaster Preparedness for Sharp HealthCare. Sharon brings a wealth of disaster planning, response and recovery knowledge to Sharp HealthCare, and works closely with its safety and security teams. She is the hospital representative for San Diego County on several state emergency disaster preparedness work groups in California. Sharon is also a member of Cal Mat-California Medical Assistance Teams and has deployed to the recent fires in Northern California.

Ali Poorman is the invoice analyst and mobility coordinator for FACT. FACT is based in Oceanside and is a resource for San Diego County residents who are looking for transportation options. FACT seeks to improve access to transportation for seniors, persons with disabilities, veterans, and the income disadvantaged, and to fill gaps in existing services.

RSVP requested but not required. Visit www.resdc.net/events or call (619) 688-9229.

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SAVE THE DATE!

COMING HOME EVENT
AT THE REGISTRAR OF VOTERS!

When: Tuesday, April 14th at 11:00 a.m.

Where: County of San Diego Registrar of Voters
5600 Overland Avenue
San Diego, CA 92123

Watch for more details and registration information in the March and April NETWORKs.

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RESDC Roundup

February 19, 3:30 – 5 pm
Hooleys Irish Pub – Grossmont Center, La Mesa

Will we see you at the first RESDC Roundup of 2020? Join us in our return to the East County area in a couple weeks, visiting Hooley’s in Grossmont Center where pints, plates of Irish fare, and daily drink specials are offered up in a roomy, woodsy space.

The Roundup provides an opportunity to catch up over libations and appetizers with RESDC leadership and fellow members. No reservation required (no host bar, no host food). Come meet with old friends and make some new ones!

Date: Wednesday, February 19, 2020
Time: 3:30 pm to 5:00 pm
Location: Hooleys Irish Pub,
5500 Grossmont Center Dr. #247
La Mesa, CA 91942

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Board Member Profile – Janel Pehau

A member of the RESDC Board of Directors for seven years, Janel retired from the County Auditor and Controller Department in 2010 with 37 years of County service. She was the Director of the Office of Financial Planning during her final ten years with the County. Her County career also included experience in the Program Development Agency, Office of Management and Budget, and Planning and Land Use Department.

From 2012 to the present Janel has been assisting (on a part-time basis) one of the smaller cities in San Diego County with budget development, and monitoring the winding down of the City’s former redevelopment agency. She has a BA in Business Administration from the University of Washington and a Masters Degree in Public Administration from San Diego State University.

In retirement Janel enjoys being able to exercise daily, spending time with her grandchildren, working part-time, sewing and knitting projects, reading, and getting together with family and friends. Her favorite travel experiences include taking trips to her home state of Washington to visit family (and “soak up the beautiful scenery there that I took for granted when I was growing up”), and to the San Francisco Bay area to visit her daughter and her family.

She and her husband, Paul, have been married 41 years. They have three children and eight grandchildren.

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Bits and Pieces

Editor’s Note: We would like to continue printing some Bits and Pieces items in this newsletter about our members.

If you have taken an interesting trip or have had an intriguing event happen recently, please let us know so that we can share your story with our members.

If you have reached an exciting birthday, or wedding anniversary, please call Karen Hazel, RESDC Editor, at (866) 688-9229. You can also write to Karen at RESDC, 8825 Aero Drive, Suite 205, San Diego, CA 92123. You can also send your information to us by email at: resdc@resdc.net .

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Recent Events

• Annual “Love Your Heart” Event—Friday, February 14, 2020. “Join the Heart Health Movement” with a free blood pressure screening at sites across San Diego County and Mexico, celebrating the ninth year of Love Your Heart. Love Your Heart is an annual event in which organizations from across the U.S. and Mexico join together to provide FREE blood pressure screenings to the public on Valentine’s Day, February 14. Last year over 43,000 people got to know their blood pressure numbers and took charge of their own heart health! For more information including volunteer opportunities, visit www.LoveYourHeartSD.org or call 2-1-1
• New Issue Brief: State and Local Government Spending on Public Employee Retirement Systems. The National Association of State Retirement Administrators (NASRA) recently published an issue brief which provides figures for public pension contributions as a percentage of state and local government direct general spending for FY 2017, and projects a rate of spending on pensions on an aggregate basis for FY 2018. Public pension trusts pay over $300 billion annually to retirees, benefits reaching virtually every city and town in the U.S. To access the brief, please visit: https://www.nasra.org/issuebriefs .

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Theatre Outing

Sunday, March 22nd at 2:00 p.m.

Join your fellow RESDC members for a play on March 22 at The Old Globe! We will be attending Little Women by Louisa May Alcott. Alcott’s classic novel of the March sisters is beloved by generations of readers. Now her heartfelt story of Jo March and her three unforgettably distinct sisters, Meg, Beth, and Amy, comes to the stage in a brand-new version that honors the spirit of Alcott’s original while freshly interpreting it for a new era. The Wall Street Journal named the prolific and widely produced Kate Hamill Playwright of the Year.

A limited number of group-rate $55 tickets are available on a first-come, first-serve basis for purchase through RESDC. Tickets can be purchased online at: www.resdc.net/events, or by calling the RESDC Office at (619) 688-9229 during our hours of Mon-Fri 9am – 2pm, or by mailing the Registration Form and a check payable to RESDC to 8825 Aero Drive, Suite 205, San Diego, 92123.  Tickets will not be mailed. Tickets will be available for pick up from a RESDC representative adjacent to the theatre starting one hour prior to show time (look for the blue shirt or ask a Box Office representative where we are located).

When:  Sunday, March 22, 2020 at 2:00 pm.
We recommend arriving about an hour early to locate parking and pick up your tickets.

Where:  Donald and Darlene Shiley Stage, The Old Globe Theatre, Conrad Prebys Theatre Center
1363 Old Globe Way, San Diego, CA 92101 (Do NOT use this address for driving directions. See below.)

Directions:  The Old Globe is located in Balboa Park. The theatres are located off of El Prado between the San Diego Museum of Art and the Museum of Man. If you use the address of The Old Globe, some GPS systems will direct you to the service road behind the theatre, where parking is limited to 10 minutes. Please refer to the written directions below, or visit the “Plan Your Visit” section of The Old Globe website at: https://www.theoldglobe.org.

Driving North: Take Interstate 5 to the Sixth Avenue exit. Turn right (north) and follow Sixth Avenue to Laurel Street. Turn right (east) on Laurel and drive straight into Balboa Park.

Driving South: Take Interstate 5 into San Diego. Exit at Sassafras Street and follow Kettner Boulevard to Laurel Street (second stop light). Turn left (east) on Laurel and drive straight into Balboa Park.

Driving East (via Harbor): From Point Loma, take Harbor Drive west from Rosecrans. Turn left onto Laurel Street. Pass Sixth Avenue, and drive straight into Balboa Park.

Driving West: Take Interstate 8 to 163. Go south on 163 and exit at University Avenue. At the light, continue straight along Sixth Avenue to Laurel. Turn left (east) on Laurel and drive straight into Balboa Park.

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RESDC Annual Member Recruitment Mailer

By Mark Nanzer, Executive Director

I’m excited to report on our most recent RESDC member recruitment. I am pleased to welcome all our new members and we look forward to serving you in the new year and beyond!

In collaboration with SDCERA and Pacific Group Agencies, RESDC mailed out a membership packet with the 2020 Benefits Open Enrollment Kit to over 7,500 non-RESDC member retirees. I want to extend special thanks to our partners in this effort, Pacific Group Agencies’ Steve Pettee and Greg Margulies, and SDCERA Chief of Staff Rebecca Wilson.

We sincerely appreciate your membership and encourage you to visit our website at www.resdc.net, where you will find information on upcoming events, keep up-to-date on what’s happening in the world of public pensions, and learn how to access great RESDC member benefits and community resources.

Thanks so much for your support and I hope to see you at our upcoming events including our February 26th General Membership Meeting in Escondido and our Theatre Outing on March 22nd at the Old Globe Theatre.

WELCOME NEW MEMBERS

Maria E. Alkhazeriji
Irene F. Almoite
Michael I. Appelman
Sonia V. Aranico
Betty J. Ashe
Gloria D. Asiong
Arthur A. Ayala
Kellie C. Barclay
Bill W. Barlow
Lila R. Behr
David F. Berke
Teresita B. Bernardo
Joyce E. Blair
Mark L. Blakey
Robert L. Borntrager
Beverly A. Bowler
Joyce E. Bracey
Cheryl L. Bright
Sandra J. Brower
Adrienne J. Burfield
Robert T. Burger
Lucia Butler
Kristie Campbell
Samuel W. Campbell
Douglas C. Carlson
Eugene Casados
Sharon R. Castro
Cynthia A. Chandler
Priscilla A. Cherico
Darlene Cooper
Lolita P. Cruz
Michael J. Deguzman
Blaine E. Dennis
Alfredo S. Dominguez
Christopher C. Dunn
Jimmy E. Earnhart
Clifton E. Emison
Monica Fernandez Gonzalez
Kathleen A. Fiedor
Gilbert Fierro
Kimberly A. Fives
Lupe D. Flores
Michael A. Furlong
Dalila Garcia
Rose Marie Garcia
Mary K. Gero
Glenn F. Giannantonio
Judy C. Gilmour
Teresa Gomez
Celia G. Gonzales
Ramona V. Grant
Diana Gurrola
Leonel A. Gurrola
John F. Hardesty
Julia S. Hardy
Evariste Haury
Lee G. Hebert
Charese M. Herrington
Kirsten A. Hope
John P. Hughes
Christina Hughesman
Diane C.B. Hunter
Josefina M. Jacklin
Zenaida M. Jimenez
Lisa C. Johnson
John W. Johnston
Mina Kamali
Girija Karamcheti
Christopher Kelly
Dottie Kuehni
Ray R. Lafleur
Robert D. Lanser
Steven C. Lilyquist
Marlowe D. Locke
Rodney F. Lorang
Tina L. Lusch
Benjamin Macias
Soraida Magallon
David M. Martinez
Maria A. Martinez
Judith K. Mattsson
Susan K. McDonald
Judith A. McDonough
Kirk D. McKay
John M. McKinney
Judith A. Merel
Sonja Minteer
Lisa E. Missett
Christina M. Mojica
Cynthia E. Moody
Bernice S. Munk
Judy E. O’Brien
Javier Z. Odanga
Ruth C. Ortega
Renato T. Panganiban
Donna T. Paraiso
Shirley Parnell
Geraldine M. Pechtel
Ellen C. Perdon
William R. Perno
Kirk S. Peterson
Daniel W. Pledger
Charles D. Porter
Rita J. Prince
Karen R. Rausis
Alan C. Reddick
Elizabeth A. Reese
Ramona L. Reyes
Katherine Reyna
Gregory W. Richards
Wayne E. Richards
Ester A. Rivera
Patricia A. Roberts
Catherine D. Robinson
Jean K Rodgers
Rebeca Rodriguez-Alcoser
Candido B. Rojas
Donna M. Rose
Evangeline M. Roth
Bertha Saenz
Mary C. Sapper
Sharon A. Schmidt
Teresa E. Sherman
Steven A. Silva
Rosita Silvera
James A. Smith
Pamela Smith
Sue E. Smith
Susan M. Solis
Marian L. Sowell
Marilynn F. Sproat
Taylor E. Spurgeon
Sandra Stewart
Barbara J. Stokes-Padgitt
William F. Stryker
Paul M. Stutz
Federico N. Sunglao
Adeline T. Suson
Teresita C. Taylor
Judy Teague
Lisa D. Thomas
Marlene Timm
Charista M. Toomer
Grace A. Torre
Patricia L. Toth
Dung V. Tran
Joy Trunzo
Robert N. Unterwegner
Helen M. Varga
Jerome E. Varon
Diana L. Vasquez
Irma G. Veytia
Vankham Vongvanith
Joel S. Walbe
Carol J. Walker
Curtis Alan Webb
Michael A. Weinrick
James A. Westman
Steven M. Williamson
Robert E.J. Wilm
Robert K. Wilson
Pamela S. Wolf
Judith Wolinsky
Jacqueline Workman
Jeffrey L. Young
Neil J. Zucconi

The surviving spouse of a member is eligible for RESDC membership. For enrollment assistance, call (619) 688-9229.

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See’s Candy Certificates Increase in Price for 2020

See’s Candy has increased the retail price of their candy commencing January 2020 to $22.50 per pound. Our office will offer See’s Candy Certificates to our members for the price of $19.50 for each one pound gift certificate. This is a $3.00 savings over the retail price.

Please send a check payable to RESDC for the number of certificates you want to purchase with a business-sized (#10) stamped self-addressed envelope to RESDC, 8825 Aero Dr., Suite 205, San Diego, CA 92123. For more than five certificates please affix .70 cents postage on the return envelope.

RESDC members are also entitled to a group discount at the See’s Discount Stores at 3751 Rosecrans Street in San Diego and 1830 Marron Road, Suite #124 in Carlsbad. You must show them your RESDC Membership Card for the discount. The group discount price for a one pound pre-packed box of chocolates is $18.90 if purchased in person at the San Diego and Carlsbad discount stores.

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Pension Facts at a glance

As of June 30, 2019, SDCERA’s three-year net investment return was 8.4%, the five-year return was 5.6% and the ten-year return was 8.8%.

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RESDC Volunteer Opportunities

Looking for a satisfying and relevant volunteer opportunity in your retirement? RESDC has two important committees that meet monthly to discuss ways of improving our capability to serve our members. These committees would love to add more retiree voices to the conversations.

The two committees are:

Editorial/ Publications Committee – this committee oversees the content, publication and production of our monthly newsletter, THE NETWORK, and monitors activities and issues relating to our website, social media and any external printed materials for RESDC.

Membership Committee – this committee organizes and supervises all special events and seminars and also brainstorms new ways to engage and inform non-members about the value of RESDC membership. It oversees participation in a variety of recruitment activities where we reach out to potential members.

In addition, RESDC has a pool of volunteer Ambassadors who, at their choice/convenience, assist in organizing and running the many events offered by RESDC to its members.

If you are interested in finding out more about these service opportunities, please contact the RESDC office at (866) 688-9229 toll free, or (619) 688-9229, or email to resdc@resdc.net.

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NETWORK is the official monthly newsletter of the Retired Employees of San Diego County, Inc. (RESDC), a private non-profit organization.

The information printed in the NETWORK is believed to be from reliable sources. However, no responsibility is assumed by the NETWORK for inaccuracies contained herein.

Business and Inquiries: Business matters and address changes may be recorded on our voicemail at any time, call (866) 688-9229. Please spell your name so the correct member record can be located.

Retired Employees of San Diego County, Inc.
8825 Aero Drive, Suite 205 | San Diego, CA 92123
Office Hours: 9 a.m. to 2 p.m. Monday through Friday
TELEPHONE: (866) 688-9229 Toll Free
FAX: (619) 688-0766
E-MAIL: resdc@resdc.net

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