Outlook Newsletter Spring 01

6 Pages·2001·0.19 MB·English

by  Massachusetts Port Authority

Outlook
Vol. 1, No. 4 Published by the
Spring, 2001 Massachusetts Port
Authority Employees’
Retirement System
(MPAERS)
FOCUSING ON RETIREMENT ISSUES FOR MASSPORT EMPLOYEES PAST AND PRESENT
Another Way to Look at Your Vacation Time
C
hances are, everyone this policy. or retirement are not Policies and Procedures
at Massport What this means is that considered “regular Manual. If you have any
treasures their retirement deductions will compensation” and therefore questions about how your
vacation time, whether using it now be taken from vacation are not eligible. vacation buyback fits in with
all or cashing in some – either buyback checks. To view the Authority’s retirement, please contact the
way it holds a special place in However, more vacation buyback policy, please Retirement Board and Staff at
our hearts (and our wallets). importantly, what this means refer to your Human Resources [phone].
We are lucky to have a for those who are nearing
policy in place at the Authority retirement is that the purchase
that allows us to cash in a of unused vacation time could Retirement Annual Report
portion of our potentially increase
unused vacation your future Receives National Recognition
“the purchase
days. This is retirement benefit.
more commonly of unused Specifically, for this T
he Massport
known as a vacation time to be applicable,
Retirement System
“Vacation you need to
could recently received a
Buyback”. purchase unused
prestigious national award
At Massport, potentially vacation time at
recognizing excellence in
a good number of least once during
increase your
financial reporting. As you may
employees take the last three years
future remember from the first issue
advantage of the of your employment
of Outlook, the System
vacation buyback retirement (typically your
submitted its 1999 Annual
benefit, faithfully, three highest salary
benefit.” Report to the Government
year after year. years) in order to
Finance Officers Association
However, as of have the income
(GFOA) in the hopes of being the first
January 2001 things are slightly count as “regular
public pension system in Massachusetts to attain the
different. compensation.” As regular
Certificate of Achievement for Excellence in Financial
A recent ruling by the compensation it will be
Reporting. We are very pleased to report that we have
Public Employee Retirement included as part of your three-
accomplished this mission!
Administration Commission year salary average that is
The Retirement board and staff, as well as our consultants
(PERAC) states that the ultimately used to calculate
and former Massport graphic designer Steve Wolf, all worked
purchase of unused vacation your retirement benefit.
hard to produce the detailed, high quality report in accordance
time that accrued in a Obviously, the more vacation
with the GFOA’s strict submission guidelines – and we are
particular year counts as time you are able to buy back
proud to accept this distinct honor. Receiving the Certificate is
“regular compensation” for that during that three-year period,
especially gratifying because we are confident that our
year provided it meets certain the higher the amount added to
members have received a first-rate comprehensive annual
criteria. PERAC is the state your salary will be.
report that demonstrates a constructive “spirit of full
agency that regulates public Please note that final
disclosure.” The Retirement System will strive to maintain the
retirement systems, and the payments of accumulated
same level of excellence in financial reporting this year and in
Massport Retirement Board is vacation time that are made
years to come.
responsible for administering upon separation from service
1
Web Watch
What is a Bear Market?
For those of you who have access to the Internet, there is a wealth of information to be found there. In this section
A. A reduction in stock
we will highlight web sites that we have found helpful, informative, interesting or just plain fun.
prices of 10% or more from a
high point.
B. A drop in the Index of
Buried Treasure of your payments. You can also impressive programs carry an
Leading Economic Indicators
They may not help you find download forms for services impressive price tag, but for
for three straight months.
a pot of gold at the end of such as deferment, forbearance some people this could be the
C. An increase in stock
a rainbow, but the U.S. and electronic debiting; get answer to that age-old
prices of 20% or more from
Treasury has a unique web info on consolidating; and question, “What do I do in
a low point.
site which helps you track submit a change of address. Retirement?”
D. A reduction in stock
down old savings bonds.
prices of 20% or more from Hi-Tech Missionaries
It’s called Treasury Hunt
a high point.
(www.publicdebt.treas.gov/ There are at least two web
Answer: D, a reduction
sav/sbtreashunt.htm) and sites that use the net for
in stock prices of 20% or
by entering some basic a novel approach to
more from a previous high
information including your charity fundraising. At
point, an event that occurred
“thehungersite.com” and
in late March for the Dow
“thebreastcancersite.com”
Jones Industrial Average.
visitors can make their clicks
In contrast, a bull Experience Retirement
count. For every click at The
market occurs when stock If you are retired or Hunger Site, one cup of staple
prices rise steadily over approaching retirement and food is donated to a hungry
several months. have never heard of person and at the Breast
The terms were Elderhostel, you may want Cancer Site your clicks can
allegedly coined based on to check it out. Go to their help to provide an
the way each animal site www.elderhostel.org underprivileged woman with
social security number, the
attacks: A bull to glimpse educational a mammogram. How can they
site checks for bonds that
holds his head activities and programs. be so generous you ask? The
you may never have received
low and gores They are currently featuring key is advertising. Sponsors
as well as alerting you to
upward. A exploration cruises to donate money to the causes
those that might be sitting in
bear, on the
based on how many people
a box somewhere and are no
other hand, strikes
visit the sites (thus viewing
longer earning interest.
downward with its paws.
their ads). Attribute it to
charity for the new
©2000 DirectAdvice.com, Inc. College Loans
millennium.
Do you have student loans
Transitions
(or Parent PLUS loans) as a
lingering reminder of the
price you paid for a valuable
(cid:1) Congratulations
education? Get organized by
Congratulations to our recent using the Department of Antarctica or Japan and some
retirees! Education’s Direct Loan web examples of local seminars
James O’Sullivan February 1 site: www.eduservices.com. include: Perfect Your Photography
Margie Howze March 1 There you can have (almost) In Historic Salem and Bringing Life
all of your loan questions To Truth: Writing The Memoir.
❦ Condolences answered and keep track We’ll warn you — their
We offer our condolences to
the family and friends of
Dennis Magnasco, formerly of
Logan Airport’s Parking *Legal note: The Retirement System is not responsible for the content of these web sites or for the accuracy and
Operations Department. completeness of any information contained in them.
2
For Your Benefit
What A Difference A Year Makes
Retirement Upon Request Free Advice
We can’t grant everyone’s Be sure to check out the BY IRENE E. MORAN AND LISA ALLEN BROWN
retirement wishes, but here’s new lending library in the
I
t was only a year ago, but Our sound asset allocation
one thing we can do. Director Retirement office at the
for investors who are plan is the attributing factor to
of Retirement Irene Moran and LOC. We have more than
looking back at last year’s the Board’s recent returns in
her staff would be happy to 40 books covering many
returns, it might seem like a the current bearish market
come to your department or different aspects of financial
gilded age. Last year at this environment. The fund is
unit staff meetings to provide planning including estate
time the bull market was still diversified with a mix of
information and answer planning, investing,
going strong. In 1999 the S&P stock and bond investments
questions about your retirement retirement planning,
500 was up 21% and equity as well as a small allocation
benefits. Appointments will be personal finance, and taxes.
markets had consistently of real estate and private
made upon request. If you are If you work at another facility
produced returns of over 20% equity investments. The
interested in having us attend you can request a book by
for five years running. diversification of the plan is
your meeting, have your calling Lisa Allen Brown
Contrast that to the intended to provide slow and
meeting coordinator contact at x3903.
current climate and things steady growth over time with
Lisa Allen Brown at x3903 for
are dramatically different. The downside protection during
more information.
year 2000 ended with a market fluctuations.
negative return for the S&P Although our returns
Are You Covered? 500 down –9.1 % for the year, are down, performance has
Massport Human Resources recently distributed annual benefit and the market has continued been relatively good compared
statements to employees. With Open Enrollment taking place its decline in the first quarter to the indices. The pension
April 9 – May 11, now is a great time to ask yourself these of 2001. fund totals approximately $272
questions: Despite the current million and our year 2000
• Do I have enough life insurance? downfall in the market, one returns have only lost half of a
• Are all of my beneficiary designations up to date? thing can be said for all percentage point. As of
•Have I signed up for Long Term Disability (LTD) coverage? members of the Massport February 28, 2001 our fund is
The benefit statement and accompanying pamphlet are great Retirement System: the funds only down –2.3% – a negative
resources to help employees understand their benefits. We used to provide your but still better than the S&P
strongly encourage you to read this information! If you have retirement benefit are safe 500 which had a loss of –5.9%
questions about Open Enrollment, please call HR’s Loren Riley at and will be in the future – for the same period. Despite
[phone]. thanks to a prudent investment short-term losses, the fund has
strategy focused on long-term seen an average annual return
Legislative Update investing. of 10.2% over five years.
As fiduciaries, it is the The point we are trying
Retirement Board’s to make is that our diverse
responsibility to invest the asset allocation plan and long-
New IRA Regulations Issued by the IRS
money of the pension fund term strategy do actually work
The IRS has issued brand new life expectancy and it does so with the help (and in both market
regulations that apply to table and of an expert investment conditions). We encourage
Individual Retirement Account more consultant, Wilshire members to think about the
(IRA) distributions. The flexibility Associates, and a variety of significance of this, relative to
changes are radical and this with beneficiary changes. premier investment their potential retirement
means that any literature or The rules are complicated so management firms. Wilshire benefit as well as their own
material about IRA if you have an IRA and are assists the Board in developing personal investments.
distributions written before retired or close to retirement an investment policy that As Retirement Board
January 2001 has become you should consult with your aligns with the Board’s Chairman Jim Costello so aptly
obsolete. financial advisor. Another good philosophy of investing. The put it, “We are not looking for
Some of the changes resource for information is Ed process includes asset a home run in the first inning –
include a simplified Slott’s IRA Advisor web site: allocation planning and retirement planning is a full
distribution method, a uniform www.irahelp.com. periodic asset/liability studies. nine-inning game.”
3
Retired Life
An Amazing Feat: Massport Retiree Chung-Li Ling Shares His Story
C
hung-Li Ling, age 68, retired from the Port Authority in 1997 and one
thing’s for sure – he’s been busy! Since retiring, he and his wife have
taken a cruise up the Yangtze River, gone on a mission to Myanmar and also
travel to see their children & grandchildren. Chung-Li finds time to volunteer
for the Hingham Senior Center and also designed and built a two-story
extension on his house – something he calls “feathering the empty nest.”
Perhaps the most amazing activity is his recent bike trip, with son Curtis,
up the Pacific Coast in California. A 500-mile ride, just for fun, as he put it.
Here is Chung-Li’s Chronicle.
“
When Curtis mentioned he ideal for drafting and we
wanted to bike from San Diego reached Santa Barbara before
up the Pacific Coastal Highway noon for a leisurely lunch
(PCH) to Half Moon Bay south downtown – the only time we
of San Francisco, I impulsively had lunch together on the
said that I would do it with entire trip. The air was quite
him. Curtis was too polite to chilly and Curtis could not
tell me I’m too old to make that keep warm riding at my pace.
trip with someone about half Almost immediately, a climb of
my age. So I marked on an AAA 1,000 ft loomed ahead after Chung-Li Ling takes a break in San Luis Obispo, CA
—overlooking the Pacific Ocean.
roadmap the overnight stops lunch. It took me more than
and made reservations in one hour to get to the top, 350
advance. We would make the meters above sea level. Lodge – a really nice place. I part of the welcoming party.
trip in eight days to must spend a few days here the Curtis was already there a
accommodate his work schedule. Navigating the Course next time I pass this place, in couple of hours earlier but still
This meant riding over 90 miles The PCH bike route is not well an automobile. in his biking jersey. He got
on each of the first three days marked, so in addition to On day seven, the chain on there “with no sweat.” Would I
and 50 to 80 miles on each of fighting the headwind, we had my bike jammed and I had to do it again? Not for a while, and
the next five days. frequent nagging doubts flag down a motorist for help. I certainly not from south to
whether we were on the right was back in the saddle by 9:30 north. What are some of the
The Journey Begins track. We were even stopped a and although I had no more other lessons learned? Travel
We pushed off in the predawn couple of times by the mechanical troubles, I was light.”
darkness on October 6th in light California Highway Patrol for plagued by poor signage and
drizzle that soon turned into a riding on sections of Highway got lost several times. One of
Attention Retirees!
steady rain. There was nothing 101 where bikes are not the highlights of the day was
We’d like to know what you’re
else to do but grind it out. By allowed. It was also difficult to riding through Castroville, the
doing! The Retirement System
the time I pulled into the motel dress for the ride. On the hour “Artichoke Capital of the
has enjoyed profiling retirees
in Newport Beach nine hours long hill climbing one would World.” who are doing interesting things
later, Curtis had already sweat bullets, then on the ten- to fulfill their retirement years.
checked in. This would be the minute downhill thrill, with The Final Stretch We’d like to hear from more of
pattern throughout the trip. the headwind blowing, the There was no way to get lost on you. Maybe you have a special
The sun was shining the chill would cut into the bones. the eighth day. Just stay on hobby, a second career, have
next day. Our first big climb After I met up with Curtis Highway 1. So my quest for taken an exciting trip or made
came at Malibu, in front of at the Ragged Point Inn on the adventure came to a happy the decision to relocate.
Whatever it could be, share
Pepperdine University. Then fifth day, we recounted our ending when I pulled into son
your story with us. Who
it’s a fairly easy ride to Oxnard. experiences over dinner and Bryant’s driveway in Half
knowsyou may end up in a
The third day Curtis decided to savored a beautiful sunset. The Moon Bay. His wife Anne and
future issue of Outlook!
stay with me. The terrain was next day we stayed at Big Sur their son Caleb were there as
4
Lookout
The views expressed here are those of the author and do not necessarily
reflect the views of any other members of the retirement board.
One Size (does not) Fit All
BY DAVE DAVIS
A
few years ago I was post-retirement medical and
stuck in a hospital prescription drug benefits are
for a week. I was not. Those benefits are
not really sick (it was knee extremely important to retirees
surgery), but I was pretty and should be secured by full Take your 1.5% and be happy? pension payments to retirees
embarrassed, particularly as funding as the pension system And why do some folks with 25 years of Massport
I got out of the bed and went was starting back in 1978. contribute 5%, others 7%, service.
down the hall, on crutches, Now, what if Sally comes to others 8% and others 9% to the Perhaps most importantly,
to physical therapy. Massport at age 20 and works system? The answer: that was the Authority itself is engaging
“Embarrassed” is the right 13 more years than Joe above? the patchwork solution to fully an actuary hopefully as a first
word. If you are 6’4" and over Shouldn’t she get a better fund the systems across the step in fully funding retirees
200 pounds, the one-size-fits- pension for those extra 13 state. That doesn’t make it fair. health and prescription drug
all hospital “Johnny” definitely years? She should, but, I could go on, but it really benefits.
has a southern exposure. assuming Joe and Sally are in isn’t necessary. I know I’m On the comprehensive
Unfortunately the state the same kind of job, she gets preaching to the choir. What’s front, a bill is being introduced
law (Chapter 32) that governs the same as Joe. If she should to be done? Shall we try for to study the overall
our pension system is also an retire at the end of 32 years, at more patchwork, or a Massachusetts system. I know
attempt to make one-size work age 52, having worked the same comprehensive look at the anything can be, and often is,
for everyone. For some people length of time as Joe, she’ll get a whole system? Maybe take a studied to death, but what is
it’s a reasonable fit. For great deal less. This is not a look at what others have done. important here is that the
increasing numbers of others, case of discrimination against When it comes to pension sponsors include the
however, it is inadequate. The women; it’s just the way the systems, places like Colorado Massachusetts Municipal
law was state of the art for system works. It is one of the and Ohio can teach Association. They are the ones
pension systems when it was reasons that so many feel such Massachusetts a lot. I say: let’s who have often stopped
enacted, but that was 1945. a sense of urgency when it try for both. We have made pension liberalization for
The workforce has changed comes to potential early some recent progress on the financial reasons.
since then, and although retirement initiatives (ERI). patchwork side with the Of course I intend to
Chapter 32 has been amended ERI is a kind of patchwork fix beginnings of a nearly participate, as much as I am
many times, it is more of a for people who have put in automatic increase for retirees, permitted, in any
patchwork than a cohesive their 32 years, but are not yet woefully inadequate at a comprehensive study. I also
system that meets the needs of “old enough” to retire. maximum of $360 per year, but have my own “patchwork”
today’s workforce. Of course we have many nevertheless a start. (It’s called agenda. The reader won’t be
Chapter 32 works pretty other examples of Chapter 32 a cost of living adjustment, a surprised to know that fully
well if Joe goes to work for shortcomings. The law was COLA, but it falls short of a funding medical benefits, and
Massport (or another designed when one or two jobs real COLA.) In addition there extending the COLA are
Massachusetts jurisdiction) at during a lifetime was the norm. is the recent “pop-up” matters of interest to me as a
age 33 and retires at age 65. In Now the norm is probably legislation which allows non- retiree. But I think we must
32 years, at 65 years of age, Joe closer to five or six. This contributory members also find a way to smooth out
reaches the maximum benefit change has given rise to a host increased benefits when they the diverse contribution rates,
(80%) of the average salary of of problems: You just get your had chosen option C and their and otherwise make the system
the highest three years. I say money back, no interest, if you beneficiaries have predeceased fairer for the active employees.
“pretty well” because although work less than five years. If you them. In addition there is I’ll continue to work on these
the pension system at work five to ten, you do get Chapter 90A and 90C which issues. I invite your comments
Massport is fully funded, the interest: one half the bank rate. allowed MPAERS to increase and suggestions.
5
Calendar
Deferred Comp Corner
APRIL
I 16 Tax Day & Patriots’ Day: Massport offices
f you visit Aetna’s web site, change, an investor may wish to
www.aetnafinancial.com, review their allocation of asset closed
you’ll find information on classes and investment funds to *** School vacation week
recent market turbulence and ensure that it remains appropriate. 19 Retirement Brown Bag Lunch Seminar
advice on how to get through Significant market movements,
(Fish Pier), 12 noon
these periods of uncertainty, either up or down, typically aren’t
22 Earth Day
including a special report the best times to reassess portfolios
25 Retirement checks mailed
called “Taking Stock” as well as and make changes.”
Board Meeting: Logan Office Center,
a letter from Aetna Financial For questions, concerns
Services CEO Thomas J. or to enroll in the deferred Board Room, 10 a.m.
McInerney. The following is an compensation plan, employees Administrative Professionals Day
excerpt from that letter. The and retirees can reach Aetna
full text can be downloaded at: Reps Anne Gately (Logan),
MAY
www.aetnafinancial.com/ Scudder Sinclair (Fish Pier,
1 Pre-retirement seminar for Massport
news_center/pdfs/customer.pdf. Bridge, Conley Terminal) and
employees ages 55+
“We at ING Aetna Financial John Mongiello (Hanscom) at
Services can’t stress enough that their Quincy office (617) 328- 13 Mother’s Day
personal investment objectives, time 8868. You may also call the 19 Armed Forces Day
horizon, tolerance for risk and need Aetna customer service line at 25 Memorial Day (observed): Massport
for income and liquidity should form 1-800-584-6001 or try their web
offices closed
the basis of personal investment site www.aetnafinancial.com.
28 Retirement checks mailed
strategies. If any of these factors
30 Board Meeting: Logan Office Center,
Board Room, 10 a.m.
For Employees with Massport Vehicles
If you are an employee who has a Massport motor vehicle assigned JUNE
to you, you should be aware of a recent ruling by the Public 14 Flag Day
Employee Retirement Administration Commission (PERAC) 17 Father’s Day
that deals with employer-assigned vehicles and retirement
26 Retirement checks mailed
calculations. If you are one of the employees who has this fringe
27 Board Meeting: Logan Office Center,
benefit income included on your W-2 form, the income will now
Board Room, 10 a.m.
be considered part of your “regular compensation” for retirement
purposes (with some exceptions). For more information contact
Irene Moran, Director of Retirement, at [phone].
Retirement Board & Staff
Outlook is published Managing Editor Retirement Board
quarterly by the Lisa Allen Brown James P. Costello, Chairman
Massachusetts Port [email protected] David W. Davis, Elected Member ([email protected])
Authority Employees’ Michael A. Grieco, Appointed Member
Contributors
Retirement System
Dave Davis Leslie A. Kirwan, Treasurer-Custodian (ex officio)
(MPAERS)
Chung-Li Ling Philip H. Mallett, Elected Member ([email protected])
Bonnie Matthews
One Harborside Drive Retirement Office Staff
Irene Moran
Suite 200S Irene E. Moran, Director of Retirement ([email protected])
Boston, MA 02128 Design Nancy Wong, Financial Analyst ([email protected])
[phone] Colvin/Williams, Inc.
Lisa Allen Brown, Retirement Communication Specialist
Photography ([email protected])
Chung-Li Ling Laura E. Barbosa, Retirement Coordinator ([email protected])
6