Outlook Newsletter Spring 05

2005·0.32 MB·English

by  Massachusetts Port Authority

Outlook
Published by the Massachusetts
Port Authority Employees’
Retirement System (MPAERS)
Vol. 5, No. 4
Spring 2005
FOCUSING ON RETIREMENT ISSUES FOR MASSPORT EMPLOYEES PAST AND PRESENT
Don’t Get Hooked by Phishing Schemes
T here is a new type PIN, credit card number, etc. people to react immediately). messages. They may take you
of internet scam out This means that the e-mail • Be aware of the type to bogus web sites that appear
there that you should you receive might have your of e-mail that you would to be something they are not.
be aware of if you use e-mail. credit card company’s logo and normally get from your bank If you think you have
It is known as phishing and direct you to an offi cial looking or credit card company so you been the victim of a phishing
scammers use it to try and company web site, but it could will be more likely to notice scheme call your bank or
obtain your personal fi nancial really be a copy and your something out of the ordinary. credit card company to check
information over the Internet. personal information is at risk. • Look for tell-tale signs, for unauthorized charges.
for example, phishing For more information
What is Phishing? What can I do to protect e-mails generally are NOT about online fraud schemes
Phishing uses spoof e-mails myself from phishing? personalized whereas your visit the site for the Anti-
and fraudulent web sites to • Be suspicious of any bank or e-commerce company Phishing Working Group at
trick consumers into entering e-mail requesting personal will usually address you by www.antiphishing.org
sensitive information such as information, particularly if it name. or contact the Attorney
their address, social security contains urgent or upsetting • Watch out for links General’s Consumer Hotline at
number, bank account number, news (this is often done to get contained in unsolicited e-mail [phone].
Retirees’ Corner
Doing Our Part to Protect You From ID Theft
In order to better serve our retirees and protect you from possible identity theft we
have made some changes to the way we do business.
• SSN Hidden –We no longer print your Social Security number on your check
or pay stub! Retirees who have concerns about their mail can rest assured that the
monthly mailing from us does not contain this sensitive information.
• Address Change – We are now requiring that all address changes be made
in writing. This can be done via e-mail ([email protected]) or a simple note
listing the old address, new address and effective date. You can also request a change
of address form by calling [phone].
Medicare Reimbursements
Did you know that if you are in a Massport health plan and currently pay premiums for Medicare
Part B you may be eligible for reimbursement by Massport? You must be 65 or older and enrolled
in a Medicare supplemental plan such as the GIC OME or Medex and you must provide proof that
you have paid the Medicare premiums. Payments are disbursed to retirees twice a year. For more
information, please contact Loren Riley in the human resources offi ce
at [phone].
For Your Benefi t
Annual Report Recognized for Excellence
T he Massport
Employees’ Retirement
System (MPAERS) was once
again awarded a Certifi cate of
Achievement for Excellence
in Financial Reporting by the
Government Finance Offi cers
Association (GFOA) for its
2003 annual report.
This is the 5th time that
MPAERS has received this
2 0th I s s u e ! dreicstoignngiuziessh tehde h soynstoerm w fhoirc h
producing a comprehensive
annual fi nancial report that
This marks the 20th issue achieves the highest standard
of Outlook and we have in government accounting and
fi nancial reporting.
updated our design to
We have extra copies
mark the occasion. Let us
of the report including the
know what you think of special supplement Retirement
101 which featured members
the retirement newsletter.
of the Massport Retirement
Send your feedback to
System along with retirement
retirement@massport. information for every age group.
com. Stop by the retirement offi ce
or call Lisa Allen Brown at
[phone] to request a copy.
No Penalty on 457 Withdrawals
Did you know there is NO penalty for withdrawing money from your 457 account
prior to age 59 1⁄2?
To access the money in your deferred compensation account you must be
retired or separated from service (unless you have an unforeseeable emergency).
However, unlike 401k plans and IRA’s for which the Internal Revenue Service
charges a 10% early withdrawal penalty, withdrawals from the deferred
compensation plan are subject to regular taxes but no penalty.
For more information about the deferred compensation plan contact our
ING representative Nicole Payne at [phone] or call customer service at
[phone]. Account information can also be accessed online at
www.ingretirementplans.com/custom/mass.
2
Legislative Update
Social Security Revamp on the Horizon
Buyback Interest
T here is a great national There are many different Security benefi ts and others Rate Increases July 1
debate surrounding proposals, angles, and have family members and
As a reminder, the
the future of the Social opinions on what changes friends who will be impacted
interest rate for
Security program in America. should or should not be by future changes.
buybacks will increase as
According to actuarial made to the Social Security As a public employer
of July 1, 2005.
forecasts, the Social Security program. Massport could also be
If you have prior
Administration will no longer While Massport affected since certain
creditable service
be able to pay 100% of its employees don’t contribute proposals in the public realm
(either as a temporary
promised payments in 2042. to Social Security, this is still call for mandatory coverage of
employee or a past
President Bush has put an important issue for many public employees in states that
state employee who
forth a proposal to reform employees and retirees as some are currently exempt (as is the
withdrew retirement
Social Security using a system may rely on a spouse’s Social case with Massachusetts).
funds) and you want
that includes “personal
that service to count
accounts” in order for citizens Learn More About the Social Security Debate!
towards your retirement,
to take ownership of a portion
you should contact the
Understanding Social Security Reform: The Issues and
of their retirement money and
Alternatives (American Institute of Certifi ed Public retirement system as
manage their own investments.
Accountants) http://www.aicpa.org/members/ soon as possible to take
Democratic leadership in socsec.htm
advantage of the lower
the United States Congress
interest rate.
Women and Social Security (Institute for Women’s Policy
opposes the creation of
The rate for the
Research) http://womenandsocialsecurity.org/
personal accounts saying
Women%5FSocial%5FSecurity/ current year is 0.6%
that it would worsen Social
but after July 1, 2005
Security’s overall fi nancial Social Security Administration Trustees Report
buybacks will be
picture since payroll taxes http://ssa.gov/OACT/TR/TR05/
calculated differently
that are currently used to
Bush Proposes Slowing Growth of Social Security Benefi ts using a rate of 3.875%
pay people’s benefi ts would
for Future Retirees. Democrats call it a “cut.” Compared for each year of service
be diverted in order to fund to what? (FactCheck.org) http://www.factcheck.org/ (compounded). In some
personal accounts. article323.html
rare cases people might
benefi t from waiting
Update to Mortality Table Improves Retirement Payment Options
until after July 1, 2005
if their service occurred
A s you may know the your death your benefi ciary equal to 2/3 of what you were
during a time of
mortality tables receives a lump sum payment being paid. Under the previous
extremely high interest
used to calculate retirement of whatever is remaining in law those choosing Option C
rates. For an estimate of
payment options have been your retirement account (which had a 20-30% reduction from
the cost of your buyback
updated for public pensions typically takes 9-12 years to the Option A amount. These
please call Laura Barbosa
in Massachusetts. deplete). Previously the Option changes represent signifi cant
at [phone].
The percentage charts B reduction was 3-5%. improvements for people retiring
Please note that
that the retirement offi ce If a retiring employee from public service and it’s
anyone who begins a
distributes are based on an chooses Option C there is especially good news for many
buyback prior to July 1
Option A benefi t which is the approximately a 9-11% reduction married couples.
(including those who
highest benefi t amount you from the Option A amount If you have questions
pay through payroll
can receive, but provides no depending upon your age and about the changes in mortality
deduction) will not be
payment for your benefi ciary. the age of your benefi ciary. In tables and how it could affect
subject to the higher
Under Option B there is the event of your death the your future retirement benefi t,
rate.
now a 1-2% reduction from Option C benefi ciary would be please contact the retirement
Option A and in the event of entitled to pension payments offi ce at [phone].
3
Web Watch
For those of you who have access to the Internet, there is a wealth of information to be found there. In this
section we highlight web sites that we have found helpful, informative, interesting or just plain fun.
Health Issues from A-Z
In the Age of the Internet many people look up
every symptom of their illness before setting
foot in a doctor’s offi ce. While we would never
encourage using the web as a means of diagnosis,
it can be helpful as a research tool. The Merck
Manual of Medical Information can be found at
www.merck.com/mmhe/index.html and
lists comprehensive information on everything
from chicken pox and cardiac arrest to lizard
bites and carbon monoxide poisoning.
Cutting Coupons on the Web
If you enjoy shopping online you may also like
saving money through online coupons. With
improved search engine functions, fi nding Transitions
a coupon couldn’t be easier. Simply go to
www.google.com and put in the name of the Condolences
retailer or item that you are searching for plus the We regret to inform you
word “coupon.” Any available “coupon codes” will that the following retirees
❦
instantly be at your fi ngertips. Next time you are have passed away:
ordering from Gap.com, google “Gap coupon” and ❦ Ralph Clark
you just might save some hard-earned cash. ❦ David Dodge
❦ Thomas Ferguson
❦ John J. Foley
❦ Richard Healy
Retirees Share Biz Advice ❦ James Samms
Looking for a volunteer opportunity that ❦ Walter Watson
lets you use your business expertise to help
others? SCORE is a non-profi t organization We also extend our
comprised of retired executives who use their condolences to the family
business knowledge and experience to offer free of GTU employee Paul
counseling and mentorship to entrepreneurs and Smallcomb.
small business owners. Volunteers with various
Co★ngratulations
specialty backgrounds are always needed. Go to
www.score.org for more information. The following people
retired recently and we
wish them all the best for a
successful future:
★ Carole Bodkin
★ Peter Francis
* Legal note: The Retirement System is not responsible for the content of these web sites or for the accuracy and ★ Gino Trapani
completeness of the information contained in them.
4
Lookout
The Cow is Sick. Don’t Ask for More Milk.
By Dave Davis
T he Massport $4 million to the pension sacrifi cing on the other end.
Retirement System is fund. This money must be Luckily we are not yet in the
“fully-funded.” What accounted for in the Massport same position as a place like
does that mean? budget process and comes the MBTA where they are
Does it mean that we are from the same pot that pays forced to do layoffs and service
fl ush with cash? Does it mean salaries, health care costs and cuts in order to fund the
that employees are funding operational expenses. It also increasing pension liabilities
their own retirement? Well, comes at a time when some and health care costs of its
no, not really. Although the of Massport’s tenants are retirees. ■ Dave Davis is an elected
system is in a reasonably struggling to stay afl oat and We understand why long- retirement board member and
former Massport executive
healthy fi nancial position, face diffi culty in managing term employees are looking for
director.
especially when compared rising airport fees in a a change in the way retirement
to other systems in the declining market. benefi ts are formulated;
Commonwealth, we are We all know that it is the however, our members need
subject to the ups and downs airlines that have historically to understand that this type
of the stock market like been Massport’s “cash cow,” of change would come at a
everyone else and we are also and it is clear to me that the signifi cant cost. The changes
affected by a growing number business has changed radically which have been proposed to
of retirees and ever increasing since my time at the Authority. the legislature, according to
health care costs. At least three old line, our actuary, will cost as much
While a third of a billion major carriers have fi led for as an additional $7 million per
dollars might sound like a bankruptcy or are very close. year. I honestly don’t believe
lot of money, in reality the In some cases these carriers the money is there. When
“ . . . the airlines have
Massport pension fund has have raided their own pension thinking about the value of
only enough to meet its systems (or changed them your Massport retirement historically been
current promises. Paying radically) just to stay afl oat. benefi t there are other things,
Massport’s “cash cow,”
Massport retirees costs The cost of health insurance and priorities, that must be
approximately $1 million is being shifted to employees considered – in particular, the and it is clear to me
each month. That fi gure does and retirees. Low cost carriers idea of securing future health
that the business has
not include the cost of health are steadily encroaching on care benefi ts.
insurance for approximately the old-line major carriers. The good news is that changed radically . . . “
400 retirees and their Business travelers, once the Massport Retirement
spouses. relatively price insensitive are System is stable and secure.
The System is funded by taking the cheapest fl ights, or Since we are a defi ned benefi t
three sources: worse, staying home and doing plan your retirement benefi ts
1. contributions of Massport business electronically. Our are guaranteed for life and
employees, cow is sick. the system is one of the most
2. money from investment When the liability for well-managed pension systems
earnings, and the pension system grows so in Massachusetts. However,
3. contributions from the must the amount of Massport’s the future is uncertain and
Authority. required contribution. The decisions that could jeopardize
This year the Authority Authority must come up with the stability of retiree benefi ts
will be required by law to the cash to pay its pension in the years to come should not
contribute approximately obligations even if it means be taken lightly.
5
Book Cor ner
The retirement library at Logan Offi ce Center houses a wide variety of books on personal fi nance topics including
retirement planning, saving, budgeting, investing, estate planning, homebuying, and basic money management themes.
Here are some examples:
J. K. Lasser’s Estate Planning for Baby Get a Financial
Boomers and Retirees Life
by Stewart H. Welch III bbyy BBeetthh KKoobblliinneerr
Acting as a guide for the 80 million “Baby Get a Financial
Boomers” out there, Welch’s book is a useful Life is billed
Calendar
tool in determining your net worth, creating a as a guide
will and developing a comprehensive estate plan to personal
(even for those who think they don’t have much fi nance for
MAY

of an estate). It also includes chapters such as people in
21 Armed Forces Day
“““RRReeetttiiirrreee WWWiiittthhh their 20’s
DDDiiigggnnniiitttyyy::: HHHooowww MMMuuuccchhh and 30’s
25 Retirement checks mailed
iiisss EEEnnnooouuuggghhh???””” aaannnddd but it
“““TTThhheee PPPsssyyyccchhhooolllooogggyyy could be useful to anyone who needs 30 Memorial Day: Massport
offi ces closed
ooofff MMMooonnneeeyyy””” aaasss wwweeellllll a primer on personal fi nance and help with
as a glossary of money management. Kobliner covers all the
31 Retirement Board Meeting:
estate planning basics including budgeting and goal setting, all Logan Offi ce Center, Board
terms and a state- types of issues around debt, investing, saving for Room, 9:00 a.m.
by-state list of retirement, insurance, taxes, and information
JUNE
top fi nancial for renters and home owners. She also includes
planners. “crib notes” for those who don’t have time to 14 Flag Day
read the whole book.
17 Bunker Hill Day: Massport
offi ces open
19 Father’s Day
We Need Your Input
Now is your chance to suggest a book for the retirement library. Is there a guide to investing that
21 Summer begins
you found helpful and would recommend to other Massport employees? How about the latest
fi nance book you have been wanting to read? To suggest a book, e-mail [email protected]
27 Retirement checks mailed
or call Lisa Allen Brown at [phone]. Your suggestion could be the next addition to our
retirement library!
29 Retirement Board Meeting:
Logan Offi ce Center, Board
Room, 9:00 a.m.
Retirement Board & Staff
JULY
Outlook is published quarterly by the Massachusetts Port Authority Employees’ Retirement System (MPAERS)
One Harborside Drive, Suite 200S, Boston, MA 02128, [phone]
E-mail Outlook: [email protected] 4 Independence Day:
Massport offi ces closed
Retirement Board
Managing Editor
James P. Costello, Chairman
Lisa Allen Brown
David W. Davis, Elected Member ([email protected]) 26 Retirement checks mailed
[email protected]
Michael A. Grieco, Appointed Member
Leslie A. Kirwan, Treasurer-Custodian (ex offi cio) 27 Retirement Board Meeting:
Design
Philip H. Mallett, Elected Member ([email protected]) Logan Offi ce Center, Board
Colvin/Williams, Inc.
Room, 9:00 a.m.
Retirement Offi ce Staff
Contributors
Irene E. Moran, Director of Retirement ([email protected])
Dave Davis
Nancy Bournival, Financial Analyst ([email protected])
Loren Riley * Meeting schedules are
Lisa Allen Brown, Retirement Communication Specialist
subject to change.
([email protected])
Laura S. Barbosa, Retirement Coordinator ([email protected])
6