Jubilación

Retirement

A UARA publication for retirees

Volume 27, No.2
January 2006
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MESSAGE FROM THE PRESIDENT

Stardust Johnson, President, University of Arizona Retirees Association

CONTENTS

New Year's greetings on behalf of the University of Arizona Retirees Association, the association that has your interests as its primary focus!

The beginning of the new year is a traditional time for assessing where we are, where we have been and where we would like to be _ that time for making resolutions for change and improvement in our lives. Being retired doesn't change that. In fact, I believe the intensity of those assessments increases as we look at the future, realizing, maybe for the first time, that we are finite creatures with beginnings and endings.

Having made my pronouncement about beginnings and endings (!), let me encourage you to become involved, involved with life and the activities that bring you fulfillment. These may revolve around your families, pursuing long-held dreams, helping others, or becoming involved with the UARA!

The volunteers who keep our organization "humming" are remarkable people. Busy retirees. Generous people interested in life, interested in serving not just for themselves, but for all current and future retirees. Why don't you consider joining with this group? You are invited to attend UARA Council meetings, either to visit or to join. Our meetings are held the third Tuesday of each month at 9:00 a.m., in the Swede Johnson Foundation Building. Do come, but call in advance to make sure of the time and place.

Because we're concerned about better service, we've taken a major step in deciding to create a paid, part-time position to cover the office six to eight hours per week. We're looking for just the right person to fill that position. If you're interested, or if you know of someone who might be interested, please review the Position Available announcement elsewhere in the newsletter.

Have a wonderful new year filled with happiness.

Stardust (Dusty) Johnson, President

President's Message 1

Executive Committee Profiles 2

UARA Position Available 3

Notice of Correction 3

Annual Coalition Meeting 4

ASRS Legislative Proposals 5

Health Plan Flawed 6

News from ASRS 7

SAGE Society 8

Up Coming Events 9

DVD's through Netflix 9

Desert Museum 9

North First Post Office 10

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EXECUTIVE COMMITTEE PROFILES

UARA President Stardust (Dusty) Johnson held various administrative positions during her University career (Summer Session, Curriculum Office, Provost's Office). She retired in 2000 to have time for her new granddaughter. She is Director of Music Ministries at Northminster Presbyterian Church; Dean, Southern Arizona Chapter of the American Guild of Organists; Vice-President, Board of Directors of Homicide Survivors; member, Steering Committee of the UA Friends of Music. She enjoys travel, reading and, most of all, her granddaughter.

Vice-President Robert (Bob) Sankey retired in 2000 after 29 years at the University. He was a professor in the Department of Speech during his first seven years of employment and spent the remaining 22 years in various administrative positions, including: Coordinator of Summer Session, Acting Director of Extended University, Director of Curriculum and Director of Special Projects. Throughout his 29 years, he served as the Parliamentarian of the Faculty Senate, which he continues as a volunteer.

Secretary Helen Mautner retired from the position of Assistant Director of the Affirmative Action Office in 1997. She was director of a civil liberties organization for many years before joining the University of Arizona. She has two children and one grandchild and is currently a volunteer for Primavera Works, on the Board of Children's Action Alliance, and is a member of the Merit Selection Commission for the City of Tucson. Helen continues her interest in and works with other community civil rights groups. She previously served two years as secretary for UARA.

University of Arizona Retirees Association Mission Statement

Purpose:  to foster the benefit, interests, and well-being of the retired faculty and staff of the University of Arizona through social, educational, and promotional activities, as well as to encourage continuing contact between retirees and the University.

Membership: open to University of Arizona retired faculty, staff, their spouses, and surviving spouses.

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Treasurer (since 1994) Corinne Wilson has found the position to be very rewarding as she enjoys the contact with UARA members. She continues to dedicate considerable time and effort to the Irving Yall Scholarship Endowment. Corinne also volunteers at Oasis and has been known to recruit UA retirees to share their extensive expertise with classes for Oasis. Corinne retired from Printing/Reproduction in 1988 after 24 years of service. She enjoys mini vacations with various tour organizations.

UARA Past President Cornelius (Corny) Steelink, UA Chemistry Professor Emeritus, retired from the UA in 1989, but still reports to the UA Faculty Senate on retirement issues. He has been a life-long community activist for civil rights and civil liberties and speaking truth to power. He and his wife, Joanne Whittington, travel all the time to strange and exotic places.

UARA OFFICE MANAGER POSITION AVAILABLE

A part-time, partial year position is available in the UARA office: two days per week, three to four hours per day, generally following the academic calendar.

Responsibilities include covering the phone, responding to calls and questions; communicating basic information about the organization and matters pertinent to retirees; working with the legislative committee in developing a telephone tree and assistance with research on preparation of the UARA history. Basic computer skills are needed (preferably Microsoft Word).

If you are interested, please contact Dusty Johnson

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ANNUAL COALITION MEETING

Jim Burke and Uwe Fink

Co-chairs, UARA Legislative Committee

UARA representatives traveled to Mesa on October 24 to participate in a meeting with other members of the Coalition of Arizona State Retiree Associations. The purpose was to determine what legislative issues we might address in the 2006 regular session.

The Coalition is made up of representatives from the Arizona School Retirees Association, Arizona Education Association-Retired, Arizona Federation of State, County and Municipal Employees, Maricopa County Community College Retirees and the three state universities retiree associations. The purpose of the organization is to identify and support state and national legislation of benefit to State of Arizona retirees. The organization is loosely structured so that the constituent members may support, or not, the consensus views of the representatives and may independently arrange or support other legislation that serves their best interest. It represents well over 100,000 members, so it can be a powerful political force. It is probably the most broadly based retiree lobbying organization in the State and was the principal instrument through which, by means of a constitutional amendment, ASRS's Trust Fund was protected from all uses other than providing benefits to ASRS members.

The Coalition decided to pursue two main initiatives for the upcoming legislative session, starting January 2006: the Spousal Consent Bill and the Equity Bill.

Spousal Consent Bill

This bill would require the consent of the spouse when a member retires and selects his

or her retirement option. The bill was introduced last year in the Senate by Senator Huppenthal (Senate Bill 1426) and was killed in the House. This year, the idea is to introduce it in the House. Arizona is one of the few states in the nation without such an equity bill. Most federal pensions and the Employee Retirement Income Security Act (ERISA) require some form of spousal consent.

The main argument for the bill is fairness to the spouse, who typically has shared household and family responsibilities for many years. Indeed, because Arizona is a "community property" state, one might think that spousal consent would be automatic. It isn't, unless the spouse chooses to file for divorce prior to the member's filing for retirement. The Legislature has the authority to correct this inequity and should, we believe, exercise it.

We have been told that spousal consent initiatives have been opposed in the past by a number of interests, such as K-12 educators, for example, ladies who wish to keep control of their personal incomes. Quarrelsome divorce settlements also seem to have engendered hostility. ASRS receives roughly an equal number of opinions for and against the bill.

If the Spousal Consent Bill runs into difficulties again in 2006, the Coalition will make an effort to change it to a Spousal Notification bill. This would at least inform spouses that members might be compromising their interests.

Equity Bill

The Legislature enacted a bill (SB1295) in 2001 that created a set of higher multipliers (the percent of average salary used to determine a member's pension benefit for each year of service) for people

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money. ASRS estimates that it would cost about $20 million, which would necessitate raising the contribution rate of present working members by approximately 0.1%. Because of this, ASRS feels loath to support the bill.

A second contrary argument is that present working members and their employers have already been hit hard by steep increases in their contribution rates. Part of this was caused by the higher multiplier extended to members who retired after August of 2001. Thus the present working members are already paying for the increased benefits being received by members who retired between August 2001 and today, members whose contribution rates through the last decade of the 20^th century were unusually low! Thus, while equity will always be the UARA's goal, it must be recognized that it sometimes is a goal that can't be achieved.

We encourage all UARA members to send in their comments on the above issues, to voice their ideas about additional possible legislative action by the UARA, and to participate actively (email, telephone) in lobbying efforts.

with 20 or more years of service who would retire on or after August 11, 2001. Those with less than 20 years of service would continue to receive 2.1% per year of service. Those with between 20 and 25 years of service would receive 2.15%; between 25 and 30 years 2.2%; 30 or more years, 2.3%. Unfortunately, persons who retired before August 11, 2001, would continue to receive pensions calculated with the 2.1% multiplier. A bill introduced in 2005 (House Bill 2552), by Representative McClure, would have granted the graded multipliers to persons who retired before the above date, thus restoring fairness into the system _ hence the name "equity bill."

Clearly a very strong argument for that bill is that it would provide an equitable benefit increase to all retirees with 20 or more years of service, not just those who retired after August 2001. There had been previous occasions where the multiplier was changed, but in such a way that members already retired also received the benefit increase.

The original bill (SB1295, 45^th Legislature, 1^st Regular Session) which had no grandfathered equity provision, was introduced by Senator Cirillo, who then chaired the Financial Institutions and Retirement Committee of the Senate, but is no longer a member of the Legislature. Senator Cirillo's bill was 29 pages long. The clearly flawed portion that the Coalition would like to fix occupied less than one of those pages. Perhaps, like federal budget bills, Senator Cirillo should be forgiven for not getting everything right in a very complex bill. What concerns us here currently stands as A.R.S. 38-757. A strong argument for righting the situation by passing a new bill is that, unless challenged, this statute, and the inequities it continues to create, are an unfair precedent that might bias future legislation. (It has long been the UARA's position that equity is the first measure against which proposed retirement legislation must be tested.)

Arguments against the bill are that it would cost

ASRS LEGISLATIVE PROPOSALS

Jim Burke and Uwe Fink

Co-Chairs, UARA Legislative Committee

Our understanding of three impending legislative proposals being prepared by the Arizona State Retirement System (ASRS) and of interest to our membership is herein described. The first two are already in the form of draft bills for introduction in the 2006 legislative session. The third is still under study by actuarial and financial consultants retained by the ASRS.

1. Change 38-748 dealing with the modified Deferred Retirement Option Program (DROP)

ASRS wishes to repeal the statute that originally established this program. Such programs can be

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structured so that they are actuarially neutral, but the Arizona program is not.

Currently, the Arizona DROP program is statutorily structured as an accelerated service purchase program. An active member may work one year and purchase that same year. In essence, a member may be credited for two years of service credit having only worked one year. Along with the discounted service purchase method embedded in the current statutory language, such a program, if implemented, would result in significant actuarial costs that would have to be passed on to the entire employer and employee ASRS membership via raised contribution rates. In short, all members would be subsidizing the costs of a program that would benefit only a few.

The State Legislature enacted the program a few years ago; however, the ASRS was required to apply for several IRS private letter rulings. Thus there are no participants currently enrolled in DROP.

2. Change A.R.S. 38-740, which deals with the refund of retirement contributions to terminating employees.

Presently, employees who terminate their employment and also wish to terminate their membership with ASRS can do all of the following: take out their own contribution plus the employer's contribution plus any investment returns on those funds after a certain period of employment (25% of the employer's contribution after five years, increasing on a sliding scale to 100% after ten years).

Because these funds are now lost to the retirement system, it is apparently very costly to the system. ASRS wishes to modify that option and standardize what funds an employee can withdraw.

3. Re-evaluating the old system

A very small number of the total participants of ASRS are still in the "old System" (about 2200

members, of whom 90 are presently still employed). This is a defined contribution plan whose benefits are determined only by the total contributions and the investment returns.

On average for each person only about 25% of her/his benefits are guaranteed. The number of members in the system is decreasing each year. Thus, the statistical fluctuations can become very large and it is no longer possible to carry out actuarially reliable calculations of benefits.

ASRS wishes to merge the old system into the plan, thus ensuring more stable and guaranteed pensions for the old system members. To do this will require legislative action. Using outside professional actuarial firms and financial consultants, ASRS is currently studying options of such a transfer at a price that will leave the transfer actuarially neutral. Presently, the system plan is over funded at about 107% (unlike the defined benefit plan that is slightly under funded at about 85%).

HEALTH INSURANCE PLAN FLAWED

Les Forster

ASRS failed to represent the interests of many of its members when it negotiated the contract for the 2006 health insurance options. At issue is the change of the PacifCare Senior Supplement, offered in 2005, to the SecureHorizons Direct plan that will be the only indemnity plan available in 2006. The Senior Supplement is, as the name implies, a supplement to Original Medicare. Medicare is the primary payer. This means that all doctors who accept Medicare patients would be available to anyone on Medicare. In contrast, SecureHorizons Direct is a private-fee-for-service plan where PacifiCare is both the primary and secondary payer. The statement, on page 56 of the 2006 Group Insurance Open Enrollment Brochure, that a participant has "freedom to see ANY doctor or hospital you want that accepts Medicare" is misleading. The doctor or hospital must agree to accept the PacifiCare payment.

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In the absence of a written contract, either can refuse at any time to accept patients enrolled in SecureHorizons Direct. If the patient is on Original Medicare, with or without a supplement, the current providers will continue to see him or her in 2006. On the other hand, if a SecureHorizons Direct membership card is presented, service may be denied.

An example of the problem that may confront those who have opted for coverage under the SecureHorizons Direct plan is the current situation with University Physicians Healthcare (UPH). At this writing, doctors who belong to this group WILL NOT ACCEPT patients who are covered by SecureHorizons Direct. UPH is willing to negotiate with PacifiCare to find a mutually acceptable solution to the problem, but there is no assurance of a satisfactory outcome. Other physicians may decide to follow a similar course. Affected ASRS members can disenroll from SecureHorizons Direct at any time and be covered by Original Medicare. If this disenrollment occurs prior to March 3,="#000000">The Actuarial Valuation of the Plan for the fiscal year ending June 30, 2005, was presented to and accepted by the Board of Trustees on Friday, November 18. Our funded ratio now stands at 86.1% down from 92.5% in 2004. This drop was anticipated. We project that the funded ratio will continue to drop over the next 5-7 years, albeit at a slower rate, to a floor of around 80%. This drop is in response to the same factors that are affecting the contribution rate increases we are experiencing: low investment returns in the early 2000s, recent benefit increases, changing demographics, and lower contribution rates in the 90s. Once we reach the floor of approximately 80%, the funded status is expected to begin an upward trend toward a 100% funded ratio.

Members often ask, "What is a healthy funded ratio?" An easy answer is 100%. Arizona statute spec were under benefited. In similar fashion and partially because of the emphasis on difficulties being experienced by some private and

NEWS FROM ASRS

Keith E. Meredith

Well, we've seen the last of Permanent Benefit Increases (PBI) and Enhanced Permanent Benefit Increases (EPBI) for the near-term future. Our last increase was credited on July 1 of this year. Future projections, based on the assumption that our investment returns will continue to return at least 8%, indicate that PBIs will return around the year 2013.

This is slightly better than was anticipated in earlier projections. We were fortunate to receive healthy increases for the past decade and especially for the years of 2000 through 2005. Even when PBIs return we should not expect increases comparable to these

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other members in attendance at the monthly Board of Trustees meeting held in Phoenix. The schedule is posted on the ASRS website.

public pensions and partially because of rising contribution rates, expressions of concern and anxiety are now being heard from members and public officials. We must recognize that the funded ratio will vary, hopefully with 100% as its center. We should not allow normal variability to dramatically alter our plans of action. Rather, we should make reasoned adjustments, when necessary, to maintain a healthy and balanced funded ratio.

An example of an issue requiring attention is the continuing trend of the rising contribution rates. The contribution rates that are currently required to maintain a healthy funded ratio are moving uncomfortably higher. These rates are becoming difficult for active and future employees as well as employers. Reasoned adjustments are necessary. For the past three years and continuing into the future, the ASRS Board of Trustees and ASRS staff have been reviewing the structure of our plan and identifying potential adjustments that will mitigate the rising contribution rates. Legislation has been introduced and passed over the past few years that has resulted in reducing the necessary increases. Further, legislation is being proposed this year that will further limit contribution rates. We can anticipate further recommendations for future adjustments that will result in a balanced and healthy pension fund. Additionally, we must be concerned with any change in policy that will add additional liabilities to the plan at this point in time.

In summary, our funds are in good shape. Our plan remains in the top tier among public pension programs both in terms of level of benefits and funded status. However, adjustments are needed to protect all of our members. Essentially, these adjustments have been and will be to factors that increase liabilities to the plan.

I invite you to visit the ASRS website at www.asrs.state.az.us to review the Actuarial Valuation of the Plan and the Actuarial Valuation of the LTD Program. Also, you are invited and welcome to join

SAGE

If one of your New Year's resolutions is to exercise your brain while having fun, then SAGE may be for you. Seniors' Achievement and Growth through Education (SAGE) is a place for men and women 50 years and older who wish to learn new things just for the sake of learning. There are no tests. There is a lot of enthusiasm.

Djamila Grossman reported in the October 17 issue of the Arizona Daily Wildcat: "The 250 to 300 people who participate in SAGE programs are from all walks of life and have already made a living in the "real" world . . . SAGE is self-sufficient because the members organize the classes. They decide what interests them _ subjects ranging from history to health to current events _ and someone with sufficient expertise prepares the lectures. Participants do their own research for class projects and join actively in discussions.

"SAGE formed in 1989 with a few people who were interested in continuing education for seniors, and they eventually became affiliated with the UA and the Office of Continuing Education and Academic Outreach…."

The spring semester classes will meet on the third floor of University Services Building (Euclid and 2nd) from January 9 _ April 14. For the spring semester, the cost is $150. The choice of courses is mind-expanding. The two-hour classes begin at 9 a.m., 11:15 a.m. and 1:30 p.m. Some classes meet weekly for the entire semester, others for a shorter duration. Take one or several courses. There are optional social activities such as film groups, day trips, and dinners.

For further information, check the SAGE web site at www.sagesociety.org for a full list of Spring courses, membership information, and society events; email, sagemail@u.arizona.edu; or call membership chair Don Phillips at 626-9039.

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UPCOMING EVENTS

January 10 UARA Council Meeting, Swede Johnson 205, 9 a.m.

January 26 UARA Luncheon, Tanque Verde Guest Ranch

February 8 UARA Forum, Dr. Gerald Swanson, St. Philip's, River/Campbell

February 10 Behavioral Health and Older Adults Conference, Doubletree, 403-1479

February 14 UARA Council Meeting, Swede Johnson, 9 a.m.

March 9 UARA Spring Picnic, Fort Lowell Park

April 29 UARA Luncheon, Hilton Tucson East

Faculty Fellows Speakers Series, each Wednesday, 12:05 p.m. _ 12:50 p.m., Gallagher Theater

Musical Moments, each Friday noon, UA Bookstore, Student Union Memorial Center

International Art Films, each Friday, 7:30 p.m., Integrated Learning Center

What you need to do is Google "Netflix," and from there on, it's all beer and skittles.

UARA MEMBERS VOLUNTEER

UARA members volunteer many hours. One volunteer will be featured in Jubilación on a regular basis because we are proud of our members' efforts and believe it is of interest to know what volunteer opportunities are available. To suggest a retiree to be featured in a future newsletter for his/her volunteer work, please call the editor at (520) 323-7501 or email: murphyj@email.arizona.edu

Volunteering at the Arizona-Sonoran Desert Museum

Carmen Arrison

In June 2000 I said goodbye to my friends at the University. I looked forward to leisurely days and to eventually finding some stimulating activities to keep me occupied.

A few months after I retired, a friend invited me to accompany her to a meeting at the Arizona-Sonora Desert Museum. She was interested in becoming a Docent and the meeting would give her the information necessary to apply. The meeting was indeed informational. What an eye opener! We were introduced to staff and volunteers of the Museum and were impressed by their dedication. They spoke with enthusiasm about the mission of the Museum, their work, and the continuous research being done there. A new docent training class would start in late August. Those wishing to apply for a seat in the class were asked to submit an essay stating why they were interested in joining the program. Individual interviews would be held. Approximately 50 persons attended the meeting. Twenty-five applicants would finally be selected to make up the new docent training class. I was delighted to be selected. Classes started the first week in September and concluded with a final exam in mid-December. What an education we

DVDs ARE AVAILABLE THROUGH NETFLIX

Dianne Bret Harte

Netflix is a great new way to keep on top of all the movies you ever wanted to see, by mail. For ten bucks a month Netflix will send you, one at a time, an unlimited number of DVDs every thirty days. You'll watch one, lend it out, watch it again _ no time constraints here _ and return it in a postage-paid envelope, after which they'll send you the next on your list. You also can subscribe to more than one disc at a time: three for $18, and up from there.

Granted, you must be computer friendly to subscribe, but once there you can order anything from their archives of some 40,000 titles, and they'll keep your list straight for you.

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received. We studied world deserts, ecological concepts, geologic history, fossils, mineralogy, botany, plants, invertebrates, insects, reptiles, amphibians, birds, mammals, etc. We learned to interpret this information for our visitors; how to lead tours on the museum grounds; and most important, we learned that each visitor is a special guest that we hope will leave with a new found admiration and understanding of our Sonoran Desert.

Volunteering as a docent has given me the opportunity to meet and speak with people from all parts of the world. Frequently an exchange of information takes place as our visitors are anxious to share their knowledge about their state or country.

I look forward to my days at the Museum. I've witnessed the seasonal changes of the Sonoran Desert _ in the heat of summer and the bloom of spring. I look forward to the bird migration each year as they stop at our gardens to nourish themselves on their long journey. My education continues. Each week I leave the Museum grounds with a bit more knowledge.

Docents are a most important part of the Arizona-Sonora Desert Museum. They are a dedicated group of individuals who volunteer their time because they love what they are doing. Respect of the environment, both plant and animal life, is vitally important to them. Many have accumulated hundreds, and in some instances, thousands of volunteer hours. Their knowledge of the Sonoran Desert is amazing and their willingness to share that knowledge is gratifying. Lasting friendships are made. We all look forward to our social gatherings _ potlucks, day trips, holiday parties, and sharing some good laughs.

The Arizona Sonora Desert Museum is just one of my interests in retirement, albeit a very special one!

For those who have not visited this outstanding place, I extend an invitation for you to come, see and enjoy its beauty. For those who have visited in the past, do return soon as nature is ever changing.

Bumper sticker spotted recently by a UARA member: "Save the environment, plant a bush again in Texas."

NO WAITING AT THIS POST OFFICE

Janice Murphy

Avoiding lines is a good New Year's resolution. Most U of A retirees continue to live in the area of the University, but how many of you have been to the Postal History Foundation, with full service post office, at 920 N. First? It is in a residential area, just south of Speedway, on the east side of the street. There is ample parking in back of the building. Business hours are 8 a.m. - 2:30 p.m., Monday through Friday. Two weeks before Christmas, there were NO lines. Service is immediate. The postmaster is friendly, genuinely pleased to serve you. This experience is a nostalgic reminder of kinder and gentler times.

Pronunciation guide:

WHO-BE-LAH-SEEOHN = Jubilación

" I measure your health by the number of shoes...

you have worn out."

...Ralph Waldo Emerson