Business Meeting Minutes
October 9, 2008
Call To Order:
President Jack Miller called the meeting to order at 9:40 a.m.
Prayer: Bill Elkin Pledge of Allegiance: Jim Ashby
Recognition of Visitors - Jack Miller:
· Kelsey Care Advantage Plan Dr. Patrick Carter and Raymond Estrada.
· Liberty Mutual Insurance Ted Karis.
· Edna Insurance Emma Banks
· City of Houston Human Resources Representatives Donna Mitchell.
HPOPS Trustee Joe Glezman:
· Thanked everyone for their past support and requested support in the upcoming HPOPS elections. He has no opponent at this time.
HPOPS Executive Director John Lawson:
· Pension value is currently at 2.8 Billion. 3.4 Billion was the highest point.
· 135 Million paid out annually in monthly pensions. The funds are safe and benefits will continue. The COLA will continue.
· PROP is calculated on the 5 year historical average return of the Pension System. This year, HPOPS averaged in a flat rate of 0% rate return for the fiscal year which ended June 30th but the return for the other 4 years was so high that we are still able to pay 7% this year. The interest rate will not fall below 3% by law.
· The number of pensions will increase because the number of officers who retire is greater than those who die.
· PROP and DROP accounts are secure. These earnings are based on a 5-year average and will not fall below 3%.
· We are experiencing a severe global event. The Federal Government and the World Central Banks must be involved.
· Chairman of the Federal Reserve System, Ben Bernanke, is an expert on recession and is a good person to be in charge.
· National Bureau of Economic Research is the agency in charge of announcing if we are in a recession. They will tell you when the recession ended and its duration. The broad benchmark S&P 500 Index Range is down from about 19% to 49%. Today we are down about 36% on that index from a high around October 9, 2007. Typically in a deep recession, those numbers are down about 40-45%.
· Watch for something called Capitulation of the Market which is an extremely volatile market. The issue is going to be how long the downturn last. In time, the Market will recover as long as our society continues to thrive, but it may take several years.
· Our pension is defined by IRS Regulations as a Combined Benefit Contributory Combined Benefit Pension System based on a formula. The pension is a three-legged stool funded by the City of Houston, Current Employee Contributions and 3 Billion in investments. The real money is made when HPOPS goes out and invest the 3 billion.
· Take all media information with a grain of salt.
· Cash, Certificates of Deposit and Short Term Government Securities are low risk and low return but are the most secure at this time. At this stage of the cycle, it is best to ride it out unless you really need the money.
· Call the Pension Office if you have any questions at 713-869-8734.
Liberty Mutual Insurance Representative Ted Karis:
· Liberty Mutual has a 1% deductible. Please contact him if you are interested in changing your insurance carrier.
· Call Ted Karis at 281-320-1181 ext 59056 or e-mail Ted.Karis@LibertyMutual.com before November 1st for your free rate quote and receive a $5 gas card.
Kelsey Care Advantage Plan Dr. Patrick Carter and Raymond Estrada:
· Dr. Carter is Chief of the Department of Family Physicians, Medical Director of Managed Care, and a Family and Geriatric Physician.
· Effective January 1, 2009 Kelsey Seybold Clinics will no longer accept traditional Medicare or Medicare Supplement patients. Medicare Supplement Plans work with traditional Medicare to cover out-of- pocket expenses but do not pay the doctors for the cost of the excess over the reimbursement rate.
· Patients without Medicare Advantage Plans must find other medical coverage after January 1, 2009.
· Physicians and Medical Providers are facing a Medicare crisis because the cost of patient care has increased 18% over the last 6 years while Medicare benefits have not. Current legislation in place will reduce Medicare payments by 40% in the next 9 years.
· The reductions in Medicare reimbursements means medical providers cannot afford to purchase new equipment, keep adequate staff or provide care for traditional Medicare patients.
· Kelsey-Seybold is offering the Kelsey Care Advantage Plan to those eligible for Medicare.
· Kelsey-Seybold will continue to accept the City of Houston Medicare Advantage Plans - HMO Blue, Texan Plus and Texas Health Spring.
· For more information about the Kelsey Care Advantage Plan call 713-442-PLAN. The website is www.kelseycareadvantage.com or e-mail raymond.estrada@kelseycareadvantage.com.
Aetna Insurance Representative Thelma Banks:
· Must have Medicare Part A and B.
· No network of Physicians or Hospitals.
· Patient must research if their Medical Providers accept the Aetna Supplement Plan.
· No deductibles.
· $15 co-pay for Primary Care, Specialist, X-rays, Labs, Out-Patient, Chiropractor and Ambulance.
· $35 co-pay for Urgent Care Providers.
· 100% coverage for In-Patient Hospitalization.
· No co-pay for first level skilled nursing, second level is $25 per day co-pay up to 20 days; the third level is $50 per day from 21-100 days...
· Prescription Drug Coverage:
30 day supply 90 day mail order supply
$10 Generic $ 20 Generic
$ 30 Preferred $ 60 Preferred
$ 45 Non-Preferred $ 90 Non-Preferred
· Aetna Website is www.Aetna.com.
· Telephone number is 1-800-529-5586.
City of Houston Benefits Division Representatives Donna Mitchell:
· City has alternative medical programs for retirees covered by Medicare Parts A and B, covered by City Insurance, live in the service area, are a covered dependent, and do not have end stage renal disease.
· The City of Houston has 5 Medical Plans - HMO Blue, Blue Cross Blue Shield PPO, Texan Plus, Texas Health Spring and Aetna.
· Retirees may enroll in one of the City Medicare Open Enrollment Supplement Programs on the first of the month and may disenroll within the first 90 days to return to the City HMO Blue if they are not satisfied.
· Medicare Advantage Plans sponsored by the City of Houston cost less than standard Blue Cross HMO.
· For the first time, retirees may have split coverage. If the retiree wishes to enroll in one of the Medicare Supplement programs the spouse may choose to stay in one of the standard medical plans.
· There will be Open Enrollment Meetings in December. Retirees will be receiving information regarding the meetings. Retirees can enroll in HMO Blue on January 1st and May 1st of each year.
· If a Retirees drops out of one of the City of Houston Medicare Advantage Plans they can never get back into one of the City Plans. Call the City of Houston Benefit Office and ask before dropping a City Health Plan.
Secretary's Report and Treasurer's Report:
· Motion by Louis Elliott, 2nd by Ed Brossman to accept the reports as printed. No discussion. Voice Vote. Motion Carried.
Executive Director - Bill Elkin:
· 66 Officers have retired to date with 5 in September and 16 scheduled for October.
· Thank you card was received from the Charles Cone and Pokey Sammons family.
· Mrs. Edith Cones, widow of Officer R. C. Cones, would like to talk with anyone who remembers her husband. He was in Class #6 and left the Department after 11 years to go into business for himself. Her phone number is 281-324-3027.
· Two contributions were made to the HPROA in Pokey's name.
PAC - Steve Rayne
· Political Contributions were given to District 7 Senator Dan Patrick, Candidate for Senate District 17 Joan Huffman, and Candidate for District 130 Representative Allen Fletcher.
Retired Badge - Nelson Zoch:
· Articles need to be in by October 15th.
· If anyone belongs to an organization and would like to advertise in the paper just get in touch with Zoch.
· Articles may be e-mailed directly to Zoch at lt2212d599@hotmail.com.
· Any member with an address change should contact HPROA Secretary Cathy Buckles at (713) 802-2967, or at cathy@hpdretired.com.
Website Committee - Jim Ashby:
· 6,330 visits to the website last month even with many not having power.
· Do not respond to any IRS e-mail about getting money back. Do not open e-mails with Postcard, Greeting Card, Invitations, etc.
· Having difficulty with member e-mail address jrhpd. If that is your e-mail address please contact Ashby.
· There is a place on the website where members can go to make a change in their address, phone numbers, or e-mail.
· If you are having e-mail problems contact Ashby at info@hproa.com or at 281-498-3834.
· The website Username and Password is available to all members by contacting the Webmaster by e-mail at info@hproa.com.
Entertainment Committee - Bill Elkin:
· The Hill Country Reunion in Fredericksburg will be held Saturday, October 18, 2008 from 9:00 a.m. until 2:00 p.m. at the Lady Bird Park Pioneer Pavilion, 432 Lady Bird Drive, Hwy 16 South. The Board voted to provide a complimentary lunch to each current HPROA member and spouse. We have 35 RV spaces reserved for our campers. Motel information is available on the Website and in the Retired Badge. Lamar and Dee Kimble will again host the reunion.
· Silent Auction items are needed at the Reunions. All proceeds go to fund the Family Assistance Committee. There are two $50 tickets plus parking to the December 28th Texans vs Chicago Bears game.
· The Houston area Spring Reunion will be held the last Saturday in February 2009 at the Houston Police Academy. The lunch will again be complementary for current HPROA Members and their Spouses. Albert and Mary Nichols will act as host.
Family Assistance Committee - Nelson Foehner:
· HPD Family Assistance Officers Matt Perales and Mike Newsome do an outstanding job assisting families of deceased officers. They walk the survivors through every phase of planning the service, coordinating benefits and expediting pension benefits. Occasionally the families do not know about this assistance because the officer did not tell them about this service. Please make your family and friends aware of the help and comfort these officers provide.
· The sick and shut-in report is on the back table. Please pick one up. The oral report will cover only those added after the list was printed. Family Assistance Reports are updated on the HPROA website.
· There are sick and shut in members we do not know about. Please contact a member of the Family Assistance Committee with information regarding any officer we need to contact. Delvin Kendrick, Nelson Foehner and Forrest Turbeville are on the Family Assistance Committee. Turbeville can be reached by cell phone at (713) 319-5466.
Good and Welfare of the Association:
· A. R. Price retired in 2004 but did not receive payment for compensatory overtime until 2008 at which time he discovered he had not been paid for 200 hours. He contacted HPD Budget and Finance, HPOU, Bill Elkin, wrote letters and was advised by HPD Legal Department Craig Farrell that the 200 hours had value. Price is still working towards a resolution.
· Price advised officers waiting on compensatory overtime payments to carefully examine the check stub. Contact J. J. Perry, HPOU 1st Vice-President, if you believe there is a problem.
Door Prize Winners:
$50 - Ignacio Aranda $50 - Johnny Gonzales
$50 - Ron Headley $50 - James Wiggins
101 Members in attendance.
Meeting adjourned at 11:25 a.m.
Sue Gaines
Board Secretary
