September-October, 2016
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ASSOCIATION OF RETIRED SEATTLE CITY EMPLOYEES Non-Profit Organization For: Active & Retired Seattle City Employees U.S. Postage P.O. Box 75385, WA 98175-0385 PAID Seattle, WA Website: www.arsce.org Permit No. 1100 ARSCEACTIVE & RETIRED SEATTLE CITY EMPLOYEES NEWS YOUR RETIREMENT ADVOCATE SINCE 1973 September/October, 2016 Volume 44, No. 2 OUR PRESIDENT’S MESSAGE By John Masterjohn HAPPY FALL! irst of all, let me wish you all a happy Labor Day Begins Thursday, Fand hope you had a good 4th of July. I want to say September 22nd thank you to ARSCE Board members who left the Board this July and it looks like the new members are coming in with fresh ideas. The new SCERS (Seattle City Employees’ Retirement System) Plan 2 starts July 1st of 2017. We have gone YOUR PENSION through it and reviewed the language clean-up of the current plan. We found (really Kevin Clark) an Article in NEWS Section 4 that seems to take away some of our protection By Lou Walter, Retired Employee, in the current plan. Kevin And I went down to the Seattle Member of the Seattle City City Council to testify on the issue, but there were about Employees’ Retirement System 40 people ahead of us to testify on the issue of Short Term Rental Regulations who used up all the time allotted for public comment, so we had to leave. Before we left, we had Will This Year’s Presidential Election Have an a short conversation with some of Tim Burgess’ staff. We Affect on Social Security? have asked the City Council not to change the current language. We prepared a letter and sent it to the entire Council as Tim’s committee didn’t agree to not changing The future of Social Security—whether benefits will see the language. Note: On page 6, you’ll find a copy of the a reduction or an increase, as well as how the system is Council memorandum regarding the new SCERS benefit funded—is an issue that touches every corner of American tier. On page 7, you’ll see ARSCE’s response to society. Social Security is nearing a tipping point; it Councilmember Tim Burgess, Chair - Seattle City Council. is projected that by 2034 the program will not be able to fulfill 100 percent of its promised payments if the Speaking of the new district Councilpersons, I hope you current model goes unchanged. The next U.S. president will call them when you need their assistance. could impact the livelihood of current and future retirees With the primary election just completed, followed by by making fundamental changes to the current Social the general election coming up, we all need to vote for Security program.1 our local politicians. Speaking of elections, I’m not sure if On Social Security, both Trump and Clinton defy House you heard that Jean Becker was reelected to the Speaker Paul Ryan and other small-government retirement board. I feel this is good for our cause; she Republicans who want to prune and privatize the nation’s asks good questions and works hard on all the issues that retirement system. Trump pledges to protect it. Prodded affect the retirement system. by Sanders, Clinton says she’ll expand it.2 The SCERS Board has recommend spending 12 million dollars with Global Infrastructure Partners III. This Donald Trump and Hillary Clinton both say they oppose company invests with other companies who build bridges cutting Social Security. But that pledge is meaningless and buildings. without a plan to address the program’s coming shortfall. Here’s the problem. Social Security has had a cash-flow Well it looks like this is the summer where my wife and I shortage since 2015, when expenses first began to exceed will not be traveling anywhere to play golf. We’ll be tax receipts. Last year’s gap was $84 billion, out of $880 gardening and just taking it easy near home. billion paid in benefits to 59 million people. The shortfall Don’t forget there will be a Fall Luncheon at Amante will keep growing and will need to be covered out of the Pizza & Pasta Wednesday, September 14th. (See page 12.) trust fund’s $2.7 trillion surplus, now invested in U.S. Have a great rest of your summer and an awesome fall. Treasuries. By 2034, when even the surplus is likely to be John Masterjohn depleted, the program must depend on payroll taxes alone. Contact Mr. Masterjohn at [email protected] continued on page 2 Inside this Issue Page 3 – ARSCE Summer BBQ Photos Page 7 – ARSCE’s Response to City Council Page 5 – Parks Department Retiree News Page 11 – Retired ~ with a New Passion Page 6 – City Council Memorandum Page 12 – Fall Luncheon Reservation Form Page 2 — ARSCE NEWS — September/October, 2016 Presidential Election & Social Security...continued from page 1 At that point, if nothing changes, beneficiaries will get only ARSCE about three-fourths of promised benefits.3 Hillary Clinton on Social Security: No Privatization1 While Mrs. Clinton vows to defend and expand Social Fall Security, she also opposes privatizing the system and allowing Social Security funds to be reinvested by individuals on Wall Street. Luncheon Clinton supports: Join Us! Expanding Social Security benefits to widows and Wednesday, women September 14th, Increasing Social Security credits for people raising 2016 children or providing family caregiving Amante Pizza & Pasta Funding the program by raising taxes above the current Social Security taxable wage base (effectively (Reservation form on page 12) asking the wealthiest Americans to pay more) Clinton opposes: Cuts to cost of living increases in Social Security Raising the full retirement age of Social Security Essential Telephone Numbers Reduction of benefits or tax increases; she opposes middle-class Americans footing the bill And Web Addresses Donald Trump on Social Security: Making Good on ARSCE: 425.443.3799 1 the Deal (Change of Address/Membership Questions) Mr. Trump approaches Social Security like a E-mail: [email protected] businessman; rather than viewing the system as an Website: www.arsce.org entitlement, he views it as a deal the government made with U.S. citizens. Mr. Trump insists that ensuring Social Mayor’s Office for Senior Citizens: 206.684.0500 Security’s future is crucial because people have paid into (Information on available programs/services) the system for decades. Making good on those benefits is not entitlement, but simply honoring an agreement. E-mail: [email protected] Website: www.seattle.gov/seniors Trump supports: Generating more money for the program by Personnel Department: 206.615.1340 repositioning taxes and funds going to foreign (Benefits) countries for aid and other causes E-mail: [email protected] Wealthy individuals voluntarily declining Social Website: www.seattle.gov/Personnel/ Security benefits Eliminating “waste, fraud and abuse” in the Social Retirement Office: 206.386.1293 or Security system 1.877.865.0079 Trump opposes: (Retirement Checks/Health & Dental Benefits/General Making significant cuts to Social Security benefits Questions/Change of Address/Tax Withholding) Increasing the full retirement age E-mail: [email protected] Government reinvestment of Social Security funds Website: www.seattle.gov/retirement If Social Security, Medicare, Medicaid, and other senior benefits are important to you, please take the time to review the candidates’ policy positions on these issues. Statement of Ownership References: And Management 1. Social Security: The 2016 Presidential Candidates’ Positions – The American College of Financial 1) Owner and Publisher: Active & Retired Seattle City Employees Services. March 22, 2016 Address: P.O. Box 75385 2. The Sacramento Bee – California Forum. August 5, 2016 Seattle, WA 98175-0385 2) Title of Publication: ARSCE News 3. Bloomberg.com – by Paula Dwyer. August 1, 2016 3) Frequency of issues: Six (6) issues each year. 4) John Masterjohn, President Barbara Graham, Vice President Joanne Kinsella, Recording Secretary Victoria Troisi, Financial Secretary Elizabeth Paschke, Treasurer Lee Sattler, Editor Complete 5) Bondholders, Mortgages, and Security Holders: None Our Circle 6) The Association of Retired Seattle City Employees, d/b/a Active & Retired Seattle City Employees (ARSCE), is a non-profit organization for educational purposes according to section 501(c)(3) of the Internal Revenue Code. Contributions are tax-deductible. ARSCE annual dues are $12.00 ( July 1-June 30). Semi-annual dues are $6.00 (For new members joining January 1-June 30). Opinions stated by various Join ARSCE today as a Retiree, Beneficiary writers are their own and do not necessarily reflect the policy of ARSCE. or even if you are currently working. Contact us at www.arsce.org Application on Page 12. Or telephone us at 425.443.3799 ARSCE NEWS — September/October, 2016 — Page 3 Old Timers Luncheon Group ARSCE’s Summer MTD/DAS/ESD By Jerry Robertson Photo review The Old-Timers Luncheon Group continues to meet the first Monday of every month at the Old Country Buffet located at 4022 Factoria Square Mall, Bellevue, Washington, at 11AM. Remember to mark your calendar for the luncheon dates for our remaining 2016 luncheon dates: September 12, October 3, November 7, and December 5. Now that you have these dates, mark them down on your calendar for a monthly reminder. This is the updated list: Employees of MTD, JANE APPLING UPDATES US DAS, ESD, FFD, and FAS. We encourage all of you to join us ON NEW AMMENITIES AT at our luncheons each month. As I’ve stated before, wives THE PUBLIC LIBARRY are very much welcomed. The wives seem to enjoy joining in the various conversations and have become a real part of our luncheon group. Our June luncheon was attended by a group of twenty-two.