Thank you for bearing with me over the last few days. After our summit last week with the Treasurer, I had to spend a few well deserved days with the family, and on Monday morning, began to deal with House Bill 399 dealing with Component 5 issues. Now that the dust has settled, I want to let everyone who was not able to attend our meeting know how it went.
First of all another THANK YOU to Treasurer Simpler and his team. They were able to address our group concerns and offer some valuable insight into the process and the reasons for the retirement plan changes.
I also want to say THANK YOU to our DSEA hosts! Their hospitality and attention to detail helped make the Summit successful from a logistic perspective, and they also helped out with refreshments.
A HUGE SHOUT OUT to Tammy Wagner of DSEA and Martha Sturtevant from the Treasurers office. Both of these wonderful ladies helped me set up the Summit, and were extremely patient and kind!
The Summit began with a meet and greet. We had well over 30 people in attendance. As the group began to settle in Treasurer Simpler was introduced and was given an opportunity to share some of his background and the process under which the Deferred Compensation Committee worked. It is important to point out the Treasurer Simpler did outline who the specific members of the DCC were, and did explain that there was indeed a missing member of the committee , which traditionally had been a teacher. He spent a great deal of time going over the “Fiduciary” nature of his position on the DCC.
There have always been sayings like “Pesto is the quiche of the 90’s” and “Orange is the new black”, so here is a new one for our lexicon….. “Fiduciary is the because I said so “of today!
1. involving trust, especially with regard to the relationship between a trustee and a beneficiary. “the company has a fiduciary duty to shareholders”
held or given in trust.
(of a paper currency) depending for its value on securities (as opposed to gold) or the reputation of the issuer.
noun: fiduciary; plural noun: fiduciaries
late 16th century (in the sense ‘something inspiring trust; credentials’): from Latin fiduciarius, from fiducia ‘trust,’ from fidere ‘to trust.’
In the news…
The ‘fiduciary rule’ would force financial professionals to charge their customers more.
Generally, the “Fiduciary Excuse” as I call it, (not to be negative, it just seems to cover so much i may use it to get out of a situation if I can from now on) was thrown around many times. All of our suggestions and solutions received the “Fiduciary Excuse” as the night went on. We talked about “Grandfathering” and “delayed start up” and other scenarios that would offer relief to our members, but ultimately, the “Fiduciary Excuse” always seemed to be the answer. There was also a great deal of legal back and forth between the Delaware Attorney Generals office and legislators. This seemed to also cause a slow down in the way information was getting out to our members.
A representative from VOYA was present to address concerns and present VOYA to our members as the new Retirement Benefit vendor. I will say that their presentation and their plan for development was generally well received. VOYA seems to have some new and innovative products and platforms that may work out well for many of our members. It is unfortunate that their entry into our retirement benefit process was hampered by the process. I wish them luck in their future work with our Delaware State Employees.
Ultimately the Summit was successful in getting the concerned parties to the table. At this point many of our DSEA Local Leaders have been informed about the changes, and have been able to share member questions and concerns. That was the goal of our Summit, and to that end, I believe we had some success. So where do we go from here?
I spent the day in Dover on Tuesday and while dealing with Component 5 legislation, I was also able to sneak around both chambers of our Delaware State House. I was able to chat with a few legislators about our retirement issues. Each and every politician that i spoke with felt bad about what was happening with our retirement options. Each of them offered their support, BUT NONE OF THEM SEEMED WILLING TO GO THAT EXTRA STEP.
At this point we may need legislation to slow down the process. When i directly asked each of these Representatives, and Senators about their willingness to craft a bill in our favor, i received less that enthusiastic responses. I have also reached out to Governor Jack Markell for aid both publicly and privately, but have received no response, so our chances of getting some kind of “Executive Reprieve” is not likely.
As the summer goes on I suggest we continue to monitor the situation, and continue to communicate with each other and our legislators…
Contact The Deferred Compensation Committee
Join the group…
Or like our page…
Lets continue to work together over the next few months so that more and more of our members and friends get the information.