DCC Meeting Minutes PART 1… Lets Take Attendance

GXB09177

MINUTES FROM MEETING OF
THE DEFERRED COMPENSATION COUNCIL May 3, 2016

2016-5-3 DCC Public Minutes FINAL

A meeting of the Deferred Compensation Council (the “Council”) was held May 3, 2016 at 9:00 AM in the Conference Room of the Office of the State Treasurer (“OST”)
820 Silver Lake Blvd., Suite 100, Dover, DE 19904

All Board Members Represented or in Attendance:
The Honorable Ken Simpler, State Treasurer
The Honorable Karen Stewart, Insurance Commissioner
Mr. Ralph Cetrulo, Public Member At-Large
Secretary Thomas J. Cook, Department of Finance
Mr. Robert Scoglietti (on behalf of Director Visalli, Office of Management & Budget)                                                                                                                                                    Mr. Charles Campbell-King, State Employee Member At-Large

As you can see above, only 6 Council members in attendance.  It is being reported that All board Members in attendance, but please remember, Governor Jack Markell has left the second State Employee Seat VACANT!!

Others in Attendance:
Ms. Ann Marie Johnson, Deputy Attorney General
Ms. Nora Gonzalez, Deputy State Treasurer, Office of the State Treasurer
Mr. Michael Green, Financial Investment Program Manager, Office of the State Treasurer Mr. Dan Kimmel, Financial Investment Program Specialist, Office of the State Treasurer Ms. Martha Sturtevant, Office of the State Treasurer
Mr. Omar Masood, Policy Analyst, Office of the State Treasurer
Ms. Jennifer Vaughn, Controller, Department of Insurance
Ms. Rebecca Kidner, RB Kidner, PA representing Valic
Doug Gramiak, Young Conaway Stargatt & Taylor, LLP representing NTSA
Lisa Goodman, Young Conaway Stargatt & Taylor, LLP representing NTSA
Ms. Kasi Boyles, Voya Financial

This is very interesting.  Notice that the treasurers office was well represented at the last meeting.  I count 6 staff members from the Treasurers office.  The Delaware Legal Community seems to be heavy in attendance as well.  We have the Deputy Attorney General, and at least 3 individual attorneys from various places.  Controller from the Insurance Department, and lastly a representative from VOYA Financial, the proposed single vendor.

This is a very impressive group of professionals.  I have no doubt that they have good intentions,  are well informed, and have have integrity and warrant respect, however the question remains…. WHERE ARE THE STAKEHOLDERS? 

There was NO TEACHER ON THE COMMITTEE AND THERE WAS NO TEACHER IN THE ROOM!  Decisions are being made without any care given to those effected the most.

There was no one to represent the current vendors!  These are companies and individuals that Delaware Teachers have been dealing with for years.  They have established trust and have provided service and guidance.  These people should have also had some say in what is happening!

BANKERS AND LAWYERS AND POLITICIANS….  OH MY!!! MEANWHILE STATE WORKERS ARE LEFT IN THE DARK!!!

We must continue to try and make our voices heard!

Please continue to visit our social media outlets and contact our legislators.  We have to slow this down.  This issue needs more time and attention! Together we can do this!!

CONSIDER A CALL TO ACTION…

Send a letter to Representatives and Senators in Dover

USE THIS LINK…

SEND A MESSAGE TO YOUR LEGISLATOR!

http://www.congressweb.com/NTSAA/20

Join the group…

FACEBOOK GROUP Delaware School Employees United for Retirement Choice

Or like our page…

FACEBOOK PAGE Delaware School Employees United for Retirement Plan Choice

Advertisements

INQUIRING MINDS WANT TO KNOW…UPADATE!!!

inquiring_minds_logo

The BIG question… WHO WAS ON THE COUNCIL?

UPDATE…

Special thanks to the responsiveness of both the Department of Finance and the Treasurers Office for Providing me with the link to the Public records of the Deferred Compensation Council.

Here are the members who served on the now infamous 7 person council that holds so many State Employees retirement options in the palm of their hands.

We know that by law 4 of the members are “Ex-Officio” members…

karen_weldin_Stewart.jpg.300x400_q85_box-125,0,1257,1512_crop_detail Insurance Commissioner Karen Weldin Stewart (302) 674-7300

Tom_Cook Thomas J. Cook – Secretary of Finance (302) 577-8546

FullSizeRender copyMr. Robert Scoglietti Office of Management & Budget (302) 739-4204

1435052688 Ken Simpler- State Treasurer 302 672-6000

The other 3 members of the Council shall be appointed by the Governor.

IMG_8968 State Employee Number 1 Charles Campbell-King

empty-chair  Empty Seat for State Employee Number 2

FullSizeRender Representative of the public-at-large Ralph Cetrulo

So the 7 person Oligarchy was really a 6 person group that controls the financial future and stability of thousands of State Employees.

YOU MAY EMAIL THE COUNCIL AT  Deferred Compensation Team

I had filed Freedom Of Information Act (FOIA) forms with the following State Offices.  State Treasurer, Insurance Commissioner, Office of Management and Budget, Department of Finance, and Governor Jack Markell’s Office.  Both the Finance Department and Treasurers Office where very helpful!  This information is publicly available at https://egov.delaware.gov/pmc/.  At that site you can access agendas, names of council members, and meeting minutes by searching for the Deferred Compensation Council.

wrightpatt_foia

Here are the documents that are available on the Deferred Compensation Website.

selection_committee_recommendation(2)

cammack_rfp_recommendation(1)

Sunlight is the best disinfectant.  Lets see the meeting minutes and agenda items from these high power meetings.  Stay Tuned…

 

 

 

 

OUR FOCUS TURNS TO “THE COUNCIL”

WHO ARE THE MEMBERS OF THE DEFERRED COMPENSATION COMMITTEE?

First of all, it is not very clear who the active members of the Committee are.  I have not been able to find who actually served.

(a) There shall be established a Deferred Compensation Council for public employees of the State which shall consist of 7 members, as follows:

(1) The Secretary of Finance, State Treasurer, Director of the Office of Management and Budget and the State Insurance Commissioner or their designees shall serve ex-officio as members.

SO WE HAVE…

Jack Markell- Governor

Brian Maxwell-Office of Management and Budget

Karen Weldin Stewart-Insurance Commissioner

Ken Simpler-State Treasurer

Thomas J. Cook-Secretary of Finance

60 Del. Laws, c. 146, § 1; 72 Del. Laws, c. 488, § 1.;

The seven member council is supposed to have 3 other members…

(2) Two shall be state employees appointed by the Governor.

(3) One shall be a representative of the public-at-large appointed by the Governor.

HERE IS THE ISSUE…

I have been informed that THERE WAS A VACANT SEAT!!  There was only ONE State Employee present at the Committee meeting.  I was also told that the second State Employee Vacant Seat has been vacant for some time.  When there is a vacancy …

(5) In the case of vacancy on the Council for any reason other than expiration of the term of office, the Governor shall fill such a vacancy for the unexpired term.

Why did Governor Jack Markell not Fill the vacant State Employee seat.  Delaware teachers never had a chance!  We never had a voice!  We never had any input!

THIS PROCESS NEEDS TO SLOW DOWN AND BE RE-EVALUATED!!!!

Please continue to contact your representatives…

SEND A MESSAGE TO YOUR LEGISLATOR!

Contact The Deferred Compensation Committee

Deferred Compensation Team

SEE DELAWARE STATE CODE…

60 Del. Laws, c. 146, § 1; 72 Del. Laws, c. 488, § 1.;

State Government DCC Delaware Code

Walmart, Home Depot, Walgreens, My Retirement Plan?

Image

Hello Everyone,

Today is the big day.  Later on this afternoon I will have the honor of meeting our Delaware State Treasurer Ken Simpler.  I will use this opportunity to share the thoughts, stories, concerns and ideas that so many people have been sharing with me and other Local Association leaders.  One anecdote that was shared with me last night was excellent, and I think you may appreciate it.

Years ago when you shopped at a hardware store, pharmacy, grocery store,  etc. it was a local place, small, perhaps a “Mom and Pop” place where you felt comfortable.  Maybe they knew your name, or remembered the things you need, or maybe you just felt good about the familiarity of it all.

Over time we have experienced a shift to “The Big Box Store” model for so many of our needs.  Giant warehouses, heavy on the merchandise and light on the personal touch.  Lots of stuff, but little in the way of expertise and guidance.  Our current situation with the loss of our retirement plan choice and the disruption of our long standing relationships with our vendors is very reminiscent of this.  While I have no doubt VOYA is a good company with many good qualities, it would still be wrong to loose the choice that we have had for years and the relationships and trust that has been established.  While in retail it may be good for some, I am not sure that the “Box Store” concept is how I want my retirement plans managed.

In an attempt to continue to provide our friends with as much information as possible, I invite you to please visit the Treasurers web site.

http://treasurer.delaware.gov/deferred_compensation/transition.shtml

In addition to our Call To Action communications with Legislators, please feel free to contact Treasurer Simpler’s office as well.

Contact Information

Delaware State Treasurer

302-672-6700

Deputy State Treasurer

302-672-6700

Executive Assistant to the State Treasurer

302-672-6702

Investments and Banking

Director of Investments & Banking

302-672-6711

Financial Investment Program Manager

302-672-6704

Financial Investment Program Specialist

302-672-6733

ASPPA American Society of Pension Professionals and Actuaries report

ASPPA_LogoColor

PROTECTING PARTICIPATION

The Impact of Reduced Choice on Participation by School District Employees in 403(b) Plans

PROTECTING PARTICIPATION Debra A. Davis, Esq., LL.M., Dr. Geralyn Miller, Ph.D. & Judy A. Miller, FSA, MSPA

 

EXECUTIVE SUMMARY

403(b) plans provide an important method to save for retirement for many school district employees. These plans allow workers to make independent decisions as to how much they want withheld from each paycheck and contributed to the plan. Employees are typically permitted to adjust their contribution amounts during the year as necessary. School districts can also make contributions to 403(b) plans on behalf of their workers.

403(b) plans differ from 401(k) plans in that school districts are frequently less involved than private employers are in their 401(k) plans. Individual public schools do not have human resource departments and school districts frequently do not have the resources to develop a “culture of savings” in the same way as the private sector. School-sponsored 403(b) plans typically are not subject to the non-discrimination rules that encourage many private employers to foster savings by lower paid workers. Additionally, participants in 403(b) plans often have their own individual contracts with the investment provider.

Often, a school may only collect contributions and make its auditorium or gymnasium available for advisors to meet with interested employees. Thus, participants bear more responsibility, and often need more help to learn about how the plan works, how much to save for retirement, and how to invest their money in the plan.

This paper examines the impact of participant choice in 403(b) plans. It looks at the extent to which school district employees want choices

in their 403(b) plans and whether providing those choices is beneficial to them.

It finds that many participants want the ability to receive assistance with their retirement plans. For example, a study by the TIAA-CREF Institute showed that 60% of near-retirement higher education employees had consulted with a financial professional about retirement during the previous two years. A study by Merrill Lynch also revealed that 34% of retirees would recommend working with a financial advisor early in life.

Studies showed participants have varied preferences regarding how they want to receive assistance. For example, a survey by Charles Schwab indicated that 51%
of participants preferred one-on-one consultation, while 23% preferred an online tool. A study by ING reflected that 59% of government workers wanted seminars or meetings, while 66% preferred printed materials. Multiple methods for receiving assistance, such as those described in the surveys, are currently available to 403(b) participants through the marketplace.

The paper finds that participant choice is valuable both in terms of helping workers prepare for retirement and maintaining participation levels in 403(b) plans. Studies indicate that workers save more for retirement and have greater diversification when they have the ability to consult with a financial professional. Additionally, researchers at the RAND Corporation found that individuals who voluntarily elect to receive advice have greater positive performance results than both persons who do not receive advice as well as individuals who automatically receive advice.

Data also reflects that participation in 403(b) plans declines when the number of investment providers is reduced. In Southern California, around 50% of workers stopped contributing to their 403(b) plans when their existing investment provider was no longer available. Similarly, the number of participants dropped by over 54% when a school district in Colorado went from 55 investment providers to a single investment provider model for its 403(b) plan. Nearly 40 percent of participants

ceased participating in a 403(b) plan at a school district in Pennsylvania when the plan went from nineteen investment providers to a single investment provider.

Thus, the paper suggests that school districts should avoid reducing the number of investment providers in order to protect the levels of participation in 403(b) plans. School districts that are interested in reducing costs may want to consider options that include using an independent third party administrator (TPA) to administer the plan and providing transparent disclosure of investment fees and other expenses to workers.

For many school district employees, 403(b) plans provide an important means to save for retirement. Participants in these plans can make independent decisions with regard to how much they want withheld from each paycheck and contributed to the plan. Unlike 401(k) plans, there is typically less employer involvement in school-sponsored 403(b) plans. Thus, the onus is on the worker to learn about how the plan works, how much to save for retirement, and how to invest their money in the plan. As a result, school district employees often need to receive more retirement advice for 403(b) plans than participants in 401(k) plans.

This paper evaluates the impact of participant choice in 403(b) plans. It examines the extent to which workers prefer choice in their 403(b) plans and the impact of having choices.  The paper finds that school district employees benefit from the option to receive advice, both in terms of their preparation for retirement and participation levels. It further finds that data reflects a decrease in the participation rates for 403(b) plans when the number of investment providers is reduced. As a result, this paper suggests that school districts consider alternatives to reducing the number of investment providers in order to reduce costs. These include using an independent third party administrator (TPA) to administer the plan and providing transparent disclosure of investment fees and other expenses to workers.

Please view the entire document here…

ASPPAWhitePaper-ProtectingParticipation(1)

Delaware Teachers Please Share…

ATTENTION ALL DELAWARE PUBLIC SCHOOL TEACHERS, CHARTER SCHOOL TEACHERS, DELAWARE STATE AND DELAWARE TECH FACULTY…

YOUR CURRENT RETIREMENT PLANS ARE IN JEOPARDY!!!

FOR UP TO DATE INFO AND DOCUMENTS VISIT…

https://rufoblog.wordpress.com/

CONSIDER A CALL TO ACTION…

Send a letter to Representatives and Senators in Dover

USE THIS LINK…

SEND A MESSAGE TO YOUR LEGISLATOR!

http://www.congressweb.com/NTSAA/20

Join the group…

FACEBOOK GROUP Delaware School Employees United for Retirement Choice

Or like our page…

FACEBOOK PAGE Delaware School Employees United for Retirement Plan Choice

Please share with co-workers and friends! Any questions please contact

NCCVTEA President Donato C Rufo

Drufo1@verizon.net

DE

SAVE OUR RETIREMENT OPTIONS

 

 

 

 

 

WHAT WILL OUR GOVERNOR DO?

DCC Memo to Administration 5-25-2016

B9318000162Z.1_20150707182608_000_GFLB9ME0I.1-0

The link above is the official letter to Governor Jack Markell and his staff.

It is important to remember that when Governor Markell was the Treasurer of the State of Delaware he championed the State’s Tax Deferred Retirement plans.  Under then Treasurer Markell, the program had many, many more choices in vendor.  Lets hope Governor Markell rejects the current plan as a “Done Deal” and promotes bringing stakeholders back to the table…

WE NEED TO PROTECT CURRENT RETIREMENT PLAN HOLDERS!!