Welcome to the Atlanta Pension Funds
Membership Association's Web Page
We are a nonprofit 501(c)(4) organization of City of Atlanta Retirees, Retiree Spouses and Domestic Partners.
All retired and active City of Atlanta employees are eligible and welcome to join.
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Last updated July 6, 2010 by Lou Arcangeli
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Table of Contents: (click on the bold print below to go to each page)
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About APFMA : Letter to City of Atlanta Retirees describing our association.
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Board of Directors: A list of APFMA officers and the board of directors.
This page also provides the names and contact information of the elected Retired Trustee of each of the three pension funds board of trustees.
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For Information Contact: Note that while the APFMA does NOT provide pension or health insurance services,
Service provider contact information for both pension and health insurance is available on this page.
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Recent news: Links to recent news articles about City of Atlanta pension, health insurance and budget issues.
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Retired Police Officer Information: Information on retired police officers' concealed firearm laws and requirements.
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Open Enrollment is here.
If you haven't received your package or require additional details go to: http://www.atlantaga.gov/government/hr/employee-retireebenefits.aspx
The Open Enrollment period ends July 16th, and there is an online application process available this year.
FYI Page 6 of the open enrollment package states: "If you do not wish to make changes for the new benefit plan year, you
are not required to return an application."
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PENDING HEALTH CARE LAWSUIT STATUS: June 15th
Hello APFMA Members,
Please try to attend a very important hearing concerning our class action lawsuit on June 15th (this
coming Tuesday) at 9:30 am in Courtroom 7F of the Fulton County Superior Court (136 Pryor Street,
Atlanta, GA 30303). Judge Doris Downs will hear oral argument on our motion to certify our case as a
class action. This is an extremely critical hearing that will have a huge impact on the litigation.
Thanks,
Marcia Dell
President
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SPRING MEMBERSHIP MEETING
SPEAKER COUNCIL PRESIDENT CEASAR MITCHELL
ATLANTA PENSION FUNDS MEMBERSHIP ASSOCIATION, INC.
P.O. BOX 2099
SMYRNA, GEORGIA 30081-2099
www.APFMA.org
April 1, 2010
Dear Fellow City of Atlanta Pensioner or Employee:
You are invited to attend the Atlanta Pension Funds Membership Association, Inc. Annual Spring Membership Meeting and
Membership Luncheon to be held on THURSDAY, May 13 at 11:30 am. Check-in begins at 11:00 a.m. at the Piccadilly Restaurant
located at 2449 Godby Road, College Park. The Piccadilly Cafeteria is located just outside I-285 at Old National Highway and has
great food, plenty of parking, is all on one level (no steps or stairs).
We have invited several elected City Officials to address the many issues and concerns we have heard about recent news articles,
lawsuits and the increased pension and health insurance costs for the City of Atlanta thatr have been broadcastthrough the news
media. The speakers will be listed on our Association Web page in May. See: www.apfma.org. We look forward to seeing you and
meeting with our elected officials.
There is no cost for members to attend the meeting, but please note that there are TWO changes.
1. We will not have the usual advance meal purchase for this Spring Luncheon. Piccadilly has an excellent selection and APFMA
members and guests can purchase all the great food and desserts they want!
2. To guarantee a seat we ask our members to please RSVP either via e-mail or USPS.To RSVP using the US Postal Service,
return the enclosed envelope. To RSVP online send an e-mail to our Board Secretary Shirley Crenshaw at:
ecrenshaw2@gmail.com
The Association will cover the cost of tipping the servers and YES… We will continue the tradition of DOOR PRIZES. LOTS of
Door Prizes.
On behalf of the entire Board of Directors we welcome your input and solicit your ideas and involvement. We invite you to attend
our monthly Board of Directors meetings and to call any of our Board Members with your questions or concerns. Please visit our
web site at www.apfma.org. The dates for our meetings for rest of the year are:
April 8, 2010
May 13 (Annual Spring Membership Meeting & Luncheon)
June 10, 2010
(No meetings in July and August)
September 9, 2010
October 14, 2010
November 11, 2010
December 9 Annual Christmas Meeting
Sincerely,
Marcia Dell
President
Atlanta Pension Funds Membership Association, Inc.
PS: Remember to mark your calendar now for our Christmas Luncheon Meeting on THURSDAY, December 9, 2010.
PSS: If you have a question regarding your dues or membership status contact Shirley Crenshaw at ecrenshaw2@gmail.com.
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SEE AJC ARTICLE BELOW AT: http://www.ajc.com/news/atlanta/reed-seeks-massive-rollback-486392.html
Reed seeks massive rollback of city pension benefits
By Cameron McWhirter
The Atlanta Journal-Constitution
1:41 p.m. Friday, April 23, 2010
Officials in Atlanta Mayor Kasim Reed's administration told the City Council on Friday morning that they are preparing legislation to dramatically reduce
pension benefits for city employees to the level of benefits a decade ago. The move would save millions for the city but is expected to set off an alarm
among city workers.
Peter Aman, Reed’s chief operating officer, said during a council budget planning retreat at City Hall that the administration wants to roll back the
calculations by which employees get benefits and lengthen the time it takes for an employee to receive full benefits. A city worker would have to work 15
years to get full benefits as opposed to 10 years now. The money they will get would be reduced dramatically. What each employee is paid varies
depending upon years of service, rank and other factors, but the factor used to calculate benefits could drop by as much as one-third.
Aman said the mayor felt the city had “to put the tourniquet on the patient” and reduce pensions costs, which have grown exponentially since 2002,
when the city increased pensions benefits for police, and 2005, when it increased pension benefits for firefighters and general employees.
Reed said in a meeting Friday with The Atlanta Journal-Constitution's editorial board that the city must spend less on pensions if Atlanta wants to
survive financially. Atlanta's annual pension spending has risen since 2001 from $55 million to a 2011 projected total of about $125 million.
"The city is on a trajectory to either reform or have some hard conversations by 2017 or 2018 of whether it exists," the mayor said.
Reed also confirmed that he will push to get the city into the Social Security system.
Atlanta’s police officers and firefighters, who currently have the best pension benefits, would take the biggest hit under the rollback. Union officials
could not immediately be reached for comment. The rollback would affect all city employees in pension plans with less than 10 years' experience and
any new hires who join the pension plans. Administration officials estimate the changes would affect about 2,200 to 2,600 current employees.
The reductions, if approved by the council, are expected to save the city between $8 million and $12 million in fiscal year 2011 alone. However, the city’s
police, fire and general employee unions are expected to lobby the council to oppose the reductions. Under the administration of Mayor Shirley
Franklin, the unions successfully sought dramatic increases in pension benefits in 2002 and 2005. The unions argued that since the city does not
participate in Social Security, the city needed to provide better benefits.
Aman said the argument at the time was that such improvements would help bring in and keep employees.
“We did not notice commensurate improvement in being able to attract and retain employees,” he said.
Aman said the administration plans soon to propose other changes to worker pay and benefits. He said the administration strongly favors the city
joining Social Security. He said further changes are going to be proposed, and he expected the process to take about a year.
“This is only the first step,” he said. ..................
Continued at the AJC site.
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NEWS: COUNTER SUIT FILED by FIRE UNION as reported by Stephanie Ramage in "Sunday Paper".
www.sundaypaper.com/Blogs/TheRamageReport/tabid/235/articleType/ArticleView/articleId/5192/Default.aspx
Tuesday, April 06, 2010, 1:32 PM
By Stephanie Ramage
ATLANTA FIREFIGHTERS ENLIST LEGAL EAGLE TO FEND OFF PENSION LAWSUIT
Unwilling to trust their fate to the City of Atlanta’s law department, Atlanta’s firefighters have enlisted the help of high-profile legal eagle Lee Parks to
defend their pensions from a lawsuit brought by the Fulton County Taxpayers Association (FCTA).
The reason, says Jim Daws, president of the local chapter of the International Association of Firefighters, is that Mayor Kasim Reed may want to lose
the lawsuit.
Reed has made reducing the city’s pension liability the top priority of his administration, convening a pension reform panel shortly after he took office in
January and approaching the state legislature to modify laws intended to protect pensions from reductions.
In February, the FCTA filed a lawsuit against the city claiming that when it changed the “multiplier” of its pension formula from 2 percent to 3 percent in
2005, it did so without adhering to the requirements of its own charter. The charter requires that the city’s chief financial officer sign a statement saying
the change is sustainable, that actuaries vouch the change is sound, and the law department present an opinion that the change is legal. The FCTA
says the city failed to tag all those bases. The firefighters say the city abided by its own law and they can prove it.
But, since the FCTA’s lawsuit seeks to throw out the 2005 increase in the city pensions, thereby reducing the city’s pension responsibility, ironically, the
plaintiff (FCTA) and the defendant (Mayor Reed) are actually on the same side.
Parks, who famously and successfully sued the University of Georgia over its admission quotas in 2000, said at a press conference today that since
the FCTA lawsuit would reduce the pension liability by $100 million and the mayor wants to reduce the pension liability by $100 million, “the city might
not fight very hard.”
The FCTA’s lawsuit is highly contentious among the city’s retirees because unlike some reforms proposed by Reed, which would change the types of
pensions offered to those who have been with the city less than 10 years, the lawsuit would have a retroactive effect—actually decreasing the pensions
of existing retirees.
Parks explained that if a retiree has a pension of $1,200 per month, if the FCTA wins, that amount might be reduced to $800.
“We are talking about 85-year-old homeless people,” Parks said. “Does the foundation think about that when they get on their high horse? In their six-
bedroom Buckhead mansions?”
He added, “This is another one of those right-wing agenda organizations that make you scratch your head,” he said.
Daws said the mayor has pointed to a $1.5 billion pension liability that is really a “snapshot in time. It is what would happen if every employee retired at
the same time. In fact that is really spread over 30 years.”
Additionally, Daws said, the biggest problem for the pensions has been the low performance of the stock market in which they are invested for the past
few years.
Parks says the FCTA lawsuit should be seen as a threat by all of the city employees and retirees, not just the firefighters because it is the expression of
a group that at its core does not believe in paying taxes, period.
“They want great services, they want immediate response…but they don’t want to pay taxes.” SP
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From the Sunday AJC: http://blogs.ajc.com/kyle-wingfield/2010/03/05/atlanta-pension-lawsuit-is-a-first-step/
Atlanta pension lawsuit is a first step
7:23 pm March 5, 2010, by Kyle Wingfield
Call it the first shot of the pension wars.
After watching Atlanta’s pension costs nearly triple over the past decade, the Fulton County Taxpayers Foundation sued the city last week. The plaintiffs
argue that the city didn’t follow its own procedures when it increased retirement benefits in 2001 and 2005, and they want a Fulton County judge to
nullify those richer benefits.
This showdown between Atlanta’s employees and its taxpayers has been building for years, and it will be the No. 1 issue for the city until it is resolved.
But it’s no accident that the hostilities began Monday.
One week earlier, a pension review panel appointed by the new mayor, Kasim Reed, reported its initial findings. The short version: Things are even
worse than we thought.
The unfunded liability for the city’s three funds — for police, firefighters and general employees — is $1.5 billion. That hole is almost five times as large
as it was in 2001, when the plans were considered well-funded; today, the liabilities are double the assets.
The panel offers a detailed breakdown of how Atlanta came to this low place. As many people expected, the poor performance of the stock market over
the past decade had a sizable impact, representing about half the problem.
The other half relates directly or indirectly to the plan changes of 2001 and 2005. The direct effects include a larger payment for each year a pensioner
worked, and the fact that the city applied these increases retroactively.
The indirect portion relates to how employees reacted to the benefit changes: Since 2001, 90 percent of police officers and firefighters have retired by
age 55, about twice the rate that actuaries expected.
Now, it’s possible that the actuaries’ estimates were just wildly wrong. But common sense suggests that many officers are retiring earlier than
expected because 20 years’ service now gets them the same pension they previously needed 30 years to earn.
Take away those direct and indirect effects, and the city’s pension payments would have been some $73 million lower last year — still an increase
from 2001, but a much more manageable one.
Worse still, we are talking only about retirees’ pensions, not their health care expenses. Add those, and the unfunded liability could reach $3 billion.
And the city would have to devote $240 million a year — almost half its current budget — to all retirement benefits.
The next step for Reed is to design some choices for addressing these soaring costs. Standing still is not an option, and Reed said after receiving the
panel’s report that he would not raise property taxes to pay for pensions.
Legally, the city can’t unilaterally change the plans for existing workers. It can do so for future hires, but that wouldn’t begin to fill today’s shortfall. State
law precludes cities from declaring bankruptcy, which would allow Atlanta to restructure its benefits. That leaves negotiating changes with workers,
who will defend their pensions like the Alamo.
And that’s where this week’s lawsuit comes back in. The plaintiffs won’t comment publicly on their suit, and it’s hard to predict its odds of success.
But the suit can accomplish two things even if it loses in court: It’s a first legal step (challenging the retroactive nature of the ’01 and ’05 changes is an
obvious step two), and it serves notice to the city that taxpayers expect real reductions in pension obligations.
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Informative radio news program from WABE 90.1 FM. (Essentially the lawsuit has little merit and will be vigorously defended by the City. LA)
Reported by Charles Edwards.
http://www.publicbroadcasting.net/wabe/news.newsmain/article/1/0/1619840/Atlanta/Atlanta.Sued.Over.Past.Pension.Changes
ATLANTA, GA (WABE) - In 2001 and 2005, Atlanta agreed to put more money in pension plans for the city's police officers and firefighters. However, a
lawsuit filed Monday claims Atlanta made those changes illegally.
The suit comes as the Mayor's reform panel tackles the city's soaring pension costs.
Supporters of the Fulton County Taxpayers Foundation filed the lawsuit in Fulton County Superior Court. The Foundation and its attorney, John
Woodham, declined interview requests. The lawsuit alleges Atlanta violated the city's charter when it promised more police and fire pension money.
And because of that, Foundation has some demands.
They want a class action lawsuit. In other words, they're trying to sue the city on behalf of every Atlanta taxpayer. That's pretty hard to do according to
criminal defense attorney and WABE legal analyst Page Pate.
"Normally in a class action case, everyone has to be similarly situated and have a legitimate grievance against the defendant," said Pate. "I'm not so
sure they meet the standing requirement and the class representative requirement in this case."
Number two, the plaintiffs want the court to block future pension changes while taking control of Atlanta's pension payments. Pate doubts the court will
take on that responsibility.
"Most judge are going to feel that is a city matter that the Mayor and his staff and along with city council should make decisions on," said Pate.
If the court approves a class action and sides with the plaintiffs, Pate says it would create a bigger problem for the city.
"If the court does that, there's a bigger problem. Where that money should have been? Are taxpayers entitled to some sort of refund? Are city employees
entitled to some sort of break? It's going to be hard to unravel that mess," said Pate.
In a statement, Atlanta's acting city attorney said the lawsuit has no merit and plans an aggressive legal fight. © Copyright 2010
LA
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Residents sue Atlanta over "illegal" pension changes
By Eric Stirgus
The Atlanta Journal-Constitution
11:26 p.m. Tuesday, March 2, 2010
A group of Atlanta homeowners has filed a class-action lawsuit against the city, charging its elected officials illegally increased pension benefits for its
employees in 2001 and 2005, putting the city's finances at risk.
The residents want the city to stop contributing into the three pension funds and instead put the money into a court registry for safekeeping. The city is
expected to contribute about $125 million, more than one-fifth of its general fund budget, into the pension plans during the 12-month period that ends
June 30. Atlanta has a pension fund for police officers, fire rescue workers and general employees.
Unless Atlanta is stopped from making "illegal" contributions into those funds, the lawsuit says "the city will continue to face severe fiscal and financial
crisis and could be forced into insolvency."
The rest of the article is on AJC.com
http://www.ajc.com/news/atlanta/residents-sue-atlanta-over-342301.html
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While Mr. John Sherman is usually on track, We find this lawsuit interesting given the letter to the editor of the Atlanta Business Chronicle by John
Sherman in 2000:
Friday, June 9, 2000: Viewpoint
City of Atlanta's police officers deserve better
Atlanta Business Chronicle - by John Sherman
Next month, the Atlanta chapter of the Police Benevolent Association and the International Brotherhood of Police Officers will make an appeal to the
Atlanta City Council for improved police salaries and pension benefits.
The Atlanta police force has not been able to fill all of its 1,802 positions, declining from 1,615 in 1992 to 1,462 in 1999. There are currently 340
vacancies, 18.9 percent of the total positions, the highest vacancy of any major city in United States.
Why is this so? Is a force of 1,802 police officers a realistic number, or should the city of Atlanta have more -- or fewer -- police positions? What is
happening to the $17 million representing the annual salaries/benefits of the 340 unfilled positions? Why are we losing so many of our experienced
officers and why is it so difficult to recruit new officers? Do the residents, visitors -- and police officers themselves -- feel truly safe?
1. Salaries: An Atlanta police officer, completing six months' training at the police academy, earns $30,783 per year (college graduates receive a slightly
higher starting salary), increasing over 10 years to a maximum of $42,262 (slightly higher for college graduates). Contrast this with the Seattle Police
Department where the starting salary is $38,500, increasing to $49,000 by the end of the sixth year, or the San Diego Police Department where the
starting salary is $36,525, rising to $56,305 at the end of the fourth year.
In addition, both Washington state and California have State Police Officers Standards & Training programs under which any police officer achieving an
Intermediate Certificate receives a 2.5 percent annual pay bonus. Although the state of Georgia has a similar program, there are no state-funded
subsidies to local police officers.
2. Pensions: Officers in the Atlanta Police Department, upon retirement, receive only 2 percent of their salary for each year served. Compare this to
Seattle and San Diego where police officers, upon retirement, receive 3 percent of their salary for each year served. The differential is meaningful, i.e., a
police officer in Atlanta, retiring after 30 years service, receives only 60 percent of his/her salary, compared to 90 percent in Seattle and San Diego.
Closer to home, police officers in DeKalb County, retiring after 30 years, receive 82.5 percent of their salary.
Atlanta police officers contribute a whopping 7 percent, under law, of their gross pay to the Police Pension Fund, compared to DeKalb County, where
officers contribute only 0.5 percent. Finally, the family of an Atlanta police officer killed in the line of duty receives the officer's full salary for the first two
years, scaled down substantially starting in the third year to an average of 75 percent of the officer's pension. In Seattle, San Diego and DeKalb County,
the family of an officer killed in the line of duty receives the officer's full salary.
3. Charges of pension fund corruption: Sadly, the Atlanta Police Pension Fund has been replete with shockingly corrupt and incompetent investment
advisers. Pryor McClendon & Associates, whose general partner and Atlanta managing director, Ray McClendon -- together with Theresa Stanford, the
former city of Atlanta Finance Department pension fund investment manager -- were indicted in September 1999 for "churning" the Atlanta employees'
pension funds to a shocking $9.6 billion in overall volume of trades in two years, charging the city of Atlanta with over $15 million in illegal
commissions.
Next month, ironically, during the same week that the city council will be holding hearings on police salaries and pension benefits, the federal trial of
McClendon and Stanford is scheduled to be taking place only a few blocks from City Hall.
Six months ago, the Board of Trustees of the Atlanta Police Pension Fund voted to terminate their relationship with another investment adviser,
Paradigm Asset Management, whose services cost the fund $5,553,730, a loss of 19.6 percent on an investment of $28,278,439 in 1998/1999. A third
investment advisory firm, SASCO, was terminated by the Board of Trustees on May 9 of this year, for "losing pension fund assets and failing to meet the
designated benchmarks."
Once again, contrast this with Seattle, San Diego and DeKalb County, where there has been a record of sound fiscal management -- year after year. In
each of these three cases, the pension funds are funded over 100 percent, while in Atlanta the Police Pension Fund has an unfunded liability of over
$80 million. As a result, the Atlanta Police Officer's Pension Fund has insufficient money to support an increase in the pension fund without
contributions from the city to completely fund the increased benefits.
In the face of these adversities, is it any wonder that Atlanta police officers are demoralized and physically/mentally stressed from working two -- and
often three -- jobs in order to adequately support their families? Moreover, the loss of experienced police officers and the difficulty of recruiting new
officers is "dumbing down" the department.
Finally, the shortage of police officers is affecting every neighborhood and business district in the city of Atlanta. Buckhead, a traditionally safe
neighborhood, is experiencing a rash of homicides and a sharp increase in larceny, burglary and auto theft. Although violent crime in Atlanta has
dropped (homicides are still averaging three weekly), overall crime has increased.
Experts in criminal justice recommend an independent review of the Atlanta Police Department by a highly respected criminal justice consultant who
should recommend the overall staffing levels, salaries and pension benefits based on "best practices" and a program to prevent the future corruption
and/or mismanagement of the pension fund. Any increase in cost should be explained to the taxpayers by the mayor, who should request a special
millage earmarked for the Atlanta police officers.
Sherman is a retired CEO who lives in Atlanta.
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Pension Panel releases first draft report on February 22. To see the full report go to:
http://www.atlantaga.gov/client_resources/media/pension.pdf
See the AJC article on the meeting at: "Atlanta leaders grapple with rising pension costs"
http://www.ajc.com/news/atlanta/atlanta-leaders-grapple-with-322111.html
Lou
2-22-2010
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COA PENSION CHANGES TO BE PROPOSED!
Mayor Reed was quoted on WABE 90.1 FM this morning (Friday Jan 28) as preparing to release the results of the
Pension Task Force in February.
To listen go to:
http://www.publicbroadcasting.net/wabe/news.newsmain/article/0/1/1605742/Atlanta/WABE.Newscast.%2829.January.8am%29
There is NO PROPOSAL YET!
We will post any pension related news as it is released.
At this point it is all rumor, when we see it ion writing we will post it here.
LA (2-28-2010)
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CHRISTMAS MEETING: DECEMBER 10
Our Christmas meeting was a great success, with an overflow crowd!
We heard from Jim Bell,Vice President of Client Services and Rick Larimer, Account Executive of the GEM group. The GEM group is now the
administrator of the General and Board of Education employees pensions. General and Board of Ed Pensioners with questions about the PENSION,
their designated pension beneficiary, IRS dependent deductions, etc should contact the GEM group at:
GEM Group, Peachtree Center, Suite 1460, 225 Peachtree Street, NE, Atlanta, GA 30303, 404 525-4191.
The attorney representing our association and several members regarding mandatory enrollment in Medicare A & B also spoke to our Association.
If you have been harmed as a result of mandatory enrollment in Medicare please contact Mr. E. Adam Webb, of Webb, Klase & Lemond, L.L.C, 1900
The Exchange, South East, Suite 480, Atlanta, GA 30339. (770) 444-9325 or 770-444-0773.
E-Mail: eadamwebb@hotmail.com, and Adam@WebbLLC.com
The Police and Fire Pension Boards approved the 2009 COLA. Details are below. The General Employees Board of Trustees did not determine the
COLA at their December meeting and will consider the matter in the January meeting. Based on Bureau of Labor Statistics there was no inflation in
2009.
Lou Arcangeli
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COST OF LIVING ADJUSTMENT 2010
The Police and Fire Boards changed the Cost of Living Adjustment to exactly match the City of Atlanta 1978 pension code.
This has resulted in some confusion, but the Police and Fire Boards directed our actuary, Mr. Chuck Carr, to carefully review the code and we
are now in compliance with the full ordinance regarding pension calculations. The entire city of Atlanta pension code is available on the City
of Atlanta web page.
WARNING. STOP!
Read no further if you are prone to migraine headaches or dizziness. This is complicated and confusing, but it is the Code.
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If your date of retirement was on or before the below date, then your annual cost
of living adjustment is in the column to the right.
Note that because the Bureau of Labor Statistics have reported that there has
been negative inflation for the last 9 months recent retirees will not have a COLA
this year.
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COLA
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On or before January 1, 1984
February 1, 1984
March 1, 1984
April 1, 1984
May 1, 1984 through January 1, 1987
February 1, 1987 through January 1, 1988
February 1, 1988
March 1, 1988
April 1, 1988 through January 1, 2005
February 1, 2005
March 1, 2005 through January 1, 2008
February 1, 2008
March 1, 2008
April 1, 2008 through December 1, 2009
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3.0000%
2.7892%
2.4706%
2.1255%
1.9587%
1.8501%
1.4748%
1.1121%
1.0914%
0.8003%
0.7657%
0.4131%
0.0807%
0.0000%
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City of Atlanta Code of Ordinances are available online at http://www.atlantaga.gov/ See the City Council web page, go to Code of Ordinances link:
http://library6.municode.com/default-now/home.htm?infobase=10376&doc_action=whatsnew
CODE OF ORDINANCES , City of ATLANTA, GEORGIA
Excerpt from Chapter 6.
(h) Any person coming under the provisions of this amendment, either voluntarily or by compulsion, shall be entitled to cost-of-living adjustments as
hereinafter set forth. As used herein, the following terms shall have the following meanings:
(1) Current average cost-of-living index. The average of the monthly Consumer Price Index for the 12 month period from November 1 through October
31, prior to the annual adjustment date, as determined by the Bureau of Labor Statistics of the United States Department of Labor for all items and
major groups, United States city average.
(2) Pensioner base index. The average of the Consumer Price Index for the 12 month period ending two (2) months prior to the date of retirement for
any participant who retires under the provisions of this amendment. In the event the base year used in computing the monthly Consumer Price Index
should be changed by the Bureau of Labor Statistics, the board of trustees shall, with the advice of an independent actuary, adjust the pensioner base
index of each retired pensioner and of each pensioner or beneficiary, with benefit payments commencing during the first year in which such change
was made, so as to effect the original intent of this section in an equitable manner.
(3) Adjusted pensioner index. The pensioner base index, adjusted, on a cumulative basis, for all percentage adjustments made in benefits prior to
the current annual adjustment date. The adjusted pensioner index and the pensioner base index shall be applicable to any beneficiary becoming
entitled to benefits under this amendment in the same manner as they would have been applicable to the pensioner had such pensioner continued in
life.
(4) Annual adjustment date. January 1 of each year. The board of trustees shall ascertain the current average cost-of-living index as of January 1 each
year, and the benefits being paid under this amendment shall be adjusted as of the annual adjustment date as follows: If the current average
cost-of-living index is more than 100 percent of the adjusted pensioner index, the benefit shall be increased by a percentage equal to the difference
between 100 percent and the percentage representing the current average cost-of-living index divided by such person's adjusted pensioner index. If the
current average cost-of-living index is less than 100% of the adjusted pensioner index, such person's basic benefit shall be reduced by a percentage
equal to the difference between 100 percent and the percentage representing the current average cost-of-living index divided by his adjusted pensioner
index. Notwithstanding the foregoing provisions of this subsection, no increase or decrease in the amount of the monthly retirement benefit due to
changes in the current average cost-of-living index, effective at any annual adjustment date, shall be in excess of three percent (3%) of the amount of
the monthly retirement benefit payable immediately prior to such date. Neither shall the provisions of this subsection be applied so as to reduce the
amount of the benefits of a pensioner or beneficiary to any amount less than that to which such pensioner or beneficiary would be entitled to receive
under the other provisions of this amendment.
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NOTICE: Letter to General Fund Employees & Retirees
On Friday October 30, all members (active and retired) of the General Employees and Board of Education Pension Fund received
a letter regarding the transfer of pension fund administration from the City of Atlanta to the GEM Group.
The GEM Group is the newly hired third party administrator for the City of Atlanta General Fund pension plan.
Mr. Bill Clair of the GEM Group will speak to us at our Christmas meeting on December 10, 2009.
The letter included information regarding contributions and naming of beneficiaries that was relevant to ACTIVE employees,and
does NOT PERTAIN to retirees! Several retirees have expressed concern that action and additional contributions were required.
THIS IS NOT TRUE!
On learning of the confusion resulting from this letter, APFMA Board Members began inquiries with the City of Atlanta and the
GEM Group. Bill Clair immediately responded, and confirmed that while the letter is directed to ALL members of the General
Employees Pension Fund, the portion regarding contributions is intended for active employees, not retirees.
Webmaster LA 11-18-2009
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Old News ---------------------
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OPEN ENROLLMENT UPDATE: JULY 10, 2009
APFMA Past President and current Board member W.R. Harber attended the first Open Enrollment meeting and sent this for our
member's information:
Board of Directors, APFMA,
THE FIRST MEETING WAS MOST INFORMATIVE AND THE ATTENDEES RECEIVED UP TO DATE INFORMATION.
THE NEW EMPLOYEE BENEFITS DIRECTOR WAS MOST INFORMATIVE AND KNOWLEDGEABLE AND WELCOMES YOUR CALL
OR EMAIL IF NECESSARY AT: CEKIMBLE@ATLANTAGA.GOV OR 404 330-6930.
THE MEETING WAS OPENED BY Ms. SUE STRATTEN FOLLOWED BY DIRECTOR CHARLES E. KIMBLE, FOLLOWED BY BCBS
POS REP, FOLLOWED BY BCBS SMART VALUE REP, FOLLOWED BY KAISER REP., DENTAL REP., VISION REP. ABSENT,
LIFE INS REP. ALL WERE VERY INFORMATIVE, HELPFUL AND ANSWERED QUESTIONS WITH CLARITY AND
UNDERSTANDING. THERE ARE SOME CHANGES AS NOTED IN THE BOOK, BUT NOTHING DRASTIC.
THANKS WRH
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SPEAKER AT SPRING MEMBERSHIP MEETING May 14, 2009:
Adam Webb, Esq. regarding possible legal action about health insurance.
MEMORANDUM
TO: Atlanta Pension Fund Membership Association
FROM: E. Adam Webb, Esq. – Webb, Klase & Lemond, L.L.C.
Webb, Klase & Lemond, L.L.C. Phone: (770) 444-9325
1900 The Exchange, S.E. Email: contact@webbllc.com
Suite 480
Atlanta, Georgia 30339
Matthew C. Klase, Esq. – Webb, Klase & Lemond, L.L.C.
RE: City of Atlanta’s Misrepresentations Concerning Retiree Health Coverage
________________________________________________________________________¬¬¬______
We represent retired City of Atlanta (“City”) fireman Lamar Cagle in connection with the injuries and damages he sustained as the result of
misrepresentations made by the City concerning retiree health insurance benefits. This memorandum contains a summary of the issue facing not
only Mr. Cagle, but potentially hundreds of other City retirees as well.
Mr. Cagle served the City as a fireman for many years. He was originally hired by the City prior to April 1, 1986, and is thus not automatically Medicare-
eligible.
On June 19, 2008, the City passed Ordinance No. 08-O-1024. This Ordinance was an attempt by the City to lower the amount of money it contributes to
health insurance and benefits for City retirees and their families. The Ordinance states as follows:
SECTION 1 – Effective September 1, 2008, the City will require Medicare eligible retirees, their spouses and dependents to obtain both Part A and B of
Medicare at the time of eligibility in order to receive City of Atlanta retiree benefits. Medicare eligible retirees will be offered a group Medicare Advantage
Plan or similar benefits plan. Employees hired before April 1, 1986 who are not Medicare eligible will receive the same benefit plan as offered active
employees.
Pursuant to the plain language of this Ordinance, persons hired by the City prior to April 1, 1986 (“pre-1986 retirees”) were not required to become
Medicare-eligible and accept one of the Medicare Advantage Plans offered by the City. Nonetheless, the City failed to disclose this fact to many pre-
1986 retirees, including Mr. Cagle.
For instance, in written notices and at the open enrollment informational meetings, City representatives encouraged pre-1986 retirees, including Mr.
Cagle, to obtain Medicare Part A and B coverage or face the prospect of losing their benefits. The City representatives, however, failed to disclose that
these individuals were not required by the new legislation to take any steps to change their current insurance coverage. The City’s misrepresentations
led many pre-1986 retirees to unnecessarily incur expenses to become Medicare-eligible and switch to a City-approved group Advantage Plan. The
City’s motivation in failing to make this critical fact clear is obvious – to conserve City funds by passing the majority of the expenses associated with
retiree health coverage to the federal government. While cost-saving by the City is laudable, such savings should not be achieved by imposing an
undue burden on fixed-income retirees like Mr. Cagle.
The issue affecting Mr. Cagle affects all City retirees who:
(i) were hired before April 1, 1986;
(ii) signed up for Medicare A and B in the last six months at the request of the City; and
(iii) paid penalties to do so and/or pay higher monthly health care premiums now than before.
The retirees who fit this criteria, like Mr. Cagle, have incurred (and will continue to incur on a monthly basis) damages based on the City’s
misrepresentations.
Our investigation is ongoing and our hope is that the City will recognize this problem and take all necessary steps to rectify the damage its
misrepresentations have caused, not only for Mr. Cagle, but for all adversely affected retirees. We believe the City will be much more likely to take this
issue seriously if the Pension Fund as a whole joins Mr. Cagle in this fight. We look forward to meeting you all at the bi-annual meeting on May 14,
2009 to discuss the issue in further detail and answer all questions you may have.
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Please join us at our
2009 SPRING GENERAL MEMBERSHIP AND BOARD MEETING LUNCHEON.
This year we are having an indoor barbecue.
DATE: May 14, 2009
PLACE: Adamsville Recreation Center
3201 Martin Luther King Jr. Drive, S.W. (Room 2)
Atlanta, Georgia 30311
(404) 505-3181
TIME: 12:00 NOON - 2:00 PM
PRICE: $5.00 FOR ADVANCE REGISTRATION (PLEASE RESPOND BY MAY 1, 2009 TO INSURE ADEQUATE AMOUNT OF FOOD) $7.00 AT THE
DOOR. HOWEVER, WE ARE ENCOURAGING YOU TO PAY IN ADVANCE.
MENU: Sonny’s Barbecue , several sides, peach cobbler, tea
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LUNCHEON REGISTRATION
Name___________________________________________________________
Address_________________________________________________________
_________________________________________________________
Number Attending_________ @ $5.00 each Amount enclosed_____________
RSVP by May 1, 2009 in enclosed self-addressed stamped envelope to:
APFMAI
P.O. Box 2099
Smyrna, GA. 30081-2099
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MARCH 2009 NEWS:
A Reminder to police and fire retirees. Under the Federal Pension Protection Act of 2006, beginning with the 2007 tax year, retired public safety officers
can elect to exclude up to $3,000 of their taxable pension distributions (your retirement income) for premiums paid directly from the pension for health
insurance and/or long term care insurance. http://www.irs.gov/publications/p575/ar02.html
For details see (or refer your tax preparer to) IRS publication 575 "2008 Pension and Annuity income" at the link below.
http://www.irs.gov/pub/irs-pdf/p575.pdf
LA
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February 2009 News:
WARNING:
The City of Atlanta General Pension and COA Board of Education RETIREES 1099-R forms sent out by the COA Finance Department are incorrect.
DO NOT EARLY FILE with this 1099-R as you will need to resubmit an amended return later.
The COA Finance Department reports that corrected 1099-R forms will be mailed out as soon as possible, possibly as soon as Friday.
There were no problems reported with the Police and Fire 1099-R forms mailed by ASI.
LA
1:30pm on 2-2-2009
UPDATE February 17, 2009:
As of February 17 several General Employee Pensioners reported receiving CORRECTED 1099-R forms that included the correct State of Georgia
Income tax withheld.
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COLA: The Cost of Living Adjustment increase will be 3% and will start on the January 30 pension check. LA 12-30-2008
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Recent information for pensioners in table below
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Note:
Several APFMA members have experienced significant increases in their health insurance costs as a result of the changes implemented by the COA.
We welcome anyone interested in working with us on this issue to attend our January 8 meeting.
LA
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**** December 11, 2008****
A special thanks to Councilmember Caesar Mitchell for speaking to our association at the December 11th
membership meeting.
We are grateful to Ms Jeannine Lowery, grassroots coordinator for Georgia Watch, for her invaluable information
about how to take action to protect yourself from identity theft and how to freeze (and thaw)
your credit. For additional information contact Ms. Lowery at jlowery@georgiawatch.org, or via telephone at (404)
525-1085. Georgia Watch has a very informative web page at: www.georgiawatch.org
We are also grateful to Mr. James Johnston, Regional Volunteer leader of AARP, for representing AARP at this
meeting and for the information and pamphlets he distributed to our membership. For additional information contact
Mr. Johnston at 770-228-8729 or via e-mail at jjohnst2@bellswouth.net. For additional info go to www.AARP.org.
Also present at our meeting was Ms. Chiquita Bradley of A.S.I.
President Joe Studgeon presented Mr. William R. Harber a plaque on behalf of the Board of Directors for Mr.
Harber's years of service and personal commitment to our Association of Atlanta Retirees. Thank you Mr. Harber!
Hope to see everyone at the Spring membership meeting May 14, 2009. (Details soon...)
Lou Arcangeli (Webmaster)
12-11-20
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SOME PENSIONERS UNABLE TO CASH CHECKS DUE TO CITY ERROR! September 30- 2008 3pm
I received this letter from our administrator this afternoon. She reports that it should be corrected by the business hours tomorrow,
October 1, 2008.
LA
Please be advised that some of the pension checks which were issued this
month are not being honored by the Bank/Wachovia.
I wanted you to be aware, as we have been on the phone since Monday working with Wachovia
to make sure they all go through today. The reason for this that the new enrollment
file, for Insurance deductions, which came from City of Atlanta was incorrect. Many of the
deductions are wrong, etc. ASI/ABPA corrected and input all that we could in order to
make sure checks went out timely with all new deduction information.
We also had to send Wachovia a new "positive pay file". This was done Monday, and in the
turmoil of their acquisition by Citigroup, the file was not loaded. What this means is
that some pensioners who go to the bank to cash a check are being turned away as the
check amount does not match the amount sent on the tape.
In these challenging economic times, it is a concern to your participants and to us when
something like this occurs. We are being pro-active and following up with the bank to
make sure the issue is resolved today.
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Problem with your Insurance? Retirees should contact the COA employee below according to the first letter of your last name:
A-D Gloria Hampton 404-330-6755
E-K Betty Seay 404-330-6563
L-R Kokbeb Abazenab 404-330-6171
S-Z Latasha Freeman 404-330-6891
9-30-2008
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PROBLEM WITH CONFIRMATION LETTERS! I received this information today and am forwarding it to our members.
The City has advised that they need your help regarding the information sent out in the Confirmation of Coverage Letters.
September 2, 2008
Please note as a result of system errors some Confirmation of Coverage Letters are not correct. Additionally some Retirees who intended to choose
coverage with BCBS SmartValue did not submit a SmartValue Application.
The Retiree should make corrections and return the corrected Confirmation of Coverage form as instructed.
1. If the Retiree has a BCBS SmartValue card, the coverage is in effect even if the City does not show coverage @ this time.
2. If the Retiree selected BCBS SmartValue and does not have a BCBS SmartValue card they should call SmartValue @ 1-866-657-4970.
3. If the Retiree did not complete their BCBS SmartValue Application it should be completed at this time and returned with the corrected Confirmation of
Coverage.
All retirees who wanted coverage, will have coverage! If the choice for this contract year does not show in effect, the director has made arrangements
for last year’s coverage to be accepted.
(?)
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July 1, 2008
A quick summary of the meetings in June regarding changes to retiree health insurance:
1. There will be NO gap in coverage.
2. All retirees eligible for Medicare will have to sign up for Medicare A and B.
3. The City of Atlanta will continue to provide insurance for retirees who are not eligible for medicare.
4. The cost of insurance will rise. The amount will be provided in the Open Enrollment package that will be sent in July.
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June 16, 2008
The COA has sent letters (last Thursday) to all retirees over 60 announcing three medicare/insurance information meetings.
(These are NOT open enrollment sessions)
These meetings are tentatively scheduled for:
Tuesday, June 17, 2pm-4pm Civic Center
Wednesday, June 18, 2pm-4pm City Hall
Sunday, June 22, 2pm-4pm. City Hall East
The letter also confirmed that open enrollment meetings will begin in July.
Our President Joe Studgeon and I will attend one of these meetings and will post any information received on our association web page:
www.APFMA.org
Lou
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Changes proposed for Retiree Health Insurance: (Post June 1, 2008)
See PROPOSED City Ordinance 08-O-1024 to see the direction the City is going for the new "benefit plan
year" starting September 1, 1008. This proposed ordinance is being held in the Finance Executive
Committee of City Council as of May 28, 2008.
http://apps.atlantaga.gov/citycouncil/2008/images/proposed/08O1024.pdf
LA
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The following Insurance Email Notice was distributed by COA Employee Benefits
(5-27-08)
Please note the recommendations regarding rates and retiree participation in Medicare is pending Council
recommendation and the Mayor’s approval.
The Mayor’s Office, Finance Department and DHR have been working together regarding the City’s insurance
benefits for FY-09 for the past several months. Included in those discussions was the need to change our
benefit plan year in order to meet a request made by City Council. The City Council wanted sufficient time to
completely review and approve the insurance contribution rates when they reviewed the full budget. Since we
moved to a fiscal budget year, City Council has been forced to accept our recommendations prior to reviewing
the budget in order to meet timelines for open enrollment data entry in May or early June for an effective date
of July 1.
There was legislation introduced during Finance Executive committee meeting to extend the current
insurance agreements for an additional 2 months (a Plan Year of 14 months) with the current rates staying in
place for July and August and the new rates starting on September 1. Changing the insurance plan year to a
September 1 effective date allows all parties sufficient time to review and approve budgets, conduct open
enrollment and provide the insurance carriers with eligibility information.
We expect to mail Open Enrollment Material in late June, early July with Meetings in mid July. As a result of
Budget Issues it has been proposed that The City require that all retirees eligible for Medicare, participate in
both part A & part B. We plan to have informational meetings in mid June to provide Retirees with an
overview of the Medicare issues.
Thanks to Chief D.E. Sparks for providing this information.
LA 5-27-2008
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February 19, 2008
UPDATE: New IRS deduction for Public Safety Employees (see section in green below)
Bill Brockman, Retired from Fire Department, informed me that Turbo Tax allowed him to make the deduction.
Note that the health insurance premium is not available on the 1099-r form. You will have to see the monthly
statement from December. LA
UPDATE: Retired APD Sgt. Fred Kent sent me the following on: Friday, February 15, 2008 2:22 PM
"I spoke to Mrs. McHugh (IRS) this morning about the insurance problem. She is one of the people assigned to
retirement section of the IRS for the Atlanta Ga area. She said that we could claim our insurance premiums as long
as it reduced our pension pay. It didn't matter who paid it. She said the way you calculate it was to put it in 16b on the
1040 form and write beside it PSO for Public Safety Officer. Then in the final column you reduce it from the original
amount. I told her that we had received information from different attorneys
that we could not use it and she said as long as it reduced our pension pay by them
taking it out on us that we could claim it."
Thanks to Freddie Kent for his research. This looks good!
LA
The info below is from a New York City Police Retirement page:
"Beginning with the 2007 tax year, retired public safety officers should report their total pension distributions on line 16a of Form 1040. Assuming
that an officer qualifies for the insurance premium exclusion, the $3,000 exclusion should be recognized in line 16b of Form 1040, where the
public safety officer should write the initials “PSO” next to the taxable amount received.
We suggest THAT our retirees consult with their accountants or tax professional regarding this new tax law."
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General Pension Fund Retirees: 1099-r forms were sent January 30, 2008. You should receive yours by February 4th.
Police and Fire Retirees: I received the corrected 1099-r on Friday, Feb 1, 2008. (see below)
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Tax Form Problem- Police and Fire Retirees.
The 1099-R tax form mailed to Police and Fire retirees on January 28 was incorrect.
ASI sent a corrected version, and a letter of apology for any inconvenience, on Thursday,
January 31.
If you want to talk to someone at ASI call the numbers below.
The ASI DIRECT CONTACT information is:
For retirees whose last names begin with
A thru O contact Ms. Rouser at 678-221-5018 arouser@abpa.com
T thru Z contact Ms. Bradley at 678-221-5015 cbradley@abpa.com
I'll update the Atlanta Pension Funds Membership Association web-page if anything changes.
L.A.
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