A Publication of the Kentucky Public Retirees
Issue 113
May 2015
YOU'LL WANT TO BE THERE!
AGENDA
THURSDAY, JUNE 25
Sarah Hurst and Shirley Clark are spearheading our state-hosted Annual
Meeting to be held at the Clarion Hotel in Lexington. We want to
remind everyone about it, and encourage you to attend to make it a big
success. We would like to make this the best meeting ever with a huge
attendance. We have contracted room rates of $79 a night, single or
double, which includes a free hot breakfast. Reservations can be made
by informing the hotel you are
with the Kentucky Public
Retirees. Cutoff for making
reservations is June 10.
9:00 a.m. - 2:00 p.m.
Registration
10:00 a.m.
OPENING GENERAL SESSION
Welcome -Lexington Mayor, Jim Gray
Greetings from the Capitol - Lt. Governor Crit Luallen
Stephen Vest, Publisher & Editor of Kentucky Monthly Magazine How All Kentuckians are Connected
1:00 p.m.
Lunch on your own.
Jason Bailey, Director, Kentucky Center for Economic Policy The State Budget and How it Affects Funding of KRS
2:15 p.m.
Legislative Panel on Retirement Issues
Senate President Robert Stivers
Senate State & Local Government Committee Chair Joe Bowen
Speaker of the House Greg Stumbo
House State Government Committee Member, James Kay
3:30 p.m.
KPR Leadership Session
4:30 p.m.
6:00 p.m.
Hospitality Room - Hosted by Bluegrass West Chapter
Awards Banquet
Presentation of the Waterfield Awards - RoseGayle Waterfield Hardy
Entertainment - Laura Freire, Comedian
Silent Auction purchases given out
FRIDAY, JUNE 26
9:00 a.m. - 11:30 a.m.
KPR Annual Business Meeting
The state Quarterly Board
Meeting will be held on
Wednesday, June 24 at 3:00 p.m.
in the Barbaro Room.
Registration will be open at 2
p.m. for those coming in the day
before.
The opening session will begin
on Thursday, June 25 at 10 a.m.
(See Agenda). We urge you to
get your registration in, your
hotel rooms reserved, and plan
to be with us for a very
interesting and entertaining
conference.
There will be a silent auction
with great items you will be able
to bid on during the entire
meeting, lots of door prizes, and
raffles. So make your plans now
to be with us and show support
for our organization.
Lexington, Kentucky
Location of the 32nd Annual KPR Conference
See you there!
2015 Kentucky Public Retirees 32nd Annual Conference Registration Form
Dates: June 25-26, 2015 (State Board Meeting: June 24th)
Clarion Hotel, 1950 Newtown Pike, Lexington, KY 40511
Reservations: Call 859-233-0512 and mention KPR
The reservation deadline is June 10.
Room Rates: Single or Double Room – $79.00 (includes free breakfast vouchers for each day)
The fees must be paid to attend the meetings and banquet.
Please enclose a check payable to Kentucky Public Retirees with this form.
You can download a copy of this form from our website – www.kentuckypublicretirees.org
Member Name(s) _____________________________________________________________________________
Guest _______________________________________________________________________________________
Chapter ____________________
Number
Total
Registration
$20.00
__________
__________
Banquet
$25.00
__________
__________
________
________
Totals
Complete this form and send your check as soon as possible to: KPR, P. O. Box 4082, Frankfort, KY 40604
For additional information contact Conference Chairs: Sarah Hurst [email protected] or Shirley Clark [email protected]
President's Perspective by Paul Guffey
The 2015 short-session of the General Assembly produced practically no legislation benefiting KPR members. So,
what can we do? Let’s celebrate! Celebrate having been employed for enough years to qualify for pension
benefits. It’s wonderful that most retired public employees had meaningful careers serving the public even if the
general public seems unappreciative. It's commonly said that people are notorious for “not knowing what they’ve
got until it’s gone.” However, let’s enjoy thoughts of accomplishments, be proud and cherish memories of having
contributed to society. Let’s celebrate the joys of receiving some pension benefits such as health insurance and
monthly checks. Yes, you are right that with inflation and no cost of living adjustments each and every pensioner’s standard of living
is going down every day. But, let’s celebrate being volunteers in local communities, attending KPR meetings, having meaningful
programs, being with friends, etc.
It’s good that the Annual Conference is almost upon us when we can convene at the Clarion in Lexington for good fun and fellowship,
learn a little, and conduct business of Kentucky Public Retirees. A special report by an adjunct committee should be interesting as a
plan for unprecedented lobbying is expected to be proposed for members to consider. Time to celebrate by getting out the old
marching shoes and getting ready to demonstrate concerns about underfunding of Kentucky Retirement Systems. Let’s celebrate that
there’s still opportunity to influence the 2016 Session of the General Assembly. It’s time to enjoy getting the message out and keep
doing it “until the cows come home.” In other words, keep doing it until results are acceptable. Amen!
Legislative Article by Shirley Clark
The 2015 Session of the General Assembly adjourned March 25 around 3 a.m. Approximately 750 bills were filed
during the session with approximately 50 of them retirement related. We watched and followed all the retirement
bills, but very few of these bills passed.
Of all the bills KPR supported, only two passed both chambers and were signed into law by the Governor. These
two bills were HB 47 and HB 62. Both were introduced by Representative Brent Yonts.
HB 47 added the rest of the state retirement systems (Legislative, Teachers and Judicial) to the Public Pension Oversight Board’s
review responsibilities. It also made it possible for state employees and retirees to serve on this Board. HB 62 allows KRS
participants to cease participation in the System, but they must pay the full actuarial cost of discontinuing. KRS anticipates that some
of the quasi-government agencies will withdraw. One or two of these agencies have already requested withdrawal.
Our biggest disappointment was that HB 287 introduced by Representative Derrick Graham did not pass. This bill would have
changed how the KRS Board of Trustees fills elected vacancies. Although it passed the House unanimously, it did not get brought up
for a vote in the Senate.
Next January, the 2016 Session will be the year of preparing the budget for the next biennium. To prepare for this session our
members need to start NOW getting to know their legislators. Make calls to them, send emails or letters, and attend functions they
may be holding throughout your area. Invite them to speak at your local chapter meetings. We must continue to work for full funding
again for the System. We will have had four years without our COLA by then, and if we expect to get anything in the future, it must
be approved by our legislators. The most important thing to remember is that you are among the people who elect them in their
districts, and they need to hear from you. Please get to know them, and let them know our priorities as retirees.
Thanks to all the members who made the many calls this year on the bills we asked you to call on. We must continue to do this!
Membership Article by Betty Hawkins
Our State Membership Contest ends May 31, 2015. There are only a
few weeks remaining. We all need to get busy. As of May 6, the
total number of new members statewide for 2015 is 284. The graph at
the right reflects Bluegrass West has the largest number of new
recruits with 44, Cumberland Valley is second with 36, and Lincoln
Trail is third with 26.
Winners will be recognized and prizes will be awarded at the Annual Business Meeting
on Friday, June 26. The individual who recruits the largest number of new members will
receive $50, second place will receive $35, and third place will receive $15. The chapter
which has the largest percentage increase in membership since January will also receive $25. There will also be a random drawing
prize of $25 for any member who has recruited a new member. Everyone has an opportunity to win. When recruiting members,
please make sure your name is entered in the referral space on the membership application in order for you to receive credit for the
recruit. Those received after May 31, 2015, will not be eligible for the contest.
I want to remind all members that spouses are now eligible to be members. I encourage each of you to enroll your spouse as a member
since he/she has a vested interest as the recipient of your retirement benefits. To date, 112 spouses have enrolled as members. Please
talk with your spouse and submit the membership application today. Membership is free for the remainder of 2015.
There are still a number of people who have not paid their 2015 membership dues. Those non-paying members will be removed from
the membership roll effective May 31, 2015, and will no longer receive The Kernel newsletter as well as other KPR communications.
Our membership numbers dictate the influence we have with members of the General Assembly. Please renew your membership
ASAP. We need you!
Retirement System Update by Larry Totten
The April 16th meeting of the KRS Board welcomed the new representative of the State Police Retirement System, Keith Peercy.
Thomas Elliott had been re-appointed to his position by Governor Beshear, and both were sworn in. The election of Chair and ViceChair for the Board was conducted with Thomas Elliott remaining as Chair and Daniel Bauer remaining as Vice-Chair. Appointments
to the various Board committees will be forthcoming. The KRS Progress Report for Calendar Year 2014 was reviewed and is
available on the KRS website. Bill Thielen, Executive Director, provided the Board with a recap of the just-completed General
Assembly. Those items not passed this year will surely come up again in 2016.
Unexpectedly, but perhaps not, Thielen brought up the issue of Board advocacy of KRS interests before the General Assembly. A
video of this discussion is posted on the KPR Facebook page and is worth viewing to see who spoke up and their positions. (Note: my
takeaway from the discussion is that, while KRS will continue to provide information to the Legislature, we as retirees will have to
take on much of the advocacy for pension funding ourselves.) David Peden, Chief Investment Officer, commented on how troubling
the low visitation numbers to the investment section of the KRS webpage were considering the amount of information posted
concerning investments, including five investment webinars, when compared to the criticism KRS receives on investment
transparency. Moving on to investment performance, KRS returns for the first half of the fiscal year did not do well but, with
February returns showing a 2.3% rally and April tentatively looking good, the second half of the year looks to move the overall returns
into the positive. Attaining a 7.5% return for this fiscal year is probably not going to happen.
In discussing upcoming “big news”, Thielen reported that KRS had received two responses to its RFP regarding an actuarial audit and
the Board voted to approve the bid from The Segal Company for $98,500. This report will likely be presented in September. An
unknown number of responses to the RFP for the Medicare Advantage plan for KRS retirees have been received, and the next meeting
of the Retiree Health Care Committee was rescheduled to June 4 th to allow time for evaluation with a special called meeting of the
Board to follow. There has been no recent activity regarding the various lawsuits involving KRS. Thielen announced that he was
planning to retire at the end of 2015.
The Public Pension Oversight Board (PPOB) met on April 27th. Peden reviewed recent returns data and the overall year in general.
There was a discussion regarding the validity of the 7.5% expected return goal in light of the current year. Peden stated that the 7.5%
goal was more of a 20-year number rather than a 5-year one. Guest Rep. Jerry Miller (Jefferson/Oldham County) asked Peden why
KRS can’t mimic the returns of KTRS, even suggesting that KTRS should manage KRS funds. (Note: Rep. Miller advocated, while a
member of Metro Louisville Council, for CERS funds to be taken from KRS and set up in a retirement system of its own.) Peden
responded that KTRS has 60% of its portfolio in US Equity (stocks), often the most volatile of assets, and that has driven their current
performance. KRS investment plan looks to earn 7.5% over the long run with minimal overall risk.
Thielen advised the Board of the status of both the actuarial audit and the asset liability study. He then made a presentation regarding
the personnel and compensation system used by KRS. The KRS personnel system was established through KRS 61.645 during the
2002 Regular Session of the Legislature and placed in effect on December 1, 2002. Specific differences between the KRS and the
Kentucky personnel system were requested. Once again, Sen. Joe Bowen asked Thielen about the lack of attendance at PPOB
meetings by KRS Board members and, once again, a request was made to have some attendance at these meetings. Further questions
from the Board covered possible efficiencies, use of technology, recruitment/ retention of staff, and the upcoming actuarial audit.
Thielen advised that a possible contract for a study/comparison of investment and administrative fees would be presented to the KRS
Board at its May meeting. Miller brought up a recent article in the Lexington Herald-Leader regarding the sentencing of Lawrence
Penn, founder of Camelot Group, which had been a $24 million investment for KRS. Following some back-and-forth regarding the
wisdom of the investment, Peden gave a brief review surrounding the investment and the subsequent actions taken by KRS and others
that eventually forced Penn out. He stated that former CIO Adam Tosh should not have recommended this investment and that
something like this would never even be presented to the Investment Committee today. KRS has previously written off half of its
investment with Camelot but may yet recoup some of this loss.
Looking forward into the next few months, we should be seeing at least the financial reports for the third quarter of FY15, the
asset liability report (which will set out KRS investment strategies for the next few years), the actuarial audit, and the
Medicare Advantage contract for 2016 and beyond. Stay tuned.
--- Chapter News --Barren River At our March meeting, we had guest speaker, Julie Brown with Anthem Blue Cross and Blue Shield. She shared
ways to earn points using the Humana Vitality Program. She also discussed pharmacies and the Diabetes Prevention Program. She
distributed information about the programs that the Medical Center in Bowling Green offers and shared with us the process to register
for classes covered by our health insurance. The KPR Annual Convention in Lexington June 25-26, 2015, was discussed.
In April, our guest speaker was Rick McHale with Humana Insurance. He spoke about benefits, pharmacy tips and other valuable and
helpful information for Medicare-eligible members and spouses.. Also, Brian Towles, Retiree Health Care CMS Communications
Coordinator with the Kentucky Retirement Systems, attended our meeting. He answered questions regarding members turning 65. He
explained the transition process from changing from Anthem Blue Cross and Blue Shield to Humana/Medicare.
Bluegrass West The Bluegrass West speaker for March was Stephen
M. Vest, Publisher and Editor-in-Chief of Kentucky Monthly. It was a real delight to
have him speak to our retirees and tell us how we all have a Kentucky connection. In
April, Representative Derrick Graham was our guest speaker. He spoke about the
successes and failures of the 2015 Legislative Session.
Covered Bridge At our March meeting, two
members of the Kentucky State Police from the
Morehead Post spoke at our meeting. In April, Shawn
Sparks from KRS gave an interesting talk about the
2015 Legislative Session. The group was given the opportunity to ask questions. There were many
questions regarding our pensions.
Rep. Graham speaks to BW group
Cumberland Valley In March, our guest speaker was Julie Brown,
Troopers John Dowdy and Joe
Sales Account Representative Consultant with Anthem Blue Cross and Blue
Veeneman, and CB Members
Shield. She addressed our group about the new Anthem group health insurance
Gloria Davis and Gary Vergne
plan that covers all KRS retirees under 65 years old. Also Sherry Davis from
the Kentucky Personnel Cabinet, Department of Employee Insurance was there to take questions related to the new
insurance plans.
In April, State Vice President Jerry Connell was our guest speaker. He addressed us about what happened in the
2015 General Assembly that will affect our retirees, what is going on with KPR as an organization, and what effect
that will have on our Chapter. In addition, Chapter President John Harris appointed a nominating committee to
chose a slate of nominees to run for our Chapter's elected offices for next year.
Julie Brown
Jefferson Regional
We did not have a meeting in March due to adverse weather conditions. The guest speaker in April
was Dennis Hummel of Hummel, Coan, Miller, Sage & Rose Attorneys. Mr. Hummel discussed
the importance of estate planning. At the meeting, Chapter President Nikki Henderson highlighted
items from the State KPR Board Meeting. She reported that 600 KPR members had not paid their
2015 membership dues. Chapter members intend to personally contact the ones from our Chapter
who have not paid to remind or encourage them to do so.
Lake Cumberland In March, Representative Ken Upchurch presented an update of the
June Waters, Ken Upchurch, John Engle
current Legislative Session. He spoke primarily concerning the teacher's pension, gasoline tax,
heroin epidemic and the Kentucky Retirement System.
Lincoln Trail In March, Danny Hutcherson, Hardin County Property Valuation Administrator, spoke
about the duties of his office. In April, our speaker was Lisa Pullin, LPN with Intrepid Home Health. A
committee was appointed for the election of officers and includes Charles Brackett, Joyce Ann Scott and
Janice Mozeleski.
North Central In March, our speaker was Stephen M. Vest, an author and the
Danny Hutcherson
editor and publisher of Kentucky Monthly magazine. He spoke about "What Unites
Kentuckians." In April, our speaker was Shawn C. Sparks, KRS Director of Planning
and Constituent Services. He spoke about all legislation passed by the 2015 Legislative
Session related to the pension system and retirement in general.
Northern Kentucky In March, Becky Timberlake, the Development Director for the Brighton
Steven M. Vest
Center, gave a presentation about the Center. The Center has been operational for 50 years and provides 39
different programs for support and education of the needy. She said the Center's main goal is to support those in need while they reach
self sufficiency.
In April, Bear Clifton, the Vice President of Financial Development of the Greater Cincinnati Y.M.C.A., gave a presentation about the
educational function of the "Y". Something many of us were unfamiliar with. Bear told how the "Y" cooperates with local school
districts to provide after-school activities at the schools. Often teachers work part time for the "Y." He also described the Achiever's
Program which is designed to reach at-risk youth and mentor them through high school and college.
Pennyrile In March our speaker was Muhlenberg County historian Barry Duvall. Our April
Pennyrile Members
meeting featured local herb garden
expert Jean Merrell. February's
program had been McLean County's
Wendell Miller speaking on the
Battle of Sacramento. The meeting
included a discussion regarding the
failures of the recent session of the
General Assembly to address many
retirement issues.
Barry Duvall
Purchase The Purchase Chapter meets the first Thursday of each month at Pizza Inn in Paducah.
Our meeting in March was cancelled because of snow. In April, our speaker was Sandra Farthing,
Dietician/Nutritionist for Lourdes Hospital. A local legislator has been invited for our May meeting, and
we plan to invite another representative or senator to our June and July meetings. At left is Hubert Rudd
who won the door prize in April and turned 90 four days later.
Hubert Rudd and Al Yates
Harry Lee Waterfield Awards
Deadline for Nominations: May 15, 2015
The Harry Lee Waterfield Awards are presented at our Annual Meeting banquet in June each year to honor two
outstanding members of Kentucky Public Retirees. These two awards (the Achievement Award and the
Humanitarian Award) are presented by Ms. Rose Gayle Waterfield Hardy, daughter of the late former Lieutenant
Governor of Kentucky.
All KPR members are invited to submit nominations for either award. To be considered, a nominating message
must include the nominee's name, background information, the specific award for which he/she is being nominated,
and a detailed narrative explaining why the person deserves the award. Email nominations to the Chair of the
Foundation Awards Committee, June Pugh, [email protected] (or mail to 1103 Cherry Grove Road,
Flemingsburg, KY 41041).
Potential recipients must be members of KPR to qualify for either award.
Chapter Meeting Locations
Barren River Chapter
10 AM (CT), 3rd Monday
EVERY MONTH
BRADD Center
177 N. Graham Avenue (off Plum Springs
Rd—N side of B. Green)
Bowling Green, KY
Contact Sharon Linhart
(270) 781-2381 for information
Fivco Chapter
11:30 AM (ET), 3rd Monday
Giovanni's on Greenup Avenue
Ashland, KY
Contact Morris Wells
(606) 465-5784 for information
Lincoln Trail Chapter
11:30 AM (ET), 2nd Monday
Ryan's Family Steakhouse
1034 Executive Drive
On US 62, just West of I-65
Elizabethtown, KY
Contact Judith Lesher
(270) 872-3497 for information
Bluegrass East Chapter
12:00 PM (ET), 2nd Wednesday
Golden Corral
185 E. New Circle Road
Lexington, KY
Contact Eva Jane Jacobs
(859) 858-3456 for information
Green River Chapter
12:00 PM (CT), 2nd Wednesday
(lunch at 11:30 am CT)
Ryan's Steakhouse 4500 Frederica St.
Owensboro, KY
Contact Bill Horton
(270) 684-8059 for information
North Central Chapter
11:30 AM (ET), 2nd Wednesday
Jumbo Buffet—back room (Stoneybrook
Shopping Center)
2731 S. Hurstbourne Parkway
Louisville, KY
Contact Charles Klunder
(502) 454-3493 for information
Bluegrass West Chapter
11:30 AM (ET), 3rd Tuesday
VFW Franklin County Post 4075 104 E. Second
St.
Frankfort, KY
Contact Lexie Southworth
(502) 695-3910 for information
Jefferson Regional
11:30 AM (ET), 1st Wednesday
Ryan's Family Steakhouse (Piccadilly
Square)
5338 Bardstown Road
Louisville, KY
Contact Nikki Henderson
(502) 439-5407 for information
Northern Kentucky Chapter 11:45 AM (ET),
2nd Monday
Golden Corral
Orphanage Rd. at KY Rt. 17
Fort Wright, KY (I - 275, Exit 80)
Contact Linn Schmidt
(859) 746-8289 for information
Covered Bridge
11:00 AM (ET), 2nd Thursday
Double 'S' Bowling
150 Foster St.
Flemingsburg, KY
Contact June Pugh
(606) 849-2651 for information
Kentucky River Chapter
Pennyrile Chapter
11:30 AM (CT), 4th Thursday
Country Cupboard Restaurant
518 McCoy Avenue
Madisonville, KY
Contact L. Peyton Adams
(270) 871-9295 for information
Cumberland Valley
11:30 AM (ET), 2nd Tuesday
Please Note:
*Meeting locations vary, please
Contact John Harris at
(606) 877-0079 for information
Lake Cumberland Chapter
11:30 AM (ET), 3rd Monday
Golden Corral Restaurant
South 27 across from Lowes
Somerset, KY
Contact John Engle
(606) 305-2104 for information
3rd Friday of each month
*Meeting locations vary, please
Contact Tony Watts
(606) 666-2767 for information
Purchase Chapter
10:30 AM (CT), 1st Thursday
Pizza Inn
Joe Clifton Drive
Paducah, KY
Contact Tom Moore
(270) 898-7289 for information
Kentucky Public Retirees
P. O. Box 4082
Frankfort, KY 40604
(502) 437-9408
[email protected]
Remember to visit the KPR website and our Facebook page for important updates
www.kentuckypublicretirees.org
--------------------------------------------------------------------------------Kentucky Public Retirees Application Form
*Applicants MUST qualify by being a member of one or more of the following systems or the spouse of a current KPR member.
(please circle all that apply):
KERS
c


c
CERS
SPRS
Spouse
Membership dues FREE 1st year* (membership runs Jan-Dec. Free dues end 12/31 of the year).
New members - I want to pay for my 2nd year now. Dues are $15 per year.
Existing members - annual renewal dues of $15 is enclosed.
I agree to receive dues notices by email. c I agree to receive the Kernel newsletter by email.
To receive dues notices or the Kernel by email, you must provide an email address below.
Remember you can now pay online.
Mail to:
Kentucky Public Retirees
P. O. Box 4082
Frankfort, KY 40604
Date ____________
Name ___________________________________________________________________________Chapter (if known)___________
Address____________________________________________________________________________________________________
City _______________________________________________________________State_____________Zip____________________
County ______________________________________________Telephone (_______)_____________________________
Email Address________________________________________Referred by_____________________________________
(All information will be kept confidential.)