2009-03-25 - Pension Workshop CWA LetterEXECUTIVE OFFICERS
RICHARDD. Mc KINNON
President
JOSEPHFISHER
Vice-President
JONATHANSINKES
Secretary
VICTORIASTEVENS
Treasurer
OTHEREXECUTIVE
BOARDMEMBERS
JASONCASANOVA
Chief Steward
SECTION –1
DONKELLY
Chief Steward
SECTION -2
ANDY de OLAZARRA
Chief Steward
SECTION -3
MANUELVILLAR
Chief Steward
SECTION -4
ALEXANDEROTT
Chief Steward
SECTION -5
WARRENGREEN
Chief Steward
SECTION -6
MARTHANINO
Chief Steward
SECTION -7
March 25, 2009
Citizens of Miami Beach
Mayor & Commissioners
The Miami Beach General Employees Retirement System (MBERS) was created in 1951 as a
partnership between the employer and the employees. They share representation on the board
which is responsible for the investments and the administration of the pension plan. At the onset,our
forefather, in their infinite wisdom,opted out of Social Security, an option no longer available.
For the past 58 years, the MBERS has served our community very well. Don’t take my words for it,
let look at its past performance (Exhibit B).Here are the facts:
Average MB Employees’ contr. for the past 14 years 9.57%
Average MB Employers’ contr. for the past 14 years 11.71%
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Average FRS Employees’ contr. for the past 14 years 6.20%
Average FRS Employer’s contr. for the past 14 years 10.47%
Average FRS Employer’s with Social Security for the past 14 years 16.67%
Had Miami Beach been with FRS for the past 14 years, it would have paid an additional
4.96%of payroll for a much inferior product.
FRS is not the silver bullet that some people would have you believe. These people are very well
paid to sell you their idea. By the way, they’re the very same type of people who were around during
the previous recessions.Here are some important facts that you have to keep in mind:
(See next page)
COMMUNICATIONS WORKERS OF AMERICA 7455 Collins Ave., Suite 212
LOCAL 3178 –MIAMI BEACH Miami Beach, FL, 33141
(305) 401-0927
rmckinnon@cwa3178.org
Page 2 March 25, 2009
FRS means losing control over our own pension destiny.
FRS means having faith that the State Legislature will do what is in the best interest of Miami
Beach and we all know how great of a job they’ve been doing over the past few years,
especially looking out for people in South Florida, like when they changed the formula for the
cost-of-living differential among counties for schools.
Once you are in, you can’t come out.
The future of FRS is also very uncertain. It lost 38% in asset since September 2007.They’re
doing the equivalent of yelling fire in a crowded theater,asking us to join them when they’re
sitting in the balcony and we’re next to the exit.(See EXHIBIT A)
The Miami Beach Employees Retirement System has had its ups and downs which is cyclical
in nature but it never lost its core mission &strategy of achieving long-term growth for the City
and its employees. It has weathered the 1970 recession, 1980 recession, 1990 recession,
the 2001 recession. During each of these recessions, the questions that we are asking
ourselves were asked and pondered. Pension changes were made during downturns and
recovery as well. But over the years, we always managed to keep a cool head, kept a steady
course by believing that the American economic model would prevail and it has.
We believe that once President Obama and his administration pass new banking and
investment regulations,it will restore faith with foreign and American investors who are
presently sitting on the sideline, at an unprecedented level, with their money parked in banks,
Treasury Bonds and CD’s. The American stock market will once again bounce back as it
always did.The alternative is unthinkable and frankly un-American.
_________________________________________
Richard D. McKinnon
President of CWA Local 3178
Page 3 March 25, 2009