Perspectives. Important! 3rd Quarter PERI 2017 Annual Meeting Monday, October 9 Registration information on page 14 & 15

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1 Perspectives 3rd Quarter 2017 Mission Statement: To protect and preserve OPERS pension and benefits programs and advocate for changes that are in the best interest of PERI members, while providing value through communications and education of the membership through our districts, local chapters and external partnerships. In This Issue PERI President & CEO Report Page 1 Chairman s Report Page 1 Legislative Report Page 1 OPERS Update Page 3 OSHIIP Page 4 Chapter News Page 5 Proposed Amendments Page 7 PERI Constitution Page 8 PERI Board of Trustee Canidates Page 13 Annual Meeting Map Page 14 Annual Meeting Registration Page 15 PERI Board of Trustees Page 16 Important! PERI 2017 Annual Meeting Monday, October 9 Registration information on page 14 & 15 Report from Your President & CEO by Geoff Hetrick By the time you read this, we will be deep into the summer months and preparing for the PERI State Annual Meeting. This year it will be held in Columbus on Monday, October 9th. Please save the date now! You will find more information on this event in this issue. Don t delay in making your reservations as it will sell out quickly. This is one of the more important editions of PERI Perspectives and I ask you to carefully read it in its entirety. There are three issues that I want to call to your attention. Continued on page 2 Gilchrist PERI Perspectives Column by John Gilchrist Chairman s Report by John Haught Public Employee Retirees, Inc. is organized into 11 reasonably equal segments of the State of Ohio. Each segment contains 8 counties and a District Representative is elected by PERI members in those counties to represent their interests with the state organization. The District Representatives meet as a Board once a month and are the conduit to carry ideas and suggestions from the chapters located in their respective counties to the Board and to bring information and education from the Board to the various chapters in their area. The District Representative is a very important and necessary position in the organization and it is their combined decisions that provide guidance and direction to your organization. The Board is Continued on page 5 This column discusses the OHIO DRUG PRICE RELIEF ACT which is a proposed initiative statute scheduled to appear on the Ohio ballot in November. The initiative would prohibit the state from agreeing to pay, directly or indirectly, for the purchase of a prescribed drug unless the net cost of the drug, inclusive of rebates, discounts, and other price concessions, is the same as or less than the lowest price paid for the same drug by the U. S. Department of Veterans Affairs. Continued on page 2 Public Employee Retirees, Inc. 659 Park Meadow Road Ste F Westerville, Ohio (614) (800) Fax: (614) office@operi.org

2 President & CEO Report Continued from page 1 First is the Drug Price Relief Act. Many of our members are already familiar with this issue even though it won t be decided until the November election. The groups supporting and in opposition to this initiative have already spent millions of dollars on TV, radio and digital advertising to sway your opinion. It is likely to become the most expensive ballot issue in Ohio history with combined spending from both sides to easily exceed $65 million. The basic premise of, Would we like to see lower pricing for prescription drugs? is a no brainer. Of course! That said... buyer beware! I m sure your parents taught you, If something looks too good to be true, it probably is. This is a deeply flawed initiative that would do little if anything to actually lower drug prices. Additionally, and most importantly, the ballot language defines OPERS as a state entity, a concept we vigorously oppose as you will read in John Gilchrist s report. After much thoughtful conversation and a detailed briefing from both Mr. Gilchrist and me, your PERI Board of Trustees voted unanimously to oppose this issue. We urge you, your family and friends to do the same when you vote this fall. The second important topic involves continued improvements to PERI. Our five-year strategic plan, adopted by the Board of Trustees in 2016, calls for organizational improvements in eight areas. One such area includes PERI governance. Our constitution and by-laws have not been fully updated in many years and contain antiquated sections that should be streamlined and simplified. The PERI Governance Committee, led by former county prosecutor and PERI 1st Vice Chair, Rich Ross, spent several months meticulously reviewing each section of the constitution and presenting their recommended changes to the full PERI board. After much thoughtful conversation, the board voted to adopt all the changes you will see in the following pages of PERI Perspectives. The changes are presented in the whole and not individually. The Board enthusiastically asks for your support of the proposed improvements to the constitution. If approved, the Governance Committee will begin work to refresh PERI s By-laws. My final critical issue is to remind you that to gain the most from your PERI membership, you should be a member of your local PERI chapter. You will find one or more in nearly every county in Ohio. Local chapters provide opportunities to hear from some of the best speakers around that deal with our unique issues and concerns. Additionally, there is fellowship and the chance to meet with your fellow PERI members with whom you have so much in common. I urge you to visit the PERI website at to find information on a chapter near you. You will be glad you did! Gilchrist Legislative Report Continued from page 1 We should state up front that after much research and discussions, the PERI board voted unanimously to oppose the initiative. The proposal is backed by the California-based AIDS Healthcare Foundation which is a billion-dollar, global operation that offers pharmacy and clinical services, and manages HMOs. The proposal would apply to the state of Ohio, any state departments, agency or other state entity. Some believe that the term state entity is broad enough to encompass the five retirement systems. In fact, the very extensive analysis prepared for the Pharmaceutical Research and Manufacturers of America makes a case for the retirement systems inclusion. In their analysis, they state The pension systems are also included in our working definition of state entity. We have reviewed their analysis on this issue and do not agree with their assertion that the systems are covered. The long-standing position of PERI is that OPERS and the other systems are not state entities. However, should this pass, we believe this issue will be litigated and by a provision in the proposed language, taxpayers would be held accountable for the legal and litigation costs. Numerous court decisions and attorney general opinions have indicated that the five systems are not state entities. Numerous court decisions and attorney general opinions have indicated otherwise. These cases have held: the systems are not state agencies the systems do not exercise a function of state government on behalf of the state the systems were not created to exercise functions of state government the systems are not an alter ego of the state...they exist for the benefit of the members rather than the state OPERS assets in trust for members are not state funds or public dollars. They are not held in the state treasury nor were they appropriated by the General Assembly the funds are held by the Treasurer of State as custodian and are not to be considered part of the state treasury We made these same legal arguments when the legislature was considering H. B. No. 476 which passed last session. The act prohibits a state agency (defined in Section 9.76 as an organized body, office, agency, institution, or other entity established by the laws of the state for the exercise of a function of state government.) from contracting with a company that is involved in a boycott of Israel. And most agree that the enactment does not affect the five retirement systems. In addition, PERI has consistently held that funds in the retirement systems are not public dollars. PERI strongly believes the funds are earned income being held in trust for the members. It came from taxpayers, Continued on page 4 Public Employee Retirees, Inc. 3rd Quarter Newsletter 2017 Page 2

3 Update The Ohio Public Employees Retirement System is pleased to partner with PERI and provide news and updates concerning OPERS within your PERI Newsletter. If you have questions or need further information, please contact OPERS at OPERS is strong, your pension is secure Recent media coverage includes incorrect information about OPERS The Ohio Public Employees Retirement System is a well-funded retirement plan. We are 80% funded which means we have 80 cents in the bank for every dollar we will ultimately pay out in pension liabilities. The liability for current retirees pensions are 100 percent funded. Based on our projected inflows and outflows, the amortization period of our liabilities is 19 years, which is well within the 30-year amortization period required by Ohio law. A recent Columbus Dispatch article erroneously reported these and other facts about OPERS, in some instances reporting incorrect information for all five Ohio pension systems. For instance, in 2016, OPERS spent $1.2 billion for retiree health care, more than what the Dispatch article reported all five state pension systems spent during that period. OPERS reviews our plans to reduce inefficiencies, eliminate subsidies and reflect the current environment. This attention was evident in 2012, when the Ohio legislature enacted OPERS-recommended changes to our retirement plan. For example, some of the changes approved at that time addressed issues of members living longer and, therefore, working longer. Some of the approved changes also modernized programs such as the disability program, recognizing that some members go back to work. The Dispatch story cited a recent Mercatus Center report which has several flaws, including projecting no future contributions for our plan. The report also assumes OPERS will earn only 3.2 percent in the future. Our average investment return over the past 30 years is 7.44 percent, and for the past 10 years it s been 8.05 percent. Those returns include a 27 percent loss in OPERS is in full compliance with Ohio law and we have made every benefit payment since our founding in If you have concerns about the security of your pension, please don t hesitate to contact us at HRA Information session headed your way To assist eligible retirees and their families with the reimbursement process and how to use your Health Reimbursement Arrangement, OPERS is presenting educational seminars around the state. During the seminars, OPERS will Show you how to make payments for premiums and medical expenses; Explain how to be reimbursed for those premiums and expenses; Review information for spouses and caregivers; Address common concerns, and Help you navigate portions of your online account. The seminars wil be held in cities around the state. To register for a seminar, please visit opers.org, and click Retirees and then Educational Opportunities for the most up-to-date schedule. Registration is required. Aug. 9 Beavercreek Aug. 22 OPERS, Columbus Aug. 30 Findlay Sept. 11 Akron Sept. 18 Boardman Sept. 27 West Chester Oct. 4 Mentor Oct. 10 Toledo Oct. 12 Cambridge Oct. 12 Chillicothe Oct. 17 Lima Oct. 25 Eastgate Oct. 24 Portsmouth Oct. 25 Strongville Oct. 25 Westlake Oct. 26 Steubenville Oct. 31 Independence Oct. 26 Steubenville Nov. 1 Akron Nov. 2 Athens Nov. 7 Worthington Public Employee Retirees, Inc. 3rd Quarter Newsletter 2017 Page 3 Nov. 9 Boardman Nov. 14 Canton Nov. 14 Columbus Nov. 15 Zanesville Nov. 16 Findlay Nov. 29 Bellville Nov. 30 Lancaster Continued on page 4

4 OPERS Update Continued from page 3 OPERS provides eligible retirees with an HRA allowance to use toward qualified expenses including purchase of an individual Medicare Advantage or a Medigap plan and Medicare Part D prescription drug plan. Watch your inbox and opers.org for announcements of upcoming HRA sessions. OPERS Board of Trustees Election OPERS retirees will elect one representative to the OPERS and Ohio Deferred Compensation Boards of Trustees this year to serve a four-year term beginning Jan. 1, Any OPERS retiree receiving an age and service benefit, disability benefit or benefits under the OPERS Member-Directed or Combined plan is eligible to run for election. This group also includes re-employed retirees. Beneficiaries, including surviving family members, are not eligible to run for election or nominate candidates by signing a petition. Beneficiaries are also ineligible to vote and will not receive a ballot. Look for the more election information in the most recent OPERS retiree newsletter. Gilchrist Legislative Report Continued from page 2 but when it was paid to public employees, we hold that it lost its characterization as tax dollars and is no longer public monies belonging to taxpayers. In closing, PERI opposes the initiative petition for the following reasons: 1. OPERS and the other retirement systems are not state entities and thus should not be included. In addition, should it pass, this issue will be litigated and taxpayers like you will be responsible for the litigation and attorney fees. In short, the proponents contend the five retirement systems are state agencies; PERI contends otherwise and we do not want to litigate the issue should the proposal pass. 2. Passage would result in cost shifting to private payers resulting in most Ohioans and particularly the five retirement systems, who PERI believes are not covered, paying more for their prescriptions. 3. The proposal is poorly written and would impose unworkable contracting requirements. 4. Numerous mainstream statewide organizations and associations, including health care and veteran s associations have studied the proposal and have already expressed their opposition to it. 5. Is it possible to identify what drugs the V.A. purchases and to identify the lowest price paid for them? THE OHIO DEPARTMENT OF INSURANCE OSHIIP JILLIAN FROMENT, DIRECTOR Ohio Senior Health Insurance Information Program OSHIIP hosts many Welcome to Medicare events and webinars throughout the year around the state of Ohio. Many OPERS retirees who will be turning 65 and getting ready for Medicare attend these events and often ask the same question: Do I need to enroll in Medicare? Yes, OPERS retirees who are turning 65 and not actively working with current group health insurance from an employer, will need to enroll in Medicare Part A and Part B. You will want to do this three months before you turn 65. Contact Social Security to enroll, and the best way is to do it online at If you do not get a monthly Social Security Retirement check, be sure to sign up for Medicare EZ pay to pay the monthly Part B premium which is $134 in 2017 for new enrollees. OSHIIP often gets calls frwom retirees who have lost their Medicare Part B due to nonpayment of premiums. If you don t pay by Medicare EZ pay where it is taken automatically out of a bank account you will have to pay Social Security by check on a quarterly basis. As we know, life happens, and sometimes you will forget or the check may get lost. Social Security sends notices that payments are late, but if you don t send it in a timely fashion, you could lose your Part B and will have to wait until the General Enrollment (January-March) to enroll. Loss of Medicare Part B means you will lose your Medicare Supplemental Insurance policy or Medicare Advantage and Part D plan. Which then means you will lose access to your Health Reimbursement from OPERS. If you have questions about enrolling in Medicare, contact OSHIIP Monday through Friday 7:30am-5pm at Becky Hayward Community Liaison/Volunteer Ombudsman OSHIIP - Answers to Your Medicare Questions 50 W. Town St, Suite 300 Columbus, Ohio Direct line: OSHIIP helpline: Fax: Follow us on Facebook and Twitter Public Employee Retirees, Inc. 3rd Quarter Newsletter 2017 Page 4

5 John Haught Continued from page 1 made up of five members who are elected to serve as executive officers and it is the combined vote of the 11 District Representatives and the five board members that govern our operations. In previous articles, I have indicated that my immediate goal and objective as I serve as your Chairman, is to help the chapters and PERI to gain membership in all ways possible. One of the first steps is to make sure that you have a District Representative. For various reasons, a district will have their representative leave and a vacancy exists. Should this occur, the presidents of the chapters in that district should search their membership and find candidates for the position as soon as possible. If a District Representative is leaving their position, they should attempt to find a suitable replacement before leaving. In recent years, some districts have gone without a District Representative for a very long period of time. Without a District Representative, chapters in that district have had no representation and only receive information from the state office. You may ask how does this affect chapter membership? In my research on best practices of chapters that seem to be doing a good job in building membership, it appears that much of the motivation comes from their District Representative working closely with the chapter officers within the district. The District Representative already has a presence in the organization of a district annual meeting, however, organizing a district workshop of all officers from all chapters in the district to exchange ideas that work is an excellent use of time, energy and finances. Chapter officers can discuss ideas for programs, trade methods of recruiting members and replacing officers when needed. They get to know their counterparts in the district and can ask questions and provide answers as to how much should they charge for dues; how to get members to attend meetings; where and how to find better places to meet; how to notify members or remind them of a forthcoming meeting; how does your Legislative Network System work? These are just a small sampling of the discussions I have observed at this type of meeting. The cost of travel to the workshop and a light meal or refreshments is an accepted expenditure of the chapter budgets. We all belong to PERI for the primary purpose of protecting our pensions. Being prepared to defend this purpose requires organization and the ability to act or react to various threats in a short period of time. Chapters organizing to work together requires dedicated chapter members, officers, and a District Representative. Our membership is our strength. Making your chapter meetings educational, enjoyable and effective is within your reach. Work with your District Representative and thank them for their service. Even more important, volunteer to serve in your chapter or district and watch it grow. CHAPTER NEWS District 1 Steve Toth, OPERS Retiree Representative and John Sanderson, District 1 Representative at the District 1 annual meeting Wood County Chapter Officers Back Row: Steve Toth, OPERS Retiree Representative, Dan Parratt, VP; Seldon Carsey, President, Geoff Hetrick PERI CEO. Front Row: Lynne Commings, Program Chair and Becky Underwood, Secretary. District 2 L to R: John Maurer, OPERS Retiree Representative; Sharon Drerup, District 2 Representative; Geoff Hetrick, PERI President and CEO and Steve Toth, OPERS Retiree Representative. Public Employee Retirees, Inc. 3rd Quarter Newsletter 2017 Page 5

6 CHAPTER NEWS District 6 District 3 John DiPietro, District 3 Representative (Right) thanks Geoff Hetrick, PERI President and CEO (Left) for his presentation at the District 3 annual meeting. John Maurer, OPERS Retiree Representative; Bonnie Mitchell, District 6 Representative; PERI President and CEO Geoff Hetrick and OPERS Retiree Representative, Steve Toth L to R: Presidents, Jim Douglass (Preble), Beth Culbertson (Miami) Doug Smith (Clark) and Member Ruth Dailey (Darke) thanked by John DiPietro for serving on the District Nominating Committee. District 8 District 4 District Representative, Bill Russell and Centenarian Elsie Young at the District 4 annual meeting Richard Ross, PERI 1st Vice Chair speaking, District 8 Representative Lin Avendaño, seated. PERI President, Geoff Hetrick; District 4 Representative Bill Russell and Senator Steve Wilson at Warren County chapter meeting District 11 District 5 Geoff Hetrick, PERI President and CEO, Connie Dailey, District 5 Representative and State Representative Kris Jordan Three attendees at the District 11 annual meeting Public Employee Retirees, Inc. 3rd Quarter Newsletter 2017 Page 6

7 PROPOSED AMENDMENTS TO THE PERI CONSTITUTION by: Richard Ross, Chairman-PERI Governance Committee When Geoff Hetrick was hired to be the new President and CEO of PERI, the board decided it was the appropriate time to look at what was right and working, and what was wrong and not working, and what could be done better in our organization. One of those things was to look at the PERI constitution, and examine what was in it. PERI Chair John Haught appointed me as the chairman of the Governance Committee and the other members of the committee were district representatives Lin Avendaño, John Sanderson, Connie Daily, and Charlene Powell. Article III deals with membership in PERI. As presently constituted, it includes all persons who receive a benefit from OPERS and their spouses, and those who are actively working and paying into OPERS. The proposed change would limit members of PERI to those who are members of OPERS: the pensioners and the actives paying into OPERS or through membership categories created by the board of trustees. The proposed changes in Article IV are only done to match the changes that would come about by the proposed changes in Article VI. Article V deals with the board of trustees (the district representatives and the officers). A special meeting of the board may be called by the chairman (no change) or by four members of the board. This is an increase of one from the present language. It would also establish an attendance requirement of at least seventyfive per cent of the board meetings for district representatives and the officers. Article VI is about the officers. Presently, there is a chair, vice-chair, first vice-chair, second vice-chair, and secretary/ treasurer. The last of those mentioned would be changed to treasurer as office staff actually does the duties of the secretary. The biggest of all the proposed changes to the constitution would be to eliminate one of the vice chairs. This would reduce the members of the executive committee (the officers) from five to four. If any matter was to be a tie vote, it was felt that should be decided by the entire board. The proposed changes in Article VII would have officer terms be for two years instead of the present one year. It is suggested that this would provide more continuity on the board. Present term limits are three one year (except for the treasurer) terms. With the proposed two year terms, the proposal is for the chairs to be limited to two terms and the treasurer to three terms. Since candidates for officers must file their declaration for candidacy with the office by June 1, candidates for officers this year have already filed. The proposed reduction and term changes would take effect next year if passed. Eligibility for chair and vice-chair would be two years on the board and the second vice-chair would be one year on the board. Presently, the chair and vice-chair must already be an officer to run, and the present first vice-chair and second vice-chair must have served two years on the board. The voting on the proposed changes is one vote on all the proposed changes. If the majority who cast votes are in favor of the changes, all the changes will be implemented next year. If the majority voting are opposed, none of the changes will take place. The constitutional committee met on two separate occasions, each lasting over three hours. The board then spent approximately two hours going over the recommendations of the committee. Public Employee Retirees, Inc. 3rd Quarter Newsletter 2017 Page 7

8 CONSTITUTION PUBLIC EMPLOYEE RETIREES, INC. Adopted 1972 (Amended 9/24/75, 9/28/77, 9/27/78, 9/26/79, 9/16/81, 9/13/83, 9/11/84, 9/10/85, 9/17/87, 9/14/89, 9/18/90) Restructured and Adopted September 23, 1995 (Amended 9/23/99, 9/25/01, 9/4/03, 9/26/06, 9/28/09, 9/23/13) ARTICLE I: NAME The name of this Corporation shall be: PUBLIC EMPLOYEE RETIREES, INC. ARTICLE II: PURPOSE The purpose of this non-profit, non-partisan Corporation shall be: to support and protect our retirement system and its benefits; to promote educational resources and programs for public employee retirees; our members; to study and compare O.P.E.R.S. with other retirement systems; to acquaint the members with legislation pertaining to the general welfare of Ohio s public employee retirees; our members; and to provide a means for the fellowship of its members. ARTICLE III: MEMBERSHIP Section 3: Regular and Life membership of the Corporation shall be limited to those who are receiving retirement pensions and/or survivor or disability benefits from the Ohio Public Employees Retirement System and their spouses, and those who are actively employed in work which pays into the Ohio Public Employees Retirement System. Other membership categories may be created by the board of trustees. Section 3: 1: Persons who are members of OPERS may be eligible to be members of PERI. Membership categories and voting rights for those categories shall be determined by the Board of Trustees. Section 1: 2: The organization shall operate on the dues and fees collected, and on the interest or dividends derived there from. Section 2: 3: Regular membership dues and Life membership fees shall be established by a majority of the board of trustees. Section 2: 4: Regular membership shall be granted to and held by those who have paid the required dues. Regular membership shall be on a calendar year basis (January 1 through December 31, or any part thereof). ARTICLE IV: GOVERNMENT Section 1: The Corporation shall be governed by the majority of its voting membership in good standing. Voting on any issues or candidates will occur prior to an annual meeting to be held in September or October each year. Prior to August 15, all members of record as of July 31 shall be notified in writing of all items requiring a vote. An official ballot or ballots shall be included with the notification. Notification shall be considered satisfied by placement of the required material in the hands of the U.S. Postal Service The official ballots received at the Corporation s main office prior to 5 P.M. September 15 shall constitute the voting membership. Should September 15 fall on a Saturday or Sunday, the date will be extended to the ensuing Monday. Section 2: A representative body, of elected or appointed members, shall oversee the operation of the corporation. Section 3: The representative body shall be called: The Board of Trustees. The Board of Trustees shall be comprised of five (5) four (4) Officers and eleven (11) District Representatives. Section 4: No member may serve concurrently on the PERI Board of Trustees and the OPERS Board of Trustees. ARTICLE V. BOARD OF TRUSTEES Section 1: The Board is to adopt by-laws and establish operating procedures for the Corporation. It is to fix the hour and place of special and annual meetings, make proposals to the membership; promote, authorize, and charter local Chapters; develop and adopt criteria for Chapter Public Employee Retirees, Inc. 3rd Quarter Newsletter 2017 Page 8

9 operations; and perform such other duties as authorized by the Constitution. Section 2: The Board shall schedule regular meetings. Special meetings of the Board may be called by the Chairperson Chairman and shall be called by the Chairperson Chairman upon the written request of three (3) four (4) members of the Board. Section 3: Trustees (Officers and Representatives) are required to attend all Board meetings unless given an approved absence by the board. Section 4: A position on the Board shall be considered vacant when the member holding that position has died, resigned, or been removed for incapacity or absenteeism (absent from three (3) consecutive Board meetings without the approval of the Board.) (absent from 25 % of the board meetings within a calendar year). Section 6: 5: In the event of a vacancy in the office of Chairperson Chairman, the Vice-Chair shall take over the office and duties of Chairperson Chairman. Any appointee to an Executive level office shall need to be elected at the next through the next Annual Meeting scheduled election. If the Vice-Chairperson is unable or unwilling to take over the office of Chairperson, the Board may, by majority vote, appoint any one of its members, qualified under Article VII section 2, to fill the un-expired term. An appointment to fill an un-expired term does not restrict an individual s eligibility to be elected for the position s consecutive terms limit. Section 5: 6: The Board may appoint a successor to fill a vacant un-expired term of any member of the Board except Chairperson Chairman. unless the Vice-Chair is unable or unwilling to assume the office. ARTICLE VI: OFFICERS Section 1: The officers of the Corporation shall be a Chairman of the Board, a Vice-Chair, a 1 st Vice-Chair 2nd Vice-Chair a 2nd Vice-Chair, and a Secretary / Treasurer. Treasurer. These officers shall constitute the Executive Committee. The Executive Committee shall have supervision of the affairs of the Corporation between regularly scheduled Board meetings. Section 2: The Chairperson Chairman shall preside at all meetings, appoint all committees except the Nominating Committee, shall serve as Chairman of the Executive Committee, and shall have such further duties as ordinarily pertain to an office of Chairman. Section 3: The Vice-Chair, 1st Vice-Chair, and 2nd Vice-Chair shall chair at least one of the standing committees. Section 4: The Secretary / Treasurer Treasurer shall chair the Finance Committee and be responsible for overseeing the receipt and deposit of all monies paid to the Corporation, and shall ensure they are deposited in such depositories as the Board may direct and shall ensure they are disbursed as authorized by the Board. The Treasurer shall oversee the keeping of the accounts and records of the Corporation and render a report at the regularly scheduled Board meetings, the organization s Annual Meeting, and at such other times as the Chairman Chair Executive Committee, or Board may require. The Treasurer shall make all corporate records, accounts, and books available to the Board, and / or auditors named by the Board, at all times. The Treasurer shall ensure that funds are only distributed in accordance with policies or resolutions adopted by the Board. Section 5: The Chairperson Chair may receive a salary. All other Trustees may receive a stipend for each meeting attended. Section 6: A Vice-Chair, in order of sequence, shall preside and take over the duties of the Chairperson Chairman in his or her absence and the 2 nd Vice Chair shall become the Vice Chair. ARTICLE VII: TERMS, QUALIFICATIONS, NOMINATIONS, ELECTION, AND APPOINTMENT OF OFFICERS Section 1: The term for the (4 ) (3) Chairperson Chairman and Vice Chair positions all officers shall be one (1) two (2) years. The term for the Secretary / Treasurer Treasurer position shall be (2) years. All terms commence at the conclusion of the Annual Meeting at which an election is held, and run through the next Annual Meeting election.no person shall hold the same Chairperson Chairman position for more than three (3) two (2) consecutive terms, and the Secretary / Treasurer Treasurer position for more than two (2) three (3) terms. Public Employee Retirees, Inc. 3rd Quarter Newsletter 2017 Page 9

10 No person shall hold more than one position on the Board at the same time. Due to the change in elected offices, if adopted by the membership, the changes will become effective after the 2018 annual meeting. Section 2: Minimum qualifications for Officer positions: A. Only a Regular or Life member of PERI Associate and Allied members are is eligible to hold office. B. Additional requirements for the office of: 1. The Chair and Vice Chair must have 2 years on the board. The 2nd Vice Chair shall be elected every Two (2) years, at least one as an officer. At every election, the 2nd Vice Chair shall become Vice Chair and the Vice Chair shall become Chairman st Vice Chair: One (1) year on the Board. 3. 2nd Vice-Chair: A past or present Board member, or a past or present Chapter Officer. The 2 nd Vice Chair must have one year on the board. Section 3: A Nominating Committee shall be established to solicit and receive nominations for all officer positions. The committee shall be comprised of one (1) member who is not a member the Vice Chair and four (4) members District Representatives of the Board, two (2) from each the even numbered districts during the even numbered years, or and two (2) from each the odd numbered districts during the odd numbered years. and three (3) members of the current Board. A District will select its member by a majority vote of the District s Chapter Presidents, and the Board will select its nominating committee members by majority vote of the Board. The Nominating Committee shall select one of its Board members. The Vice Chair shall serve as Chairperson Chairman of the Nominating Committee. The Nominating Committee shall select one of its board members as Chair. A member of the Nominating Committee can not be a candidate for office. Section 4: Names to be placed in nomination, in years in which an election is held, shall be submitted in writing, addressed to the Nominating Committee, in care of the Corporation s Main Office no later than June 1, and shall be accompanied with the candidate s resume and a letter stating his or her willingness to serve if elected. The Nominating Committee shall select no more than two candidates from the pool of nominees for each office and submit their names and resumes, no later than July 1, to the Board. Secretary / Treasurer: Treasurer: Nomination must be approved by a two-thirds (2/3) majority of the Board, before consideration by the nominating committee. before being placed on the ballot. The Ballot(s) shall then be distributed to the membership in the manner set forth in ARTICLE IV, Section 1. the By-laws. ARTICLE VIII: DISTRICT REPRESENTATIVES Section 1: Each of the eleven (11) Districts is to elect a Representative to the Board. Section 2: A District Representative is responsible for representing the members of his or her District at the Board meetings, for being a member of one or more of its Committees, and for providing overall leadership for the well-being of the Organization. Section 3: A District Representative is responsible for communicating with Chapter Officers on matters that pertain to the organization s goals and actions on legislative matters. ARTICLE IX: TERMS, QUALIFICATIONS, NOMINATION, ELECTION, AND APPOINTMENT OF DISTRICT REPRESENTATIVES: Section 1: District Representatives are elected to a two (2) year term. District Representatives may be elected to the same office for no more than three (3) four (4) consecutive terms. Elected representatives shall begin their term of office at the close of the State Annual Meeting at which they are installed. Appointed representatives shall begin their service immediately. following the Board meeting at which they are installed. Public Employee Retirees, Inc. 3rd Quarter Newsletter 2017 Page 10

11 Section 2: Minimum qualifications for District Representatives A. Member of PERI. Regular or Life member, in good standing, of PERI. B. Reside in the District they represent. Section 3: Prior to March 15, the District Representative in each district that is required to hold an election is to establish a Representative Nominating Committee comprised of one member from each of its chapters. The District Representative is to set a time and location for the committee meeting and notify its members. and Send a list of the names and member file numbers to the Corporation s main office. Section 4: The Chairperson Chairman for the Representative Nominating Committee shall be selected by a simple majority vote, among the members of the Nominating Committee or in the case of a tie, by one flip of a coin. Section 5: The five (5) even number districts (2, 4, 6, 8, and 10) shall hold elections for representatives during the even numbered years. The six (6) odd numbered districts (1, 3, 5, 7, 9, and 11) shall hold elections for representatives during the odd numbered years. Section 6: No later than April 1, names to be placed in nomination shall be submitted in writing to the Representative Nominating Committee, and shall be accompanied with the candidate s resume and a letter stating his or her willingness to serve if elected. No later than April 5, the Representative Nominating Committee shall select no more than two candidates and submit their names to the District Representative. Section 7: The election shall be by ballot and held at the Annual District Meeting, during the year requiring an election. A majority vote of the members present and voting shall elect a Representative. Section 8: No later than seven days after the election, the Chairperson Chairman of the Representative Nominating Committee shall forward the results of the election, and the successful candidate s resume, to the Corporation s main office to the attention of the Board. Section 9: Should no candidate be nominated or elected by a District or should a vacancy occur between required elections, the Board may appoint a Representative, or call a special election to elect a Representative. ARTICLE X: DISTRICTS The State of Ohio shall be divided into eleven (11) Districts as follows: District 1: Defiance, Fulton, Henry, Lucas, Ottawa, Sandusky, Williams, Wood. District 2: Allen, Auglaize, Hardin, Mercer, Paulding, Putnam, Shelby, Van Wert. District 3: Champaign, Clark, Darke, Greene, Logan, Miami, Montgomery, Preble. District 4: Adams, Brown, Butler, Clermont, Clinton, Hamilton, Highland, Warren. District 5: Crawford, Hancock, Knox, Marion, Morrow, Richland, Seneca, Wyandot. District 6: Delaware, Fairfield, Fayette, Franklin, Licking, Madison, Pickaway, Union. District 7: Gallia, Jackson, Lawrence, Meigs, Pike, Ross, Scioto, Vinton. District 8: Athens, Hocking, Monroe, Morgan, Muskingum, Noble, Perry, Washington. District 9: Belmont, Carroll, Coshocton, Guernsey, Harrison, Holmes, Jefferson, Tuscarawas. District 10: Ashland, Cuyahoga, Erie, Huron, Lorain, Medina, Summit, Wayne. District 11: Ashtabula, Columbiana, Geauga, Lake, Mahoning, Portage, Stark, Trumbull. ARTICLE XI: CHAPTERS Section 1: Any group of ten (10) or more members of the Corporation may establish a local Chapter by: A. Adopting the Corporation s Chapter by-laws. B. Electing, at least, three (3) of the following Chapter Officers: President, Vice-President, Secretary, and Treasurer. Public Employee Retirees, Inc. 3rd Quarter Newsletter 2017 Page 11

12 C. Making application with the Board by submitting a list of the founding member s names and membership numbers. D. Receiving a Chapter Charter from the Board. Section 2: The Board, upon a two-thirds (2/3) affirmative vote, may recall a Chapter s Charter. ARTICLE XII: DUES The organization shall operate on the dues and fees collected, and on the interest or dividends derived there from. Regular Membership dues and Life Membership fees shall be established by a majority of the board of trustees. ARTICLE XIII: XII: INVESTMENT POLICY Life Membership fees shall be deposited in separate savings accounts referred to as: The Life Trust. In any given year, 10% of the Life Trust, as shown on the corporation s December 31 Balance Sheet may be placed for investment with a portfolio manager whose firm is covered by the Securities Investor Protection Corporation (SIPC), or in Market-Linked Certificates of Deposit with terms not to exceed ten (10) years. Said portion, exclusive of any earnings, when added to any outstanding previous year s investments, shall not exceed a cumulative investment portfolio of the referenced December 31 st Life Trust amount. Investments of the remaining 90% Life Trust balance shall be limited to: Certificates of Deposits in federally insured banks. No investment shall carry a maturity date longer than three (3) years from its date of purchase. Section 1: All interest, dividend, or growth income derived from the Life Trust may be used for expenses by a majority action of the Board. Section 2 1: Principal funds in the Life Trust may be used for expenses by a two-thirds (2/3) affirmative vote of the Board. Section 2: The Investment Policy shall be set by the Board of Trustees. ARTICLE XIV: XIII: AMENDMENTS The Constitution may be amended with the ballot approval of a two-thirds (2/3) majority of the voting membership in the manner set forth in Article IV, Section 1. Section 1: Amendments to the Constitution may be proposed by: A. A petition signed by one (1) percent of the members of record as of April 1 with no more than one third (1/3) of the signers from the same district, or B. A petition from two (2) districts, signed by two-thirds (2/3) of the chapter presidents in each district, or C. A petition signed by two-thirds (2/3) of the Board. Section 2: Petitions to amend the Constitution, in addition to the required signatures, shall include the article and section to be amended, all articles and sections referenced, and the proposed new wording. Section 3: Proposed amendments must be presented to the Board for signature certification and placement on the ballot no later than June 1 of the year in which a vote is to be taken. ARTICLE XV: PARLIAMENTARY AUTHORITY The rules contained in the current edition of Robert s Rules of Order shall govern the Corporation in all cases that are not inconsistent with this Constitution, its by-laws, or any special rules of order the Corporation may adopt. Public Employee Retirees, Inc. 3rd Quarter Newsletter 2017 Page 12

13 PERI Board of Trustees Candidates JOHN E. HAUGHT For The Office of Chairperson John was a teacher for 5 years at Fairport Harbor Schools, principle for 9 years, and retired after 28 years from Lake Metro-Parks as a Park Ranger, Administrative Sergeant and Detective Sergeant. John became a life member of PERI in 2004, served two years as Treasurer of PERI Chapter 28 in Lake County before becoming the Legislative officer. In 2011, he was first appointed, and twice elected to fill the position of District 11 Representative. He has served on the PERI Board of Trustees as 2nd Vice-Chair, and appointed to fill the unexpired term of 1st Vice Chair and in 2016 elected as PERI Chairman. Mr. Haught has served on the Executive, Chapter Bylaws, Chapter Growth and Education, Legislative, Finance, Trustee Education and chair of the Audit Committees. MARLENE BOND For The Office of Vice-Chair Marlene is a retired Township Trustee, member and treasurer of Londonderry United Methodist Church, President of the Board of Trustees of the Guernsey County Senior Center, where she also served as treasurer, and a member of the Cambridge Area Chamber of Commerce. Marlene is a member of PERI Chapter 78, Guernsey County, and was elected as District 9 Representative in In 2011, she was first appointed Secretary/Treasurer on the PERI Board of Trustees, and then elected as Secretary/Treasurer in 2013 and Marlene was elected as 2nd Vice Chair for and as Vice Chair for As a member of the Board, Marlene has served on the Executive, Constitution, Education, Chapter By-Laws, and Audit committees, and has been the Chair of the Finance committee for four years. RICHARD ROSS For The Office of 1 st Vice-Chair Richard was President and/or Vice President of PERI Chapter 47 in Morgan County from He has been a life member of PERI since He earned his OPERS pension as Morgan County Law Librarian, Stockport Solicitor, Morgan County Prosecuting Attorney, and the Chief Prosecuting Attorney for Athens County. Richard Ross was District 8 Representative for PERI from and during that time, he restarted the Washington County Running Unopposed chapter after it had been inactive for several years. In , Richard was elected as PERI 1st Vice Chair. He has served on the PERI Executive, Legislative and Audit Committees during his tenure on the PERI Board of Trustees. MERRILL ASHER For The Office of 2nd Vice-Chair Merrill was a member of the Sidney Ohio City Council for 28 years. He joined PERI and his local chapter in 2007, shortly after retiring. He became a life member in Merrill served PERI Chapter 11 in Shelby County as the Legislative Officer from He was appointed in September 2011 to the PERI Board of Trustees as District 2 Representative and was elected During his tenure as District Representative, Merrill has aided his chapter officers with continuing education and helping them increase membership participation, by changing meeting times and locations, and securing more meaningful speakers. He also served on the Executive Committee and as Vice-Chair of the Legislative, Continuing Education, Chapter Evaluation and Audit Committees. Merrill was elected in as PERI 2nd Vice Chair. THOMAS J. GEORGE For The Office of Secretary/Treasurer Tom George is a graduate of the Ohio State University. His public service includes: four terms as Ward 2 Representative, Lakewood City Councilman , Chief Executive 2003, and Lakewood Mayor from Other credits include Board of Elections, and Deputy Director of the AG s office in Cleveland. Mr. George was Chairman of the Lakewood City Council Finance Committee for 12 years overseeing a budget of $111 million dollars, and 535 full time employees represented by seven bargaining units. In addition to his knowledge of finances he has extensive management and planning skills. In 2011, Tom was elected to the position of District 10 Representative, a position he served for 6 years. He was elected as PERI Secretary/Treasurer for During his tenure on the board he has served on the Legislative, Continuing Education, and Chapter Evaluation committees. He has also served on the Executive Committee and as the chair of the Finance and co-chair of the Audit and Assistant Administrator Search committees. Public Employee Retirees, Inc. 3rd Quarter Newsletter 2017 Page 13

14 PERI ANNUAL 2017 MEETING MAP Crowne Plaza Hotel 6500 Doubletree Avenue Columbus, Ohio (614) New PERI District Representatives PERI Chairman John Haught (right) swears in two new District Representatives at the July Board meeting. Greg Ervin (left) is the past president of PERI Chapter #55 and new District 7 Representative and Jack Kibble (middle) is the past legislative chair of PERI Chapter #80 and new District 9 Representative. From I-71: Exit onto Route161 and head west. Turn right onto Busch Blvd. Turn right at third traffic light onto Kingsmill Pkwy which will deadend at Crowne Plaza Hotel. IMPORTANT NUMBERS FOR YOU TO HAVE ON HAND (800) OPERS (844) OneExchange (866) Aetna Vision (888) Metlife Dental (800) Medicare (800) Social Security (877) Deferred Comp (800) OSHIIP If you need information concerning your HRA account or insurance, call One Exchange. If you have questions concerning your pension, please call OPERS. From I-270: Exit onto Cleveland Ave North. Go to the first intersection and turn left (west) onto Schrock Rd. Follow Schrock Road for 2-1/4 miles to Busch Blvd. Turn left onto Busch Blvd. Turn left at first traffic light onto Kingsmill Pkwy which will deadend at Crowne Plaza Hotel. Public Employee Retirees, Inc. 3rd Quarter Newsletter 2017 Page 14

15 PERI 2017 Annual Meeting Monday, October 9 Crowne Plaza Hotel 6500 Doubletree Avenue Columbus, Ohio Registration will be from 9 to 9:45 a.m. The business meeting will start at 10 a.m. You are invited to join us for the PERI Annual Meeting which will again be held at The Crowne Plaza Hotel in Northeast Columbus on Monday October 9th. The hotel is conveniently located just minutes off Interstate 71 and State Route 161. Features include free parking, a covered drop off area outside the lobby, great sleeping rooms if needed and outstanding food. This year will be as exciting as ever with insightful reports from a variety of speakers who will be covering issues from the present state of PERI affairs to progress on our strategic plan and more. This event sells out quickly so you don t want to delay in sending in your registration. We expect nearly 600 PERI members to be in attendance. Registration will be from 9:00 to 9:45 a.m. Coffee, tea, and a pastry will be available during that time. The business meeting will start at 10 a.m. and will feature reports from the PERI President & CEO Geoff Hetrick, Secretary/Treasurer Thomas George, Legislative Counsel John Gilchrist, and Chairman of the Board of Trustees John Haught. Additionally, we will announce the new Board of Trustee members for the remainder of 2017 through the Annual Meeting in Before and after the business meeting, we will have representatives from OP- ERS, OneExchange, Social Security, Deferred Comp, Medical Mutual and the Ohio Department of Insurance located at tables in the hallway to answer your questions. Lunch will be served after the business meeting. The entrée choices this year are shown at the right. Our Keynote speaker will be Ms. Karen Carraher, Executive Director of OPERS, who will update you on important issues impacting the retirement system and its members. Come with great expectations for a rewarding time of learning, sharing, ideas, and fellowship with OPERS retirees from around the state. Don t forget to register as soon as possible as this event will definitely sell out. We look forward to seeing you there! Thanksgiving Dinner - slow oven roasted turkey with fresh cranberries, herb stuffing, mashed potatoes and turkey dressing Roasted Loin of Pork - slow roasted herb crusted pork loin with a raspberry barbeque sauce Vegetarian Lasagna Entrées are served with a fresh garden salad, side dish and dessert. THE ANNUAL MEETING IS THE 2ND MONDAY OF THE MONTH - OCTOBER 9 - PLEASE MARK YOUR CALENDAR! If you are making reservations for more than one person, please list each person s name separately, along with their meal choice. You can copy this form as needed, or list additional names on a separate piece of paper. If you want confirmation of your reservation, send request by to: laurie@operi.org Please let us know ahead of time if you need special seating due to a wheelchair or walker. PLEASE DO NOT SEND YOUR RESERVA- TIONS IN THE BALLOT ENVELOPE. THE BALLOTS ARE NOT OPENED UNTIL SHORTLY BEFORE THE MEETING, AND THERE WILL BE NO TIME TO PROCESS YOUR REGISTRATION. PLEASE NOTE THAT REGISTRATION AT THE DOOR IS NOT AVAILABLE Registration: $29 per person Registration deadline: Friday, Sept 15, 2017 Make check payable to PERI and mail with registration form to: PERI Attn: Annual Meeting 659-F Park Meadow Road Westerville, OH Registration Form for the PERI 2017 Annual Meeting Pork - Lasagna - Veggie Lasagna LAST Name FIRST Name M.I. (Circle meal choice) Pork - Lasagna - Veggie Lasagna LAST Name FIRST Name M.I. (Circle meal choice) Phone Number Your County Name # of Registrations: x $29.00 = $ Check #: If you want to be seated with another attendee who is not listed on the this registration form, please note who, and we will do our best to accommodate you. Public Employee Retirees, Inc. 3rd Quarter Newsletter 2017 Page 15

16 PERI Board of Trustees PERI Staff & Advisors John Haught Chairman (440) Marlene Bond Vice-Chair (740) Richard Ross 1st Vice-Chair (740) Geoffrey D. Hetrick President & CEO John Gilchrist Legislative Counsel Merrill Asher 2nd Vice-Chair (937) Thomas George Secretary/Treasurer (440) John Sanderson District 1 (419) jofred38@gmail.com Laurie Frithiof Administrative Assistant Nancy Heath Accounting Manager District 1 Counties: Defiance, Fulton, Henry, Lucas, Ottawa, Sandusky, Williams, Wood District 2 Counties: Allen, Auglaize, Hardin, Mercer, Paulding, Putnam, Shelby, Van Wert Sharon Drerup District 2 (419) sharondrerup@yahoo.com John DiPietro District 3 (937) district3peri@gmail.com Bill Russell District 4 (513) wrussell937@gmail.com District 3 Counties: Champaign, Clark, Darke, Greene, Logan, Miami, Montgomery, Preble District 4 Counties: Adams, Brown, Butler, Clermont, Clinton, Hamilton, Highland, Warren Connie Dailey District 5 (740) bskt1cd@yahoo.com Bonnie Beth Mitchell District 6 (614) bmitche2@columbus.rr.com Greg Ervin District 7 (740) gaervin1@gmail.com District 5 Counties: Crawford, Hancock, Knox, Marion, Morrow, Richland, Seneca, Wyandot District 6 Counties: Delaware, Fairfield, Fayette, Franklin, Licking, Madison, Pickaway, Union District 7 Counties: Gallia, Jackson, Lawrence, Meigs, Pike, Ross, Scioto, Vinton Lin Avendaño District lravendano@yahoo.com Jack Kibble District 9 (740) jckibble1@gmail.com Rick Lawrence District 10 (440) ricklawrence269@aol.com District 8 Counties: Athens, Hocking, Monroe, Morgan, Muskingum, Noble, Perry, Washington District 9 Counties: Belmont, Carroll, Coshocton, Guernsey, Harrison, Holmes, Jefferson, Tuscarawas Charlene Powell District 11 (440) powell.peri@gmail.com District 10 Counties: Ashland, Cuyahoga, Erie, Huron, Lorain, Medina, Summit, Wayne District 11 Counties: Ashtabula, Columbiana, Geauga, Lake, Mahoning, Portage, Stark, Trumbull