Cincinnati Municipal Employees Retirement Association (CMERA)

“History is the version of past events that people have decided to agree upon.”

            Napoleon Bonaparte (1769 – 1821)

Editor’s Note (2026)

Part 1 of this narration, from 1980 to 2005, was originally written by Joseph A. Bischof.  In preparation for an updated website in 2026, I edited[1] what was written by Mr. Bischof and added Part 2, namely the events beginning with 2006.  I did so to the best of my ability and with the assistance of other Governing Board members.  Mr. Bischof referred to his narrative as a “story,” but stories are too often associated with fiction.  CMERA is not fiction.  It is real and the people who once belonged, currently belong, or will belong to CMERA in the future are real people.  Not only are they real people, but they live in a real world, face real issues, negotiate real solutions, and help one another in real ways.  That is, in my opinion, “history” not a story.  

In researching this history, particularly after 2006, I was able to locate several important documents that captured the events of the times much better than I could recreate them by writing about them.  I copied excerpts from these documents to record important reports and historical statements that impacted current employees and retirees. 

I also found a copy of the fall 2017 newsletter.  The first thing I observed was that it was printed with black ink on white common bond paper.  The fall 2025 newsletter displayed multiple colors and was printed on coated paper.  CMERA has come a long way since 1980.  The second thing I noticed was the newsletter motto printed in the header:  Moving forward but always remembering the past.  Wow!  That motto really captures the essence of CMERA.  Yes, CMERA continues to move forward.  It provides information to its members while recalling all the friendships experienced while working for the City.  At the same time, CMERA will never forget the past years of mistrust, disillusionment, and animosity.  For now, however, let’s move forward…..

Table of Contents

Editor’s Note (2026) 1

Part 1: Before Incorporation to 2005. 3

Acknowledgement By Joseph Bischof 3

Prologue By Joseph Bischof 3

Prior to 1980. 4

The Years 1980-1985. 5

The Years 1986 – 1990. 9

The Years 1990 – 1995. 12

The Years 1996 – 2000. 17

The Years 2000 – 2005. 22

Epilogue – Part 1 By Joe Bischof 34

Part 2 (2006 – 2025) 35

Prologue by Chuck Cullen. 35

The Years 2006-2010. 36

The Years 2011-2015. 44

The Years 2016 – 2020. 51

The Years 2021-2025. 52

Epilogue – Part 2 By Chuck Cullen. 59

Addendum 1 – CMERA Presidents. 60

Part 1: Before Incorporation to 2005

Acknowledgement By Joseph Bischof

You might wonder how one becomes involved in writing history like this.  Well to tell you the truth, it was very easy.  CMERA’s newest officers and directors are very energetic and have brought to the Association a much-needed change in direction because of the way the City has changed, especially with its ever-tighter budgets.  In addition to their efforts to move ahead, they have shown great interest in looking at CMERA’s history.

Before I recognize those that have helped me so much in providing information for this story, I must apologize to those members of CMERA who have provided so much of their time and talent over the years and are not recognized herein in any way.

This Association has done so much for retirees of the City of Cincinnati, but it has failed in maintaining good historic records.  If it were not for the information obtained from the following individuals, this history would never have been told.  I, therefore, extend my sincere thanks to:

• Ray Klenk, who at 94 years young, searched his memory as to how the Association was started.
• Thelma Merritt, who shared her own records of those early years.
• Jim Nuxoll, who provided his own records for some of the later years.
• Rick Pfliegel, the current Secretary, who provided what limited secretarial records were available and background information on CincyRetiree.
• Don Beets, the current President, who provided what limited Association records that were available.
• The Policy Committee (Paul Smith, Jim Johns, Sheila Mudd Baker, Rick Pfliegel) for their encouragement and editing skills.

Prologue By Joseph Bischof

Now, with the information provided by these people, all that was needed was a historian – a person knowledgeable of past events, capable of conducting research, and ability to transpose that information into a methodical narrative.  That eliminated most of the Governing Board.  So, CMERA sought the person with the grayest hair and was crazy enough to hold up his hand.  Therefore, my advice to those who might read this is, never hold up your hand if you don’t want to be called on.  Needless to say, I have enjoyed being part of CMERA’s history and looking back on all those wonderful years.

There are those who may disagree with some of the things that are written herein, and that can be due to the fact that I have used my literary license, and in some cases, even expressed my own opinions.  Nevertheless, here we go, and I hope you enjoy A History of CMERA.

Prior to 1980

Undoubtedly, there have always been groups of older employees that would meet on occasions to reflect upon work and, most importantly, their future as retirees.  It was one such group from the Macadam Section of the Highway Maintenance Division of the Department of Public Works, who met in June every year at Izzy and Abe Levine’s house for lunch and a few drinks.  During these meetings, it was often discussed that there was a real need for an association to help retirees.  At one such meeting, Ray Klenk pushed this idea and asked Jack Sutthoff to get things rolling.  Ray, Jack, and Hazel Grimmer made a number of phone calls, (no email in those days), and brought a group together for an organizational meeting.

As usual, such a meeting had to be held at a location that would be free, and that location turned out to be at the old Dunham Hospital off Guerley Road in Price Hill.  That meeting was chaired by Jack Sutthoff and took place in July 1979, with almost everyone being from Highway Maintenance.  The following attended this important event:

• Jack Sutthoff: Highway
• Ray Klenk: Highway
• Cliff Steinbeck: Highway
• Ed Freytag: Highway
• Carl Savant: Highway
• John Zwich: Highway
• Henry Kanauber: Highway
• Bill Chenal: Water Works
• Norb Miller: Engineering

• Hazel Grimmer: Highway
• Jack Geier: Highway
• Harry Watson: Highway
• George Zeilman: Highway
• Izzy Levine: Highway
• Henry Wachsmuth: Highway
• Abe Levine: Water Works
• Bill Egner: Water Works

July was very hot that year and, since the hospital was not air-conditioned, the meeting moved outside.  After much discussion, everyone agreed that there was a need to organize so temporary officers were selected.  Bill Chenal became President, Bill Egner Treasurer, and Hazel Grimmer Secretary.  A fledgling CMERA was thus born.  Having made this decision there was a need to formerly organize the Association.  Bill Chenal, Thelma Merritt, Ed Lohaus, Norb Miller, and others moved forward on incorporation and the preparation of a Constitution and By-Laws.  Incorporation was completed on June 5, 1980, while work continued on the formal documents.

Editor Note: the original incorporation documents indicated that CMERA was an acronym for the Cincinnati Municipal Employee Retirees Association.  The word “Retirees” was later replaced with “Retirement.”  The original purpose of CMERA was to: “assist all retired members of the City of Cincinnati Retirement System achieve independence and dignity.”

The Years 1980-1985

During the Association’s infancy it immediately became active in many areas that would be beneficial to retirees.  Some of these efforts are identified as follows:

• Attended Cincinnati Retirement System (CRS) Board of Trustees meetings.
• Obtained CRS Board of Trustees minutes and audit reports.  It is interesting to note that the December 31, 1980 report showed that the current assets of the retirement system amounted to $294,570,445.70.
• Worked with CRS Board, in their ongoing efforts to obtain additional benefits after previous efforts were turned down by the Finance Committee on February 25, 1980.

The benefits listed below are ones that Norb Miller worked for while he was an employee member of the CRS Board of Trustees.

1. Dental and vision insurance.
2. Pension increase for retirees who retired before December 31, 1974.
3. Death benefit increase from $1,000 to $2,000.
4. Compounding the annual COLA 3% increase.
5. Improved survivors benefits.

The Constitution and By-Laws were on a schedule to be approved late in 1981.  As part of that development, it had already been determined that there would be four officers and five directors who would take office on January 1, 1982.  Having set this date, there was a rush to hold the first general meeting and an election.

A newsletter was then prepared and sent out on September 16, 1981 setting the meeting date for September 26, 1981.  Anticipating adoption of the Constitution and By-Laws, it was also announced that a ballot for the election of officers and directors would be sent out on November 1, and that all ballots would have to be returned by November 20.

The first general meeting went well and there were over a hundred in attendance.  The Association’s early activities and the contents of the soon-to-be adopted Constitution and By-Laws were outlined.  It was also announced that future meetings would be held in different communities in an effort to maintain interest.  This location distribution was tried several times but the process turned out to be a disaster because of transportation problems.  Downtown was found to be the most successful location since a number of attendees used public transportation.

Subsequent to the first general meeting, the Board, after much deliberation, adopted the Association’s first Constitution and By-Laws on November 1, 1981.  

The Teller Committee counted the ballots, and the election results were announced on November 30, 1981.  The officers and directors that were elected took office on January 1, 1982.  A listing of CMERA Presidents may be found on Addendum 1.

According to the first Constitution and By-Laws, the Association was to direct its efforts towards retirees achieving independence and fostering friendly relationships.  Although this was a consistent effort by the Board, a more dominant purpose began to surface. This alternate effort was directed towards achieving additional benefits, which was to be CMERA’s primary goal in years to come.

The Board noted that the Membership Section of the By-Laws did not identify what the membership dues should be.  Since the Association had no treasury, it was decided that in addition to membership dues of $2.00, there would also be an initiation fee of $3.00.  This would allow the Association to develop some funds for future activities.

It was only logical that Bill Chenal should become the first elected President since he provided such great leadership during the Association’s fledgling years and assured continuity.  During his presidency, the Association became more organized and continued its main effort of seeking additional benefits.  At the November 13, 1982 membership meeting at the Butterfield Senior Center, Bill Chenal had the sad duty of notifying everyone that Hazel Grimmer had passed away on September 14, 1982.  At that time Hazel was serving her seventh year as an elected Trustee on the CRS Board and third year as Secretary of CMERA.  Concurrent with those responsibilities she also served as President of AFSCME.  Her involvement in these organizations brought great experience to the CRS Board in her continuing efforts to upgrade the pension system.  The membership was further advised that as of October 2, 1982 CRS Board meeting, Bill Chenal recommended that CMERA be granted permission to seat one of its own members to replace Hazel.  Norb Miller was recommended as the replacement since he had previously served as a Board Trustee from August 1, 1978 to August 1, 1982.  This request was granted, and Norb was immediately installed.  Betty Colvard also agreed to serve out Hazel’s remaining term as Secretary of the Association.

At the April 23, 1983 general meeting, the membership was advised that Norb Miller was working closely with Joe Bischof, Chairman of CRS’s Benefits Committee, and focusing on 3% compounding and increasing the death benefit from $1,000 to $2,000. Norb was also obtaining names and addresses of new retirees from the Retirement Office, and letters were then sent to these retirees encouraging them to join CMERA.  On December 27, 1983, a newsletter was sent out stating that the Nominating Committee could obtain only one slate of officers and directors for the next two years, and therefore, there was no need to send out the normal election ballots.  

The new officers saw a need to modernize the Association’s record system.  The new president, Norb Miller, checked what it would cost to commercially computerize a membership list, including mailing labels for the 873 paid members.  The labels would also allow sending a postcard to members that were delinquent in their dues.  It was quickly determined that this would be too expensive for the Association’s limited treasury.

Having worked in the Engineering Division, Norb knew of Ralph Goldsmith’s extensive computer skills.  After the two of them met, it was agreed that CMERA would enter into a contract with Ralph to use his own computer on his own time to accomplish the work needed.  The contract was felt necessary to avoid any conflict of interest since Ralph was still a City employee.

There was also a need to approach the City Retirement System more aggressively in trying to obtain additional benefits.  To address this issue, Omer Trippel agreed to work on developing statistical information that would more clearly support CMERA’s position. Omer developed these skills through his own personal interests outside of his responsibilities in the Engineering Division.  After several weeks, Omer presented to CMERA’s Board a five-page report supporting additional post-retirement benefits.  This report was accepted, and it was decided that it should be presented to the CRS Benefits Committee and Board of Trustees.  Omer was then asked if he would make any necessary presentations that would be needed, and he readily agreed.  It was also decided that the information that was contained in the report should be kept confidential until formal presentations have been made.

A meeting was subsequently scheduled with Joe Bischof, Chair of the CRS Benefits Committee, to present Omer’s report and solicit the committee’s support.  The meeting went well, and they were grateful for the additional information contained in the report that would help their current ongoing efforts.

On June 23, 1984, Norb sent a letter prepared by Omer to Martha Jones, Chair of the CRS Board of Trustees, stressing the need to increase pensions for those retirees who were suffering from the effects of high inflation during the 1970’s.  CMERA was proposing that members and survivors of those who retired before January 1, 1981, be given a 5% increase for each year retired, until a cap of 50% was reached for 1971 and earlier retirees.  In support of this request, it was suggested that the CRS current earnings rate of 6.5% be increased to 7.5% since the market had been performing above projections.  It was anticipated that this 1% adjustment would easily finance the $3,500,000 cost of the requested benefit.  It was further suggested that the Board obtain an actuarial study and refer all the information to the Benefits Committee for evaluation.

The new address labels were used for the first time in sending out the newsletter notifying members of the November 17, 1984 fall meeting.  At the meeting they were informed of what action the Association was taking in trying to achieve additional benefits and requested everyone to check the accuracy of the address on the labels.

On January 29, 1985, CMERA sent a letter to City Manager Sylvester Murray seeking his support, as a member of the CRS Board, for the additional benefits being requested. This letter concurred with the position taken by the system’s actuary in its December 31, 1984 report as well as the supporting position taken by the Benefits Committee.  Basically, the actuary report concluded that the following additional benefits could be achieved:  

1. A 2.5% increase in pensions for those retirees (not the 5% CMERA originally sought)
2. A $1,000 increase in the death benefit (from $1,000 to $2,000)
3. Increasing survivors benefits by 50%.  

Rather than following CMERA’s suggested financing plan, the actuary recommended the unfunded liability be spread over 30 years rather than the current remaining 15 years.

On March 12, 1985, representatives from CMERA met with Mr. Murray to review the benefits that were presented in their previous letter.  They believed the City Manager had a very good understanding of the retirees needs.  Unfortunately, the Association was not able to obtain his support.

One of the great things that CMERA did was to have the general membership meetings twice a year.  This allowed the Association to keep its membership appraised as to what is going on and to have one or two guest speakers at each meeting.  These speakers usually brought to the meeting important information in which all retirees had an interest.  An example of this would be the two that came to the spring 1985 meeting. One guest speaker was Mr. Frank Dawson, Finance Director and Secretary of the CRS Board of Trustees, and Mr. Gergen, Manager of Special Accounts for Blue Cross/Blue Shield.  They were able to update the members on the status of financial and medical insurance items associated with their area of expertise and answer many questions.  Oh yes, that social hour with coffee and donuts before the meeting was also a big drawing card and very enjoyable.

On July 22, 1985, a newsletter was sent out announcing a special membership meeting for Tuesday, July 30^th.  It was stated that this was to be a business-only meeting and its attendance was important so the Board could obtain feedback on the following issues:

1. Comments on possible changes to the Constitution and By-Laws,
2. Future election of officers and Board directors, and
3. Dues paying procedures that were previously identified in a recent letter to everyone.

The meeting went well, and the Board obtained significant suggestions from the membership that was present.

At the fall general meeting, it was announced that the Nominating Committee was unable to encourage anyone to run for the Board but, fortunately, the current officers and directors agreed to serve another two-year term.

The Years 1986 – 1990

With the same officers in place, the aggressive approach for additional benefits continued.  The spring membership meeting was held on April 18, 1986, and Mr. Dawson brought those in attendance up to date on the status of possible additional benefits.  He said that at the February 4, 1986 CRS Board of Trustees meeting, Mr. Bischof, Chair of the Benefits Committee, made a motion reaffirming the Committee’s recommendation of February 4, 1984 for additional benefits.  This consisted of an increase for older retirees, the doubling of the death benefit, and a 50% increase in survivors benefits.  He further stated that the motion received a seconded and was carried only because Ken Blackwell, a CRS Board member, and Chair of Council’s Finance Committee, voted in favor of the motion with the four employee members.  An ordinance still had to be prepared and hopefully approved by City Council.

On August 1, 1986, a newsletter was sent to all members that there was an important meeting being held on August 16^th.  As previously mentioned, in an effort to attract more members to these meetings, this meeting was being held at the Pinecrest Multipurpose Senior Center located at 3951 W. Eighth Street in Price Hill.  Unfortunately, attendance was disappointing, considering the membership knew in advance that the status of additional benefits was to be discussed.

At this meeting Joe Bischof outlined what steps had been taken over the last few years; that an ordinance had finally been prepared; and that the Board of Trustees had presented it to City Council with their recommendation for passage.  After receiving this ordinance, City Council expressed concern about its cost and asked for the ordinance to be revised limiting it to two benefits – retirees increase and death benefit increase.  The survivor benefit proposal was shelved for now.  That revised ordinance was then sent to the Council’s Finance Committee for consideration.

Those in attendance were advised that the revised ordinance would be before the Finance Committee on September 2, and it was extremely important for the members to pack Council chambers at this and any subsequent Council meetings.  Norb Miller then asked for volunteers that would speak before the Finance Committee and City Council to outline their financial problems and the need for passage of the ordinance.  There were a number of people who agreed to do this.

At the Finance and Labor Committee meeting, Omer Trippel and Joe Bischof testified as to what problems retirees were having, and why these additional benefits were desperately needed.  After considerable testimony by the membership and lengthy discussion about how the added benefits were to be financed, the ordinance amending Section 203-47 of the Cincinnati Municipal Code and enacting Supplementary Section 203-50 was recommended to Council for passage.  On September 4, 1986 Council passed Ordinance No. 310-1986.  The willingness of CMERA’s membership to help and overfill Council chambers at both of these meetings, was, without a doubt, a key factor in influencing Council Members to pass this ordinance.

The fall membership meeting was held on November 11, 1986 at the Clifton Community Center on McAlpin Ave. at 12:00 noon.  Attendance again was not as good as expected but the Association was trying to increase attendance by meeting in different communities.  The primary purpose of this meeting was to advise everyone about the passage of Ordinance No. 310-1986 and explain in detail the two additional benefits that hopefully would become effective on the first of January.  In addition, they were told that although the 50% increase in Survivors Benefits was not a part of this ordinance, they should not despair.  At the Council meeting, John Mirlisena made a motion that a financial review of this issue be prepared in conjunction with the 1987 City Budget.  This review was to be reported back in 90 days.  Norb assured everyone that the Association would diligently follow up on this report.  

The next general membership meeting was held on May 19, 1987 at the Butterfield Senior Center on Garfield Place.  Norb had the sad duty of informing everyone that Marie Benton, CMERA’s secretary, passed away on March 2, 1987, and that the position was now open.  He reviewed again the new benefits and asked everyone to express their gratitude to all that were involved in working so hard in achieving this success.  He also mentioned that the actuary’s report that is needed to further consider the 50% increase in Survivors Benefits still had not been received, and that the Association was following up on this item.

A special membership meeting was held on August 29, 1987 at the Dr. Albert Sabin Convention Center.  This meeting was called to allow Frank Dawson to explain in detail the status of the Survivors Benefit increase.  In addition, a frantic cry was put out to the membership by the Nominating Committee, indicating that all the current officers would not be serving again and that they were looking for volunteers.

The fall membership meeting was held again at the Butterfield Center on November 14, 1987.  The big news was that the Nominating Committee was successful in obtaining volunteers for three of the officer’s positions, but none for the presidency.  After more than 30 phone calls, they did convince Bill Rooney to take the position.  

The March 12, 1988 newsletter announced the spring general meeting would be held at the Butterfield Center on March 26, 1988.  Before Norb Miller handed the gavel over to the new officers at this meeting, he outlined past accomplishments and future goals of the Association.  He noted that retirees still needed help in many areas and identified them as follows:

1. The 50% increase in Survivors Benefits must be pursued.
2. The 3% annual increase should be compounded.
3. A further increase in the Death Benefit is needed.
4. As healthcare costs go up dental and vision insurance is needed.
5. There is a need to seat a retiree on the CRS Board of Trustees.

The new officers agreed to pursue these goals.

On June 10, 1988, Fifth Third Bank notified Thelma Keller, the Association’s Treasurer, that it had no record of the Association’s Social Security/Tax ID number.  It was then determined that the Association had never applied for this tax-exempt status.  An application was quickly submitted and on June 24, 1988, the Employee Identification Number of 31-1241056 was issued.

For a number of years, the Association was of the opinion that there should be a retiree on the CRS Board of Trustees.  This effort, with the help of the Benefits Committee, was rewarded with the passage of Ordinance No. 398-1988 on October 5, 1988, expanding the Board from 9 to 11 members.  In order for the administration to maintain control another administrative position was added.  Thus a 6 to 5 majority was maintained with 6 from administration, 4 employee members, and 1 retiree member.  The ordinance also had a unique provision that allowed CMERA to nominate two of its members for this CRS Board position, and the Board would then appoint one of the two nominees.  This process was adopted since CMERA had pushed for the retiree position and had suggested this method of appointment.  This was later questioned by AFSCME.

The fall general membership meeting was held on November 12, 1988 at the Butterfield Center.  The new officers advised everyone of the passage of the recent ordinance and their current efforts to promote membership.  There was also discussion about updating the Constitution and By-Laws, since the old ones were badly outdated in relation to CMERA’s current operation and activities.

On April 15, 1989, CMERA held its spring meeting at the Butterfield Center.  Members were advised that a committee was hard at work developing a revised Constitution and By-Laws.  It was anticipated that these would be available for consideration at the fall meeting.

On September 6, 1989 CMERA sent a letter prepared by Omer Trippel to Ed Volpe, Chair of the CRS Board, asking for considerable information about those retired under the system.  It stated that the Association has been meeting with an insurance broker in order to begin to understand what type of dental and vision insurance might be reasonably provided.  Obviously, the information requested would be needed to carry this investigation further.

The newsletter announcing the fall meeting on October 14, 1989, also contained a ballot for the office of the President and Treasurer as outlined in the new By-Laws.  It was assumed that the membership would approve the revised Constitution and By-Laws.  Bill Chenal chaired this meeting since the president could not attend.  He advised everyone that after many months of work by a special committee the new Constitution and By-Laws were finalized.  After a question-and-answer period a motion was made to accept the new documents.  The motion was seconded and unanimously approved.

Some of the major changes are outlined below:

1. All retirees and beneficiaries are now automatically members; however, they must pay dues to vote.
2. Presidents and Treasurers are now elected on even years and Vice Presidents and Secretaries are elected on odd years.
3. A third purpose was added to work closely with CRS Board to enhance the retirement system.
4. The Board of Directors was expanded to include ten Directors.

The Years 1990 – 1995

The new officers and expanded Board took office on the first of January.  At their first Board meeting, they reviewed the direction of the organization for the next two years.  One of the first items that needed to be addressed was the bonding of officers as outlined in the new By-Laws.  This was accomplished on March 9, 1990, with the bonding of each officer in the amount of $2,000 for three years.  The total cost of this contract was $200.

At the spring general meeting on May 19, 1990, the President, Jim Jester, again reviewed the major changes in the newly adopted Constitution and By Laws.  He also noted that many retirees had received notices from AFSCME urging them to join the state-wide Association with annual dues of $12.00.  He said that it was CMERA’s opinion that our Association could serve them better and more economically, since we already had a member on the CRS Board and monitored the system’s activities constantly.

On June 1, 1990, the Board sent a letter prepared by Omer Trippel to the CRS’s Benefit Committee requesting another increase for the older retirees.  This letter outlined in great detail statistical information justifying why those who retired before 1985 needed this increase.  The increase would be 2½ % for each year retired before 1985 with a maximum of 25% like the previous increase.  The letter also identified how this could be financed since the funds currently exceed $900,000,000.

One of the things the new officers were interested in obtaining was some idea as to where all the retirees and beneficiaries resided.  It was felt that this information might be helpful as they pursued improvements to the retirement system.  The following tabulation shows the state ranking by number of retirees and beneficiaries.

• Ohio: 90%, 3,484
• Florida: 4%, 145
• Kentucky: 83
• Indiana: 33
• California: 17
• Arizona: 11
• Georgia: 10
• Alabama: 9
• South Carolina: 9
• Tennessee: 9
• Michigan: 7
• Texas: 7

• North Carolina: 5
• Outside USA: 5
• Pennsylvania: 5
• Mississippi: 4
• Colorado: 4
• Illinois: 4
• Virginia: 4
• Maryland: 3
• Missouri: 3
• New Jersey: 3
• New York: 3

• New Mexico: 2
• Washington: 2
• Oklahoma: 2
• New Hampshire: 1
• Louisiana: 1
• Maine: 1
• Arkansas: 1
• Kansas: 1
• Massachusetts: 1
• Minnesota: 1
• Nevada: 1
• Total: 3,882

At the fall general meeting on October 27, 1990, it was noted that the Benefits Committee had provided the Board with a copy of William Mercer’s cost estimate for the recently requested benefit, together with dental and vision costs.  Omer evaluated this info, and he said it seemed high in his opinion, but we should continue to pursue these benefits.  All agreed that this should be a high priority item on the Board’s agenda.  The membership was also informed that for years, our 1099-R forms incorrectly included our Medicare reimbursement as part of the taxable income.  Therefore, we were paying tax on this reimbursement even though it was not taxable income.  The Board was advised that this matter would be investigated by the CRS.  Ballots had also been sent out for the election of a Vice President and Secretary.  Irv Hoffman and Mary Acree were elected but, unfortunately, Mary, passed away shortly thereafter, so Myrtle Stickels took her place.

At the May 18, 1991 meeting, it was noted that CMERA was successful in having the Medicare reimbursements removed from the 1099-R forms, and this correction would be reflected on the 1099-R form for 1991 that is received in January 1992.  Everyone was also advised that efforts were going forward in pursuing additional benefits.

At the fall meeting on October 26, 1991, the membership was advised that there were considerable complaints about the way CMERA had a lock on the procedure for placing a retiree member on the CRS Board of Trustees.  Because of these concerns, CMERA was working with the retirement system to develop a more acceptable procedure, and this new procedure should be before Council shortly.

On November 27, 1991 Council adopted Ordinance No. 481-1991 revising the procedure for placing a retired member on the CRS Board of Trustees.  It was generally agreed that an election process would better serve the system rather than the current procedure where CMERA alone made the nominations.  This ordinance made that change and gave the Board of Trustees the authority to develop the necessary rules and regulations to accomplish this revision.  CMERA continued to help develop the new system that permitted any person receiving benefits could be nominated for this position if that nomination was supported by at least twenty-five retiree signatures.

At the January 20, 1992 Executive Committee meeting, Jim Krusling, the new President, said that it was necessary to amend the By-Laws to conform with the ordinance passed on November 27, 1991.  He appointed a committee to make this revision and see if any other changes were needed at this time.  He asked that this be done quickly in order that the revisions would be ready for approval at the spring meeting.

At the membership meeting on May 23, 1992, Jim introduced Phil Metz, the new Treasurer, and presented the revised Constitution and By-Laws to those in attendance.  After some minor explanation as to why the changes were needed, a motion to approve was made.  After a second, the motion passed unanimously.  The major change consisted in removing Section 5 of the By-Laws dealing with the responsibilities of the Retired Member Trustee.  

The newsletter for the fall meeting was sent out on October 24, 1992 together with a ballot for the election of the Vice President and Secretary.  The membership was advised that the Board was still working hard to obtain additional benefits.

At the spring meeting on May 22, 1993, Jim Krusling introduced Helen Lingenfelter the new Vice President and Myrtle Stickels the Secretary.  He mentioned that although the Board was working very hard there really was not much progress in obtaining any new benefits.  Jim introduced Ezell Adams, the newly elected retiree member on the CRS Board of Trustees, and he said he would be cooperating with CMERA in trying to obtain the additional benefits that they were seeking.

At the August 19, 1993 Board of Directors meeting, Jim mentioned that the Benefits committee had recommended some benefits, but these were voted down by the Board of Trustees.  He said that this just meant that we would have to redouble our efforts.

The fall newsletter also contained a ballot for the office of the President and Treasurer. It also noted that there was no progress on any additional benefits.

On December 28, 1993, Jim Krusling and Tom Stitt had lunch at which time Jim turned over the gavel and CMERA files to Tom, the new President.  He also brought Tom up to date on CMERA’s activities and their goals.  He wished him luck.

On January 20, 1994 Tom Stitt met with the Officers and Directors to get to know each other, establish committees, and set the course for the next two years, including a date for the spring meeting.

The spring membership meeting was held on May 21, 1994 at the Butterfield Center. Tom Stitt, the newly elected president, said that he and the Board would continue the efforts of the Association to obtain added benefits.  He also noted that the Finance Director, Frank Dawson, was seeking information from the William Mercer Company about possible ways of financing the increase for older retirees.  Frank was also contacting the University of Cincinnati (UC) about the increase since they were not in a position to support the benefit at this time.  Under new business, Tom mentioned that the CRS Board was trying to have direct depositing available instead of issuing monthly checks.

On July 8, 1994, Tom Stitt and Jim Krusling attended the Board of Trustees meeting and expressed CMERA’s frustration with the lack of progress in dealing with the request for an increase for the older retirees.  Mr. Dawson mentioned that he is trying to meet with the President of UC to resolve their lack of support for this benefit.  Tom called an Executive Committee meeting for August 17, 1994.  The main item at this meeting dealt with UC not wanting to participate in giving older retirees another increase.  The committee agreed that it would be wrong not to include UC retirees in any increase that city retirees might receive.  It was indicated that the Board of Trustees were to meet with UC soon.  If after that meeting the Retirement Board does not make a recommendation to City Council to provide an increase for older employees, CMERA would have to take this issue directly to City Council.  At the end of the meeting, Harvey Wilbekin advised everyone that his committee hoped to complete their work on revising the Constitution and By-Laws very soon.

On September 6, 1994, Ezell Adams was re-elected as the retired member of the CRS Board of Trustees.  This occurred despite a strong effort by CMERA to have Ed Volpe elected.

On September 30, 1994, Tom held another CMERA Board meeting at which time he said UC had refused to participate in the increase for their older UC and hospital employees.  It was subsequently agreed that CMERA should contact AFSCME and get them to join in direct contact with City Council for this much needed benefit.

At the October 29 general meeting with over a hundred in attendance, Tom brought everyone up to date on the status of the request for additional benefits.  He said the Board was going to solicit AFSCME’s help in going to City Council and emphasized that it was extremely important to have a strong representation of retirees at these meetings.

On December 15, 1994, Tom wrote to Sol Marble, President of AFSCME, requesting a meeting to develop a uniform strategy for going to City Council for additional benefits. The meeting was held and was very successful.

On January 10, 1995, Chuck Haley, Chair of the Nominating Committee, advised Tom that Helen Lingenfelter was elected Vice President and Ron Metz was elected Secretary.  These officers would serve for the next two years.  Later in January Tom and Joe Bischof met with Dwight Tillery, chair of Council’s Finance Committee.  As Chair of that committee, he also held an important seat on the CRS Board of Trustees.  The purpose of the meeting was to solicit his help in obtaining the Board of Trustees approval for the increase for older employees.  The meeting went well and he agreed to support our position.

At the February 1, 1995 Board of Trustees meeting, Mr. Tillery made a motion to increase older retirees benefits by 2% a year, starting with those that retired before January 1, 1983, with a maximum of 24%.  This motion included UC and hospital retirees with the City picking up UC’s cost amounting to a little over $400,000.  This motion failed.  He then made a second motion excluding UC and hospital retirees and this motion passed.  It should be noted that there were 1,063 City/MSD, 309 UC, and 281 hospital retirees involved in this decision.

On March 20, 1995, the Finance Committee held its meeting before a crowd of retirees overflowing Council Chamber.  At this meeting Tom Stitt presented a three-page report stating that CMERA had been working with the Board of Trustees since June 1, 1990 relative to the older retirees need’s for an increase in their pension.  This report gave detailed information as to why this increase was needed and made the following recommendations.

1. Urged the committee to support the passage of an ordinance that would increase older retirees benefits by 2% a year for each year retired before January 1, 1983, with a maximum of 24%, even though this excluded UC and hospital retirees.
2. Urged the committee to have City Council pass a resolution requesting the Board of the Directors of the University of Cincinnati to grant the same benefit increase to their 590 retirees in the City Retirement System.

On March 22, 1995, before a standing room crowd in Council Chamber, and after a similar presentation by Tom Stitt, Council, by a 7-2 vote, authorized the City Manager to prepare an ordinance providing the benefit increase for older retirees as recommended by the Finance Committee.  While CMERA thanked Council for this action, Thelma Merritt, a former hospital employee and other UC retirees, complained about being left out of this benefit.

Subsequent to the above success, CMERA’s Legislative Committee began working on another revision to the Constitution and By-Laws.  It had been decided that it was becoming too difficult to recruit someone to run for the President’s office.  This problem was caused by the fact that this usually required a person to come in and manage the Association without any knowledge as to what was going on.  Therefore, the Vice President position should be replaced with President-Elect.  In addition to this change there were other modifications that were needed.

The spring general membership meeting was held on May 20, 1995.  Tom Stitt brought everyone up to date with the City Council’s action of asking the City Manager to prepare an ordinance that would increase older City and MSD retirees benefits by 2% a year, starting with those that retired before January 1, 1983, with a maximum of 24%.  Although this ordinance would not include UC and hospital retirees, they should not be discouraged since the City Manager, Council members and CMERA officers were all pushing the University of Cincinnati to give their retirees the same benefit.

At the June 21, 1995 City Council meeting, Tom Stitt addressed Council in support of the ordinance before them that would increase older City and MSD retirees benefits by 2% a year, starting with those that retired before January 1, 1983, with a maximum of 24%.  Ordinance No. 215-1995 was passed on this date thanks especially to Dwight Tillery who took the lead in having this benefit approved.  On July 27, 1995 Omer Trippel resigned as one of CMERA’s Directors.  He had served on the Board for many years and was one of the key figures in pursuing additional benefits.  His background allowed him to gather valuable information that was incorporated into his letters to City Council and the CRS Board of Trustees for added benefits, especially dealing with older retiree’s needs.  In addition, he had testified before various committees to reinforce CMERA’s position on these matters.  CMERA extended their sincere thanks to him for all his years of faithful work.

At the fall membership meeting held on October 19, 1995, Tom outlined the details of the above legislation and again assured the UC and hospital retirees that everyone was still pressing the University to provide the same benefit.  He also identified who was running for President and Treasurer and reminded everyone that all ballots had to be returned by November 30, 1995.

The Years 1996 – 2000

Ralph Goldsmith became the new President and Phil Metz, who ran unopposed, remained Treasurer.  As previous Presidents, Ralph pledged to continue CMERA’s efforts in seeking needed benefits.

There were a number of key issues considered at the January 25, 1996 Board of Directors meeting.  These included what progress was being made on the benefit for older UC retirees, the need to audit CMERA’s books and what progress the Legislative Committee was making on revising the Constitution and By-Laws.  This last item was discussed in detail, especially the need to increase the membership fee to cover expenses.  The committee noted that it would consider all comments in making the final revisions.

At the CRS Board of Trustees meeting on February 7, 1996 the City Manager John Shirey informed everyone that UC Board of Directors had agreed to provide their older retirees with the same benefit recently received by City and MSD retirees.  In his letter of February 22, 1996 Ralph congratulated Shirey on his success and thanked him on behalf of CMERA and the retirees involved.

On March 26, 1996 William Keating, chair of the UC Board of Trustees, addressed a letter to John Shirey confirming their willingness to provide their older retirees with the benefit needed.  Unfortunately, this letter also included a qualifying statement that UC was considering going private, and that the details of that move had to be included in the way the benefit increase would be provided.  In other words, there would have to be some give and take between the City and UC to make things happen, and thus the benefit would not take place as easy as everyone first thought.

At the April 4, 1996 Board of Directors meeting, Ralph Goldsmith advised everyone on the university’s last letter and that the benefit for UC older retirees was still a matter that had to be dealt with.  Indeed, UC privatization could have a serious effect on the City retirement system, since in the transition some UC employees could leave the system while no new employees would be coming into the system.  All new employees would have to join the state retirement system.

At the May 1, 1996 CRS Board of Trustees meeting, Mr. Shirey said in his discussions with Bill Keating that the City would be willing to pay for the benefit for their employees in the CRS, but not for the employer contribution.  Regarding this proposal, UC said they would consider all these options.

At the May 18, 1996 membership meeting, Ralph outlined the status of the older UC retiree benefit and that he would keep on top of this issue.  It was also mentioned that Mr. Shirey has been very concerned about healthcare costs for active employees as well as retirees ever since he became City Manager.  At that time, modifications were being considered for active employees but it was something CMERA would have to watch very carefully.  Lastly it was noted that due to rising costs, the Legislative Committee was considering the need to increase membership fees.  One cost cutting item that was being considered was emailing information and newsletters instead of using the U.S. Mail.  Membership fees will be considered further at the next membership meeting with the revised Constitution and By-Laws.

Ralph called a special Board of Directors meeting for June 13, 1996.  At this meeting Harvey Wilbekin mentioned that there was a clear obstacle to getting the UC retirees their benefit.  The City Solicitor’s recent opinion placed payment responsibilities for all UC retirees fully with the university.  That means the City Manager’s previous offer was no longer valid, and that he hoped to meet with the solicitor in a few days on this matter.  That meeting was held on October 10, 1996 without any resolution to the problem.

At the October 19, 1996 membership meeting, Ralph brought everyone up to date on the benefit package for older UC retirees.  The privatization of UC was causing a real problem as to how this benefit should be financed.  AFSCME had taken steps toward legal action and CMERA was challenging the City Solicitor’s opinion.  The revised Constitution and By-Laws were reviewed including increasing membership fees to $5.00.  The passage of these documents also eliminated the office of Vice President and replaced it with the office of President-Elect.  Ralph then introduced Jim Nuxoll and Jim Jester who were candidates for this new office.  Everyone was further reminded that all ballots had to be returned by November 30, 1996.

A Board of Directors meeting was held on February 13, 1997 and Ralph announced that Jim Jester was the lucky winner for the new office of President-Elect.  After considerable discussion about the UC retiree’s benefit, it was agreed that CMERA should push the CRS Board of Trustees again on this matter.

On March 5, 1997, Ralph did write to the Board of Trustees providing a background on the UC older retirees problem.  This letter urged the Board to resolve this issue and provide these UC retirees with the same 2% increase that City and MSD retirees received on July1, 1995.  CMERA will continue to pursue this matter vigorously until resolved.

Those at the membership meeting on May 17, 1997, were advised that the older UC retirees benefit was still high on everyone’s list.  CMERA did meet with Dwight Tillery and several other Board of Trustee members, and hopefully they could influence the Board to put pressure on the University to take some action on this important benefit. Everyone was reminded of the increase in dues to $5.00 in accordance with the amended By-Laws.  Ralph Goldsmith asked again for email addresses from those that have one and said that he will be sending the newsletter out by email as part of CMERA’s effort to cut costs.

Those at the October 18, 1997 fall membership meeting were advised that the ballots were in the mail and they should be returned promptly.  They were also told that finally an ordinance was now before City Council that would provide older UC and hospital retirees with the same 2% monthly increase that City and MSD retirees received back in 1995.  This success was due to the continued efforts of CMERA, City Council members, and the CRS Board of Trustees.

On November 13, 1997 City Council did pass Ordinance No. 397-1997 that would increase older UC and hospital retirees benefits by 2% a year, starting with those that retired before January 1, 1983, with a maximum of 24%.

On December 2, 1997 Chuck Hayley, chair of the Nominating Committee, sent Ralph a note announcing the election results.  The winners were Jim Nuxoll President-Elect, Phil Metz Treasurer, and Joe Bischof Secretary.  Ralph said he would advise them of their good fortune.

At the spring membership meeting it was announced that CMERA was pushing for additional benefits since the performance of the system was doing well.  Hopefully, these efforts would prove successful.

On June 3, 1998 City Manager Shirey send a letter to the CRS Board of Trustees recommending the following benefit increases for retirees due to the excellent performance of the systems investments.

1. Current and future retirees would have the 3% annual increase compounded starting in 1999.
2. The first 3% compounded increase would be received in one year instead of two years.
3. A catch-up COLA as if the 3% compounding had been in place beginning in 1983 instead of 1999.
4. An increase in the lump-sum death benefit from $2,000 to $7,500.

In order to sell this package, the City Manager recommended that the employer’s contribution to the system be lowered from 14% to 7% for at least the next 5 years starting in 1999.

On June 20, 1998 Jim Jester sent a letter to the CRS Board of Trustees supporting the City Manager’s proposal of June 3, 1998.  The CRS Benefits Committee also supported this package.  On June 30, 1998 AFSCME also sent a letter of support.

On August 5, 1998, Paula Taylor, the Benefits Committee chair, recommended to the CRS Board of Trustees the following benefit improvements relative to the City Managers proposal.

1. A 3% compound cost-of-living adjustment one year after retirement for post-1998 retirees.
2. A catch-up 3% compound cost-of-living adjustment for retirees beginning two years after retirement for post-1982 retirees.
3. An increase in survivor benefit.
4. An increase in death benefit.

At the Board of Directors meeting on August 20, 1998, Jim Jester advised everyone that the Board of Trustees at its meeting of August 5, 1998 had approved the Benefits Committee benefit package.  It was noted that Mr. Keller had cast the only negative vote.  Tillery’s office was also going to contact Jim as to how CMERA might help when this package came before the Finance Committee of Council.

At the October 17, 1998 general meeting, Jim Jester brought everyone up to date as to the status of the benefits package that was before City Council.  He said that it was referred to the Finance Committee for their review, and then introduced Laurie Hacking, the new pension fund Manager.

Laurie distributed a thirteen-page handout that outlined the financial status of the system, and how the benefits would apply to retirees at different levels of retirement. She emphasized that the system was very sound, that there was no unfunded liability, the employee to retiree ratio was 1 to 1, and that as of 9/30/98 the system had assets of $2.3 billion. It was further noted that other benefits were being considered.  Jim concluded the meeting by urging everyone to attend the Finance Committee meeting on this matter.

On October 21, 1998 City Council passed Ordinance Nos. 388-1998 and 389-1998 providing the following benefits.  These included the ability of assigning the death benefit monies to a third party, an increase in the death benefit from $2,000 to $7,500, a 3% cost-of-living adjustment starting one or two years after retirement, an increase in survivor benefits and compounding the cost-of-living adjustment.

A CMERA Board of Directors meeting was held on February 24, 1999. The main purpose of this meeting was to agree on a program for the May meeting.  It was also announced that Laurie Hacking was no longer with the City and that they were looking for a replacement.

The spring membership meeting was held on May 15, 1999 with 87 in attendance. Everyone was advised about the benefit package that was passed on October 21, 1998, and was also told that the dental and vision benefit was still being held in the Finance Committee.  The Board would continue to follow this package very closely.

At the September 16, 1999 Board of Directors meeting, Jim advised everyone that the dental and vision ordinance had been indefinitely postponed.  The Nominating Committee of Hayley, Flynn, and Dye was moving quickly to develop a slate of officers. Finally, it was announced that the membership meeting would be held on October 16, 1999.

Everyone at the October 16, 1999 membership meeting was told the dental and vision benefit was on hold even though the Benefits Committee will be pushing this item after Council’s election.  The committee was trying to have the retirement office obtain a contract for $3.1 million.  They thought this would be reasonable since the system had a current value of $2.4 billion.  Ezell Adams answered a number of questions, and mentioned that although Tim Riordan was against this benefit, he still felt comfortable about the benefit since he thought they had seven yes votes on the Board of Trustees.

The Years 2000 – 2005

A number of key issues were raised at the January 1, 2000 Board of Directors meeting.

The Nominating Committee said they were not successful in developing a slate of officers for the President-Elect, Treasurer, and Secretary positions but would keep on trying.  This raised another problem in that Joe Bischof, the Secretary and Statutory Agent, will be going off the Board, and the State will have to be advised of this change.  Fortunately, Isabelle Schwarberg agreed to take on the agent responsibility.  Jim Nuxoll, the new president, mentioned that the membership meetings will be held on May 20 and October 21.

The Board of Directors met again on February 17, 2000 and the Nominating Committee announced the following slate of officers.  They were John Browarsky for President-Elect, Don Winterhalter for Treasurer, and Dick Brown Sr. for Secretary.  The ballot will be ready for the May meeting, and the new officers will serve until December 31, 2001.  During the meeting, the committee said several people they talked to said they had some interest in serving on the Board.  To maintain this interest, the Board created an “intern” position and those interested would be invited to future Board meetings without voting rights.  The status of the dental and vision benefit is still being followed very closely.  The subject of increasing membership was discussed.  Tom Stitt then agreed to work with the Legislative Committee in this effort.

There were 113 people in attendance at the May 20, 2000 general membership meeting.  The ballots had been sent out with the newsletter, and the new officers were introduced before Tim Riordan made his presentation.  He presented an eight-page report that reported that the system was very sound, that there are 4,235 active members and 4,300 retirees, and the system has a current value of a little over $2.6 billion.  It was announced that the dental and vision ordinance would be considered at the Finance Committee’s May 31, 2000 meeting.  Everyone was urged to attend this meeting.

On May 25, 2000, Jim Nuxoll sent a letter to the Finance Committee outlining the importance of dental and vision benefit for retirees and urging approval.

A Board of Directors meeting was held on July 6, 2000.  There were 145 ballots received and the above-mentioned slate of officers were elected.  They took office immediately.  Jim Johns was then introduced and he became the first “intern” or Associate Director.

On August 2, 2000, City Council passed Ordinance No. 284-2000 providing retirees with dental and vision insurance.

The Board of Directors held their meeting on September 14, 2000.  Details of the Association’s incorporation status were reviewed.  It was also mentioned that the Board had one too many Directors at this time and Phil Metz offered to resign.  This brought the Board down to its required fifteen members.  Chuck Haas and Keith Giles then gave an overview of the new dental and vision benefit and answered many questions. Hopefully, this will be implemented on January 1, 2001.

On October 14, 2000 Denny Davis sent Jim Nuxoll a letter advising him that the CRS Benefits Committee was asking the Risk Manager, Chuck Haas, to review the different healthcare plans being considered for retirees.  The thought here is to give retirees a choice of different plans and he emphasized that this is something that will be watched very carefully.

At the October 21, 2000 general membership meeting, it was announced that Phil Metz, Ron Metz, and Joe Bischof were retiring from the CMERA Board.  It was further noted that Joe had been on the Board since 1985.  Chuck Haas and Keith Giles then discussed the details of the new dental and vision benefit like they did at the earlier Board meeting.  The Board again urged everyone that has an email address to provide that information to Ralph Goldsmith.

A number of items were discussed at the January 25, 2001 Board meeting by Jim Nuxoll.  He mentioned the new dental and vision benefit will start on February 1, 2001 instead of January 1.  Jim Johns completed the annual audit and found everything in good order.  Ralph Goldsmith said establishing an email site at this time did not seem cost effective.  The next membership meeting was set for May 19, 2001.

At the March 22, 2001 Board meeting, Ralph reported that email address was now operational.  The address is CMERA123@AOL.com and is on his home computer. Chuck Haley said the Nominating Committee was trying to put together a ballot for those officers that will take office on January 1, 2002.  He was told that it was important to try and get minorities involved.  Nuxoll announced that the fall meeting was scheduled for October 27, 2001.

In the absence of the President, the President-Elect, John Browarsky, conducted the May 19, 2001 general membership meeting.  Those present were urged to bring other retirees to the meetings.  Ms. Sharon Murphy then went over the new Guardian Dental plan in detail and Ms. Nicole McMickle spoke about the new EyeMed plan.

A Board of Directors meeting was held on July 19, 2001.  The main item on the agenda was preparing for the fall meeting that was set for October 27, 2001.  John Browarsky presented a fall meeting program that was approved.  Chuck Hayley said the committee was contacting possible candidates for the Board of Directors.  Ralph Goldsmith presented copies of a proposed new logo for the Association.  He was looking for comments or approval.  He also noted that CMERA’s new website was active and was www.RCC.org/retirement.

On September 6, 2001, Joe Bischof addressed a letter to Bruce Fink relating to CMERA’s concerns that retirees’ future 1099-R forms could be incorrectly reporting retirees’ income.  Reporting retirees’ Medicare reimbursement as income was the cause of this problem.  On October 18, 2001, Keith Giles advised Joe as to how the Retirement Office would correct the reporting of retiree’s income.

A number of items were discussed at the fall general meeting held on October 27, 2001. Members were advised of the potential error that could occur on their 1099-R forms. The details of this possible error were outlined and, if they had any questions, they should contact Joe Bischof.  Ralph brought them up to date on the use of the new website and email address.  CMERA would be using email to advise members about future activities and in this way will save on mailing costs.  Unfortunately, the Nominating Committee was unable to obtain any candidates for the office of President-Elect, Treasurer, and Secretary.  They were looking for someone in attendance to hopefully fill these positions.

Late in 2001 CMERA sent a letter to the City Manager expressing its concern, that as the City was looking to modify the current employees healthcare care program, similar changes might be considered to the retirees’ program.  The Manager was urged to keep the retirees’ concerns on this matter in mind and fully inform CMERA as to possible changes before they actually occurred.

On February 19, 2002, Joe Bischof again addressed a letter to Bruce Fink indicating that the recently received 1099-R forms for 2001 were different than previous years and were very confusing.  Bruce indicated that the new form was used to try and quickly address the previous problem and thought with adequate tax advice retirees should be able to correctly complete their tax returns.  Joe pointed out that most retirees do not need tax advice and would not be able to deal with this new form.  Bruce then agreed to send a letter to all retirees in the hope that the information therein would alleviate the problem.

The Board of Directors held their meeting on February 28, 2002.  The new President, John Browarsky, expressed his concern that the office of President-Elect was not filled and looked to the Nominating Committee to address this problem quickly.  The 1099-R form problem was discussed in detail, and John asked all the Board members to help retirees as much as they could, based on the letter that would be sent out by the retirement system in the near future.

On March 6, 2002, Ely Ryder, an elected employee member of the CRS Board of Trustees, addressed a letter to City Council concerning Anthem’s demutualization.  He said the current value of Anthem’s shares was about $48 million and he was concerned as to what Council would do with this unexpected income.  His letter further justified why a portion of those funds should be returned to the retirement system.

CMERA’s next Board of Directors meeting was held on April 25, 2002.  The problem with the 1099-R forms was reviewed in detail and everyone thought that the letter the retirement system sent out did not fully resolve the situation.  Hopefully, retirees did not have too many problems, and the few that contacted Board members were given some help.  The Anthem demutualization situation was covered and it was agreed that this was a matter that would have to be watched very carefully.  It was also agreed that the updating of the Constitution and By-Laws should be done with the help of an attorney.

At the May 18, 2002 general membership meeting, Ezell Adams, the retiree member of the CRS Board of Trustees, discussed the Anthem demutualization funds, and said the Board of Trustees were concerned that the retirement system may not receive any of these funds.  He even said that court action might be needed to resolve this issue.  One of the speakers, Marcia Mendelson, outlined temporary employment opportunities for retirees who might be interested in some work.  Mark Patterson, an attorney, discussed a number of legal items that retirees might be concerned about.  Both speakers answered a number of questions.

John Browarsky conducted the September 5, 2002 Board of Directors meeting.  It was reported that the value of the retirement system funds was $2.36 billion on December 31, 2001 and was down to $2.19 billion on June 30, 2002.  This obviously was a concern to everyone.  He further suggested that the Nominating Committee should look for an attorney to join the Board because of all the possible legal problems facing the retirement system and CMERA.  The matter of raising dues was discussed and it was decided to maintain the dues at $5.00.

The fall general membership meeting was held on October 26, 2002.  Members were encouraged to offer Board members suggestions as to what type of speakers they would like to hear in the future.  Ms. Kahn then spoke about multiple sclerosis and what programs were available to help those that had this problem.  Bruce Fink then talked about what effect the stock market decline was having on the pension funds.  He said that although the system was overfunded, the staff was still working on ways to conserve costs.  One big item was the need to control healthcare costs.

CMERA’s Board meeting was held on February 20, 2003.  John noted that the value of the retirement system had declined further from $1.99 billion on December 31, 2002 to $1.91 billion on Feb. 28, 2003.  This was a concern to everyone and a matter that had to be watched.  He also noted that Nancy Simmons would be helping in upgrading the Constitution and By-Laws.  The matter of lost membership was considered and how to attract new members.

The spring general membership meeting was held on May 17, 2003 and was conducted by President John Browarsky.  He again encouraged everyone with an email address to provide that information to Ralph Goldsmith.  To reduce costs, all these retirees will receive the newsletter and other CMERA notices in that manner.  It was also noted that the Retirement System has created a website and that is a good way to keep current on retirement activities.  John again urged the membership to run for the various offices that will be open at the end of the year.  Bruce Fink was then introduced to bring everyone up to date on the healthcare plans.

The Board of Directors held their meeting on September 25, 2003.  Considerable discussion revolved around ways to cut costs.  No specific decisions were reached and the suggestion to raise dues was tabled.  The fall general membership meeting was set for October 25, 2003.  CMERA would try and get Chuck Hass or Bruce Fink to discuss the Anthem windfall at this meeting.  The Nominating Committee was encouraged to develop a slate of candidates for the fall meeting.

John Browarsky opened the October 25, 2003 general membership meeting with the pledge of allegiance and a moment of silence for departed members.  Before introducing the guest speaker, John again called on members to volunteer to serve on the Board of Directors for the positions of President-Elect, Treasurer, and Secretary.  Bruce Fink then covered the financial status of the retirement system.  He said the system had assets of $2.2 billion and liabilities of $2.3 billion, and that the system was 90% funded as compared to 84% funded a year ago.  Currently there are 6,200 retirees, spouses, and dependents covered by the system with insurance costs of $5,500 per member, and future healthcare plans would give members more choices.  Chuck Hass further reported that the rising cost of the healthcare program was exceeding the inflation rate by 10% and was certainly something that had to be dealt with in the future.

On January 8, 2004, Joe Bischof sent an email to Bruce Fink identifying their personal healthcare costs under the new plan.  This was not a complaint but merely an effort to let him know how the plan affected different members.  He noted that under the original plan his wife paid a maximum of $400 for prescriptions, and under the new plan her cost for 2003 was $875.  This increase was because she had a lot of $5 prescriptions and the new plan contained no maximum.

At the March 18, 2004 Board of Directors meeting, John announced that the spring general membership meeting would be held on May 15, 2004.  There were a number of topics being considered for this meeting from healthcare to the Anthem windfall.  There was further discussion as to whether AFSCME should be included to try and arrive at a policy as to how to deal with the Anthem fund issue.  During the meeting, John Browarsky introduced Stan Wellbrock who was a guest and a possible future Board member.  The need to continue upgrading the By-Laws was also reviewed.

The newsletter was sent out announcing the spring general membership meeting that was to be held on May 15, 2004.  This newsletter also contained an insert noting that “Retirement Planning Doesn’t End When You Retire“.  It outlined a number of different financial planning programs retirees might want to consider.  It was felt that this might stimulate some interest in hearing more about these programs at future meetings.

The spring general membership meeting was held on May 15, 2004.  At this meeting Bruce Fink and Chuck Hass noted that the assets of the system currently amounted to $2.3 billion.  It was noted that the City was currently contributing 11% of payroll and that healthcare costs had risen 29% in the past two years.  This increase in healthcare costs was due in part to early retirements, demand for new procedures, and quality of care costs demanded by the Federal Government.

The Board of Directors held their meeting on September 23, 2004.  It was decided that Bruce Fink would be invited to speak at the fall general membership meeting that was scheduled for October 23, 2004.  He would be asked to cover Medicare and estate planning.  There was still a lot of concern about the Anthem windfall, but CMERA was not sure as to what steps should be taken to try and retrieve some of these funds for the retirement system.  The Nominating Committee then introduced Don Beets for the office of Secretary and Stan Wellbrock for the office of Treasurer.  They were not able to obtain a candidate for the position of President-Elect.

By the end of 2003, it was obvious that the CRS was facing a crisis that required action.  In 2004, the CRS issued the following:

Summary of the Situation at the End of 2003

“The justification for the benefit improvements and employer contribution reductions granted as a result of the equity market bubble of the late 1990’s had been reversed by the market correction that began in early 2000.  The over-funded status that the plan enjoyed in 1999 has turned to one that is under-funded at 94% as of the end of 2003.  The 1999 surplus was spent on improved benefits and reduced employer contributions with the belief that the remaining surplus in the plan was sufficient to safeguard the promises made under the plan.  That has not held true.

The plan had been hit by unexpected events, most notably the extraordinary increase in health care costs and dismal investment returns.  Essentially, those who retired before 2003 had paid into the plan based upon benefit assumptions that no longer existed, actively employed members were contributing to the system based upon forecasts that were no longer valid, and the City was contributing at a rate that is insufficient to maintain the long-term viability of the plan.  Each of these three groups had benefited, albeit not in equal measure, from the decisions made in the late 1990’s.  Now with the realization of events unforeseen at the time, concessions are required from each benefited group.”

Editor Note: This was just the foreshadowing of events to come that would forever impact the retirement of thousands of City employees.

On September 30, 2004, William Moller, Secretary for the CRS Board of Trustees, sent a report to the Board of Trustees making certain proposals to meet the pension fund obligations.  This report included a motion asking the Board of Trustees to instruct Mercer, the system’s actuary, to formally incorporate the assumptions and plan design amendments he was proposing into the annual actuarial valuations.  These amendments covered a wide range of changes, from criteria changes for evaluating the system, to reduction in benefits to some of the more recent retirees.

In October of 2004, two Water Works retirees (John Paddock & Bill Reeves) became aware of William Moller’s memo to the CRS Board of Trustees.  Since they were concerned about how the memo’s recommendations would adversely affect recent retirees’ healthcare benefits, they contacted CMERA and asked for an immediate meeting with CMERA.

John and Bill did meet with CMERA’s Executive Committee and explained how the proposed changes would affect recent retirees.  Then they asked CMERA to contact the CRS Board of Trustees and go on record opposing any changes.  However, the Executive Committee decided that CMERA should not take a stand on this memo at this time.

The fall newsletter indicated that a general membership meeting would be held on October 23, 2004.  Because there was only one candidate for the office of Treasurer and Secretary, there would be no ballots sent out to the membership.  It was announced that the new officers were Stan Wellbrock as Treasurer and Don Beets as Secretary. There was also an urgent need to find a candidate for the office of President-Elect since John Browarsky had already exceeded his term of office.

There was a good attendance at the fall general membership meeting on October 23, 2004.  John again introduced the new officers and asked if anyone present was interested in the office of President-Elect or knew of someone that might be interested. The speaker Bruce Fink noted that the system had suffered a slight decrease and had a current value of $2.27 billion.  He also stressed that healthcare costs had risen 40% over the past three years and this was a serious matter that the system would have to deal with in the near future.

Because of CMERA’s neutral position towards the potential healthcare changes, John Paddock and Bill Reeves saw the need to take matters into their own hands.  They contacted many retirees and encouraged them to attend the next CRS Board of Trustees meeting and oppose any changes.  About 30 or 40 retirees attended the meeting.  Several retirees, including Bill Reeves spoke eloquently in opposition to the proposed changes.  The Board said they would take their comments into consideration.

On November 3, 2004, the City Manager, Valerie Lemmie, sent a notice to non-represented management employees relating to rising healthcare costs.  Therein she stated that the City would have to shift more of the cost sharing to employees in order to balance the next biennial budget.  Although it was not stated in this notice the biennial budget paralleled the content contained in William Moller’s September 30^th report addressing retirees.

John Browarsky called a special Board of Directors meeting on November 18, 2004.  At this meeting Bruce Fink outlined in detail the retirement system’s healthcare cost problems, and the details of William Moller’s report of September 30, 2004.  He stressed that Moller’s recommendations and Lemmie’s notice to current employees were all changes needed to balance the City’s budget.  After considerable questions from the Directors, a motion was made and approved to have CMERA support Moller’s recommendations.  Don Beets was the only dissenting vote.

On November 22, 2004, John Browarsky addressed a letter to the Board of Trustees of the Cincinnati Retirement System, indicating that CMERA supported (not approved) the proposal to meet pension obligations as identified in the September 30, 2004 memo to the Cincinnati Retirement System (CRS) Board from William E. Moller.

Having achieved no results at the recent CRS board of Trustees meeting, John and Bill continued to contact other retirees including Denny Davis, John Hines, Don Beets, and Ray Buschmiller.  The movement slowly gained momentum, and with CMERA’s recent letter to the CRS Board of Trustees supporting Moller’s memo, more and more retirees took interest in the movement.

At the December 2, 2004 CRS Board of Trustees meeting, there was a somewhat larger crowd of retirees present opposing any changes to the retiree’s healthcare program.  Unfortunately, the Board of Trustees took no action on Moller’s memo.  While this new group was not an official organization, it was achieving some progress and began holding regular scheduled meetings.  While various strategies were discussed at these meetings, it was clear that organized opposition to the Moller memo was necessary.  The decision was made, and nearly 1,000 postcards were sent to retirees who would be affected by the healthcare changes.  These postcards encouraged them to demonstrate their opposition to the proposed changes.

On December 12, 2004, Denny Davis sent a detailed report to John Browarsky objecting to CMERA’s position on Moller’s September 30, 2004 memo and requesting an immediate meeting with CMERA’s Board of Directors.  In response to this request, John sent a memo to all Board of Directors about Denny’s request.  In this memo he said that he did attend the CRS Board of Trustees meeting of December 2, 2004, and at that meeting the Board of Trustees voted to accept but not approve Moller’s memo of September 30, 2004, and to receive comments for 30 days.  After 30 days, a proposal would be approved by the CRS Board that includes pertinent comments, and said proposal would be forwarded to City Council for final disposition.  He asked all Board member to call him with their thoughts on the matter, and whether the Board should meet during the week of December 27, 2004 with Denny Davis.  If a meeting is held, he said he would invite Denny and only two other representatives.

John Browarsky did hold a special board meeting at which time Denny Davis was given the opportunity to express the concerns of those retirees who would be affected if Moller’s new proposal was adopted.  Kevin Shepard was also in attendance and supported Denny’s concerns.  The Secretary, Don Beets, also added words of support.  Considerable discussion followed and since John had already sent a letter to the Board of Trustees, it was felt that CMERA should not send a second letter, but it would closely follow this potential change in benefits.  CMERA could then express any new position it may have if that matter ever reaches the floor of City Council.  There was some thinking that the Board of Directors may have acted too quickly without hearing both sides of the issue, but it was too late to change that decision now.

At the January, 2005 CRS Board of Trustees public meeting, there were nearly 400 retirees in attendance.  Denny Davis, John Browarsky, and others spoke in opposition to any healthcare changes.  After the meeting, several Council Members and the Mayor expressed opposition to the changes and indicated that there was a need for more study before any decisions were made.

With the CRS Board of Trustees putting healthcare changes on hold, the new opposition group began to formalize its efforts with regular meetings; extensive financial analysis of the pension fund’s financial reports; creation of a website; and continued recruitment of additional retirees to the cause.  The name of CincyRetirees was taken in order to distinguish this group from CMERA.

The CMERA Board of Directors held another special meeting on January 27, 2005. John Browarsky advised everyone that he would complete his second term as President on December 31, 2005 and there was a dire need to obtain a nominee for President-Elect.  John also pointed out that he could not find a list that indicated when the terms of the various Directors ended.  Under these conditions there was a need to ask current Directors when their terms ended, and determine who was eligible to continue to serve. During this process several indicated they would be willing to leave the Board if that worked out in the best interest of CMERA.  This process allowed the Board to be updated, and it was emphasized that an accurate record of those serving on the Board should be maintained in the future.  Don Beets then brought the following issues to the attention of CMERA’s Board.

1. There is no position in the By-Laws as Associate Director or the positions voting rights.
2. The policy of how the minutes are distributed is not clear.
3. Should CMERA develop a web page?  Don and Ralph would investigate this.
4. The need to assign pre-paid dues to restricted funds.
5. Life membership dues were eliminated in 1995. The members who are not paying their dues need to be notified.
6. Should the dues be raised to $10.00 or the membership increased? It was agreed to try to increase membership.
7. There needs to be a system to notify those with expired membership to bring their membership up to date.
8. The Butterfield Center is closed.  A new location must be found quickly.
9. The President needs to file a formal “Certificate of Continued Existence” with the State before September of this year.
10. CMERA may want to update its statutory agent with the State.

At the end of the meeting, John passed out the latest benefit proposal that was considered at the CRS Board executive retreat that was held on December 16, 2004. He said that this latest proposal was brought to a vote with five ex-officio members voting in favor and three elected members voting opposed.  The motion failed since it did not receive the required six favorable votes.  He then appointed Don Beets, Ralph Goldsmith, George Dye, and Jim Johns to review the Constitution and By-Laws and make recommendations to the Board.

On February 16, 2005, William Moller, the Secretary for the CRS Board of Trustees, sent a report to the CMERA Board outlining the changes to the plan that were approved by the Retirement Board at its February 3, 2005 meeting.  The CRS Board then asked the Retirement System to invite all retirees, active members, and any interested taxpayers to a public meeting on March 3, 2005.  The purpose of this meeting was to receive comments on the proposed plan changes.  Written comments would also be received until March 18, 2005.

John held another special Board meeting on February 24, 2005.  In addition to the Directors and Associate Directors that were present, there were potential new Directors present.  They were Linda Chandler, Shiela Mudd Baker, John Hines, Prem Garg, and Rick Pfliegel.  John was then pleased to announce that Don Beets had offered to accept the position of President-Elect.  A motion was quickly made and seconded and Don was unanimously approved for the position of President-Elect. 

Because of the uncertainty of the terms of the current Directors, Don suggested to John that he declare that an emergency condition existed and immediately appoint five new Directors.  John did this and at the same time extended the terms of any existing Directors that needed their terms extended.  John said he would contact the Directors that were not present and determine if they wished to stay on the Board or if they would rather leave the Board.  Since the Secretary position was now open Rick Pfliegel offered to fill that position and was quickly confirmed.

Since John’s term of office would end on December 31, 2005, he asked the Nominating Committee to quickly proceed with finding a candidate for the office of President-Elect that would be open the first of the year.  Don then reported that the re-write of the Constitution was complete and the By-Laws should be done soon.  He also mentioned that a third document was being created.  This document would provide detailed guidelines and procedures to help CMERA operate more efficiently.  Hopefully, all of these could be completed for approval at the October general membership meeting. One last item dealt with the need to decide where to meet in May.  Linda Chandler said she would help Stan Wellbrock to find a location.

A public meeting was held to present and receive comments on the contents of the February 16, 2005 Moller report to the CRS Board of Trustees.  There was considerable attendance at this meeting and obviously many concerns expressed about portions of the report.  Here again, Denny Davis and Kevin Shepard went into great detail as to how the newer retirees would be affected.  They also offered many suggestions as to how the system could deal with rising costs without affecting retirees.  John Browarsky also expressed CMERA’s concerns.

A CMERA Board of Directors meeting was held on April 15, 2005.  John advised everyone that he had contacted all the Directors and outlined the makeup of the Board and its Associates.  He also appointed Paul Smith to chair a committee that would look into the healthcare situation.  It was noted that CMERA will open a post office box to receive all its mail.  Everyone was then asked to review the revised Constitution and By-Laws as presented by Don Beets so they could be finalized at the next Board meeting in several weeks.

John Browarsky held another Board meeting on May 11, 2005 at which time he distributed a new Board of Directors directory.  Rick Pfliegel then gave a presentation regarding the establishment of a webpage for CMERA.  The Board approved proceeding with the establishment of the web page.  The revised Constitution and By-Laws were discussed in detail, and the By-Laws were approved at this meeting.  Both documents were to be presented at the May general membership meeting.  As a last item considerable discussion evolved around the need for more retirees to be seated on the CRS Board of Trustees.  It was agreed that this matter should be discussed further at the May meeting.

At the May general membership meeting, the revised Constitution and By-Laws were discussed in detail.  After answering many membership questions, they were told that these documents would be considered further at the fall meeting.  The membership was also advised that the Board felt that there was a need for retirees to be better represented on the CRS Board of Trustees.  Hopefully, this could be done by replacing one of the current elected members with a retiree.  They indicated that this was to be a high priority item for next year when the new officers and directors get fully involved.

The next CMERA Board meeting was held on August 26, 2005.  It was held in one of the conference rooms of the Water Works offices on Spring Grove Avenue.  Since Don Beets would be the next president, these facilities would work out fine.  It was noted that CMERA’s new post office box was in operation at the Cheviot branch.  Rick Pfliegel then gave a report on the status of the web page that was identified as www.cmera.org. He also reviewed how CMERA could reduce printing costs by doing a lot on their own. Don Beets then suggested that CMERA establish a “Norb Miller Award.”  This was approved with the understanding that none of the expenses for this award would be from CMERA‘s operating fund.  There was no further discussion as to how the award funds would be generated.  The need to generate more operating revenue was also considered and it was agreed that the membership dues should be increased to $10.00. Paul Smith reported on behalf of his Benefits Committee and outlined the broad-based guidelines that had been developed and requested Board members to offer their comments.  The need to have more retirees on the CRS Board of Trustees was emphasized, and it was agreed that this would be a high priority item for next year.  John reported that the CRS Board of Trustees met on September 1, 2005, and that the value of the system was $2.42 billion as of July 31, 2005.  It was also noted that the system was 94% funded as of December 31, 2004.  Of one concern is that retirees benefits will exceed active payroll in about two years.  In addition, retiree benefits are growing faster than the active payroll.

On September 13, 2005, Don Beets received from one or more anonymous donors, a $400 check for financing the “Norb Miller Award“ program.  He then instructed Stan to be sure and keep these funds in a “Norb Miller Award” restricted account.

The fall newsletter went out announcing the date of the fall general meeting as October 15, 2005.  This meeting was to be held at City Hall Council Chambers.  This was to be an important meeting since the revised Constitution and By-Laws were to be fully discussed, and the new Medicare Plan D program would be reviewed.  In addition, the new governing Board members would be introduced and the first “Norb Miller Award” would be presented.

The October 15, 2005 general membership meeting was held at City Hall.  John Browarsky introduced the new officers and directors and passed the ceremonial gavel over to Don Beets, the new President.  Don indicated that the Constitution and By-Laws had been revised in order to more closely follow the way the newly established Governing Board felt the Association should be managed.  After considerable discussion, these documents were approved.

Don then noted that a third document known as the “Governing Policies” was being written that would provide specific guidelines as to how CMERA would carry out its daily operations.  It was felt that this document would help everyone on the Governing Board to work more uniformly.  He then outlined a number of new committees that were formed and what their responsibilities would be.  Members were then told about CMERA’s new post office address and encouraged them to recover that address from the last newsletter.  Don then turned the meeting over to Sheila Baker.  Sheila then went into the details of why CMERA had established the “Norb Miller Award” and then announced Joe Bischof as the first award winner.  Joe was obviously completely surprised and accepted the award with great thanks.  He also stressed that CMERA’s efforts in the past had been directed toward obtaining new benefits, and that the new Governing Board would need lots of help from the membership in retaining those benefits.

The meeting was then turned over to John Walsh and Chuck Hass who reviewed the Medicare Plan D program and how this interfaced with the retirement system healthcare program.  In general, it was their opinion that the retirement systems program was much better, and that most retirees would not have to consider the Plan D program.  They said this with a word of caution in that everyone should review their own circumstances very carefully.

Several days after the membership meeting, Don asked Joe Bischof if he would be willing to Chair the Norb Miller Award Committee, and that he could select the other members of the Committee.  Joe said he would for one year and quickly invited Jim Johns, Phil Metz, and John Browarsky to be on the Committee.  They all accepted and the Committee was off and running.

Epilogue – Part 1 By Joe Bischof

As the Governing Board enters 2006, it is interesting to note that they do so with the fifth revision of the Constitution and By-Laws that was approved late in 2005.  Also, their President, Don Beets, is wearing a second hat.  He recently won the retiree position on the Board of Trustees of the City of Cincinnati Retirement System.  In this dual role, he is in a position that should be of great value to the retirement system and retirees since he will be able to look at all issues from both sides of the coin.  Obviously, he will not be able to do this alone, and it will be up to CMERA to give him plenty of help.  In delegating authority to officers, directors, and committees, Don is looking for everyone’s full cooperation so that CMERA can continue to address retirees needs.

This concludes Part 1 of “The CMERA History.”  Since its inception, CMERA’s focus was always on the retiree.  Much of its first 25 years were engaged in obtaining new benefits.  As we look back over the years, it is heartwarming to see what the Association has accomplished.  In reviewing the last few years of its history, however, it is obvious that the CRS and City Council have been concerned about economic forces, particularly healthcare costs, advancement in longevity; imprecise investment forecasts; the University and its hospital going private; and the City reducing its staff.  These factors have adversely impacted the resources of the CRS.  Actuarial reports now show that retirees outnumber current employees.  The new reality is that the pension fund is no longer fully funded.  Having said all of that, I am confident that CMERA, with its new energetic Governing Board, will successfully forge ahead as the Association has done in the past.

Part 2 (2006 – 2025)

Prologue by Chuck Cullen

I, like Joseph Bischof, profess to have a literary license.  Mine was awarded to me in January 1975 from Xavier University in the form of a bachelor’s in arts degree (English).  Hopefully, my education, experience with the City, and work in the private sector will enable me to continue the history of CMERA begun by Mr. Bischof.

To me, CMERA’s history clearly reveals how retired employees of the City of Cincinnati have remained vigilant to advocating for their future.  This history reflects how those retirees band together for comradery, information, and the preservation of earned pension and healthcare benefits.  Starting in 1980, dedicated retirees have monitored the activities of City Hall as it manages the city around it.  Initially, their efforts focused on acquiring enhanced benefits for retirees.  In more recent years, their efforts have concentrated on preserving the pension and benefits once promised to them. 

Like most governments, the City of Cincinnati is not a static entity.  In fact, to be viable, it cannot remain stagnant.  It exists within an interdependent environment where components like demographics, public safety, transportation, climate, economics, politics, and technology undergo continuing transformation.  And when one or more of these elements change, the City must adopt new laws and/or policies to survive.  Unfortunately, cities like Cincinnati often focus on short-term solutions and ignore the long-term consequences of their actions. 

Sometimes, these new laws and/or policies divert water from the financial reservoir that was constructed to provide substance to the very people who spent years filling that reservoir.  In the case of our pension, CMERA now monitors the financial reservoir under the terms of a Collaborative Settlement Agreement (CSA) as amended.  The waters in that reservoir are now separated into a pool for pensions and a pool for healthcare.  In addition, the annual amount of water flowing into that reservoir and the conditions under which water is removed are mandated by a Consent Decree that governs the CSA.  Many retirees will never realize all the water they were once promised, but thanks to some heroes who fought to stop the City’s water diversions, retirees will receive some measure of what they were promised.

CMERA is also not a static entity.  It, too, is impacted by the environment in which it exists.  As the needs of retirees have changed, so too has CMERA as demonstrated by modifications to its Constitution, By-Laws, and Operating Guidelines.  I’m not sure if Mr. Bischof truly understood the implications of the “new reality” he referred to in his Epilogue.  How could anyone predict the long-term financial sacrifices that retirees now endure?  For many, the new reality is actually a bad dream.

The Years 2006-2010

Like the City and the rest of the nation, CMERA was experiencing increase costs.  Annual membership dues were adjusted to $10.  Those who had previously purchased “lifetime” memberships were assured that their “lifetime” membership meant exactly that and that they would not be subject to the higher dues.

With the future of benefits in question for all retirees, the organization called CincyRetirees merged with CMERA in April 2006 to create a stronger voice against any changes.

CMERA officially changed the meaning of R in its name.  While the change from Retirees to Retirement was approved some years earlier, steps were taken in 2006 to complete the change.

The City also notified CMERA that it was no longer required to provide mailing addresses for retirees.  This has limited to ability of CMERA to get new members.

The City had also been exploring potential savings for the CRS.  Increasing costs along with stagnant investment returns were having an adverse impact on the retirement fund.  No longer was the pension fund trust fully funded.  The City took the position that the pension is protected but everything else (medical insurance, COLA, dental insurance, death benefits, etc.) was not guaranteed and could be modified – or even eliminated.  The focus of the reductions was on medical insurance since it had the greatest price tag of all the non-pension benefits.  The City based their proposed reductions on a legal opinion issued in 2005 by the City Solicitor.

It wasn’t just Cincinnati.  Nationally, the decade-long expansion of the US housing market peaked in 2006.  Within a year, residential construction began declining.  In 2007, losses on mortgage-related financial assets began to cause strains in global financial markets, and by the end of the year, economy entered a recession.  Suddenly several large financial firms experienced monetary distress.    In August 2007, there was serious concern for the financial markets, particularly the exposure of large institutions market for their subprime mortgages.  Remember sub-prime mortgages?  In the spring of 2008, the investment bank Bear Stearns was acquired by JPMorgan Chase with the assistance of the Federal government.  In the same year, Lehman Brothers filed for bankruptcy.  Next AIG, Citigroup, and Bank of America sought support from the Federal Government.  They were considered “too big to fail.”  The Federal government provided programs and funds to limit the harm to the economy – but it wasn’t enough.  In the fall of 2008, the economic contraction worsened, resulting in the Great Recession.  While the US economy bottomed out in the middle of 2009, the recovery in the years immediately following was unusually slow.  During those years, US gross domestic product fell by 4.3 percent, making it the deepest recession since World War II.  It was also the longest, lasting eighteen months.  The adverse impact on the City’s pension fund was significant.

By 2007, the City had begun its endeavors to have employees pay more for healthcare costs.  CMERA, along with CODE and AFSCME wrote to the City Manager in a letter dated August 31 to remind him of the guaranteed benefits for retirees.  Retirees were then assured that any changes would not impact them.  The following is from a memo dated October 31, 2007 by Milton Dohoney, City Manager, to the Mayor and Members of City Council.

There continues to be questions surrounding the retiree health care benefits, so this statement is being used to clarify any confusion or misunderstanding of the Administration’s position relative to health care for current retirees.  That is, those people who were already retired prior to the Early Retirement Incentive Program.  The intent of Council is clear and, therefore, the Administration has not now nor does it intend to do anything to alter the free health insurance currently enjoyed.  From the Administration’s perspective the issue regarding current retirees medical coverage is closed.

Within a few years, the October 31^st Halloween memo “treat” from the City Manager became a Halloween “trick.”  Yes, the national economic crisis of 2007-2010 was the worst since the Word Was II and the worst for the Retirement System in over 50 years.  Eventually, the economic foundation of our nation and nations around the world were shaken.  The value of stocks plummeted.  While the Federal Government provided relief to many of the financial institutions and major industries, there was no assistance for pension funds.  The economic situation forced City Council to make some difficult decisions regarding its operating budget.  So, at a time when the pension fund needed more funds, the City was unable (perhaps unwilling) to provide it.  

In early 2008, Council considered several benefit reductions for retirees.  After much debate, Council passed a motion in February 2008 to maintain the retiree’s benefits for the time being but established a Task Force to investigate the retirement system.  That Task Force made a series of recommendations regarding the medical and prescription plans.  They also made recommendations on addressing the unfunded liability.  The choices for medical plans were reduced and a 5/15/30 prescription plan was enacted later that year.

From the City Council Task Force September 2008

After several weeks of thoroughly scrutinizing and exhaustively reviewing CRS plan provisions, public fund comparisons, actuarial data, and retirement benefits, the Task Force produced a listing of recommendations for the City Council.  The recommendations, as a package, provide for the long-term financial security of the CRS.  The Task Force carefully constructed the package of benefits with three over-riding considerations: 1) long-term financial security of the CRS; 2) fairness to retirees regarding benefits; and 3) City’s ability, long-term, to pay for retirement benefits.

The package of recommendations requires sacrifice from retirees, active employees, and future employees.  Further, it requires discipline on the part of the City to pay in entirety the Annual Required Contribution every year.

The Task Forse recommended:

• Changing to a Medicare Advantage plan for retirees with carve-out for some,
• Increasing employee contribution rate to 9%, and
• Modifying retirement eligibility for new retirees.

The Task Force also recommended:

• The City Budget Office should develop a policy that emphasizes and insures a disciplined payment of the Annual Required Contribution to the CRS.

In January of 2008, Tom Gamel accepted the position of President of CMERA, replacing Don Beets who had served admirably on the Governing Board for many years.

By the fall of 2009, reductions in the medical benefits were approved by an Ordinance that included the following statement:

WHEREAS, the estimated market value of the Cincinnati Retirement System pension fund at the end of calendar year 2007 was $2.65 billion, and due to the subsequent collapse of financial markets, its estimated market value at the end of October 2008 was $1.85 billion;

Council did allow some “carve outs” to address concerns of those with lower pension amounts.  However, to ensure healthcare for retirees would never be free again, City Council cancelled the practice of reimbursing of Medicare costs.  In addition, Council formed another Task Force to look at more reductions.

City Council Task Force #2 met on January 5, 2010.  The meeting focused on:

• Increasing contributions to the retirement fund from the City and employees,
• Making retirees and their dependents pay 100% of their vision and dental plans,
• Paying a higher percentage of healthcare insurance premiums,
• Discontinuing the $7,500 death benefit,
• Changing the COLA for future retirees, and
• Modifying the medical plans.

In June 2010, the City Council Task Force #2 released their report.  The Executive Summary stated:

“The Cincinnati Retirement System (CRS) currently has approximately $3 billion in liabilities, $2 billion in assets, resulting in $1 billion in unfunded liabilities.  If over the next five years, the City and employees continue to make contributions at the rate provided by the current funding policy (17% and 7% – 9%, respectively) and the retirement plan assets achieve the expected 8% long term rate of return, the plan assets will decrease by $20 – $30 million per year, and the unfunded liability will increase to more than $1.5 billion.  In 2009, CRS expenses of $198 million (pension payments, healthcare expenses, and operating costs) exceeded revenues of $46.5 million (employer and employee contributions, and Medicare Rx reimbursements) by $151 million.  This is further exaggerated by the impact of the unfunded liability on the City’s annual required contribution.

The Summary continued by stating:

Using the 12/31/08 actuarial valuation figures, updated with investment gains in 2009 of 19.76%, and including the changes effective 1/1/10 recommended by Task Force 1 (and approved and modified by Council), the pension and health care funds combined are expected to become insolvent in 18 years.  This includes 2 years of solvency that were gained by Task Force 1 changes.

The report then listed several pension options. 

There are four plan options presented below. Each option represents a different combination of benefit changes.  The changes are primarily focused on active members who are not yet eligible to retire.  The core pension benefits for retirees and those members eligible to retire are protected by law and should not be changed.  This group is impacted only by the proposed changes in the death benefit.  The death benefit is not considered a core benefit and can be changed or eliminated for this group.

When it came to healthcare, the report indicated:

Retiree healthcare coverage is not a statutorily provided benefit by the Cincinnati Retirement System.  However, it is strongly desirable to continue to provide healthcare coverage to current and future retirees.  Many retirees were not required to pay Medicare taxes during their City employment and therefore are not eligible for “premium free” Medicare Part A (generally, inpatient hospital expenses).  Currently, CRS replaces Medicare Part A for these retirees.  Steps must be taken to support the long-term solvency of the healthcare trust.

• No further employee or employer contributions will be allocated to the healthcare trust until the pension trust has achieved a minimum 80% funded level.
• All retirees are to be moved to the same healthcare plan provided to active employees effective 1/1/2011.
• Eliminate reimbursement of Medicare Part B premiums for spouses, and possibly retirees.
• Require retirees to pay 100% of premiums for dental and vision benefits, if continued coverage is desirable.
• Develop a cost sharing arrangement for all retirees tied to years of service and age, with consideration for low-income retirees.
• Implement a minimum age requirement of 55 to be eligible for retiree healthcare coverage.  And, consider a higher cost sharing arrangement for retirees before a certain age requirement, such as age 60.
• Develop a separate investment strategy for the healthcare trust assets, balancing the need for capital preservation.
• Assign a committee to focus on developing a comprehensive approach to providing retiree healthcare coverage, with a focus on rewarding smart consumerism, supporting wellness and prevention initiatives, and seeking potential purchasing cooperatives.

The Task Force #2 report was then followed by a report from the CRS presented to Council on August 5, 2010.  The CRS report began by stating:

The Board wants to acknowledge that CRS participants, both active and retired, are not the villains in this unfortunate situation.  And it’s fair to say that the out-of-control costs are not the fault of any single constituency within the City past or present.  

Rather, over the years, benefits were initiated, enhanced and embellished with good intentions, but perhaps too little analysis.  And once established they were then swept along by the same macroeconomic forces that have buffeted all enterprises and institutions, private and public.

The City has shown it cannot afford to pay its share of contributions for the pension and health care plans with substantial legacy costs that have come home to roost.  What’s the recent history?

Year	Required Contribution	Actual Contribution	Percentage of Requirement
2008	$61,269,221	$28,224,000	46.1%
2009	$53,630,000	$32,247,000	60.1%
2010	$125,571,000	$31,818,007	25.3%
2011	$74,818,000	$TBD

After some debate, Councilmembers asked for additional consideration of several items.  Consequently, CRS submitted a revised report to City Council on November 4, 2010.  In that revised report, the following recommendations were made:

The CRS Board has studied the following changes and recommends their adoption, subject to a comprehensive set of grandfather and transition rules to protect participant benefits earned to date.

• COLA will be based on simple interest, not compound
• COLA will no longer be guaranteed at 3% but will be indexed to follow the CPI-U up to a maximum of 2% per year
• With the assistance of legal counsel, the Board will review pension benefits being paid to retirees and beneficiaries to determine what changes, if any, may be made to those benefits.
• The final average salary used in benefit calculations will be changed from a 3 year average to a 5 year average.
• Retirement ages and service requirements will increase.
• With the exception of the spousal joint and survivor death benefit for active participants, all additional survivor death benefits, and attendant health care coverage, will be eliminated.
• The retiree $7,500 death benefit will be eliminated.
• Initially, move all retirees to the same medical plan and same premium cost share approach as actives (excluding certain PPA requirements).
• Future premium cost sharing approaches for all retirees will be considered and may be based on years of service, age, or both.
• Require retirees to pay 100% of premiums for dental and vision benefits if they choose to continue coverage.
• Eliminate the Medicare Part B subsidy for all retirees and spouses.
• Set 57 as the minimum age requirement for retiree healthcare eligibility.  This will correspond to the new Early Retirement Age (age 57 and 15 years of service) within the pension plan.
• Increase cost sharing for retirees prior to age 65.
• Reduce or eliminate employer contributions to the health care trust until the pension trust achieves an 80% funded level.

Action to stop the City from implementing the reductions began in 2009.  On December 23, 2009, several retirees with Tom Gamel as lead plaintiff filed a lawsuit claiming that retirees had a contract with the City and the City could not disregard their obligations under that contract.  The plaintiffs also requested a Temporary Restraining Order (TRO) to stop the newly approved changes while the lawsuit proceeded through the court.  The TRO was denied on December 31, 2009, thus allowing the City to proceed with the benefit changes on the following day.  The lawsuit was later transferred to State Court but, unfortunately, that court eventually ruled in favor of the defendant (City).  Basically, the Court ruled that the City was under no legal obligation to provide medical benefits to retirees.  The retirees quickly filed an appeal of that judgement. 

Months later, just days after the November 2012 election, the appeals court ruled against the retirees.  Essentially, regardless of any documents, promises, or statements that existed, there was no contract since it lacked any legitimate enacting legislation The Court ruled:

“The information about the so-called permanence of the retirees’ health care benefits was shown to be repeatedly, clearly, and fully disseminated by city employees in the city’s retirement office.  And the city’s leaders and city managers did nothing to correct the misconception about the inalterability of their health care benefits.  But even if the employees had so counseled the retirees, the employees had no authority to bind the city.”

During this period, CMERA remained proactive by informing retirees of the benefit changes; attempting to discourage additional reductions by the City; and suggesting retirees contribute to a non-CMERA account (Benefit Defense Fund) to pay for legal services on behalf of retirees.  Over the course of the next several years, a total of $438,804.47 was donated to the fund to pay for legal expenses.  Nearly all those funds (97.5%) were needed.  Those who donated were then offered pro-rated refunds in February, 2014.

The Ohio Supreme Court refused to even hear an appeal of the matter.  By the end of 2012, the legal process seemingly had run its course for retirees.  The City was now free to dictate what, if any, medical benefits would be provided to retirees.  At least the City could not alter the terms of the pension – or so it was believed.

With the ability to change medical benefits at will, the City soon began exploring further reductions.  The courts had indicated that the City could not change the pension, but the City then took the position that the cost-of-living-adjustment (COLA) was not part of the pension but just another benefit subject to change by the City.  The Retirement Board proposed changing the existing COLA from a 3% compound formula to a simple 2% COLA formula.

During these years, while the focus of retirees was on the assault on their benefits, CMERA maintained communications with its members through its “QT” message system and its newsletters.  During this period, the newsletters were sent to all retirees, even those who were not current with their dues.  The Governing Board believed it was important to keep as many retirees as possible up to date on the City’s actions and the work being performed to undo their actions. 

During the same period, those working (active employees) for the City filed a lawsuit in Federal Court.  AFSCME also joined that legal action.  The on-going lawsuits did not stop Council from approving even more benefit reductions during 2011 after considering the recommendations of CRS and the Task Forces.

The Years 2011-2015

The results of the reports by the Task Forces and the CRS culminated in the passage of Ordinance #84-2011.  Now retirees were subject to a simple COLA adjustment; elimination of the death benefit; retiree-paid dental and vision insurance; changes to the retirement eligibility; pension amount recalculation for new retirees; elimination of Medicare Part B reimbursement.  Those benefit reductions were to be effective in 2012.

After examining the retirement fund at the end of 2012, the City’s Retirement actuaries recommended a contribution of $78.1M just for 2014 to begin to make the pension fund whole.  This amount was in stark contrast to the recent average contribution of about $4M.

Judge Michael Barrett was hearing the active employee lawsuit in Federal Court.  By February of 2014, the judge realized that any settlement of this case would impact others, particularly including current retirees.  The retirees from the 2009 lawsuit were then invited to be part of the settlement process by Judge Barrett with Tom Gamel as the lead plaintiff.  Later that year, Tom , President of CMERA, notified retirees of the mediation.  He wrote:

The United States District Court for the Southern District of Ohio has initiated a mediation intended to address the long-standing funding for the Cincinnati Retirement System.  This mediation arises out of a lawsuit currently pending before the Court styled Sunyak, et al. v. City of Cincinnati, et al., Case No. 1:11-cv-00445.  The Court believes that a mediation addressing the long-term funding of the Cincinnati Retirement System  is a better option than litigating the issues in the case.  The mediation will address funding of the Cincinnati Retirement System which may include an alteration of the benefits you are currently receiving.  The Court has invited representatives of the current retirees to participate in the mediation.  The representatives of the retirees are Donald C. Beets, Paul Smith, Mark K. Jones, Dennis Davis, Ann DeGroot, and Ely Ryder, in addition to me. 

As we begin the mediation, we wanted to notify you of this process and encourage you to return the enclosed postcard.  We may need to contact you in the future as this process proceeds, consistent with such restrictions as the Court may impose.

On March 19, 2014, City Council approved Ordinance 38-2014.  The Ordinance authorized the City Manager to enter into negotiations to resolve the cases before Judge Barrett.  From March through December of 2014, the parties met.  On December 31 of 2014, a Memorandum of Understanding (MOU) was reached, becoming effective in 2015.

The term of the MOU was 30 years.  It addressed:

• Pensions (including COLA’s)
• Healthcare Benefits (co-pays, premiums, etc.)
• Healthcare Trust
• Contributions (City and employee) to the pension fund

With the MOU, the parties had a framework for a Collaborative Settlement Agreement (CSA).  During 2015, the representatives of the aggrieved parties and the City forged the CSA which would govern the retirement of thousands of retirees and future retirees for the next 30 years.

The Collaborative Settlement Agreement defined the various groups that were included (retirees, AFSCME Ohio Council 8, and the current employees including Groups C, D, E, and F).  (Note: These current employee groups were established by a City Ordinance and, since the provisions of that Ordinance adversely impacted each group differently, the CSA contained language that addressed each group differently.  Thus, pension and healthcare benefits were not uniformed for all parties.)  The CSA also established goals such as taking steps to make the pension account 100% funded by the year 2045.  One important change was the modification to the CRS Board of Trustees.  Now, retirees would elect three members of that nine-member Board. 

Prior to final approval, all members of the CRS received a summary notice of the settlement (CSA).  Members were given an opportunity to object to any provision of the proposed settlement.  The summary follows.

SUMMARY OF THE PROPOSED SETTLEMENT

The proposed Settlement provides that the CRS will be subject to a 30-year Consent Decree enforced by the Federal Court. Once the Settlement becomes effective, no changes to the CRS benefit provisions can be made during that 30-year time period without prior approval of the Court through a re-opener process. 

Under the proposed Settlement, current monthly pension benefits received by members of the Retirees Class cannot be reduced from their current levels.  Specific provisions of the Settlement apply to the Current Employees Class and Groups C, D, E and F as defined by the Ordinance, as well as to the Retirees Class.  The complete detailed Settlement Agreement and all other documents relating to the proposed Settlement can be obtained from the Settlement website at www.CRSPensionSettlement.com or by calling 1-844-831-1851.  The following is a summary of the basic terms of the proposed Settlement which are scheduled to be implemented on January 1, 2016 if the Court grants final approval:

Cost of Living Adjustment: Effective January 1, 2016, the COLA for all current and future retirees in the Current Employees Class and the Retirees Class will be a 3.00 percent fixed simple COLA.  This means that an annual pension benefit of $10,000 will increase to $10,300 in the first year that the COLA applies, $10,600 in the second year, $10,900 in the third year, and so on.

COLA Delay or Suspension: Current Employees Class members and Retirees Class members are both subject to a three-year COLA delay or suspension period, to begin on the date of retirement for members of the Current Employees Class or on January 1, 2016 for the Retirees Class and members of the Current Employees Class who retired before January 1, 2016.  Members of the Retirees Class shall receive a one-time payment calculated at three percent of their gross monthly pension payment payable on January 1, 2016 (but in any event, capped at $1,000) at the commencement of the third year of their respective COLA suspension period.  This one-time payment will not be added to the gross monthly benefit or affect the amount of future benefits.

Retirement Eligibility: Current Employees Class members can retire with full benefits upon reaching 30 years of creditable service without regard to age, or at age 60 with five years of creditable service.

Retirement Benefit Multiplier Calculation: Current Employees Class members’ retirement benefits will be computed with a 2.5 percent multiplier (2.22 percent for certain members who voluntarily elected to be subject to such a multiplier and remain so) for the greater of 20 years of creditable service or the number of years of creditable service prior to July 1, 2011 for members of Group F and the number of creditable years prior to January 1, 2014 for members of Group E.  A multiplier of 2.2 percent will apply to all other creditable years, including years of service in excess of 30 years.  Final average salary calculation will continue as provided in the Ordinance.

Early Retirement Options: For Current Employees Class members, the early retirement options for individuals age 55 with 25 years of creditable service and age 60 with at least five years of creditable service that existed prior to the Ordinance will be reinstated.

Group D, E, and F Pension Annuity Adjustments: Current Employees Class members in Groups D, E and F who retired (or will retire) prior to January 1, 2016 will have their pension benefits increased on January 1, 2016 to reflect the provisions of this Settlement, and such individuals will receive a lump sum payment reflecting any amounts they would have received from their date of retirement until January 1, 2016 had the Settlement been in effect when they retired.

Current Employees Class Contributions: Pension contributions made by Current Employees Class members shall not exceed nine percent of pensionable wages during the term of the Consent Decree.

Group C Settlement Payment: Current Employees Class members in Group C will receive a one-time payment between $125 and $625, depending on their date of retirement, as compensation for the compounding COLA they would have received, if any, during the period prior to January 1, 2016.  In addition, members of Group C will be entitled to the same rights with respect to retiree health care as members of the Retirees Class, including continued eligibility for retiree health benefits for those who retire with at least 15 years of creditable service.

City’s Annual Contribution Rate: The City will contribute 16.25 percent of its covered payroll to the CRS annually during the 30-year duration of the Consent Decree.

Voluntary Deferred Retirement Option Plan: A voluntary Deferred Retirement Option Plan (“DROP”) will be implemented for Current Employees Class members which will allow them to cease accruing service credit in, and contributing to, the CRS when they obtain 30 years of creditable service while continuing their City employment for up to five years.  DROP participants will accrue their monthly retirement benefits on a pre-tax basis for up to five years of continued City employment, during which time such amounts may experience earnings but not losses.  The deferred pension benefits of DROP participants will accumulate in individual accounts under the pension plan together with individual employee contributions (if any) less reasonable administrative fees.  The DROP will be evaluated within five years after the Settlement goes into effect to ensure that it is cost neutral to the CRS.

Retirees Class Healthcare: Members of the Retirees Class will continue to receive healthcare benefits according to the plan in effect on December 31, 2014, as specifically provided in the Settlement.  In addition, the City will implement an Employee Group Waiver Plan (“EGWP”) for retirees to maximize reimbursement from federal healthcare programs.  The City will also implement a voluntary medical expense reimbursement program (“MERP”) to reimburse CRS participants who elect to enroll in healthcare coverage not funded by the CRS.

Current Employees Class Healthcare: Members of the Current Employees Class who retire in the future will be eligible for retiree healthcare benefits at that time under the most favorable terms available to current employees of the City if they have 30 years of creditable service at the time of their retirement or are at least 60 years old and have at least 20 years of creditable service at the time of their retirement.  The retiree cost of these healthcare benefits will be limited to ten percent of the applicable premium for individuals hired before January 9, 1997.  Individuals hired on or after January 9, 1997 who qualify for retirement healthcare benefits will pay no more than the percentage of premium provided by the “point system” in the Cincinnati Municipal Code as of January 1, 2015.  The Settlement also provides for a process to negotiate improvements in the “point system” for these individuals within six months after the Effective Date.  However, these provisions will not apply to Subgroup C of the Current Employees Class.  Subgroup C members are entitled to the same retirement healthcare as the Retirees Class on the same terms received by the Retirees Class as long as Subgroup C members retire with at least 15 years of creditable service.

Additional important terms and details are described in the complete Settlement Agreement available at www.CRSPensionSettlement.com, and answers to frequently asked questions can be obtained by calling 1-844-831-1851.

Creation of Section 115 Healthcare Trust Fund: The City will create a 115 Trust Fund prior to the Effective Date for the exclusive purpose of holding and investing funds to provide Retirees Class Healthcare Benefits, Current Employees Class Healthcare upon Retirement and healthcare benefits upon retirement to members of the CRS, subject to the terms and conditions in the Settlement Agreement.  The City shall be obligated to fund the 115 Trust Fund at actuarially appropriate levels sufficient to provide these benefits for the term of this Agreement.

Retirees Class Death Benefit: Retirees Class members shall be entitled to a lump sum $5,000 death benefit to be paid to their designated beneficiaries.

The CSA was approved by the Court in October 2015.  Shortly thereafter, in November of 2015, the CSA was incorporated into a Consent Decree which was approved by all parties.  The decree legally resolved the dispute and was intended to ensure all parties adhere to the terms of the CSA.

With the Consent Decree and its CSA now in effect, CMERA continued its efforts to educate retirees about the CSA and how it came about.  One such endeavor was a 2015 slide presentation.  While the presentation was only one hour in duration, it did not adequately reflect the effort of those retirees and employees who spent hundreds of hours ensuring a secure retirement for all.  Excerpts that follow were taken from that presentation.

For a decade beginning in 2004, reducing retiree benefits has been on the City’s agenda.  To protest any changes to our promised retirement benefits, many of you and most of the members of the current retiree plaintiff team participated in City Council letter writing campaigns and packed Council and Board public hearings.  As a group, we fought the city arguments that increased retiree medical costs, unaffordable employer contributions, unfunded liability growth, a decline in employee to retiree ratio, an unsustainable assumed rate of return and the like contributed to the decline in the financial health of the Cincinnati Retirement System (CRS).

As you know, we argued that we had an irrevocable contract in a prepaid plan for vested, defined benefits; that many of us elected an option that permanently reduced our pensions for life in exchange for spousal pension and healthcare benefits; that few of us will qualify for Social Security benefits or will have them severely reduced by the Government Pension Offset; and many others.  For five years, our mass participation and solid arguments against reducing retiree benefits succeeded.  But City Council, 2009, for the first time since the CRS’s inception 78 years earlier, cut the defined benefits of those already retired and of future retirees.  The City argued that the2008 Great Recession and its inability of many years to make its required annual employer contributions necessitated these reductions.

The 2010 benefit reductions led to a retiree lawsuit filed in December, 2010.  All of the arguments used in our Early Defense were also presented at trial supported by testimony, affidavits, City documents, and precedents.  Further, many legal arguments were developed by our attorney, Jim McCarthy.  Unfortunately, all arguments were denied in the Judge Nadel decision of September 1, 2011.

We then appealed the Judge Nadel decision and, on November 7, 2012, Judges Sundermann, Hendon, and Fischer affirmed the trial court decision citing many of the Judge Nadel findings and conclusions.

The Supreme Court Decision

We then appealed to the Ohio Supreme Court and on March 13, 2013, the Court declined to accept jurisdiction of the appeal.

The Result

By the decisions of Judge Nadel, retiree healthcare benefits were entirely at the discretion of the City and retirees had no vested or guaranteed right to any level of retiree healthcare even though we paid into the healthcare fund out of our bi-weekly deductions for many years while we were working.

By 2014, CRS was in trouble.  The City had failed to make annual required employer contributions to the pension fund that, including interest, cost the CRS about $400 million.  It had for several years stopped making any contributions to the fund for retiree healthcare.  The 2008 Great Recession dramatically reduced the value of CRS investments creating a shortfall of about $800 million in funds needed to cover current and future retirees’ pensions and healthcare.  Only about 67% of future pension obligations were covered by existing and projected CRS assets.  Past City Council’s had dramatically changed the composition of the CRS Board of Trustees and ‘politics’ and City interests seemed to be the guiding principles of management of CRS, not fiduciary responsibility for retiree pension, COLA, and healthcare obligations.  It seemed clear that without changes the CRS pension and healthcare funds would run out of money at some future date.  The City’s response was to threaten more reductions in retiree benefits.  It claimed it could not afford to pay for what it had promised to thousands of existing and future retirees.  By virtue of the Judge Nadel decision on retiree healthcare, the City said it would reduce or eliminate retiree healthcare.  Further, the City said it would be reducing or eliminating the pension COLA believing that nothing in the Judge Nadel decision precluded doing so and that other case law was inconclusive.

Judge Barrett began the conversation in 2013 about a consent decree process when numerous and varied conditions existed relative to the Cincinnati Retirement System (CRS).  These conditions combined to create an atmosphere of uncertainty as to the future of specific benefits and fears that the CRS as an entity itself would be unsustainable.

After considerable thought and discussion, the group decided to become involved in the process.

City Council stated its position for the Consent Decree process by passing Ordinance 38-2014 giving the City Manager the authority to resolve all matters that affect the long-term stability of the Cincinnati Retirement System.  The City Manager had the authority to negotiate and enter into a global consent decree to make any changes in benefits, reasonably necessary to affect the global decree in federal court.

For many retirees, the end of 2015 saw months of negotiations end, but years of financial sacrifice begin.  But at least, there was a comforting peace that the pension and healthcare funds would be secure.  Of course, several political leaders praised the settlement. 

“This settlement requires some sacrifice on all sides, but it will help strengthen the city’s financial health and ensure the pension system will still be there for everyone in it.” 

            Mayor John Cranley, Cincinnati Enquirer, December 31, 2014

“This deal brings certainty to the problem” 

Councilmember Christopher Smitherman, Cincinnati Enquirer, January 5, 2015.

The City was also thankful that the CSA enabled it to retain its credit rating.

The Years 2016 – 2020

It was believed the CSA would eliminate the endless argumentative positions among the City, retirees, and future retirees.  Unfortunately, some of the details of the CSA (like the Healthcare Trust funding policy and the point system for determining current employees healthcare costs in retirement) required additional protracted negotiations.  In addition, the City unilaterally initiated several changes in the healthcare insurance that retirees believed altered their coverage and, consequently, did not meet the terms of the CSA.  These issues were brought to the attention of Judge Barret who oversaw the CSA. 

With the CSA now guiding our retirement benefits, CMERA could now focus on its business practices and how it could better serve its members.  Unfortunately, few documents were found that reflected the work of CMERA during the years of 2016-2019.  General meetings continued to be conducted twice a year during that period and provisions of the CSA were often topics of discussion at those meetings. 

The Fall 2017 newsletter summarized the steps CMERA had taken to preserve our benefits.  It also informed the members of changes to the By-laws and Operational Guidelines.  Lastly, it informed members that only active (dues-paying) members would receive a newsletter in the future.

A mention here belongs to the members who have worked in the background to fulfil important duties.  Over the years, volunteers have maintained CMERA’s database of members.  In recent years, Don Houchins has employed a customized database to record dues and donations; create a mailing list for the newsletter; and generate reports for the Governing Board. 

In the fall of 2019, the City informed retirees that their medical insurance would take the form of a Medicare Advantage plan effective January 1, 2020.  The City conducted meetings on October 18 and 28 to discuss this upcoming change.  CMERA prepared a comparison of the current medical plan to the proposed Medicare Advantage plan.  The Advantage plan did offer some additional benefits but it had a more restricted list of providers. 

At the end of 2019, CMERA faced another opponent – Covid.  It began with people in China’s Hubei Province, in the city of Wuhan.  They reported symptoms of an atypical pneumonia-like illness that did not respond well to standard treatments.  By March of 2020, the US declared a nationwide emergency and issued a travel ban on non-U.S. citizens traveling from 26 European countries.  Business activity in Cincinnati and throughout the world began to slow.  This slowdown adversely impacted the City’s revenue.  The Federal Government began a financial relief program for businesses and some state and local governments.  The City of Cincinnati received $290M.   None of those funds were used to assist the pension fund.  Meanwhile, the nation adopted the six-foot rule to reduce transmission of the disease.  Masks were also highly recommended. 

For two years, everyone faced a series of economic, health, and social challenges.  CMERA was not spared.  In-person general meetings were cancelled in 2020 and 2021.  In 2020, the online chatroom being used by CMERA (CMERA-QT) encountered some serious issues, so a new chatroom format was implemented (CMERA@group.io). 

During the Covid years, CMERA used its communication tools to relay information to its members.  All members continued to receive the newsletter.  It also embarked on a mission to become more professional.  By the end of 2020, CMERA had officially established itself as a tax-exempt organization (501)(3)(c).  Now, yearly submission of Federal and State income filings has become necessary.  (Note: as a not-for-profit charitable organization, CMERA pays no income taxes, but it is still required to file returns.  In addition, CMERA is required to pay a $50.00 yearly filing fee with the State of Ohio.)

The Years 2021-2025

Continuing its efforts to become more professional, the IRS finally recognized CMERA as a 501 (3)(c) not-for-profit organization.  This action meant that CMERA is not required to pay income taxes and that donations made to it can be tax deductible.  More emphasis was placed on creating and monitoring an annual operating budget.  Also, in the fall of 2021, CMERA began the process of seeking a higher rate of return for its funds.  The checking account paid no interest, and the savings account paid a minimum amount each month.  The Executive Committee approved an investment strategy to guide it during this process.  That policy stressed preservation of principle with a reasonable rate of return.

After several months of planning and executing documents, CMERA opened an investment account with E-Trade.  This action was approved by the Governing Board in the fall of 2021.  The plan was to invest an initial amount and increase the investment as deemed prudent.

The initial investment was made on November 19, 2021.  E-Trade then provided an incentive of $200 to open the account.  The funds were placed in a temporary money market account until certain paperwork/legal reviews were completed on their part.  (It seems dealing with a non-profit did not fit their usual customer profile, so some additional reviews were necessary.)  Per E-Trade’s request, the Governing Board voted again to confirm the investment in early 2022.  Shortly afterwards, the funds were transferred into an investment account.  Morgan Stanley later acquired E*-Trade.

CMERA also began to verify more thoroughly its expenses and account balances monthly.  Bank statements are now used to verify internal reports.  Also modified was its policy regarding the payment of dues.  The current policy can be found on this website in the section for dues.

As of 1/1/2022, the CRS reported:

• 4,206 retirees
  • 4,002 employees in the CRS
  • $2.58B in total assets
  • $723.7M in unfunded actuarial liability
  • The funded ratio for the pension trust was 71.6%
  • The funded ratio for the healthcare trust was 145.1%

In 2022, CMERA conducted a review of its financial controls to ensure compliance with best practices of similar organizations.  That study was followed by an assessment of CMERA’s insurance coverage.  As a result of that insurance review, newer policies were obtained to better protect its assets.  

Another important step to enhance the professionalism of CMERA was an updating of the Constitution and Bylaws.  Now known as its Governing Documents, this set of documents provided a strong testament to the level of professionalism sought by CMERA.  These Governing Documents, approved in June 2022, reflected how CMERA could best fulfil its mission in a post-covid reality.

By the start of 2023, the lack of progress on settling remaining issues mentioned in the CSA and differing interpretations of some provisions of the CSA continued.  Perhaps the most critical issue was the status of the pension trust fund.  One of the goals of the CSA was to have a fully funded pension trust fund at the end of thirty years.  For the past eight years, the City has contributed 16.25% of its full-time payroll to this fund.  The 16.25% was the minimum amount established by the CSA, but it was only a minimum.  The CSA also provided for an alternative amount determined by an actuary firm to ensure achievement of the fully funded goal.  Despite the likelihood of not achieving the fully funded goal, the City maintained it contribution rate at 16.25% during that period (2015-2023).  So, funding the pension trust remains an issue requiring resolution.  Other outstanding CSA issues remaining in 2023 include:

• Violation of the “carve-out” provision for certain retirees
• Changing healthcare plans without negotiations
• Failure to create a point system matrix for healthcare care premium determination
• Creation of a healthcare fund funding policy
• Problems with the drug prescription program
• Issues with some retirees needing to pay an IRMAA fee (an income-based fee imposed by Medicare) for the drug program
• Repayment plan for attorney fees
• DROP (an early retirement program) is not cost neutral to the pension fund.

These issues were brought to the court for resolution.

Note: Some of the issues listed above impacted all plaintiffs while some issues impacted only selected class plaintiffs.  

At the spring 2023 general meeting, President Kathy Rahtz provided an overview of pension funding.  She also informed the members about recent changes in the Retirement Office.  Treasurer, Chuck Cullen, reported a budget shortfall for the past year.  As a result, the Executive Committee took steps to reduce spending. 

With the release of the City’s draft budget for 2024-2025, the same 16.25% contribution of payroll to the pension trust fund was recommended.  Members of CMERA along with members of the Governing Board attended budget hearings and spoke to encourage greater contribution.  City Council did approve a 17% contribution rate for 2024.  While not a rate that would resolve the pension fund shortfall, it was the first official acknowledgement that the pension trust fund needed more money.  For the 2025 budget update, the City increased the rate to 17.75%.

In another step to enhance CMERA’s professionalism, a Record Disposal policy was approved in September 2023.  This policy established a time period that official records were to be maintained and a procedure to dispose of records no longer needed.  

The fall 2023 meeting contained a lot of information for CMERA members.  It presented data on the recent healthcare survey conducted on behalf of CRS.  It also reported on additional saving initiatives undertaken by the Executive Committee since 2022.  A new printer/mailing contractor was found for the newsletter.  With the end of Covid, the Board voted to eliminate mailing newsletters to most non-active members.  This reduced both printing and postage expenses.  Tax filings for the IRS and State were now being performed in-house eliminating the cost of a paid preparer.

Finally, it presented information about the pending vote on the sale of the Southern Railroad.  The $1.6B to be received by the City could only be used for infrastructure projects and could not be used for pension funding.  As a result, CMERA took no position on the ballot issue but did provide resources for members to research the matter prior to the election day.

To assist with future planning, a Schedule For Success was created.  Its purpose is to provide month-to-month guidance for the organization to ensure goals and deadlines are met.  The schedule focuses on the following topics:

CMERA‘S SCHEDULE for SUCCESS

This schedule is designed to provide a consistent method to conduct CMERA business.  It includes section related to:

• General Meetings (scheduling, hall rental, announcements, agenda, refreshments, rosters, volunteers to assist, speakers, presentations, feedback, Q&A, etc.)
• Executive Committee and Governing Board Meetings (schedule, location, agenda, etc.)
• Legal (taxes, insurance, organizational registration compliance, etc.)
• Finance (payment of routine expenses and investment monitoring)
• Newsletter (establishing content, writing, review, final design, approval, printing, mailing)
• Member Outreach (monthly e-mails and important announcements; recruitment efforts, etc.)

In 2024, the City received the Cincinnati Futures Commission Report.  This document was created by select business executives to advise the City on matters they deemed important.  The Futures Commission established a number of goals such as creating more housing, growing employment, increasing wages, and retaining more businesses.  To achieve these goals, the Commission made a series of recommendations.  One such recommendation was transferring the CRS to the Ohio Public Employees Retirement System (OPERS).  To accomplish this recommendation, the Committee proposed monetizing the Greater Cincinnati Water Works.  The resulting funds could then be used to supplement the pension fund in its transfer to OPERS.

CMERA President Chuck Cullen appeared before the City’s Budget Committee to urge Council not to accept any change that would result in the in pension or healthcare benefits for retirees.  He said:

We realize that the report makes only one mention of possible further reductions in pension or benefits, but we remember the not-to-distant past when our futures were upended with multiple reductions.  So, that is why we are worried and concerned and some of us perhaps, a little scared.  After all, the report already has classified us as an albatross (page 12).  We never considered ourselves an albatross while we worked for the City so please, please don’t consider us one now. 

The spring 2024 general meeting focused on the Futures Report and how some of its recommendations could adversely impact retirees.  Members were also reminded about the new CMERA’s participation in the Kroger Community Rewards program. 

A few months later, in June 2024, after nearly 9 years of off and on negotiations, the parties involved in the CSA agreed to settle some of the outstanding issues.  The parties agreed to:

• A funding policy for the Healthcare Trust (115) Fund.
• A repayment schedule for attorney fees to be paid by members of the “current class;” and
• A revised point-system matrix to determine retirement healthcare premiums for those hired after January 9, 1997.  

The other outstanding issues remained.

Meanwhile, the CRS determined that the existing restrictions on term limits for its trustees may not be in the best interest of the CRS so an Ordinance was submitted and approved, in August of 2024 after several modifications. 

At the fall 2024 general meeting of CMERA on October 12, members were informed about upcoming changes to their healthcare.  For next year, the dental plan will have two options, each with different benefits and premiums.  A presentation about avoiding senior fraud was made to assist members avoid fraud.  The recent settlement about some CSA issues was also mentioned. 

Late in December 2024 during a “lame duck” session of the U.S. Congress, the Social Security Fairness Act of 2023 was passed.  President Biden signed the legislation into law on January 5, 2025.  For many municipal retirees, this was important legislation.  It eliminated the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).  These provisions reduced or eliminated the Social Security benefits of many retirees who receive a pension based on work that was not covered by Social Security.  Besides an increase in monthly benefits for those now qualified, a catch-up provision provided back payment for the year 2023.

The spring 2025 general meeting commenced with routine business: welcome, pledge of allegiance, a moment of silence, an overview of CMERA, and the introduction of the CMERA Governing Board.  President Chuck Cullen then provided a summary of the goals for 2025:

• Monitor City activity regarding pensions and benefits
• Efforts to require new active members

Treasurer, Steve Dietrick, reported on how the Social Security Fairness Act of 2023 impacted certain retirees and steps to apply for reconsideration of benefits based upon this law.  He also spoke about efforts to reduce operating expenses. 

Vice President Kathy Rahtz spoke about the fall elections for CMERA and requested nomination be submitted by July 1.  She also informed the members about an opening for CRS Trustee next year.

The Past President, Tom Gamel, told the members that there have been recent discussions regarding the pension fund with Judge Barret.  Those involved in the discussion are bound by a gag order issued by the Judge so no details could be announced.

The guest speaker, Jon Salstrom, Executive Director of the CRS, updated the attendees on the status of the pension and healthcare funds, the make-up of the CRS Borad of Trustees, the role of the Retirement Division, and the investment goals of the retirement funds.  He reported:

• As of 12/31/2024, there were:
  • 4,138 retirees
  • 4,423 employees in the CRS
  • $2.3B in total assets
  • $846M in unfunded actuarial liability
  • The funded ratio for the pension trust was 68.3%
  • The funded ratio for the healthcare trust was 154.98%

When compared to the end of 2021, the data provided by Mr. Salstrom reflected 68 more retirees; 421 more employees enrolled in the CRS; and a decrease in the funded ratio for the pension trust (71.6% to 68.3%).

Based upon suggestions from its members, CMERA agreed to discuss the feasibility of accepting credit cards for payment of dues and donations.  The Executive Committee also began the process of exploring options for CMERA’s website to make locating content easier.

The City released its Recommended FY 2026-2027 Biennial Budget.  It included an 18.5% employer pension contribution rate in FY 2026 for members of the Cincinnati Retirement System (CRS), which is a 0.75 percentage point increase over the previous 17.75%.  For FY 2027, the employer pension contribution rate increases to 19.25%.  The budget also recommended $1,574,110 in the General Fund and $150,000 in the Income Tax-Infrastructure Fund for lump sum payments to assist with the Deferred Retirement Option Plan (DROP) program.  The budget document projected that from FY 2028 through FY 2030:

• Expenditures will increase by 3.0% annually on all personnel.
• There will be a 5.0% increase in healthcare expenses.
• The City will contribute a 0.75 percentage point increase in CRS employer pension contributions; and
• All other expenses will increase by 1.0%.

President Chuck Cullen and other CMERA members made appearances before the City Budget Committee to support the recommended budget regarding the pension and urged the Mayor and City Council to continued increasing pension fund contribution in the future to make the system fully funded by 2045. 

During summer of 2025, CRS hired a firm to send healthcare surveys to retirees.  CMERA supported this initiative of the CRS and encouraged members to submit a survey.  As a result of the input from retirees, a two-tier vision option was offered starting in January 2026.

In the fall of 2025, the Executive Committee voted to allow any (not just active) member of CMERA to join the chatroom.  This will allow more retirees to receive communications to and from other members.

Released in 2025, the National Conference on Public Employee Retirement Systems (NCPERS) published a report entitled “Unintended Consequences”.  The conclusion of that report is as follows:

Policymakers across the country have long grappled with difficult decisions about the future of public pensions—whether to transition to retirement savings plans that shift investment risks to employees, reduce benefits, or increase employee contributions. These decisions are often made without fully accounting for the broader economic and fiscal impacts of public pensions.

Our analysis shows that public pensions continue to deliver significant benefits to state and local economies.  In 2023, public pensions contributed $2.9 trillion to the U.S. economy and generated $661.9 billion in state and local tax revenues.  Of the total economic contribution, $1.9 trillion came from the investment of pension assets, and $980.7 billion from the spending of retiree pension checks.  Similarly, the revenue impact was composed of $453 billion from investment returns and $208.9 billion from pension spending. 

These findings challenge the notion that public pensions are an unsustainable burden on taxpayers.  In 2023, taxpayer contributions to public pensions totaled $216.7 billion—far less than the $661.9 billion in state and local revenues generated by those pensions. In effect, pension funds produced $445.2 billion more in state and local tax revenues than they received in taxpayer contributions.

Dismantling public pensions would not reduce costs; it would impose new ones.  The data suggest that curtailing pensions could increase taxpayer burdens, while also weakening retirement security for public servants and reducing economic activity at the state and local level.  Going forward, efforts to preserve and strengthen public pensions should be paired with a broader reassessment of state and local revenue systems.  This includes identifying ways to ensure tax structures reflect modern economic realities and considering areas where tax benefits or exemptions may be eroding the revenue base.  In this context, thoughtful, evidence-based policy decisions are essential to maintaining the long-term sustainability and benefits of public pensions.

The fall 2025 general meeting was conducted on October 11.  Members were updated on the:

• CSA – pension fund not meeting its target
• Website – to undergo an update
• Issues with medical services and plans from 3^rd party companies

Members voted to elect Chuck Cullen for a second term.  The Treasurer position was not filled due to a lack of candidates.  City representative explained the new two-tier dental plan being offered to retirees.

Epilogue – Part 2 By Chuck Cullen

Early in March 2026, the City and plaintiffs reached an agreement to fund the pension fund.  This was an important step in resolving remaining issues with the CSA.  The agreement requires an infusion of $50M now and another $50M total in coming years.  The City will also increase its minimum annual contribution to the pension fund and employees working for the City will eventually contribute 10% of their pay into the pension fund.  While the City has passed the necessary ordinances to enact the policy, Federal Court approval awaits.

Today is XXXXX XX, 2026.  As 2026 approaches, CMERA is facing a dual threat – members and leaders.  Since 2005, the City has not provided name and contact information for those who have retired.  While it will provide the names of retirees upon filing a formal Open Record Request, it cites privacy rules in prohibiting contact information.  In other words, we can get names but have no easy method to contact them.  The inability to contact new retirees, therefore, has had an adverse impact on our overall membership.  And with fewer members, the pool of members willing to fill leadership roles has also declined. 

No, this is NOT the end!  There are more chapters to be written.  There will be more history about how a small group of municipal employees banded together to help each other and other retirees.  How this future history is written and by whom is still uncertain.  What is certain is that CMERA will continue to move forward but will always remember the past.

Addendum 1 – CMERA Presidents

Bill Chanal (1980-1983)

Norb Miller (1984-1987)

Bill Rooney (1988-1989)

Jim Jester (1990-1991)

Jim Krusling (1992-1993)

Tom Stitt (1994-1995)

Ralph Goldsmith (1996-1997)

Jim Jester (1998-1999)

Jim Nuxoll (2000-2002)

John Browarsky (2003-Oct 2005)

Don Beets (Oct 2005- 2008)

Tom Gamel (2009-2019)

Kathy Rahtz (2020-2024)

Chuck Cullen (2024-

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[1] Except for the addition of the “Summary of the Situation at the End of 2003” quote, my editing of Part 1 was limited to minor grammar, capitalization, and punctuation corrections.