Newsletter Volume 8 Issue 2 - September 15, 2021 |
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Emory 403b Retirement Plan Changes
We’ve received numerous phone calls and emails during the past couple of weeks regarding the 35-page document sent to Emory retirees detailing the upcoming changes in Emory’s 403(b) Retirement Plan. Since my knowledge of the impending changes is limited to the information in a seven-page brochure I received last week from the university, Gray Crouse, who has written extensively about this issue in the past, was kind enough to write another article about the 403b Settlement; you will find below.
Upcoming AROHE Conference
Three years ago, Emory University and the Emory University Emeritus College hosted the Ninth Biennial AROHE Conference here in Atlanta (with GA-HERO, the Georgia Association of Higher Education Retiree Organizations, acting as co-host). After the meeting was postponed last year, the Association of Retirement Organizations in Higher Education (AROHE) decided to hold a virtual conference this fall. Gretchen Schultz has written an article describing the upcoming AHOHE Conference in greater detail. In order to take advantage of the discount offered to members of a group who submit a single early bird registration, I will be submitting a single registration for members of the Emory University Emeritus College on Friday, September 17th. Please send me an email before noon on that day if you plan on attending the AROHE conference.
Although Emeritus College funds are somewhat limited, and the registration fee is lower than usual, I am able to make a one-time offer to cover the costs associated with an early-bird group registration using funds from the Emeritus College budget.
Final Words
Although it’s disappointing that we can’t resume gathering in person this fall, it’s more important to protect your health. Please continue wearing a mask, avoid crowded indoor spaces, wash your hands regularly, and get a flu shot, too.
I’m very thankful for the Zoom Team’s (Ron Gould, Marilynne McKay, and Vernon Robbins) assistance with our first hybrid Lunch Colloquium. I am also indebted to Gretchen Schulz and Ann Hartle for their assistance with editing and proofing this newsletter.
--Ann
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Seeking Volunteers - Awards & Honors of EUEC Executive Committee
Please scroll to read more below
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Lunch Colloquium - Monday, September 20
Alan Abramowitz
"In Search of the Elusive Swing Voter"
Please scroll to read more below
Lunch Colloquium - Monday, October 4
Denise Raynor
"Unmasking the Masked Man: The Real Lone Ranger"
Please scroll to read more below
Emory 403(b) Retirement Plans
The Last Step in the 403(b) Lawsuit Settlement
Please scroll to read more below
AROHE Conference
Please scroll to read more below
In Memoriam
We note the passing of ten Emeritus members from a list we recently received from Emory Alumni records
Please scroll to read more below
Walking the Campus with Dianne
Please scroll to read more below
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Seeking Volunteers - Awards & Honors Committee |
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We are in need of additional members to be part of the Awards and Honors Committee. This Committee works under the aegis of the Emeritus College Executive Committee and oversees programs such as our Bianchi/Bugge Awards and the annual Distinguished Emeritus and Service Awards.
If you are interested in being part of this group, please email Ann Rogers - ann.e.rogers@emory.edu or Dianne Becht - dianne.becht@emory.edu
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Lunch Colloquium - Monday September 20, 2021 |
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“In Search of the Elusive Swing Voter"
Alan Abramowitz
Alben W. Barkley Professor of Political Science
Zoom Lunch Colloquium
11:30 am - 1:00 pm
With the rise of partisan polarization and straight ticket voting, swing voters seem to be vanishing from the American electorate. While there definitely are fewer voters who are “up for grabs” in U.S. elections, there is still a group of voters who are open to supporting Republican or Democratic candidates and this group can play a crucial role in deciding the outcomes of close elections like the 2020 presidential election. In this presentation, Dr. Abramowitz will present evidence about the characteristics of these swing voters and the factors that influence their candidate choices.
About Alan Abramowitz:
Alan Abramowitz, PhD, the Alben W. Barkley Professor of Political Science, is a widely cited expert on national politics, polling, and elections. His expertise includes election forecasting models, party realignment in the U.S., congressional elections, and the effects of political campaigns on the electorate. His “Time for Change” model has predicted election outcomes with a remarkable degree of accuracy since the 1980s. He is the author of numerous journal articles and book chapters, and his most recent books are The Great Alignment: Race, Party Transformation, and the Rise of Donald Trump (Yale University Press, 2018), The Polarized Public: Why American Government is So Dysfunctional (Pearson Longman, 2013), and The Disappearing Center: Engaged Citizens, Polarization, and American Democracy (Yale University Press, 2010).
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Lunch Colloquium - Monday October 4, 2021 |
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Denise Raynor
Professor Emerita, School of Medicine
Adjunct Professor, Department of Psychology
Zoom Lunch Colloquium
11:30 am - 1:00 pm
We all remember. A white hat. A white horse. And, of course, a white man. But, as Denise Raynor will explain today, referencing the research she’s done for a book she’s preparing for Young Adult readers, the real Lone Ranger was the first Black US Deputy Marshal west of the Mississippi. The remarkable Bass Reeves rose from slavery to become one of the most effective lawmen in history, arresting more than 3000 in the course of his long career, including one of his own sons (who had murdered his wife). He had courage and physical prowess to spare. But he was also cunning and inventive, using his skin color along with his wits to outsmart law-breakers and bring them to justice. And he managed to look good while doing so. A stickler about his appearance, he also used his style to win friends and strike terror in the hearts of foes. He was, indeed, a legend in his own time—and it’s past time we came to celebrate him as the model for a legend of our own.
About Denise Raynor:
Denise Raynor, MD, MPH, is Professor Emerita, Emory University School of Medicine in the Department of OB/GYN as a perinatologist. She remains an adjunct professor in Emory College Department of Psychology. She also has an MPH from Harvard School of Public Health in General Hospital Management. At Emory, she conducted basic laboratory and clinical research; provided clinical care primarily at Grady Hospital where she directed the perinatal ultrasound unit; and served as GYN/OB Residency Program Director. She taught perinatal fellows and residents in OB/GYN, Emergency, and Family Medicine who practice across Georgia and the US. She has published numerous scientific articles in obstetrics and fetal behavior.
After leaving Emory, she oversaw the residency program accreditation site visit at Danbury Hospital, then completed a preventive medicine fellowship, and worked on the development of Planning for Healthy Baby, a Georgia Medicaid program to provide contraception for women ages 18-49 before joining a private perinatology practice. She also served as chair of the Georgia March of Dimes Maternal Child Health Committee for several years. She is currently writing books on unknown African Americans in history and the impact of racial bias in medical education on disparities in health outcomes.
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Emory 403(b) Retirement Plans |
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The Last Step in the 403(b) Lawsuit Settlement
If you still have funds in an Emory 403(b) plan, this article will be relevant for you; otherwise you can continue to the next article. If you do have funds in an Emory 403(b) plan, you will likely have gotten a packet of information in the mail recently that for most of us will have been somewhere between confusing and inscrutable. This article is an attempt to explain what this latest information is about.
The Lawsuit History
According to the article [in Inside Higher Ed], "the suits allege that universities offered employees too many investment options in their retirement plans, which can confuse employees and also result in higher fees. Arguments also include that universities did not swap out expensive and poor-performing investments for better options and that higher-fee retail-class funds were available instead of a menu made up of only less expensive institutional funds." Also, "Some suits also allege that universities cost employees by using multiple companies as retirement plan providers, or record keepers. An institution can negotiate lower fees by consolidating to one record keeper, increasing its bargaining power, the suits argue."
The article I wrote also has links to more information about the lawsuits, including specific information about the lawsuit targeting the Emory 403(b) plan. At the time I wrote the article in 2016, the feeling of many financial experts was that these lawsuits had no chance. However, by April of 2020 an article in Inside Higher Ed reported on the 7th university to settle one of these lawsuits, and an article in June of 2020 reported on a settlement of the lawsuit against the Emory plan. Among the reported terms of settlement was this sentence: “Settlement terms also ask for plan fiduciaries to retain an independent consultant within 90 calendar days of the settlement effective date, to review the plans’ existing investment structure in order to make recommendations.”
Those of us who had funds in the Emory 403(b) plan between August 11, 2010 through June 11, 2020 got an email about the settlement. The email sent to me can be viewed by clicking here. This part of the settlement was for money to be distributed to those who had 403(b) funds during the settlement dates. That email also had a link to the complete settlement documents here: Emory403bSettlement.com. You will note that of the $16,750,000 total settlement, $6,178,582.68 went to the lawyers who brought the suit, and $25,000 went to each of the nine Emory employees who brought the suit.
On March 22 of this year, part of HR's NewsYouCanUse was the following article:
Emory Retirement Plan Class-Action Lawsuit Settled – Some Employees Will Receive Deposits to Their 403(b) Account
Emory recently settled a class-action lawsuit involving allegations about the management of the Emory University Retirement Plan and Emory Healthcare, Inc. Retirement Savings and Matching Plan (the 403(b) Plans). Emory agreed to settle the claims that remained rather than continue with an expensive trial and appeal process. The settlement put an end to the lawsuit and provides some financial benefits to 403(b) Plan participants.
As a result of this settlement, some employees will receive a deposit into their 403(b) account from the settlement fund. Only those employees who were members of the settlement class are eligible to receive the deposit.
The settlement class is defined as: “All persons who participated in the Emory University Retirement Plan or the Emory Healthcare, Inc. Retirement Savings and Matching Plan (the “Plans”) at any time from August 11, 2010 through June 11, 2020." If you were not a participant in the Plans prior to June 11, 2020, you are likely not a member of the settlement class. The individual deposit amounts from the settlement fund will be calculated by a third-party settlement administrator—not Emory—based on the terms of the settlement agreement between Emory and the plaintiffs in the litigation.
My 403(b) assets are invested with Vanguard, and on April 30 I got the following message:
The Emory University Retirement Plan has received settlement proceeds from the settlement administrator in a class action lawsuit. As a result, you’re entitled to a share of the settlement proceeds based on a calculation approved under the terms of the settlement agreement.
Vanguard is not a party to the lawsuit or settlement. The plan sponsor of the Plan has requested that we send this communication notifying you that the allocation has been completed.
On or about April 30, 2021, Vanguard allocated your share of the settlement proceeds to your account. You can see the allocation on your next quarterly statement as an “Other” transaction in the account summary section. This allocation also appears in your transaction history as “Miscellaneous Earnings.”
The above actions settle part of the lawsuit, but they don’t address the issue of too many available funds and resulting higher administrative fees. That part of the lawsuit settlement was actually planned to take place before the distribution of money to participants. I announced the upcoming remapping of the vendor funds and a new fee structure in the January 13, 2020 newsletter: https://www.emory.edu/emeritus/documents/newsletters/V6_Issue10.html. In that article, I also stated “These changes have been discussed with appropriate committees throughout the University, including the University Faculty Council, Employee Council, and Senate (and the University Senate Fringe Benefits Committee). I am particularly grateful to Felicia Smith, Director of Benefits in HR, for also discussing the changes with me.”
The Final Step in the Settlement
It is this second part of the settlement that is now going to take place later this fall. For this part of the settlement, it is important to understand that the actions taken to restructure the retirement plans are part of the settlement agreement. As noted above, one part of that agreement states: “Within 90 days of approval of the settlement, the Plans’ fiduciaries will retain an independent consultant to review the existing investment structure and develop a plan for future investments.”
Everyone who has funds in the Emory retirement plans should have received a relatively thick packet of materials including a 36-page booklet describing the changes and then many separate pages of more specific information. Especially for those of us who are not investment gurus, the information can seem overwhelming.
There has been some upset and angst about the proposed changes, but it is clear that the settlement agreement constrains how Emory can restructure the plans. It is also clear that reducing the number of plan funds available and substituting lower-fee funds for current funds will mean inevitably that participants will have some or all of their funds changed. Given that even professionals can’t agree on what funds are “best” it is unlikely that everyone would agree with the decisions on what funds to have in the three Vendor accounts.
There are several options that an individual with funds in these plans can take. The most straightforward is just to let the planned remapping of funds occur. This is not a bad option! For this option to occur, you don’t have to do anything. Some investment professionals would disagree with some of the choices, but I know of at least a few knowledgeable people who have examined the planned changes and none of them have suggested than any of the remappings are clearly “wrong.” The booklet sent to you describes how you can have a confidential consultation with the vendor(s) of your plan (i.e. TIAA, Fidelity, and/or Vanguard) if you want to talk to them.
If you are a knowledgeable investor and want more control of your investments and would like to select from a wider range of products, you can open a self-directed brokerage account with your vendor(s). If you have no idea what that means, you probably would not want to choose that option to do without help!
If you have a financial advisor, you could send them all of your information and get their input.
Fees
Until these changes are implemented, all fees for maintaining the funds and managing the funds are taken from the fund returns (i.e. are part of the expense ratio of each fund). Under the changes, most funds will have significantly reduced fees, or expense ratios. However, for the first time, set fees will be charged on a quarterly basis by each vendor. Thus if you have accounts in all three vendors, you will be paying those quarterly fees to each vendor. The fees themselves are quite modest, ranging from $8.50 to $9.75 per quarter. Apparently the main reason for these fees is that there are a relatively large number of plan participants that have very low balances with some vendors, and those low balances don’t generate enough income to cover the cost of maintaining those accounts. This would be true of employees just beginning their plans, but it seems that some people started with one vendor and then soon switched to another, without moving their funds out of the first account. If you have more than one vendor account, and one of the accounts has a minimal balance, you might want to move those funds to your major vendor to avoid paying the extra fees.
Beneficiary Designations
Listed under “What are my next steps?” in the brochure you received is the suggestion to review your beneficiary designations. The plan changes are totally unrelated to your beneficiary designations. However, the suggestion is a good one, for a reason that some of you might not realize: Your retirement plans and IRAs are non-probate items. That is, the funds in those plans are not distributed by your will, but are distributed by the beneficiaries that you designate. Thus if your will states that your spouse will inherit “everything” but your 403(b) lists your children as primary beneficiaries, it will be your children that would get the 403(b) funds and not your spouse.
--Gray Crouse
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THE AROHE VIRTUAL CONFERENCE: OCTOBER 12-14, 2021
Join Your Emeritus College Colleagues for the Event
We think most of our members know that Emory’s Emeritus College is a long-time (indeed, founding) member of the Association for Retirement Organizations in Higher Education (AROHE), and that EUEC directors Gene Bianchi and John Bugge served on the Board of the Association for many years, and that Gray Crouse is completing a second term on the Board right now. And, of course, most of you know that Emory hosted the (then) biennial conference of the Association in the fall of 2018—with the members of GA-HERO, the Georgia Association of Higher Education Retiree Organizations, as our co-hosts on that hugely successful occasion.
Arizona State was due to host in 2020. COVID forced the cancelation of that conference. But AROHE decided to schedule a virtual conference for this fall—specifically for three days in October, the 12th to the 14th. AND, with the encouragement of big-time Trekkie fan, Bill Verdini of ASU, who is currently President of the Board, AROHE decided to embrace its virtuality whole-heartedly. Thus, the title and the primary promo for the conference read as follows:
"Reimagining Retirement: Let Us Boldly Go"
Cyberspace. The final frontier. And the site of the next AROHE enterprise. Join us as we venture into virtual realms to explore the opportunities for collegial relationships, intellectual engagement, and productive endeavor that Retirement Organizations present—both to their members and to the colleges and universities they serve. And help us discover further ways that ROs and AROHE itself might yet do more to re-create retirement as a time of purpose and passion for all on board the “starship” of our Association.
If you go to the website for AROHE—and the conference—you’ll find a charming and informative video of Bill at the top of the scroll of conference information in which he introduces himself as “the Captain” of “the Starship AROHE.” (And a little further down the scroll, there’s a video of Gretchen Schulz, who is serving as co-chair of the Program Committee, talking about—what else—the program.)
Of course, if you’re willing and able to spend time browsing on the conference website, you’ll find full information about all aspects of the conference there--including a detailed day-by-day schedule for all its programming—listing sessions in which Ann Rogers and Ron Gould and Gretchen will be presenting. But you may prefer to pick up the basic information about the pleasure and profit in store for you should you decide to register to attend right here—in passages taken from the article we’ll be running in the September issue of AROHE Matters, the newsletter of the association.
Excerpts from the AROHE Matters September Newsletter
As we put the finishing touches to the program for our virtual conference, we are thrilled to invite you to join us for an experience that will take you soaring into the realm of exciting new ideas and social activities even as you put your feet up in the comfort of your home.
Here’s what you’ll enjoy in the course of our journey:
The Program
Keynoter Louise Aronson, MD, MFA, Geriatrician and Professor of Medicine, UCSF Division of Geriatrics
“Redefining Aging, Transforming Medicine, Reimagining Life”
Keynoter Jean Accius, Senior Vice President, Global Thought Leadership, AARP
“Returning to Normal Isn’t an Option: The Opportunity to Create a New, Stronger, and More Inclusive Future is Now”
Plenary panels on “The Pandemic as Case Study: How Technology Can Support the Resilience of Elders” and “The Age-Friendly University Global Network: Advancing Inclusivity in Higher Education”
Concurrent sessions on topics such as retirement housing; senior travel; post-pandemic programming [with our own Ann presenting]; intergenerational initiatives; lifelong learning [with our own Ron and Gretchen presenting]; diversity, equity, and inclusion; consortia to connect retirement organizations {with reps from GA-HERO presenting]; strategic planning—and more. There will also be opportunities for free-flowing conversation on issues of the greatest mutual interest.
Keynote addresses, plenary panels and concurrent presentations will be recorded so you can watch them for a month following the conference. That is a lot of added value for the modest price of registration (more on registration below).
The Resource Exchange Fair
Our virtual conference will also include The Resource Exchange Fair, always a much-appreciated feature of AROHE conferences. While conference attendees will be able to visit the virtual fair at any time and stuff their “swag-bags” with resources, we have set aside two periods when those exhibiting at the fair will staff their virtual booths and interact with attendees. During those periods you can speak with our sponsors, AROHE board members, and representatives of retirement organizations (ROs) there to share their best practices [a group that will include members of the EUEC]. You will especially want to speak with winners of our Innovation Awards. They will offer information about their successes that you can take home with you when the conference concludes.
Registration Deadlines
Registration information is available on the conference website. Reduced fees are available for those who register by September 17 and for group registrations.
And Speaking of Group Registrations . . .
Back to this article for our own newsletter. We do hope that many of you—beyond the six of us that are already involved in presenting, moderating, and otherwise participating in the conference programming—will be interested in registering to attend the conference. As you’ll see if you do take a look at the conference website, there will be lots of interesting sessions to attend—and there will be lots of fun available, too, with activities (like laughter yoga) arranged for the many breaks we have built into the three-day schedule—and time for “social networking” (and parties), as well.
What with NO need to pay for plane fare and hotel rooms and so forth, the cost of attending will be minimal, even for individual attendees. But for those who can register as one of a group of attendees from a single Retirement Organization, it’s even minimaller (if that’s a word—I suspect it isn’t). With six Emory people already set to register, all Emory attendees can claim the $80 registration fee instead of the $100 one. What a deal! And--Breaking News--As noted above--Our EUEC Director has offered to cover the cost of registration for any of us who'd like to register as part of our Emory group.
So if you would like to register, let Ann Rogers (at ann.e.rogers@emory.edu) know that you wish to do so—by the early registration deadline of September 17.
We look forward to sharing our experience on “the Starship AROHE” with as many of our wonderful EUEC crew as possible. Let us “beam you aboard”—so you can learn even more than you already know about how to “live long and prosper.”
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Only recently we were made aware of some of our deceased Emeritus College members, and we would like to acknowledge them now.
Larry Bauman, Professor Emeritus of Sacred Theology
Deceased August 9, 2021
John Boring, Professor Emeritus of Epidemiology
Deceased January 10, 2021
George Fisk, Professor Emeritus of Marketing
Deceased July 20, 2019
Laretta Garland, Professor Emerita of Nursing
Deceased May 20, 2018
Obituary not available
Eugene Hall, Lecturer Emeritus of Mathematics
Deceased January 30, 2021
Quentin Hand, Professor Emeritus of Theology
Deceased February 16, 2021
Bob Kibler, Professor Emeritus of Neurology
Deceased July 27, 2021
Michael Lane, Professor Emeritus of Medicine
Deceased October 21, 2020
Obituary not available
Hugo Sanchez-Moreno, Assistant Professor of Gynecology and Obstetrics
Deceased March 22, 2021
Michael Zeiler, Charles Howard Candler Professor Emeritus of Psychology
Deceased February 7, 2021
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Walking the Campus with Dianne |
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The artistic overhang from our last walk can be found at the Transportation and Parking Services building/parking deck located at 1945 Starvine Way on Emory's Clairmont Campus.
The building is an extremely busy place during any given semester since it is one of two major shuttle hubs. The pictures below make it look like a ghost town, but that's only because I took the photos while biking on a recent weekend before the semester began.
The Transportation and Parking Services Office is located in this building. The office oversees shuttle schedules, parking permits and renewals, the Smart Commute program, Bike Emory, and Emory Fleet services. The Starvine parking deck is also part of the structure and provides spaces for visitors to the Clairmont campus outdoor swimming pool and recreation area in addition to faculty, staff, and student parking.
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We are going inside for our next walk and will view something that is "All Emeritus" and may be familiar to many of you, but is something you haven't had a chance to see for quite some time due to this pesky pandemic. |
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Where will you find this on the Emory Campus? |
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Emory University Emeritus College
The Luce Center
825 Houston Mill Road NE #206
Atlanta, GA 30329
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