Dear Participants,

The recent relocation of the HMEPS office to its new address marks the culmination of months of planning and hard work.  The new location, at 1201 Louisiana, Suite 900, in the Total Plaza building is ready for business.  I commend the HMEPS staff for making the transition to the new office in a professional and efficient manner.  Information on parking, tunnel access and handicap access can be found at our website at www.hmeps.org/move.html

Due to the outstanding performance of the HMEPS investment portfolio, the Deferred Retirement Option Plan (DROP) interest rate for calendar year 2012 will be 7.5%, effective January 1, 2012.  The rate was approved by the HMEPS Board of Trustees at the October 2011 Board meeting.
 
I want to thank everyone who participated in the 2011 Financial Retirement Educational Employees (F.R.E.E.) Summit.  This year’s event marks the 6th year for this important event and the feedback we received from those who attended have given the seminar high marks for providing insightful and relevant information on retirement and financial preparedness.  All members of the HMEPS plan should understand the tremendous advantages you obtain from participating in a defined benefit plan, including the accrual of a benefit that will be paid to you monthly for your lifetime upon your attaining five years of credited service and the eligible age, the payment of benefits to eligible survivors, and the payment of benefits to you if you become disabled as provided in the pension law.  You have worked hard and earned your benefits!

Be aware that several individuals and groups have launched a hard-hitting media and legislative campaign to replace the defined benefit plan with a 401(k) type of plan that instead gives each employee an individual separate account.  You already have access to a supplemental retirement plan with individual accounts, which is the 457 deferred compensation plan that the City sponsors.  While the 457 plan provides great advantages to saving for retirement, it is not a replacement for the HMEPS defined benefit plan, nor is any other 401(k) type plan.  This is a very important time to make your voice heard about what your HMEPS benefits mean to you, and you should reach out to all stakeholders to provide your thoughts, and to give accurate and meaningful information on these plans.  Please continue to visit the HMEPS website for more details. 

As we approach the end of 2011, I want to thank each of you for your support during the past year and look forward to your continued support in our commitment to protecting your financial future.  I also wish to take this opportunity to wish you and your family a happy holiday season. 

Sincerely,

Sherry Mose, Chairman