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President's Annual Report
Robert Podgorny delivered his first keynote address as NCPERS president at the May 9 opening general session of the 64th Annual Conference.
 Podgorny noted that prior to the conference more than 200 attendees participated in the Trustee Educational Seminar-one of the largest seminars in NCPERS history. "Trustee education is what makes our plans so successful," he said, "and I know that you are here to learn more so that you can better serve your plan participants."
Podgorny noted that prior to the conference more than 200 attendees participated in the Trustee Educational Seminar-one of the largest seminars in NCPERS history. "Trustee education is what makes our plans so successful," he said, "and I know that you are here to learn more so that you can better serve your plan participants."
The 23rd President of NCPERS, Podgorny observed that NCPERS is the nation's largest public pension organization. The organization now has more than 500 pension fund members, representing over $2 trillion in assets.
Podgorny said that NCPERS' goals today are the same as they were in 1941, when NCPERS was founded: "We believe in a secure and predictable retirement income over our lifetime. We believe workers should retire with security and certainty, knowing they will never outlive their retirement income and be penniless. We believe in a pension that rewards long-term, dedicated service with a secure retirement. We believe that a defined benefit plan must be the foundation of all retirement income, whether public or private sector employees. We believe that families must be protected whenever a loved one is killed in the line of duty or disabled while in service. And finally, we believe that our politicians, who want to break the promise of a secure retirement, must be held accountable. And they will be!"
Podgorny said he will fight to ensure that President Bush and Congress "do not privatize Social Security, do not establish private retirement accounts, do not cut benefits, and most importantly, do not mandate universal coverage for noncovered public workers."
He reviewed the NCPERS plan for resolving the Social Security funding shortfall, noting that it is modeled after the successful public pension plans. "It would invest Social Security trust funds in stock market index funds and in state and local bonds to rebuild our infrastructure, create jobs and increase local and state tax revenues," Podgorny said.
Podgorny also noted NCPERS' diverse participation in the battle in California to privatize our retirement benefits. "Governor 'Terminator' wants to terminate our pension benefits," Podgorny said. "We are going to stop this initiative in California and not allow it to spread."
NCPERS, Podgorny reported, has joined California Families Against Privatizing Retirement, a coalition of dozens of public pension organizations. "We also testified before the state legislature and provided legal counsel. We conducted research, created talking points and picketed the governor's fundraisers. NCPERS is fully engaged in this battle."
As other state legislatures consider pension reforms that would erode the quality of public employee pensions, Podgorny assured the delegates that NCPERS is "prepared to provide you with the resources to do battle in your state or locality should the politicians attempt to privatize your retirement. And we will not wait for an attack. We will take an offense posture and talk about how good our defined benefit plans are for governments, their employees, the economy and the taxpayers."
"Governor Schwarzenegger's proposal is neither new nor revolutionary," Podgorny noted. "It has been tried before and it failed. Replacing defined benefit plans with individual accounts will harm state and local governments, their employees, their economies, and ultimately the taxpayers. The value of professionally managed investments, pooling participant investment risk, inflation protection and catastrophic death and disability benefits all would be forfeited under individual accounts. You are entitled to guaranteed benefits-not a guaranteed gamble."
"Over the past year," Podgorny noted, "NCPERS has been involved in many projects to protect your pension benefits. I urge you to read about these in my annual report to the membership, which you received at registration. I know that the officers, executive board members and advisors are excited about the tasks we are undertaking, and what the future holds for NCPERS-The Voice for Public Pensions."
Concluding his remarks, Podgorny reported that at the NCPERS annual business meeting, held on the last day of the conference, he would offer a resolution with the following points regarding retirement security:
1. NCPERS will oppose any and all legislative efforts to abolish defined benefit plans and replace them with 401(k)-style individual accounts.
2. NCPERS will preserve death and disability benefits for all workers.
3. NCPERS will ensure workers receive secure, guaranteed pension benefits, not gambled benefits.
4. NCPERS will hold accountable those who support, finance or advocate, either directly or indirectly, the abolition of secure, guaranteed pension benefits.
The members approved the resolution during the May 12 general membership meeting, which marked the conclusion of the annual conference.
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