At the NCPERS business meeting on Thursday, April 12, the delegates approved several resolutions placing the organization on record on key pension issues. These resolutions were designed to reflect the overall goal of NCPERS. preserving and protecting the pensions of millions of public sector employees.

Mandatory Social Security Coverage and Reform

There were two resolutions dealing with Social Security and its impact on public sector employees adopted at the conference. First, the delegates adopted a resolution entitled, "Preserving the Integrity of the Social Security System and Opposing Mandatory Coverage," wherein they publicly expressed their continued opposition to mandatory Social Security coverage, while supporting to maintain the financial integrity of the current system. The resolved stated, "NCPERS opposes all present and future efforts to require mandatory or universal Social Security coverage." The delegates instructed the Officers and Executive Board to take the lead on this issue and to use whatever resources necessary to implement this important position. NCPERS has a long history of opposition to mandatory coverage and this resolution once again reaffirms its strong opposition to any efforts to implement mandatory Social Security coverage of non-covered state and local government employees.

The second resolution, entitled "Private Retirement Accounts in the Social Security System," places NCPERS in strong opposition to the establishment' of private retirement accounts within the Social Security system. This idea has been advanced by several political leaders as one of the solutions to the Social Security financial crisis. NCPERS' opposition was based on the fact that such private retirement accounts could "place in jeopardy the guaranteed benefits promised those covered by the Social Security system." The resolution stated also that such accounts "cannot guarantee benefits to participants and place their retirement income at the mercy of the fluctuations in the stock market and their ability to make investment decisions."

Both Social Security resolutions were adopted unanimously.

Protection of Pension Funds

Two resolutions were adopted to protect pension funds. The first dealt with the "Taxation of Pension Assets," whereby NCPERS went on record in opposition to the "taxation, direct or indirect, of pension assets as an improper diversion of trust funds. The resolution directed the Officers and Executive Board of NCPERS to "take all appropriate steps to prevent adoption of direct or indirect taxation of public employee pension assets."

The second resolution dealt the "Hostile Takeover of Pension Funds" whereby state and local governments have raided or attempted to raid public pension fund assets to satisfy budgetary shortfalls and deficits. To protect plan trustees, the resolution states that, "Governments should recognize and respect the position of public fund trustees as fiduciaries whose primary function is to serve the plan participants and their beneficiaries and refrain from subjecting them to political or legislative constraints that could undermine their objectivity." The resolution calls on NCPERS to take the lead in opposing raids on public pension fund assets."

Public Sector Pension Reform

The delegates also stated their strong support for the public sector pension reform bills currently before the Congress. The public sector pension revisions are contained in two bills introduced earlier this year. These bills are HR 10, introduced by Representatives Rob Portman (R-OH) and Ben Cardin (D-MD) and S 742, introduced by Senators Charles Grassley (R-IA) and Max Baucus (D-MT). Both bills make changes in public sector pension law that provide greater savings opportunities, more portability, elimination of complex rules, and updating of benefit and contribution limits, including special catch-up provisions for those over age 50.

Defined Contribution Plans

NCPERS delegates also took a position on the issue of defined contribution plans. At the conference, there was a special panel presentation on defined benefits, defined contributions and hybrid plans. The resolution states, "NCPERS supports only those efforts whereby a defined contribution plan is an optional additional component to a defined benefit plan." While recognizing the popularity of defined contribution plans, the resolution strongly opposes "efforts to use a defined contribution mechanism as a replacement for a defined benefit plan for any reason and further opposes defined contribution plans which erode the assets of a defined benefit plan trust fund through conversion." The delegates supported such defined contribution plans on a limited basis where used as an optional enhancement to a defined benefit plan.

Key lnvestment Risks

The delegates adopted a resolution supported by several other public sector pension fund groups that attempts to address investment risks and common practices of those risks. These include risk principles, guidelines, and standards. The resolution recognizes the fact that pension systems face an increasing number of risks in undertaking necessary investment activities. Therefore, the NCPERS resolution endorsed a set of risk guidelines as contained in "Public Pension Systems - Statements of Key Investment Risks and Common Practices to Address those Risks," which was developed by the Association of Public Pension Fund Auditors (APPFA).

Appreciation Resolutions

The delegates adopted three appreciation resolutions unanimously. First, they recognized the services of Harold A. Schaitberger, who served as the Legislative Counsel of the National Conference on Public Employee Retirement Systems for over 22 years. The resolution recognized Harold as a "leader in both legislative and organizational matters in the public pension community on issues of greatest concern to all plan trustees and participants." The resolution also cited how Harold "through his masterful skills and unique abilities, led the fight on behalf of NCPERS to promote and protect pension plans and to stop devastating attacks such as pension raids." A special plaque recognizing his services was presented at the general session on Monday, April 8. Harold A. Schaitberger is currently the General President of the International Association of Fire Fighters, having been elected unanimously last August.

The second resolution was one of appreciation for the efforts and support of NCPERS by the late John "JJ" Jennings of Boston, Massachusetts. It recognized the long years of support and efforts by JJ in protecting and preserving retirement rights for active and retired members. JJ served as the Chairman of the Boston Retirement Board and as the Pension and Welfare Officer of the Professional Fire Fighters of Massachusetts.