DPSRS: Stable & Secure
On Friday, September 26, the Denver Post ran an article with the headline “DPS takes hit on bond refi.” The headline was correct. Unfortunately, the reporter opens the story by erroneously stating that it is the DPS pension plan which is losing money on the bond transaction.
In the body of the story, the Post reporter indicated that the Denver Public School’s pension plan was pulled into the current financial mess on Wall Street due to an inability to sell certain bonds at higher interest rates and thereby losing “hundreds of thousands of dollars.” Right story – wrong organization.
The DPS Pension Plan does not sell bonds, especially “certificate of participation” bonds cited later in the story. Denver Public Schools issued Pension Certificates of Participation (PCOPs) in April of this year and used some of the proceeds to retire the unfunded liability of the pension plan. If the District could sell those PCOPs at a rate below the assumed interest rate of the pension plan, DPS would save many millions of dollars over the life of the PCOPs. That idea looked good last April and will probably prove to be a very good move over the next 30 years, but, for this brief moment in time, things aren’t going according to plan. With the U.S. Congress considering a bailout plan, a reversal of fortunes could be in place in as little as a week or two. If that occurs, it likely won’t get a very big headline, if any at all.
Rest assured that none of these transactions have anything to do with the investment of the assets of the Denver Public Schools Retirement System. The Post article implies that “pensioners are not likely to notice” the higher costs of issuing the PCOPs. That’s absolutely true. The financial transactions involved in “selling” the PCOPs do not involve DPSRS in any way. The Denver Public Schools Retirement System remains stable and secure.
You may read the Post article here.
What happens when I turn 65?
Medicare is a federal health insurance program for people who are 65 and over, for some younger people with disabilities, and for people with end-stage kidney disease.
Medicare has:
Hospital insurance, called Medicare Part A, which helps pay for in patient hospital bills, skilled nursing facilities, some home health care and hospice care.
Medical insurance, called Medicare Part B, which helps pay for doctor services, outpatient hospital and other medical services not covered by Part A.
Prescription drug insurance, called Medicare Part D, which helps pay for prescription drugs - YOU DO NOT WANT TO SIGN UP FOR MEDICARE PART D IF YOU ENROLL IN ANY DENVER PUBLIC SCHOOLS DISTRICT PLANS.
You can apply for Medicare through your local Social Security Administration office three months before your 65th birthday. Whether you’re already retired, plan to retire soon, or plan to continue working, you’ll want to look into your Medicare options before you turn 65. The best time to sign up for Medicare is 90 days before your 65th birthday.
You can apply for Medicare in one of three ways:
Online at www.socialsecurity.gov.
By phone at 1-800-772-1213 (TTY 1-800-325-0778 for the hearing/speech impaired).
In person at your local social security office.
After you have received your Medicare card, but before the month in which you turn 65, contact Department of Employee Benefits at 720-423-3373. An application will be provided to you which you will be required to fill out and return. Please send a copy of your Medicare card with your application. Your Medicare plan benefits will begin the first of the month in which your turn 65, as long as the application is received in the Department of Employee Benefits in the prior month.
You can only be on one Medicare plan. If you sign up for any alternate medical or prescription plans, your Denver Public Schools District plan will automatically be terminated.
Courtesy of the Department of Employee Benefits
