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Washington DC

Members of the Washington DC Chapter moved from summer rains into autumn sunshine with its fall get-together on September 27th at the home of Gene and Ellery Owens. The 20 members and guests included Jill Gale de Villa, AFE-ADB’s new Deputy Executive Secretary, who was here in Washington for a special joint session among international financial institutions (IFIs) on pensions, health issues, social communications, and establishing the means for future coordination among the international retiree associations, and NARO’s Robert Schoelhammer.

Given the presenters, and the importance of the issuespresented, this meeting was one of the richest business sessions I have ever attended with the Washington Group.

  1. I presented key issues from the Statement of the Executive Secretary following the Bali Annual Meeting (available at http://afe-adb.org).
  2. Jill and I reported on the Health Insurance Workshop held at the World Bank the previous Thursday:
    • Many of the other institutions promote the use of national health plans, such as Medicare in the US, to decrease the cost of their plans.
    • Some AFE members based outside the US object to paying the same premium as thosebased in the US; WHO is facing the same issue.On the other hand, US citizens with Medicarecoverage pay extra premiums for this coverageout of pocket, and make reduced claims on theVanbreda plan. Differential medical costs on aglobal basis will continue to be a major issue.
    • Some insurance companies in the US provide informational material that can help clients be better informed and make better medical decisions. AFE–ADB should consider disseminating such informational materials.
    • If one anticipates a significant medical expense in the US, or when handling medical providers who fail to understand “international health insurance,” dial 1-800-800-6020 and put the provider in touch with Vanbreda, which is usually very responsive.
    • New Vanbreda cards are needed, with the new contact numbers and indicating the US providers.
  3. Clay Wescot t repor ted on the Pens ion Workshop:
    • Generally, all of the IFI retiree associations atthe workshop felt reasonably secure about thefinancial status of the retirement plans.
    • ADB retirees are among the least well informed, given the time lag between pension reports issuance and the dates to which they apply.
    • A risk that ADB retirees face is that they do not have timely data and are totally dependent on the good faith of ADB and its shareholders. Many of the other associations have separate trusts, or do not borrow from shareholders, and most have direct representation on their pension committees.
    • AFE needs members with professional experience with pensions to advise us and the ADB Pension Committee.
    • Regarding the COLA, ADB looks good with a 3% annual increase guaranteed; however, for many, appreciation of local currencies against the dollar is an issue.
    • The most significant issue for AFE is representation on the Pension Investment Committee as well as the appointment of alternates to both the Pension Committee and the Investment Committee.
  4. Ed Haugh and Bernard Donge repor ted on the Social Networking, Communicat ions , and Credi t Unions Workshop:
    • Retirees’ associations are trying to directlyengage retirees in networking andcommunications. The 1818 Society has set upa “speakers’ bureau”—retirees who publicizethe World Bank—and a Retirement ActiveLifestyle Committee, which holds social eventsand provides information to promote activelifestyles. Other IFI retiree associations holdregular lunches and outreach sessions to bringin more active members.
    • A key issue is to provide retirees with continued access to and information about their former employer through ID cards that allow access to their buildings, dining areas, and fitness centers.
    • World Bank has designed a “Survivors Handbook” that informs spouses regarding pension, financial, and medical issues relevant to surviving spouses. AFE will look at providing one for ADB.
    • Other retiree associations have access to credit unions that provide loans, credit cards, and financial services at lower cost and at less risk to members. Credit unions are better than banks because they work closely with the membership, and respond to clients and not to a profit motive. AFE needs to investigate options for joining a credit union.
    • All retirees associations have websites. Some allow retirees more direct linkages to current operations than others. AFE, which is currently establishing its site, should liberally borrow ideas from other retiree associations’ websites.
  5. Robert Schoelhammer updated us on NARO‘ s and ADB’ s lates t act ivi t ies :
    • Christopher MacCormac will arrive to take overfrom Thelma Diaz, who retired as the Head ofNARO. Guido Geissler will also be coming toNARO to work on climate change funding.
    • The General Capital Increase (GCI), which amounted to a 200% increase, has had significant impacts on ADB’s perceived role relative to the global financial crisis. ADB can now increase its level of lending substantially, and will establish a countercyclical facility to assist with recovery from the global crisis.
    • There is huge interest in Afghanistan and Pakistan and how to fix the problems there. ADB is now the 2nd largest funding agency in Afghanistan, the only institution that works across borders with Afghanistan, and the largest development partner with Pakistan. NARO had recently participated in a summit meeting, headed by the President of ADB, regarding financial development strategies for these two countries.
    • Issues regarding how the GCI will influence staffing in Manila were discussed. About 150 more professional staff may be needed. To a large extent the GCI will be used in line with ADB’s Strategy 2020 and climate change goals.
    • The GCI and the confluence of development strategies in Asia, including the early positive signs of recovery from the global financial crisis of several Asian members countries, have tended to boost confidence among all ADB staff.

At last, and to the delight of many, the meetingbroke for the Thai lunch, Singha beer, and catching upamong friends—the essence of our fall get-togethers.We look forward to more visits from the ExecutiveTeam of AFE–ADB in Manila, if for no other reasonthan to give us an excuse for more get-togethers.

Attending Washington DC’s Fall Get-Together were Tita Acupanda, Etel Bereslawski, Bernard and Natalie Donge, Cinnamon Dornsife, Ed Haugh, Anita Kartadjoemena and Michael McDonald, Gilda Ordoñez-Baric, Gene and Ellery Owens, Regina H. Pan and Christina Pan Lee, Bill Peterson, Karti and Indira Sandilya, Robert Schoellhammer, Josephina Yabes Smith, Jill Gale de Villa, Clay Wescott, and Steve Whitmer.