2009 nº 132

Newsletter
A bimonthly publication of the IDB-IIC Retirees Association
May • June 2008 132
Message from the President
T
he Bank´s realignment brought in a series of irrevocable changes for
current staff and, consequently, for our Associañtion. As has been
previously informed, about 300 employees left the Bank causing many
setbacks, including changes in the composition of some committees and
its functioning, which have almost come to a halt. Some of the new regulations implemented have seriously affected the Retirees Association in an
unexpected manner.
While acknowledging that the complexity of economic change means
that Bank’s assistance cannot be separated in a simple way from other
factors, the great impact it has had in our day-to-day activities has been
deeply felt. Only last month we were informed that during the first five
months of this year we spent US$31.917 in excess for printing documents
such as the bimonthly Newsletter and other materials that were provided
by Graphics which is now managed by an outside private firm with no
Bank employees. We will be charged for the paper used in the printers
and the copying machine. The cost of postage will also be charged to our
budget and the cost of the two parking spaces assigned to the Retirees
has already been increased. All these costs were previously absorbed by
the Bank but not any more. We have been informed that we will receive a
limited increase in our 2009 budget. All these measures are being applied
to all units of the Bank, including the other associations.
As a result of this new budgetary system, some administrative
measures are required to keep us afloat and working within our limited
budget. Unfortunately, the most serious item affected is the publication of
our Newsletter.
Consequently, starting in 2009 the Newsletter will be sent electronically to all those who have their emails registered with the Association.
Although many of you have not provided us with your personal emails,
we urge you to reconsider and to do so as soon as possible in order to
receive the Newsletter as well as other publications. Those of you who do
not have access to the internet perhaps can use that of a family member to
access the Association’s webpage. We assure you that your email address
will not be given to anyone and that it will only be used to send you our
communications. Our email is [email protected]. Only that small number
of members who definitely have no access to a computer will receive for a
(continues on page 5)
Rolando Castañeda
In this edition
2 June Luncheon
4 Thanks to
Rolando Castañeda
New Members
Inquiries to the Office
of the Association
Visitors
5 Access to the Bank
Medicare - Part B
Electronic Mail
6 Unclaimed Property
Retreat of the Board
7 Errata
New Representative to
the Pension
Committee
Use of the Photocopier
of the Associañtion
8 Chapters
Chile Chapter
June Luncheon
The monthly luncheon took place on June 18 at
Alfio’s Cucina D’Italia Restaurant with the participation of 26 members. A warm welcome was
given to Horacio Delgado and Gabriela Sotela who
were attending for the first time. Manuel MariñoReimann, Director of the Chile Chapter, made a
presentation on the situation faced by retirees who
live outside the United States, both with respect
to the Medical Insurance and the Retirement
Plan. The problems related to the medical insurance are, among others: CIGNA delays in making
reimbursements; delays and misinformation when
CIGNA rejects a claim; CIGNA does not report
when checks are issued or when they are deposited;
mailing reimbursement checks rather than depositing them, with the subsequent delay in receiving
the funds; rejection payment for drugs which are
sold in the United States with a prescription, but
not in other countries; the rejection of payment for
expenses associated to treatments prescribed by
doctors for long-term therapy and which CIGNA
defines as maintenance or unnecessary and accordingly require a medical report every six months, a
requirement which is not stipulated in the Insurance
Manual; misinterpretation of the statement of benefits from a primary insurance; difficulties confronting retirees residing outside the United States in
appealing decisions because there is no service
in Spanish; and that for each dollar reimbursed
there is at least 10% charged when exchanged for
local currency. It is requested that the Bank review
its contract with CIGNA and consider a possible
change of Administrator for the Medical Insurance
Program.
Regarding the Staff Retirement Plan, Mariño
explained that the problems faced by retirees
who live in other countries are becoming more
difficult. For many years their pensions have lost
over 30% in purchasing power. This loss is due
to two reasons: the devaluation of the dollar in
relation to the local currency and the rising cost
of living in the countries where they reside. He
also expressed dissatisfaction at the lack of attention that the Bank has paid to their problems. He
referred to the exchange of letters between a group
of retirees from the Chapters and Management.
The letters from the Colombia Chapter summarize the complaints from retirees which are: the
2 • Boletín de Noticias • May • June 2008
Manuel Mariño
C a r m e n I b a r, A l i c i a A d r i e n a n d A m e l i a
Schnoor
repeated references from Management to the regulations governing the Retirement Plan which do not
include adjustments to the loss of value of pensions
due to local economic circumstances without giving
rise to changes to the Plan; the dissatisfaction with
the lack of action by Management, although President Moreno has repeatedly expressed the need to
seek a satisfactory solution to the loss of purchasing power of retirees who live outside of the United
States, and the breach of the promise, made by the
Executive Secretary of the Retirement Plans of the
Bank at the International Meeting of Retirees in
June of 2007, to submit, by the end of that year, a
proposal to alleviate the deterioration of pensions.
Mariño also expressed his displeasure at the lack
of response by the Retirees Association during the
current year and more recently to a letter from the
President of the Chile Chapter suggesting the alternative of making a double adjustment of pensions,
claiming that this is the model used by other inter(continues on page 3)
June Luncheon
(comes from page 2)
national organizations, which also includes, besides
the cost of living adjustment, another increase for
the appreciation of national currencies against the
dollar. Jorge Liacuris expressed that in the United
States we also suffer the loss of purchasing power,
but that the rules of the Staff Retirement Plan are
clear and only cover increases in cost of living.
Gabriela Sotela asked what would happen if, as has
happened before, the situation changed? Bertus
Meins said that there was a study that took place
several years ago which relates to the situation of
retirees in European countries. David Atkinson
made two observations: we must look at the future
and make sure that any changes are equitable to
everyone, and keep in mind the financial sustainability of the Plans. Finally, Alvaro Ramírez
inquired about this year’s cost of living increase
which is estimated to exceed the 5% maximum
recognized by the Retirement Plan.
The President of the Association sympathized with the frustration of our colleagues living
in other countries and expressed a commitment
to continue to pursue a solution of these problems
with Management. He also acknowledged the
need to expedite communications with the Chapters to let them know the efforts that have been
done so far. Alfred Thieme stated that this topic
was discussed at a recent meeting of the Pension
Committee and a report on the various scenarios
to consider solving the problem is on the agenda of
July’s Administrative Committee of the Retirement
Plan. He also referred to the inherent difficulties in
trying to solve a problem such as this because any
Freeborn G. Jewett, Jr. and Arnold H. Weiss
changes to pension scheme requires consideration
of the administrative, legal, and financial context
to ensure the soundness of the Plan in the future.
Further reference was made to the risk involved in
using comparisons because it is difficult to find
other international organizations with benefits similar to those offered by the Bank. Another factor
that hinders any action, Thieme said, is the recent
realignment of the Bank which has caused the loss
of institutional memory, even more in the relevant
departments and that the Office of the Executive
Secretariat of the Retirement Plans is in the process
of training new members of the various committees because they have no experience whatsoever
in handling the Plans. Finally Santaballa thanked
Mariño for his presentation and suggested that retirees who are affected by this situation contact their
Executive Directors in the Bank to explain the difficult situation they are facing.
David Atkinson and Gabriela Sotela
O n e i c a G r a c i e , A l f r e d T h i e m e , J r. , O s c a r
Echeverría, Nilcéa Muniz, Bolívar Cobos,
a n d J a m e s R . Ta y l o r
May • June 2008
• Boletín de Noticias • 3
Thanks to Rolando Castañeda
We know from your emails and letters how much
the Newsletter is appreciated and we were extremely
fortunate to have Rolando Castañeda as its Coordinator for the past four and a half years. However, everything comes to an end, and it is with great sadness
that we inform you that Rolando has resigned from
this position.
Rolando has always been a tireless worker who
successfully coordinated the Newsletter, the Annual
Report, and the launching of the Website of the Asso-
New Members
We are pleased to welcome our new members:
Judith Aguirre-Lavalle, Cecilio Berndsen, Juan
Manuel Corredor, Lidia Mostajo de Calle, and
Hector R. Reyes.
ciation. He did a splendid job in keeping retirees well
informed of what was going on in the Association and
in the Bank. He has also always been a strong advocate for the rights of those colleagues residing outside
the United States while coordinating the Chapters
Committee.
We take this opportunity to thank Rolando
Castañeda for all his efforts, dedication, openness in
dialoguing, and willingness to lead the Newsletter.
Visitors
We were pleased to receive the visits of
Eugenia Fernández, from El Salvador, Alvaro Chaves, from Costa Rica, Alvaro Posada,
from Chile, José Ayrton Teixeira, from
Brazil, and María del Carmen Toomer, from
Washington, D.C.
Inquiries to the Office of
the Association
Many retirees often call our office to request telephone numbers of Bank personnel in charge of
matters that they are concerned with, such as the
medical insurance, the retirement plan, the taxes,
the Credit Union, the Staff Association, the Family
Association, and the Health Unit. We would like
to remind you that these telephone numbers can
be found on pages 58 and 59 of the Directory of
Members, distributed to all members at the beginning of the year. These pages contain the names
of the persons in charge of these offices as well as
their respective telephone numbers and e-mails.
Due to our limited administrative assistance, we
suggest that before calling our office you consult
this Directory.
Eugenia Fernández
Alvaro Posada
4 • Boletín de Noticias • May • June 2008
Message of the President
Medicare – Part B
(comes from page 1)
short period of time a hard copy in the mail on regular
bond paper, in black and white, without photographs
The Newsletter will appear in the Website of the
Association (www.ajbid.org).
José R. Santaballa
Access to the Bank
Biometrics Readers at the Bank building
The Bank has upgraded its security system and
announced that the biometrics readers in the Bank’s
headquarters buildings have been replaced. Your
current ID Card is no longer compatible with the
new system and must be replaced. To obtain a new
card that is compatible with the new system, please
visit the ID Unit located behind the 1300 New York
Avenue Reception. The ID Unit hours of operation are
from 8:30am to 4:30pm Monday through Friday.
ID Cards for Surviving Spouses
We have been informed by the Executive Secretariat
of the Staff Retirement Plans that the new policy
AM-806 of June 2008 establishes that ID cards are
issued to staff who have retired from the Bank under
the provisions of the Staff Retirement Plan (SRP).
A SRP officer must request ID cards for retirees to
Security. The courtesy is extended to their spouses
while the former employee is alive. Once the former
employee dies, the courtesy is no longer extended to
the widow/widower or other pension beneficiaries.
The ID card is collected upon arrival at the Bank, and
a day pass is provided when the person presents
a valid photo ID.
Periodically we remind retirees of the need to
apply for Medicare - Part B coverage at age 65
and we also try to assist those who have questions
as to method of payment, coverage, reimbursement procedures, etc. We have also received
queries from recent retirees as to who is able to
apply as refers to visa status, length of stay in the
United States, etc. It is important to know that all
participants and dependents of age 65 must apply
for Medicare - Part B coverage. Any participant
and dependents residing in the United States have
to contact the Social Security Service to obtain
the necessary information for enrollment in Medicare - Part B. We understand, and this should be
confirmed by Social Security, that participants
residing in the United States for a period of a
minimum of 5 years qualify irrespective of visa
status i.e. , G-V, resident or citizen. This is important for retirees (or actives) with dependents of
65 years of age or older. Dependents must enroll
or risk the normal coverage of the medical plan
since any reimbursement will consist only on
the amount that the Plan pays when Medicare
is the primary insurer. The remaining cost will
be assumed by the participant. We also suggest
contacting Medicare directly at their national
telephone number to request information and
particularly their booklet which is updated every
year with very relevant news as to any changes in
coverage.
Electronic Mail
We urge those members
who have not yet given
their personal emails to the
Association to do so as soon
as possible in order not to
disrupt the receipt of the
Newsletter.
May • June 2008
• Boletín de Noticias • 5
Have you heard about “Unclaimed Property”?
Each year billions of dollars become lost and
unclaimed when financial institutions lose track of
the owner of the funds. Unclaimed property consists
of inactive funds and other personal assets that are
considered abandoned when a financial institution
cannot locate the owner during the dormancy period
which differs by state.
The District of Columbia’s Uniform Disposition of Unclaimed Property Act (D.C. code section
42-201 et seq.) requires banks, credit unions and life
insurance corporations to review their records annually to determine whether they hold any funds that
have been unclaimed during the dormancy period of
three years.
Unclaimed property consists of draft (checking)
accounts, share certificates, deposits, gift certificates, paid-up life insurance policies, unpaid wages,
commissions, un-cashed checks, death benefits, dividends, insurance payments, money orders, refunds,
savings accounts, stocks, and proceeds of safe
deposit box auctions among others.
If the financial institution cannot locate the
owner, funds will be classified as unclaimed property and, by law, must be forwarded to the Department
of the D.C. Treasurer to whom any future claims
must be directed.
The IDB-IIC Federal Credit Union encourages
members to prevent their property from becoming
unclaimed by:
• keeping your accounts active;
• keeping an accurate record of all financial transactions;
• notifying the Credit Union and other financial
institutions of a new address when moving;
• making a deposit or withdrawal on all bank
accounts at least once a year;
• cashing all checks received;
• contacting the company immediately if stock dividends are no longer received; and
• informing a family member, attorney, or trusted
friend of the whereabouts of personal financial
records.
Under D.C. regulations, the Credit Union starts
the process of locating account holders in July 2008,
and it will continue to hold funds as dormant at our
institution until October 30, 2008, at which time
we will close the account to meet our legal requirement. Should you wish to claim these funds or keep
the account active, then you may do so by making a
deposit into the account, or by contacting the IDBIIC Federal Credit Union, in writing, prior to October 15, 2008.
Retreat of the Board
The Board approved a retreat for its members
next July 29. For this meeting we have invited
Roberto Vellutini, Chairman of the Administrative Committee of the Retirement Plans, Robert
Cole, Executive Secretary of Retirement Plans,
and Helmuth Carl, Chief of the Division of
Compensation and Benefits. On the other hand,
we are also inviting the Colombia Chapter,
which will be represented by Juan José Olivella.
6 • Boletín de Noticias • May • June 2008
The most important issues to be addressed are
those related to the Retirement Plans and Health
Insurance Program, the loss of purchasing power
of our pensions which is especially affecting
retirees who reside outside the United States.
Also to be considered at this opportunity will
be topics such as the Basic Life Insurance and
communications with the membership.
Errata
We have received the following letter from our retired
colleague Douglas McCallum in which he refers to his
comments expressed in the last Annual Meeting of the
Retirees Association:
Dear Rolando:
I’m addressing this letter to you, as Coordinator of the
IDB Retirees Association’s Publications Committee, in
reference to the March/April 2008 issue of the Newsletter. The last part of the article that summarizes what
I expressed at the Annual Meeting which took place
on April 30, in reference to the Bank’s subcontracting
Advantica in 2007 to administer the ophthalmological
claims submitted to CIGNA, indicates that Douglas
“... indicated that, in the future, the Bank should seriously consider allowing this type of subcontracting
because the subcontractors might not be aware of
Bank policies on medical insurance, as had happened
in this case. Douglas said that the Bank should notify
retirees of the possible problems that might arise as a
result of this procedure.”
I did not express myself in these terms, and
neither are they included in the letter that I sent that
same day to the President of the Retirees Association, in which I summarized my comments. These
comments are virtually the opposite of what was written in the Newsletter.
As mentioned in my letter and also on the second
page of the above-mentioned Newsletter in the section
relative to Medical Insurance, I criticized the Bank for
not having informed the beneficiaries when it agreed
with CIGNA the subcontracting of Advantica, as well
as for not having taken the appropriate measures to
ascertain that the new system to administer the claims
had been adequately planned and supervised. Had this
been done many of the subsequent problems would
have been avoided.
Kindest regards,
Douglas McCallum
New Representative to the
Pension Plan Committee
As a result of the new Association Board of Directors elected April 30th., Paula Verdun is our new
Representative to the Investment Committee of the
Pension Plan. Paula was appointed as Alternate
Member while Alfred Thieme continues his work
as Committee Member, a position that he has held
during the last three years. This past June 18th., the
Investment Committee held its first meeting, which
was attended by both of our representatives. This
was the second committee meeting in 2008, with
several others already planned for the following
months. At said meeting, the two alternate representatives for the Bank employees elected this past
March, Susan Olsen and Diego Flaiban, were also
installed.
Use of the photocopier
of the Association
Until recently, the Retirees Association allowed
the use of the photocopier to all those retirees who
were coming to the Insurance Group and needed
to make copies of receipts and claims for CIGNA
and Medicare. Unfortunately, due to the current
new regulations adopted by the Bank, we will be
charged for the cost of the paper, toner, and servicing of the printer and photocopier. Therefore, we
are forced to discontinue this service. All Bank
photocopiers have an access code for exclusive use
of the employees assigned to each particular office
so we suggest that you make your photocopies prior
to coming to the Bank.
May • June 2008
• Boletín de Noticias • 7
CHAPTERS
Several chapters, among them Argentina, Chile,
Colombia, Ecuador, and Peru have sent letters
expressing their concerns for not knowing the progress made on the subject of the loss of the purchasing power of their pensions, including the request for
studies to be performed on the mechanisms used by
other international organizations that these institutions have established to protect the real value of the
pensions of retirees who reside in countries affected
by the revaluation of the national currency vis-à-vis
the dollar.
The Chapters also want to be informed about
the actions that the Bank is considering to take as
a result of what President Moreno has expressed in
more than one opportunity, especially in the Retirees
Association Annual Meeting which took place on
April 30, as to encourage Robert Cole to announce
the recommendations concerning this problem.
Likewise they request that the Association pay
prompt attention to paragraph 6 of the Chapters
Rules, which was presented at the last Annual Meeting, when it was requested that the President of the
Association formally inform the President of the Bank
of the seriousness of the problem affecting them.
In addition, they refer to the May 12 letter from
the Manager a.i. of the Human Resources Department, Mr. Juan Manuel Fariña, which is a clear indication of the urgent need for finding a solution that
was requested to the President of the Bank.
The Board is working on these issues. During
the month of March, a report was received by Alfred
Thieme, representative of the Association before the
Administrative Committee of the Staff Retirement
Fund, who reported that the Office of the Executive Secretary of the Plans is working with outside
consultants in the evaluation of possible alternatives. In May, the Board approved sending letters of
support for President Moreno and Robert Cole.
Chile Chapter
Members of the Board: Manuel Mariño,
Alvaro Beca, María Luz Oñate, and Carlos
Sepúlveda
8 • Boletín de Noticias • May • June 2008
Participants to the trip to Viña del Mar
a n d Va l p a r a í s o : M ó n i c a G o n z á l e z , C a r o l i n a
Fernández, Magda Klein, Franciso Ojeda,
Julita y Alvaro Beca, María Luz Oñate, Liliana and Juan Lobo, Gladys and Duncan
Paz, Isabel and Manuel Mariño
Obituaries
Hugo Betancor 1947 - 2008
An Uruguayan citizen, died on
May 31 in Virginia. Hugo initiated his career in the Bank in
1976 as Transport Assistant,
then moved to the Insurance
Section as Personnel Assistant
and later was transferred to the
Operations Department, Region
I, as Files Attendant. In Operations he received
several promotions, among them, to Systems Information Technician in the Support Services Office,
Operations Officer Junior in the area of Microenterprises and later as Operations Specialist, a position
he occupied up to his retirement on August 31, 2007.
Prior to joining the Bank, he was employed at several
travel agencies in the United States. In his native
country he occupied various positions in public relations, broadcasting and adversiting. Hugo graduated
as an Economist from The American University in
Washington, D.C. Expressions of condolences may
be sent to his wife Lorena Betancor, 8010 Middlewood Place, Springfied, VA 22153, or via e-mail to
[email protected].
José Américo Viana 1932 – 2008
A citizen of Brazil, died on
May 31 in Rehoboth Beach,
DE. José entered the Bank in
July, 1972 as Assistant to the
Executive Director for Brasil
and in August, 1976 he was
transferred to the Office of
the General Consultant in the
Operations Department as Export Financing Officer, occupying this position until his retirement on
March 31, 1994. Prior to entering the Bank José
Américo occupied the position of Vice-President/
Treasurer at the Inter-American Trade Association
and, previously in Brazil, he was Director of the
National Company of Vegetable Oil. He graduated in
Economics from the American University in Washington, D. C. and completed studies for a Master’s in
the same university. Expressions of condolences may
be sent to his wife Mónica Viana, 52 Kings Creek
Circle, Rehoboth Beach, DE 19971-1033.
Trevor DaCosta 1929 – 2008
A citizen of Jamaica, passed
away on June 2 in Washington, D.C. Trevor was appointed
Alternate Executive Director on
July 1, 1978 and in 1980 Executive Director for the Caribbean
countries. He resigned this
position in June, 1982 and in
August of that same year joined the staff of the Bank
as Senior Programs Analyst in the Office of External Review and Evaluation, being later promoted
to Senior Officer, a position he held until his retirement on December 31, 1993. Before entering the
Bank, Trevor was Jamaica’s Ambassador to Mexico,
Costa Rica, and Panama; Director of the Division of
Economy of the Department of Foreign Affairs, and
Economist at the Wolrd Bank. Trevor graduated in
Science and Technology from the McGill University
in Montreal, and later received a diploma from the
National College of Food Technology in London and
a postgraduate diploma in Economics from Oxford
University. Expressions of condolences may be sent to
his wife Hazel Denton DaCosta, 3249 P Street, N.W.,
Washington, D.C., 20007.
Basilio Palacios 1919 - 2008
A Chilean citizen, Basilio died
on June 9 in Viña del Mar. He
joined the Bank as Project Engineer in the Country Office of
El Salvador and later was transferred with the same position to
Venezuela, Nicaragua, Trinidad
and Tobago, and Uruguay. In
November 1980 he was promoted to Deputy Representative in El Salvador, a position he held until his
retirement on May 31, 1984. Prior to joining the Bank,
in his native country, Basilio occupied the positions
of Consulting Engineer to the Sanitary Pan-American
Health Organization, Provincial Engineer in Acon-
May • June 2008
• Boletín de Noticias • 9
cagua, and Chief Engineer of Technical Control in the
Office of Potable Water and Sewerage in the Santiago
Province. In Paraguay, he served as Advisor to the
Minister of Health in the formulation and execution
of the national programs of sanitation, starting the
National Service of Sanitary Works. Basilio graduated as Civil Engineer from the University of Chile and
later received a Master’s Degree from the University
of North Carolina. Expressions of condolences may be
sent to his daughter Patricia Palacios Vilches, Avenida
La Escuela, Dpto. 536, Las Condes, Santiago, Chile.
Raquel Del Gordo 1929 – 2008
We have been recently
informed of the passing of our
colleague Raquel del Gordo
in Bogotá on May 10, 2008.
A Colombian citizen, Raquel
entered the Bank on January
14, 1965 as a Secretary in the
Division of Administration,
a position she held until her retirement on April 4,
1989. Expressions of condolences may be sent to her
nephew Fernando García Herreros, Carrera 11, 73-44,
Oficina 610, Bogotá, Colombia.
Gloria Tait 1938 – 2008
A Panamanian citizen, died on
June 17 in Maryland. Gloria
entered the Bank on July 5,
1962 as a Typist in the Office
of Administration and on
August 1, 1963 was transferred
to the Transportation Section
as Clerk. In 1967 she was
transferred to the Office of the Technical Assistant
Coordinator as Assistant and was later promoted to
Technical Assistance Officer in the same Division
where she had a successfull career, retiring from the
Bank on September 30, 1996. She received a Bachelor’s Degree in Zoology from the Coe College, in
Cedar Rapids, Iowa, and later a Master’s Degree and
a PhD in Social and Political Science from The American University in Washington, D.C. Expressions of
condolences may be sent to her brother Lloyd Tait, 6737 Kissena Boulevard, Apt. 1A, Flushing, NY 11367.
Publications Committee
Coordinator (Vacant)
Nívea Ayala
Isabel Larson
Oscar Echeverría
Ximena Morery
Marie-Joelle Renée Haas
José R. Santaballa
Eva Kaibni
Paula Verdun
Association of Retirees of the IDB
1300 New York Avenue, NW
Washington, DC 20577
Tel. 202.623.3035
Fax 202.623.3083
e-mail [email protected]
Reprinting material from this Newsletter in its entirety or in part is ahtorized by indicating the source.
10 • Boletín de Noticias • May • June 2008