THE 1818 SOCIETY

BULLETIN Volume 3, Issue 13

www.worldbank.org/1818

From The 1818 Society President’s Desk

Dear Members: Let me first, on behalf of your Board and all the Officers, wish you an enjoyable holiday season and peace of mind and good health in 2013. The Annual Meetings of the Society were successfully held on November 1st, 2012. A report on it is at the end of this Bulletin. On November 19th, 2012, World Bank President Dr. Jim Yong Kim spoke to a well-attended 1818 Alumni Forum held in the Bank. If you have not already seen it, I would request you to watch the video recording of both these events on our 1818 Society website at www. worldbank.org/1818. Many of you would be impressed not only by Dr. Kim's charismatic personality but also by his sophisticated understanding of the inside workings of the Bank. However, the jury is still out on whether the type of actions and decisions needed to strengthen the Bank, including some of those suggested in the recent 1818 Diagnostic, which he acknowledges having read several times over, would be implemented. He has taken the first step of announcing his new senior management team a few days ago (see 1818

December 2012

website). Currently the Bank is still in an introspective mood, looking at its strengths and weaknesses. Let’s wait and see what follows. Your new Board met on December 12th and discussed knowledge and pension issues in some detail. On knowledge, please await an email to all members on the next steps proposed. On pension, at the meeting the Board expressed not only comfort, but also deep appreciation of how the society's interests were represented at the Pension Finance Committee by our two representatives, Jeff Katz and Sudhir Krishnamurthy. The Board also noted that several members had made useful points on how the Pension Fund operations could be more transparent and more actively portrayed in the Annual Report. These issues will be examined by the Society's representatives at the technical level, in consultation with the Pension authorities. Meanwhile, rest assured that your interests are in safe hands. The meeting also decided on some changes to the assignment of responsibilities within the Society. A new responsibility matrix is published elsewhere in this bulletin. Since demand for print space in this Bulletin is high, we have left out some of our usual features that will reappear in the next issue. With best regards Shiva (J Shivakumar, President The 1818 Society)

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Chapter Events ANZ CHAPTER By the time that this bulletin is published, an ANZ Chapter meeting will have taken place in Sydney on 1st December 2012. The meeting will deal with a number of issues of concern to retirees, including the Staff Retirement Plan, health insurance, and the taxation of the Bank’s pension in Australia. We hope that a staff member of the Sydney office will join to discuss recent developments in the Bank. There is an indication that some colleagues from New Zealand will cross what is known fondly in ANZ as the ditch (Tasman Sea) and join colleagues from Australia at the Bank Hotel. For matters concerning the Australia-New Zealand chapter, please contact Jo. M. Martins, at [email protected], Tel: (02) 997-33022 BRITISH CHAPTER (BC) Reunion and Christmas Lunch 8th December, 2012 Notice of the Christmas Lunch and Reunion at the Thistle Hotel, Euston, has been included in previous issues of the Bulletin. Unfortunately, the date of the reunion on 8 December is just after the print deadline for this issue of the Bulletin so it is not possible to provide details of the occasion. However, at the time of writing 51 members and guests are expected. Details and photos of the event will be on the Chapter website: www.1818bc.org.uk Reunion and AGM 10 -12 May 2013. Plymouth The 2013 Reunion and Annual General Meeting will be held in Plymouth from 10 – 12 May. The City of Plymouth is on the south coast of Devon, about 190 miles (310 km) south-west of London and is located between the mouths of the rivers Plym and Tamar.

December 2012

Accommodation will be in the Copthorne Hotel, a four-star city-centre hotel. There is easy access by air, train or road, with ample parking nearby. The hotel rooms are well appointed and function rooms are spacious, ensuring a comfortable venue for the reunion. Plymouth is perhaps most famous for Sir Francis Drake’s game of bowls on Plymouth Hoe, but it has long been an important Royal Naval shipbuilding and dockyard town, with the largest operational naval base in Western Europe. The Devonport Dockyard is now mainly concerned with refitting nuclear submarines, while the city also houses the onshore recruit training facility HMS Drake. The city centre is relatively modern, as it was completely rebuilt after World War II and is now well served with theatres, museums, art centers and the University of Plymouth, which is the ninth largest university in the United Kingdom. The city is surrounded by the glorious countryside of Devon, including to the north east the rugged tor-strewn Dartmoor, and to the west, Cornwall, which is famous for its great beaches and inspiring coastline. The tentative program, developed with the help and local knowledge of John Russell, includes a Friday afternoon boat tour of Plymouth Sound and the dockyards along the lower estuary of the river Tamar. (Google search “Plymouth Princess” for photos of the boat). On Saturday, a trip is planned to visit the Eden Project, in which two huge biomes, built in an old china clay quarry, house wonderful collections of rainforest and Mediterranean plants surrounded by stunning natural gardens and a modern education centre. If time permits, there will be a stop at the Carnglaze caverns to view the subterranean lake, or merely wander through the grounds. On the Friday night at dinner we will be joined for an introductory briefing on the Eden Project by Ian Martin, who will be our host at Eden. He has been the plant curator there since inception, has reared and multiplied the plants in nearby nurseries, and, as a botanist of some distinction, has collected them from all over the world. (See Wikipedia

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Eden Project for a brief description). It is hoped that our speaker at the Saturday night dinner will be the only Admiral left in Plymouth, the Flag Officer Sea Training, Rear Admiral Clive C.C. Johnstone. Detailed information and booking forms will be distributed in February 2013. More information can be had at any time from the Event Organizer, Ian Hill, at eventorganizer [email protected]

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CANADIAN CHAPTER The Canadian chapter welcomes new members. Any former Bank staff who have not joined are welcome to contact either Jim Smith ([email protected]) or Helene Masson ([email protected]). The Chapter maintains a website on which members can exchange information and views on Canadian tax, medical, and other issues of interest to retirees. Jim and Helene would also welcome help in the task of contacting other Canadians who may potentially be interested. It is hoped that a gathering of the Chapter can be arranged for the spring of 2013. Jim and Helene would welcome any volunteers who would like to help organize such a gathering. CHILEAN CHAPTER New Year countryside barbecue will be organized during the first half of January at Luis Pisani's chacra, at the northern edge of Santiago on the Andean foothills. Those interested in participating, please contact Miguel Schloss ([email protected]) or Silvia Lay ([email protected]), or call (56-2) 458-6050 or alternatively (56-96) 140-0559. New and updated web pages covering activities of some Chilean Chapter members are: 

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Agustin Alberti (http://agustin-alberti. blogspot.com/), listing over 70 music pieces written for chamber, orchestral and choral ensambles, presented in Chile, the U.S., Italy, France and Poland Roberto Barahona (http://www.purojazz. com/), information to complement P.

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December 2012 Barahona's daily jazz radio program (in Radio Beethoven 96.5 FM) and disseminate information on jazz for the broader Spanish speaking community in the Americas. Duncan Campbell & Gladys Grace (http: //www.donduncan.org/), visual history and historical materials collected by Duncan Campbell and Gladys Grace on British presence in Patagonia and early XX century Antarctica Expeditions Roberto Echeverría http://www. echewine.com/home.html), vineyards and winery located in the outskirts of Molina town (Curicó Valley), the heartland of the wine producing area of Chile, with production exported to niche markets worldwide Ernest Fones (http://www.14.cl/sitio /?p=544), The British & Commonwealth Fire and Rescue Company, with a summary of the institution's record, services and achievements, equipment and facilities. Andrea Ramirez (http://www.acweb design.cl), web design services for small and medium sized enterprises and organizations Germán Rioseco (www.andeslodge.com), Andes Fishing and Outdoors Lodge, located in the northern end of Patagonia Region, facing Rio Puelo and Reloncaví Fjords. Miguel Schloss (http://www.sur-invest. com/), investment company providing advice and risk capital, to further development in emerging economies worldwide, based on successful experiences in Chile.

1818 Society Intercontinental Meet in Chile: A gathering is being organized for 1818 Society members in Chile for the second half of March (end of summer season) consisting of: A Core Program to visit Central and Northern Chile, which would enable participants to see in about 10 days the highlights of Santiago and surrounding areas, and a short hop to the desert. An Optional Program, with two alternative choices, could be added at the end of the Core Program for those who wish to stay a bit longer to see the distant corners of the country: (i) a trip to Eastern Island, which is the Polynesian area of the country (half way in the direction of New Zealand); (ii) a trip to the Southern lake district, and tour through

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canals, fiords and glaciers in the Patagonia region, which is nothing short of dramatic. The detailed program with pictures and description is being be posted in a temporary web page https://sites.google.com/a/1818 chile.com/www/ For the coming months, and until further notice, points of contact for the following issues are: Aetna & SRP currency & foreign exchange issues: Jorge García-Mujica [email protected]; Vanbreda: María Angélica Correa [email protected];

December 2012

Human breeding resulted in the likes of: Mata Hari, famous exotic dancer in the belle époque who was executed as a spy during the First World War; Peter Stuyvesant, one of New York’s earliest mayors; Viglius (Wigle) van Aytta, a prominent statesman in 16th century Europe; Menno Simons, reformer and founder of Mennonism. Also of Frisian extraction was Audrey Hepburn, admired movie star and UNICEF ambassador. There is a link between Audrey Hepburn and “De Klinze,” since her aristocratic ancestors once owned the estate. The stable of Frisian horses on the grounds of “De Klinze” provides another link between the past and present.

Web page: Ricardo Martin [email protected];

For further information, contact Eilert J. de Jong at: [email protected]

SRP general: Miguel Schloss [email protected]

Future Reunions

DUTCH CHAPTER Fourteenth annual reunion Time: September 5 – 7, 2013 Place: Aldtsjerk (Oudkerk), Friesland. Participants will stay in “De Klinze”, a historic country estate with outstanding hotel facilities in a pleasant private park. The resort is well suited for an “1818 - Dutch” reunion in a relaxed ambiance. A good setting in which to socialize with friends and colleagues. The two-day program will include travel by bus and by boat to explore the province. Focus will be on the ancient network of waterways connecting Frisia’s hinterlands with a string of coastal trading ports, preceding the era of the Hanseatic League. The region’s cattle breeders produced the world renowned Frisian milch cows. Horse breeding resulted in the Frisian horse, once preferred by medieval knights and now sought by Hollywood movie makers since the breed is widely admired for its powerful presence and elegant demeanor.

2014 September 4-6 (third quinquennium) 2015 September 3-5 2016 September 1-3 2017 August 31 - September 2 2018 August 30 - September 1 2019 September 5-7 (fourth quinquennium)

FRENCH-SPEAKING CHAPTER We are planning for the resumption of our traditional Fall Outing for 2013. For further information, please contact Olivier Lafourcade at olafourcade@1818 france.org. The Chapter’s website can be found at: http://www.1818france.org. GERMAN-SPEAKING CHAPTER It is anticipated that early in 2013 the web site of the German-Speaking Chapter will become active. Stay tuned for further information. JAPAN CHAPTER On October 6 (Sat.) and October 7 (Sun.), six members of the Japan Chapter assisted the Bank’s Tokyo Office by staffing the WBG booth at the 2012 Global Festa held at Hibiya Park in downtown Tokyo, adjacent to the Imperial Palace. The event preceded the

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World Bank/IMF Annual meetings held in Tokyo on October 9-14. During Global festa, we collected message cards from numerous visitors in response to the question posed by the World Bank, “What will it take to end poverty?” The messages were posted on the presentation board during the Annual Meetings and received favorable comments. The Bank’s media team included this item in a short video covering the Annual Meeting at http://youtu.be/Z1s-krN3c5s. Regarding the Global festa 2012, please refer to http://youtu.be/61jhIYbdAyU. The series of study meetings for Japan Chapter members was launched in April 2011. To date four subjects were covered, with the last one held on June 29, 2012 addressing “Sub-Prime Crisis in USA and Public Debt Crisis in EU: What the Twin Crises Nurtured”. We welcome proposals for future seminars and request persons with interesting proposals to contact Mr. Masaaki Amma, Director, [email protected] in charge of the study meetings. As Japan Chapter’s membership rules are more open than the 1818 Society’s rules in terms of eligibility, we are always welcoming new members. Please contact our administrator through 1818societyjapan@ gmail.com for details. The Japanese and English language version of the Japan Chapter’s Web Page is at http// www.1818societyjapan.com. For further information and/or details, the contacts in Japan are: Ms. Y. Okamoto, Director, at [email protected]; Mr. T. Kudo, Director, at Kudo.Tsutomu@ jica.go.jp and Mr. H. Hamaguchi, President, at [email protected]. For the Washington DC area, contact Mr. K. D. Kikuchi, HQ Liaison at kunio.kikuchi@ yahoo.com. FLORIDA CHAPTER For matters concerning the Florida Chapter of the 1818 Society, please contact Audrey Johnson at [email protected].

December 2012

Thematic Group Events Each 1818 Thematic Group would like to link up with new retirees from its Group. Right now, leaders of the Thematic Groups review the list of new members in each 1818 Society Bulletin to spot newcomers affiliated with their sectors. Please help us improve on this hit-and-miss system by alerting the Thematic Group contacts mentioned below about new members affiliated with Operational Thematic Groups. Agriculture and Rural Development Chapter Shawki Barghouti [email protected] 1818 Economists' Chapter Vikram Nehru [email protected] Education Group Sverrir Sigurdsson [email protected] Energy Group Eugene McCarthy [email protected] HNP Group William McGreevey [email protected] Transport Chapter (new) Michel Audige at [email protected] Asif Faiz at [email protected] Urban and Water Group Dick MacEwen [email protected] 1818 AGRICULTURE AND RURAL DEVELOPMENT CHAPTER The 1818 Agriculture and Rural Development Chapter organized an informative meeting on Wednesday October 24th. At this meeting,

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the participants suggested several subjects to be discussed in future meetings to be organized by the Chapter. Details of the topics, dates and venue will be circulated shortly. Members were encouraged to take the lead in organizing such sessions, and the Chapter team will help in organizing these meetings. Members are encouraged to send suggestions for specific subjects, and also whether they are prepared to volunteer for organizing or speaking at these events. We need your help to energize the Chapter. At the October meeting, Robert Towsend presented the recently drafted World Bank Action Plan for Agriculture and Rural Development. Amnon Golan also presented a summary of the main findings of a recent study of food security in East Asia. Several colleagues raised questions about issues related to foreign investment by international corporation in food production and large scale land leasing or purchase in developing countries. A recent report by FAO provides interesting field assessment of such experience in several counties including Brazil, Ghana, Cambodia and several other countries. A copy of this recent report will be circulated to Chapter members. We look forward to hearing from you suggestions for future topics and speakers. You are cordially invited to a presentation by Dr. Jonathan Wadsworth, Executive Secretary CGIAR Fund Council and Head, CGIAR Fund Office on "The New CGIAR: Changes in Governance and Financing of Research Programs in Support of Agricultural and Rural Development." Dr. Wadsworth's talk promises to be very interesting and particularly timely as he will update on how the CGIAR is transforming itself, enhancing its fitness for undertaking its vital role of achieving global food security in a changing world and shifting priorities and problems. The presentation will be on Thursday, January 17, 2013 at 10.30 in room MC 7100.

December 2012

For matters concerning the 1818 Agriculture and Rural Development Group, please contact Shawki Barghouti at Shawki [email protected] and Jitendra Srivastava at [email protected] 1818 ECONOMISTS' CHAPTER The 1818 Economists' Chapter had another excellent (and well attended) presentation by Mahmood Ayub entitled: "Lifting the Veil: An Objective Look at Iran's Economic and Social Progress in the last two Decades (19902010)". The meeting was chaired by Hazel Denton (for which many thanks!). The Chapter will now take a winter break in December and January and re-start our monthly series in February. Stay tuned. In the meantime, happy holidays everyone! If you want further information, wish to include your name in our distribution list alerting you to forthcoming meetings, or have a desire to give a presentation (or know of someone who does) at an upcoming seminar, please contact Vikram Nehru at vnehru2 @gmail.com. Our seminars are usually held on a Wednesday in the middle of every month at 11 am. You will find them a good opportunity to learn about emerging issues in economic development; share some of the interesting post-Bank work that you may be involved in; and network with fellow retirees with similar interests and skills. I look forward to seeing you in all our forthcoming meetings. 1818 EDUCATION GROUP The 1818 Education Sector Group met at a brown bag lunch on Monday, October 22, 2012. The speaker was Albert Motivans, current head of the Education Indicators and Data Analysis (EIDA) section of the UNESCO Institute for Statistics (UIS) in Montreal.

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Mr. Motivans’ presentation was a sequel to the Education Sector Group event of May 21, 2012 when Steve Heyneman told the group how poorly UNESCO had been equipped to handle its education statistics mandate, and how actors in the Bank and elsewhere had helped address these issues in the mid-1990s, eventually leading to the establishment of the UIS. Where Steve's story on gaps in education statistics and the publishing of the BICSE report left off, Mr. Motivans continued to tell the story of the UIS from 1999 to the present. He told the story of the competition among several countries to host the institute, with Canada emerging the winner. He also highlighted the efforts of those who early on helped champion this new model for UN reform. He examined some of the key rationales for the founding of UIS, including integrity, consistency and transparency of methodology, access to data, attention to timeliness and quality, relevance to a wider range of data users, leadership in developing the education statistics agenda, and how these objectives have been met thus far. He also assessed key measurement challenges emerging in a changing world of new technologies, and new development and education priorities. The ensuing discussion focused on challenges that remain in the collection, analysis and use of educational statistics, including, in particular, the collection, examination and use of data at the end-user level. In his current job, Mr. Motivans is responsible for the development, collection and analysis of cross-national education indicators for benchmarking and monitoring progress towards the international targets, as well as in supporting development of education statistics at the national level. He has written widely on global education trends and the use of indicators for policy analysis, and regularly contributes to the Global Education Digest and EFA Global Monitoring Report. He has worked in the field of measurement of child welfare and education for more than 20 years,

December 2012

joining UNESCO in 2000, following posts with UNICEF and the U.S. Census Bureau. Sverrir Sigurdsson ([email protected]) is the organizer of the 1818 Education Group. In addition to Sverrir, the organizing/advisory group consists of Marlaine Lockheed ([email protected]), Eluned Schweitzer ([email protected]), and Larry Wolff ([email protected]). The group is currently conducting a survey of group members, with the aim of ascertaining interest level of its members in different topics. Other retirees are encouraged to add diversity and ideas by joining the advisory group. 1818 ENERGY GROUP We were saddened by the loss of another energy colleague, Uruj Kirmani, on September 16, 2012, reported in the October Bulletin. Uruj joined the Bank’s Energy Department in the mid-1980s as a petroleum engineer, specialized in drilling operations. Prior to that, Uruj had been a technical manager on upstream gas operations in Esso Eastern in Pakistan. To his many colleagues who knew him in the Energy Department, he was an extremely dedicated staff member, highly regarded for his professionalism, always friendly and ready to provide any advice that was needed in his field. He took on some of the most difficult technical assignments- in some of the most difficult country environments. Upon retirement from the Bank, he continued to work actively as a consultant. We extend our deepest sympathy to his family and friends. . As reported in the last Bulletin, we have invited Jeremy Huck, the former president of BP Russia now working at HQ in London, to make a presentation on doing energy business in the Russian Federation. This presentation, originally planned to take place earlier, will now take place on January 15, 2013. Jeremy has been deeply involved in the TNKBP joint venture and in the unsuccessful move by BP to partner with Rosneft to develop offshore oil and gas fields under the Barents Sea. We have asked him to speak on

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the “Development of the Russian Oil and Gas Industry and the Role of Foreign InvestmentLessons from 20 Years of Experience from a Major Oil Company's Perspective. “ We will send you full details about his presentation before mid-December. We are in the early process of pulling together a program of speakers for 2013, so once again we ask you to let us have your ideas about topics, and especially potential speakers, who may be visiting the Washington DC area during 2013 We also need the names of recent Bank retirees in energy, but also in other sectors, who may be interested in participating in our events. For further information about activities of the Energy Sector Group, please contact either Mike Gillette ([email protected]); Akin Oduolowu ([email protected]); Yves Rovani ([email protected]); Eugene McCarthy ([email protected]); or Hal Wackman [email protected] 1818 HNP GROUP

December 2012

effluent-based solutions. Many examples are given. All present were impressed with the amount and value of information covered in the book. The consensus of the group was that the book is a valuable resource for Bank Task Managers responsible for projects involving waste water treatment. Slides from Menahen’s presentation are available on the 1818 Society website (http://www.worldbank. org/1818) in the Webcasts & Presentations and Water Sector sections. If you are interested in receiving information about the Water Group’s activities, please contact Dick MacEwen: email RMacEwen@ alum.mit.edu; or tel 703-734-0367. He will add your name to the group’s email distribution list.

From the Editor December 31, 2012 will mark the 50th anniversary of the departure from the World Bank of Eugene R. Black, its President from 1949 to 1962, and for my money the best President the World Bank has ever had. To back up this statement, I ask you to consider some of his accomplishments during his presidency:

Please forward suggestions for future sessions to [email protected] and we will seek to respond to all interested parties. Please induce friends and colleagues not now within reach to join our efforts. We have a site on GoogleGroups that all are invited to join.

-Establishing the Economic Development Institute (now the World Bank Institute) and the International Finance Corporation, both in 1956, and the International Development Association in 1960.

1818 URBAN AND WATER GROUP

-Increasing Bank reserves from $22 million to $750 million.

On November 8th the Water and Urban Group met to hear our colleague Menahen Libhaber introduce his recently published coauthored book, Sustainable Treatment and Reuse of Municipal Wastewater—for Decision Makers and Practicing Engineers, published by the International Water Association in June this year. The coauthor is Alvaro Orozco-Jaramillo. Five active Bank staff joined us to hear Menahen’s presentation. The book covers a variety of appropriate technology solutions based on meeting water quality standards as opposed to

-Establishing an AAA bond rating for the World Bank. -During Mr. Black's presidency, Bank member countries increased from 48 to 81; the total number of loans increased from 20 to 330; the number of countries where loans were made increased from 12 to 60; the total amount of loans increased from $700 million to $6.8 billion; and disbursements increased from $500 million to $5.1 billion.

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This, to my mind, is a singular record of accomplishment! Those of us with long institutional memories will recall that the first Eugene R. Black Auditorium was located on the 11th floor of the old C Building. That building was demolished to make way for the New Main Complex. It was intended that the auditorium in the new MC building would be named for Mr. Black, but in the event it was named for Lewis T. Preston, in the wake of his untimely death in 1995. Thus the World Bank was left without an institutional memorial to Mr. Black. I am proud to note that, with the invaluable help of Luis Descaire—then Director of the General Services Department and now a member of The 1818 Society—The Society led the effort in 2003 to have the H Building Auditorium named for Eugene R. Black. At the dedication ceremony (see The 1818 Society Newsletter, Spring/Summer 2003) presided over by World Bank President James D. Wolfensohn, Mr. Black's granddaughter, Ms. Julie Taylor, said, "There was nothing he [Mr. Black] was more proud of than his association with the World Bank; it meant everything to him." Alas, with the departure of the World Bank from the H Building, the World Bank is again left without an institutional memorial to Mr. Black. Chuck Ziegler, Editor (See also the "Special Historical Supplement" about Mr. Black in this issue.)

New Members We welcome the following Bank Group retirees/alumni to The 1818 Society. Country

of intended residence other than the USA have been added after their names. A. David Craig Abdelmoula Ghzala Ana Dy Tang

Lebanon

December 2012

Ann C. Rennie Anne K. Harrison Anthony M. Hegarty Ireland Arvind Gupta Audrey Kitson-Walters Azizah Ismail Boubker Abisourour Briam T. Ngo Catalina R. Cunanan Chad Leechor Daniel P. Prabhakar Daniela Gressani Daryoush Kianpour David H. Kinley III David Zai Dhamayanthy Pathmanathan Dimitri Vittas Dinah Dworzak Dolika Banda Zambia Donal Cahalane Eduardo Somensatto Edward J. Hayes Eileen Sin Yan Yu Elisabeth Beers Fanny Barrett Gary Cookhorn Giles P. Hopkins Godwin Agodo Grace B. Gattas Guy Tchakounte Helene Yip Hoi Yen Hoonae Kim Ibrahima Toure Isabel Mignone-Del Carril Jane Armitage Jane B. Sweeney John Arthur Macgregor John R. Borthwick Joselyne O. do Sacramento Josephine Masanque Juan Carlos Belausteguigoitia Judith De Costa Juliana K. Oyegun Kim M. Venne Lily Wong Chun Sen

Page 10 Louis S. Thompson Lucie A. Albert-Drucker Luis P. Casaravilla Margaret A. Christo Maria L. Giraldo Maria L. Malca Maria R. Curzi Marie-France Sacks Marie-Helene Collion Marion A. Richards Mark C. Higgins Martin Ravallion Mary Choksi Maya Weyl Maybelle Pacis Michelle Riboud Mohammad Khalid Najma Siddiqi Neela de Silva Nevin Y. Fahmy Nora E. Mangalindan Ohene O. Nyanin Patricia Sanchez Paul R. Standen Pauline Jane Clephane Peter Neame Pushparani Simon Rebiha Hacene-Djaballah Richard N. Woodford Robert R. Taylor Rodica N. Reidel Rosalia Rodriguez-Garcia Sally Zeijlon Sanjay Kumar Dhar Santiago Pombo-Bejarano Souleymane Traore Stephen J. Brushett Sunil Bhattacharya Sunita Ramchandani Susan S. Sebastian Thomas Hum Venu Venugopal Vivian Vergara

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December 2012

World Bank Group Alumni Association The 1818 Society Postal Address: P.O. Box 27388 Washington D.C. 20038-7388 Telephone: (202) 458-1956 Fax: (202) 522-2417 E-mail: [email protected] Website: www.worldbank.org/1818

France

Philippines France

Board members – 2011/12 Kabir Ahmed, Caroll Long, Sandra Hadler, Aberra Zerabruk, Hugh Henry-May, J. (Shiva) Shivakumar (Chairman), Sverrir Sigurdsson, Patricia Neill, Ronald MacLean-Abaroa, Adrienne Nassau (Honorary Member). Officers & Staff – 2011/12 J.(Shiva) Shivakumar - President. e-mail: [email protected] Alexander Keyserlingk - Vice President Kabir Ahmed – Vice President Jeffrey Katz - Treasurer Marilyn Manalo - Assistant Treasurer David D. Jones - Auditor Catherine Fogle - Secretary Miren Fernandez - 1818 Society Office Manager Swati Srivastava - 1818 Society Office Manager Retiree Representatives on BG Committees Sudhir Krishnamurthi - Pension Finance Jeffrey Katz - Pension Finance A. Keyserlingk, - Pension Benefits Khalid Siraj - Alternate - Pension Benefits Publication Bulletin - Chuck Ziegler, [email protected] Chapter Contacts

Colombia

ANZ – Jo. M. Martins; e-mail : [email protected] Tel: (02) 997-33022 Canada – Jim Smith, e-mail: [email protected]; Tel: (613) 746-6407, Chile - Miguel or Silvia Schloss; E-mail: [email protected] Tel: (56-2) 458-6050 French-Speaking - Olivier Lafourcade; e-mail: [email protected] German-Speaking – Franz Kaps; e-mail: [email protected] The Netherlands - Robert Jan van der Lugt e-mail: [email protected] Tel: 31-71-3613860. Japan – Harutaka Hamaguchi e-mail: [email protected] United Kingdom ― Alan Roe e-mail: [email protected] Tel: 44.1789.840 418 Florida ― Audrey Johnson [email protected]

1818 Society Responsibility Matrix

Directors

2012-2013 Name and E-mail Aberra Zerabruk, [email protected]

Legal adviser

Adrienne Nassau, [email protected]

Honorary Member

Damian von Stauffenberg, [email protected]

Pensions

Evangeline Javier, [email protected]

Knowledge/Bank Networks and Universities

Ines Garcia, [email protected]

Knowledge/ Partnerships and Alliances

Hugh Henry-May, [email protected]

Legal Adviser, IFC Matters

J Shivakumar, [email protected]

Chairman and President

Kabir Ahmed, [email protected]

Insurance (RMIP, Long Term & Life)

Ronald MacLean-Abaroa, [email protected]

Knowledge/WBI partnership Retiree Medical Insurance, Retiree STC Pools for maternity/sick leave vacancies, Senior Professional Program Retirement and Active Lifestyle Chapter, Credit Union

Patricia Neill, [email protected] Sandra Hadler, [email protected] Sverrir Sigurdsson, [email protected]

Country/Linguistic Chapters, Thematic/Sector Groups, Remembrances, Implementation Science Case studies

Alexander Keyserlingk, [email protected]

Vice President, Pensions, Webmaster, Linkedin

Kabir Ahmed, [email protected]

Secretary, Management of the Society Office, Advisor 1818 Bulletin, WBFN Assistant Treasurer. Financial management, accounts and audit, MoU with WB President, 1818 Management, Alumni Forum, WBCCF, Outreach to Country Office retirees, Retirement Seminars, Implementation Science Initiative, Social Events Treasurer, Financial Policies and Financial Management, Resource mobilization Vice President, Retiree Medical Insurance, Long Term Insurance

Daniel Ritchie, [email protected]

NGO Fair, World Learning Partnership

Farida Dossani, [email protected]

Washington DC area visits and tours

Frona Hall, [email protected]

Member Remembrances

Inder Sud, [email protected] Sudhir Krishnamurthi, [email protected] Tom Blinkhorn, [email protected]

NGO Fair

Officers

Catherine Fogle, [email protected] Marilyn Manalo, [email protected] J Shivakumar, [email protected]

Volunteers

Jeffrey Katz, [email protected]

Zafar Ahmed, [email protected]

Advisers

Responsibility

Pension Finance 1818 publications and E Books Speakers Bureau, Access to Bank information resources, Mentoring Programs

Deane Jordan, [email protected]

Editor 1818 Bulletin, Annual Meeting, Archives, Bank Oral History Tax Seminars

Jean-Yves Maillat, [email protected]

International Retiree Organizations

N. Vijay Jagannathan, [email protected]

Knowledge Agenda Management

Chuck Ziegler, [email protected]

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Contact Information for the Pension Administration Division The Pension Administration Kiosk is located in Room MC 1-850, and is open between 9AM and 4PM on business days. Mailing Address: The World Bank Pension Administration Division 1818 H Street, NW, MSN C7-702 Washington, D.C. 20433, USA Telephone: (202) 458-2977 (within the US) 001-202-458-2977 (from outside the US) Fax Number: (202) 522-1723 (within the US) 001-202-522-1723 (from outside the US) E-mail: [email protected]

ALWAYS include your UPI/Staff Number in all correspondence

Website: http://staff.worldbank.org/pension

FUND-BANK SKI CLUB PROGRAM 2012/13 Snow Sports Program: January 25-February 2 - Lech am Arlberg, Austria, trip leader [email protected] February 9-16 - Jackson Hole, Wyoming, trip leader [email protected] March 2-9 - Telluride, Colorado, trip leader [email protected] For more information consult: www.fundbankskiclub.org, or email [email protected] ARTISTS' AND WRITERS' CORNER The Memory Bank - More World Bank Stories

1818 Society member Tom Blinkhorn has epublished the second volume of stories from the World Bank. It may be read at The 1818 Society's web site, where it can be accessed under Related Links > 1818 eBook

December 2012

ENDLESS LIFE: a novel by Surinder Deol. Published by Felsen Press, an imprint of Decent Hill. 238 pages. US $19.95

Clad in a decorative red sari, Malti, a dreamer and a somewhat spoiled daughter of a wealthy Indian family, sat with Rakesh, an Indian physician living and working in New York, on the ground in front of a sacred fire. “We are asking you to sit on the ground,” the priest explained, “because you’re forging a new connection to live the rest of your lives as a husband and wife. The mother earth is going to be a witness to this union. I want you to feel strong, drawing energy from the center of the earth. You will always need this strength because life brings new challenges every day.” The marriage brought Malti to New York but the love she dreamed of eluded her. The passage of time brought new challenges and a heart wrenching loss. Malti moves back to India in search of someone who could unlock the mystery that was causing her immense distress. She accomplishes this mission with help from Harish, a newly minted real estate billionaire, whose love for Malti went back to their time together in college. Malti realizes her dream of having the unconditional love of a man on a New Year Eve in a sea-side mansion in Goa. She remembers the words that her grandmother had once spoken to her. "It will take a long time for you to get there, but the day you arrive, you will have become the person you always wanted to be.” ENDLESS LIFE portrays a woman's search for love and meaning in an increasingly complex world. Life is a flow; it’s a continuum. Nothing really goes away. We continue to live despite all the hardships and tragedies. We plan new things, always expecting to see better days in the future. We never stop dreaming. It is this act of not stopping to dream that makes life ENDLESS. The author, Surinder Deol, retired from the Bank in 2001. He published a book of poems A Moment in the Universe in 2006. He lives in Potomac, MD.

Dar es Salaam, 1963: A New Graduate Encounters an Emerging African Nation

by Tom Torrance. Published by General Store Publishing House. In thirty-six vignettes developed from letters home and notes taken at the time, Tom has

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written an entertaining and educational account of his first three months in Dar es Salaam. He describes difficulties in the new job, vivid characters, and unique situations that will provide a pleasurable read even for people not familiar with the history of newly independent African countries just emerging from the shackles of colonialism. Tom Torrance attended University College of the University of Toronto, where he received his BA (Hon) in Political Science and Economics in 1962. Shortly after, he was accepted for a positon as a Junior Economist with the recently independent Republic of Tanganyika (now Tanzania) at the same pay and benefits as a locally recruited Tanganyikan. He helped an international team of colleagues and Tanganyikans in the development of the First Five-Year Plan, gaining experience in planning manpower requirements, agricultural settle- ment scheme appraisal, and transport. On completion of a two-year local contract, the Government of Tanzania asked the Canadian External Aid Office (now CIDA) to extend Mr. Torrance's stay as an advisor until mid-1966, continuing with the Planning Agency in the implementation phase. With the International Labour Organization (an agency of the United Nations) in Geneva, Switzerland, he worked as an economist, assessing the employment and manpower requirements of rural development projects in the developing world. He married Karin Dobbratz in Geneva. The author's career then led him to a position with the UN Secretariat in New York, and later with the World Bank, where he served in the Personnel Department. Tom Torrance is retired and resides with his wife in Ottawa. In between regular visits to the hospital for hemodialysis, he continues his reading and writing projects, and keeps in touch with his two adult children living abroad, as well as with former friends and colleagues. Waging War on Corruption Inside the movement fighting the abuse of power By Frank Vogl Published by Rowman & Littlefield, September 2012

December 2012

Peter Eigen, Daniel Ritchie, Pierre Landell-Mills, Michael Wiehen, Christian Poortman, Vinay Bhargava, Richard Stern, and many others who spent most of their professional lives at the World Bank, went on to engage on a voluntary basis in the fight against corruption. Striking efforts by Eigen and others changed the Bank. Many former World bank staffers have played vital roles in building civil society leadership to counter the abuse of public office for private gain in many countries. The story of how the Bank changed and how the Bank still grapples with the anticorruption challenge forms part of a new book – a book that takes the reader on a global journey from the fall of the Berlin Wall to the rise of the Arab Spring to demonstrate that far more is being achieved in the war against corruption that is widely understood. Waging War on Corruption – Inside the Movement Fighting the Abuse of Power is dedicated to the founders and activists engaged in two organizations largely created by former World Bank executives – Transparency International and the Partnership for Transparency Fund. The author, Frank Vogl, served as the Bank’s Director of Information and Public Affairs in the 1980s. The publisher, Rowman & Littlefield, is offering a special discount price (see attached flyer) and the book will shortly be available at a discount at Amazon as well. For more information on the book please go to www.frankvogl.com

SPECIAL HISTORICAL SUPPLEMENT

Eugene R. Black was President of the World Bank from July 1949 to December 1962, some 13 years. December 31, 2012, will mark the 50th anniversary of his departure from the World Bank. The late Roger Chaufournier wrote of some of the events of Mr. Black's presidency. Mr. Chaufournier joined the Bank in 1952 and retired in 1984 as Vice President of the Europe, Middle East and North Africa Regions. He had previously worked in the Western Hemisphere Department (including a term as Resident Representative in Peru), and in the West Africa Region. This article is excerpted and adapted from The Coming of Age by Roger Chaufournier in the June 1984 issue of "Finance and Development."

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Eugene Black had a patrician aloofness -- we always called him Mr. Black -- but we knew his consideration for younger people and his ability to motivate them. I recall his impatience with the nitty-gritty and his indifference to internal management. "I make deals," he used to say -- and what a superb dealmaker and bond salesman he was! There was an aura of statesmanship and flair about him that affected the institution. The Bank was known as Mr. Black's Bank. Important events took place under his leadership, and the diplomacy of development flourished. The Indus Basin Agreement was reached in 1960 between Pakistan and India when President Ayub Khan and Prime Minister Nehru signed a treaty. It was the culmination of nine years of complex and difficult negotiations, during which the Bank's President and some of his senior associates played a key role in shaping the outcome. There was also the unsuccessful mediation in the Iranian oil dispute and the Aswan Dam episode, which drew the Bank into the Cold War. The refusal of the U.S. Government to finance its share of the project, despite Mr. Black's strong plea, forced the Bank to withdraw. All those events projected the Bank to the forefront of world attention. This was a period of other solid accomplishments. The Economic Development Institute [now the World Bank Institute] was founded in 1956, and the International Finance Corporation (1956), and the International Development Association (1960) were created as Bank affiliates. Ten years earlier Eugene Black would have been shocked at the suggestion he might someday propose lending on soft terms. By the late 1950s he was able to see that the least developed member countries could not mount a satisfactory development effort without the support of substantial amounts of concessional lending. This realization was clearly reinforced by the acceleration of the process of decolonization, which brought so many of the newly independent states into the

December 2012

membership of our institution in the early 1960s. IDA was an act of vision and an essential step toward a full-service development institution. There were innovations and flexibility in lending, and technical assistance was expanded. The Bank was responding to change by adapting itself and, when it could not, by creating suitable new institutions. Economic work become more sophisticated and expanded steadily as an underpinning for our lending activities. A sectoral approach was introduced in economic analysis and planning of development projects. There was also a new emphasis on institution building as well as on conditionality in lending policy. As a result, for example, the Bank stopped lending for several years to some major countries like Brazil until economic performance improved. Adequate infrastructure, particularly energy and transportation, was viewed as a precondition to development. It is therefore not surprising to find that, in its first 15 years of operations, the Bank financed and installed capacity in energy in Latin America equivalent to the total capacity in existence in the region 15 years earlier; the impact on organization and policy in the sector was considerable. Country creditworthiness was measured through the 10 percent rule of thumb. The danger signal flashed when debt service exceeded 10 percent of export earnings. Respect of external obligations was strictly monitored; lending to several countries was delayed several years pending progress on settlement of external obligations. By the end of Eugene Black's term, lending activities were gathering momentum. During 1962, his last year in office, the Bank made 29 loans and 18 IDA credits for a total exceeding one billion dollars for the first time. Between 1950 and 1962, the membership of the institution and its staff had more than doubled; the number of operations and the volume of lending had increased fourfold. The Bank's reputation as a development

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institution was well established and the last years of Eugene Black's presidency had seen some important initiatives. In addition to the creation of IDA and IFC, there was the launching of consultative groups, innovative co-financing such as in Mexico, and the first financing of education, which was an IDA credit signed in September 1961. Thanks to the World Bank Group Archives for assistance in preparing this supplement. For more on Mr. Black, please see the June 1992 issue of "The 1818 Society Newsletter," as well as the article by Harold Graves Looking Back at Mr. Black: Glimpses in Retrospect in the July/ August issue. See also Bankers with a mission : the presidents of the World Bank, 1946-91 by Jochen Kraske, William Diamond, William H. Becker, and Louis Galambos. Chuck Ziegler, Editor Minutes of the 34 Annual Meeting By Catherine Fogle, assisted by Sverrir Sigurdsson The 34th Annual Meeting of the 1818 Society took place on November 1, 2012 at the World Bank from 3:30pm to 5:45pm. The Society also arranged two seminars on October 31, 2012 for members: these were on pensions and on retiree medical insurance (RMIP). The Annual Meeting opened with a welcome from its President, J. Shivakumar (Shiva), which was followed by the adoption of the agenda and approval of the minutes from last year’s meeting. The President’s Report The President welcomed members, particularly those who had traveled to the meeting from overseas, participating Bank managers, representatives from the Staff Association, sibling international organization retiree associations, the World Bank Family Network and to all members joining the meeting electronically. He thanked the Society’s volunteers, including outgoing Board

December 2012

member Carroll Long. He noted the approaching 100th birthday of Donald Fowler, one of the Society’s founding members. At present, the Society has about 6,000 members, of whom about half live in the Washington DC area. Shiva expressed his thanks for help from the Pension counterparts in the Bank, including the strong support given to maintenance of the Society’s member database. He noted that the Society´s Website is now the main tool that connects its members around the world, and provides them with a continuously updated list of members. Shiva noted that the Society has witnessed a remarkable increase in the level of its activities, both fiduciary - related to taxes, pension and medical insurance - and in networking, related social interactions and knowledge. On the one hand the Society has a budget that defines the concept of "frugality", and on the other hand the Society’s members understandably demand more from it. Two Society members have produced attractive publications that have been made available to Society members electronically through the 1818 website. These are Sverrir Sigurdsson’s erudite history “The 1818 Society: Its origins, Evolution and Accomplishments” and Tom Blinkhorn’s e-book “The Memory Bank: More World Bank Stories and Revelations”. During the year, an 1818 team led by Danny Leipziger produced an excellent diagnostic report on the agenda for the new President of the Bank: this report is also on the 1818 website. Shiva noted with pleasure that President Kim had agreed to talk to the 1818 Alumni Forum on Monday, 19th November at 11 am. As the Society´s Website grows, the Society´s office has raised the level of its game. On most days, the Society office is a hub of activity (and fun) for visiting members. The President expressed the Society’s gratitude to its two exceptionally capable office managers, Miren Fernandez and Swati Srivastava.

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Shiva stated that the Society has four core areas of business. The first two are fiduciary viz pensions and related taxes and insurance, including medical, life and long term. He noted that the Society represents the interests of WBG pensioners in regard to the Pension Fund, its investments, administration and management and tax related aspects of pension. He explained that the Society also represent the interests of its members in regard to the Retirement Medical Insurance Plan, including its administration, coverage and funding. Last year challenged the Society with problems relating to the introduction of the "cooling off" period for STC retirees. The Society did not make the headway it would have liked but helped to mitigate the impact of this new policy on STC retirees, thanks to efforts led by Board member Pat Neill. The Steering Committee of Compensation and Benefits, set up by the Bank and including representatives from the Staff Association and The 1818 Society, is addressing Insurance and Pension issues. The Steering Group has made impressive progress and was instrumental in resolving the long festering question of fair reimbursement of Medicare B premiums for those enrolled in the RMIP. It has also reconsidered a decision to enroll in Express Scripts Medicare D program once analysis showed that the risks outweighed the benefits at the present moment. Through its two working groups, with 1818 participation on each, it is directly engaged in critical issues including (i) the discount that should be allowed on RMIP premium for Medicare A and non-US country national programs: (ii) the degree of progression of RMIP premiums; (iii) adequacy of access to physicians under Medicare: (iv) the adequacy of benefits relating to RMIP2; (v) improvements to Net Plan pensions through additional contributions while maintaining the soundness of the Pension Fund; (vi) increase in the mandatory retirement age; and (vii) delinking pensions from other Human Resources (HR) actions and yet viewing pensions as an integral part of the overall

December 2012

remuneration package to recruit and retain high quality staff globally. Shiva noted that in two other core areas of social and knowledge networking, the Society still has a long way to go, including effectively linking the Bank’s Country Offices with our Chapters, the Sector Networks with our Sector Groups, and the Bank’s knowledge initiatives with alumni resources available in all countries. The number of Chapters has not grown in recent years though interest has been shown in many countries. He noted that most of the nine geographical/linguistic Chapters have their own active websites, which can be reached from the main 1818 website. The three largest Chapters are: UK, France and Florida. The Chapters in Chile, Germany, Japan, Netherlands and Australia – New Zealand show us that the range and quality of activities are not necessarily connected with size. The Canada Chapter is the latest addition. The Society can be proud of its 1818 sector and thematic Groups and Chapters which offer opportunities for former Bank professionals to keep up with Bank-related activity in their sector, keep in professional touch with each other, and share knowledge among themselves and with current staff. These groups now include Energy, Water and Urban, Education, Health, Agriculture and Economics. A Chapter for Transport will be launched shortly, while the Society is still looking for leaders to guide chapters on environment, and social protection. There is also a lot the Society can do to promote crosssector linkages, by Chapters and Groups. A more comprehensive approach is needed to foster knowledge networking and exchanges among Society members and with Bank staff and outside groups. Because of changes in the Bank´s hiring practices, he profile of the Society´s future membership will change towards those whose personal affinity for the Bank will be lower, but whose interest in knowledge and connection to peer

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networks will increase. Future members will be more interested in networking around knowledge topics than in the Society’s traditional activities. Shiva concluded his remarks on knowledge networking by noting that Vijay Jagannathan, a well-regarded development practitioner and a new member of the Society, has volunteered to draw up a plan on this topic for the consideration of the Society´s Board. Social events continue to be popular in the Washington area and several Chapters continue to organize well-attended reunions. The success of the 1818 Cross-Continent Reunion in Iceland surpassed all expectations, thanks to Sverrir Sigurdsson. The Society now plans three such reunions; Miguel Schloss has volunteered to organize one in Chile with a side trip to either a Southern cruise or Machu Pichu. Volunteers are being sought to organize similar reunions, perhaps in Myanmar and Israel. Shiva explained that the Society will continue to organize special presentations on topics such as income tax, estate planning issues and exit tax issues, and noted that Khalid Siraj, Deane Jordan and Carlos Escudero are taking the lead in planning these events. The Retirement and Active Lifestyle Chapter (RALC), led by Sandra Hadler, continues to be active on issues such as aging in place, leisure opportunities, fraud awareness issues and volunteerism. A list of accountants, tax experts and lawyers as well as useful lists of resources available in the DC area is available on the Society’s website. Sandra is also taking the lead in protecting retiree interests in our Credit Union. Shiva encouraged qualified members to volunteer for a position on its Board. Khalid Siraj and Zafar Ahmed manage the Speakers Forum which has already taken off with Alumni speaking on behalf of the Bank at key events. Shiva noted that successful NGO Fairs have been held in the past two years, thanks to the initiative of Inder Sud and Dan Ritchie.

December 2012

Shiva noted that Board member and lawyer Aberra Zerabruk would present proposed amendments to the Society's by-laws at the end of the meeting. The rationale for these changes is that the Society should aim to be inclusive without eroding its fiduciary responsibilities. The changes would also give thematic groups and Chapters greater voice on the Board. Finally Shiva thanked the World Bank Group – including its President, Dr Kim, Vice President Van Pulley, Pension Director John Gandolfo and Pension Manager Sharada Sundar, Benefits Manager Alec Albertson, Insurance and now also Pension Working Group Chair T. V. Somanathan and other managers and staff who have helped in so many ways through the past year. The Society looks forward to their continued support. Treasurer’s Report. Jeffrey Katz, Society Treasurer, reported that at the end of 2011 the Society had an asset balance of $100,161, an increase of about $9,800 over the previous year. At the end of September 2012, the balance was just over $120,000. A total of 330 new members joined the Society in 2011. He noted that some 14 events were organized by the Society in the Washington area this past year, and that the policy has continued to be that these activities be run on a cost recovery basis. He noted that Chapters have been active in organizing their own events which have been open to the membership at large. A notable event was the special fund-raising the Society undertook to support the legal issues around reimbursement of Medicare B. A total of $17,000 was raised through membership contributions and the Bank is reimbursing the Society for its costs in this matter. Jeffrey explained that the Society’s ability to process financial transactions related to the growing list of Society activities has been greatly enhanced by the introduction of two new payment methods for member use, the most recent of which is the capability to pay through direct transfers for those who have

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Credit Union accounts. For those without Credit Union accounts, the Society is continuing to offer the option of We Pay, an electronic method for payments which is less expensive than credit cards. He noted that the Society is moving ahead to enable membership payments to be made directly through the pension account. Jeffrey thanked Marilyn Manalo, Assistant Treasurer, for her efforts in adjusting systems, working out new arrangements with the Credit Union and helping to ensure the integrity of our accounts. He also thanked David Jones, Society member and auditor, for his continuing work in this area. Management Statement on Pension Finance Matters. John Gandolfo, Director, Pension and Endowment Department (PEN), noted that PEN and the Society had held a workshop the day before the Annual Meeting to give Society members a chance to hear more, and ask questions about, pension investment strategy. John stated that the Staff Retirement Plan (SRP) is organized as a trust, which explicitly states that the funds can only be used for the benefit of the beneficiaries (until all obligations are met). According to the applicable legal principles, the Plan cannot be amended to reduce the benefits that have already been earned. He cited the long –term performance of the SRP in excess of the 3.5% real target, and that it reached the top quartile in both 1 and 5 year performance as measured against the industry universe. He said that in spite of the current economic environment, the PFC and PEN staff expects the long-term target of 3.5% to continue to be achievable. As of September 30, 2012, the CY12 year-todate return for the SRP was approximately 9%. John stated that the SRP funded ratio was 89% as of June 2012 despite historically low real interest rates. John cited the role of the Pension Finance Committee, which has knowledgeable and experienced members, including Society nominee Jeffrey Katz and at-large member Sudhir Krishnamurti. He also noted that investment costs have fallen

December 2012

significantly in recent years and that the SRP has eliminated high cost/low value added activities. John indicated that the SRP Annual Report has been enhanced in a number of ways, including extensive disclosure with respect to funding methodology, funding ratio determination, investment strategy and cost structure. He cited on-going work to develop a pension website. John noted that the PFC is responsible for the financial management of the SRP, including decisions about the desired tradeoff between investment risk, returns and contributions. PFC decisions regarding SRP risk tolerance and investment beliefs have significant downstream implications for the asset-liability management framework, the range of asset classes and the Plan’s risk profile. John presented the asset allocation profile, highlighting the diversified asset allocation with exposure to assets expected to perform in different economic environments, the substantial allocation to liability hedging assets (US TIPS) and nominal bonds which result in the Plan having a lower risk profile compared to many other institutions, and on the significant allocation to alternative investments, including private equity, real assets and absolute return. As to management costs, John explained that they have declined in recent years in both dollar terms and basis points. These declines are attributed to management decisions, including the elimination of high-cost, low value-added activities, negotiated fee reductions in both public and private asset classes, the below target allocation to hedge funds while the portfolio is restructured, and the introduction of passive mandates in some portfolios as appropriate. For the future, John stated that the SRP management intends to continue to maintain the allocation to private equity by committing significant resources and assets to this area each year, and that they intend to expand investments in real assets as possible. The SRP also intends to actively look for investment alternatives for parts of

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the fixed income portfolio, continue to restructure the absolute return portfolio and introduce passive mandates in different portfolios as appropriate. Management Statement on Pension Administration Matters. Sharada Sundar, Manager of Pension Administration, reported that the Gross Plan has 7,916 beneficiaries, including retirees and spouses/partners, and the Net Plan has 408. There are 7,817 active participants in the Net Plan at HQ and 5,116 in country offices. There are 1,951 active participants in the Gross Plan. She noted that the age structure of retirees receiving pensions include 2,983 between 60-69 years of age in the Gross Plan and 344 in the Net Plan. Those ages 70-79 include 2,197 in the Gross Plan and 3 in the Net Plan. Retirees ages 80-89 include 817 in the Gross Plan and none in the Net Plan. Those ages 90 and up total 115, all in the Gross Plan. The oldest retiree will turn 100 years old soon and the oldest beneficiary is 103 years old. Sharada noted other interesting statistics, including the fact that for the Gross Plan, since 2007, only one person has taken a lump-sum withdrawal; all others elected early retirement, normal retirement or deferred retirement. For the Net Plan, only 65 people have elected to take the early retirement pension option; all others elected lump sum withdrawal, normal retirement or deferred retirement. By residence, 81% if retirees live in the US, followed by 5% in the UK, 4% in France, 2% in Canada, 2% in India, 2 in Australia and 1% each in Germany, Japan, Philippines and Chile. In 2012 YTD, the SRP paid beneficiaries a total of US354,860,337 and a total of US56,965,320 equivalent in other currencies. Sharada noted that the source of the cost of living adjustment for pensions paid in US$ is the US Department of Labor Statistics CPI-U (Consumer Price Index for all Urban Consumers). For other currencies, the IMF International Financial Statistics are used, including the EUR Monetary Union Index of

December 2012

Consumer Prices and country-specific CPIs for currencies other than the Euro. Sharada stated the importance for every SRP beneficiary of completing the Life Certificate, which will be mailed out in January 2013. Every beneficiary is responsible for seeing that a duly completed Life Certificate reaches the Pension Administration Office by April 30, 2013. Non-receipt of a Life Certificate will result in suspension of that beneficiary’s pension payment due May 31, 2013. Sharada noted that 33 pension payments were suspended this year. Another important topic raised by Sharada was that of the US Foreign Account Tax Compliance Act. She noted that for US tax residents, pension payments should be reported along the same lines as last year. She explained that the Bank has initiated discussions, via outside counsel, with the US IRS with the objective of exempting participants’ interests in the SRP from the Form 8938 reporting requirement. This exemption has been requested based on the fact that the Bank reports to the IRS the amount of SRP distributions to US citizens and residents. While the IRS is willing to consider such relief in future years, she said, it will not modify the reporting requirements for 2012 tax returns to be filed in 2013. NOTE: The Pension Kiosk is conveniently located across from the 1818 Society office and is open from 9-4 weekdays. It offers a wide range of services for retirees, beneficiaries and active SRP participants. Pension Finance Committee (PFC) Representative Report. Jeffrey Katz gave the PFC representatives report. He noted that a useful discussion of the SRP had occurred the previous day at the 1818 Society seminar on pensions and thanked the Pension staff for their extensive briefing on the SRP status. Regarding the PFC, he noted that all PFC members are stakeholders in the SRP and that the Society’s two representatives (Sudhir Krishnamurthi

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and himself) on the PFC have the dual role of bringing the voice and interests of retirees to the deliberations of the PFC at the same time that they are participating in PFC decisionmaking as full Committee members. He stressed that all actions taken by the PFC had to be for the exclusive benefit of the beneficiaries of the plan and that no other considerations came into play. Jeff stated that Sudhir and maintain an active dialogue on pension matters with Society members on pension-related issues, and have worked with pension staff to expand the information available to plan beneficiaries on SRP investment strategy, asset allocation, performance, funding status and costs, all issues of ongoing discussion. This work has been reflected in a more comprehensive Annual Report which is available online and the development of dedicated website which is underway. Pension Benefits Administration Committee (PBAC). Alex Keyserlingk spoke as the Society’s representative on the PBAC, with Khalid Siraj as his alternate. Alex noted the good collaboration between the 1818 Society and the Pension Administration staff, including the essential support given by Pension Administration to the Society for maintenance of the Society’s member data base. He noted that representatives of the Society and the Staff Association are working together to strengthen PBAC oversight of pension administration issues. Management Statement on the Retiree Medical Insurance Plan (RMIP). Jim Clagett, Senior Financial Management Specialist, reported on changes implemented in the RMIP as of July 1, 2013. He noted that they include full reimbursement of the US Medicare B premium, including the standard Medicare B premium and the income-related monthly adjustment amount, elimination of the Medicare B discount and elimination of the Medicare A discount and Medicare Savings (effective January 1, 2013. Jim

December 2012

explained that the reimbursement of the Medicare B premium began on July 31, 2012 and that the process for reimbursement of the income-related monthly adjustment amount is being worked out and that more information on this matter will be sent out soon. RMIP Plan 1 claims will continue to be coordinated with Medicare. He described the Aetna, Vanbreda and Medco/Express Scripts quality performance review as including quarterly performance review meetings with these companies and a weekly performance review with Aetna. HR also carries out bi-weekly conference calls to discuss member and administrative issues with Aetna and Medco/Express Scripts. An audit of Aetna and Vanbreda claims processing was completed in 2012 and a post-implementation audit is planned for Medco/Express Scripts. Denise Childress noted that the WBG is prohibited from reviewing individual claim information and cannot/will not instruct the Insurance Administrator on specific claim reimbursements. HR can, however, assist beneficiaries regarding procedural questions regarding actions by the Insurance Administrators, on questions regarding benefit provisions and coverage and eligibility questions. HR recommends that RMIP members can ask providers to submit services for predetermination of coverage, especially for high-cost services or call the relevant Insurance Administrator to verify coverage. Jim stated that RMIP changes in 2013 will include an increase in physical, occupational and speech therapy benefits to 60 visits per member per condition per calendar year without the need for review of medical necessity. Visits in excess of 60 will need a medical necessity review. He also noted that there will be an expansion of in-network preventive services paid at 100%, primarily for pre- and post-natal services and birth control, as well as screening and counseling services for interpersonal and domestic violence.

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RMIP contributions will include an overall premium increase of 5%. For individual coverage, this increase ranges from $2 to $9 per month, for dual coverage from $4 to $19 per month and for family coverage, the increase is from $5 to $23 per month. The amount of the 2013 increase is lower than it otherwise might have been, due to savings achieved through a new prescription drug contract, the Early Retirement Reinsurance Program and the Medicare Retiree Drug Subsidy. With regard to long-term care (LTC) insurance, Jim stated that an independent review of the Bank’s LTC plan was carried out by an outside consultant this year. The review noted that over the past 5 years, the LTC market has witnessed a supply contraction, and that out of the top five US carriers, only one is still issuing Group LTC policies. This carrier’s rates are substantially higher than those offered by Metlife and the covered benefits are lower. Jim said that the policy sponsored by the WBG was not immune to market changes and that Metlife stopped issuing new policies effective April 30, 2012. Metlife will continue to service existing policies but requested a 45% increase for their entire employer group LTC business. Such increases are subject to approval by the relevant state insurance commission, in this case the Washington DC Insurance Commission. DC statute limits the annual increase percentage to no more than 10% per year and the rate increase cannot go into effect until the state the participant was living in at the time of application approves the filing; Maryland and DC have so approved, Virginia has not yet done so. In a few other states (those that assert extra-territorial jurisdiction) the application of the rate increase will be subject to the requirement of those states. Report on the Society’s Committee on Insurance Matters (CIM). Kabir Ahmed, Chair, noted that the CIM keeps track of life insurance, LTC insurance

December 2012

and the RMIP, with its primary focus on the RMIP. Key elements of the RMIP include the fact that it is self-insured, with Aetna as the Plan Administrator in the US and Vanbreda in other countries. Medco/Express Scripts is the Administrator for pharmacy benefits. Retirees and active staff are treated as separate insurance pools at the request of retirees many years ago and therefore there are no cross-subsidies between the MIP and the RMIP. The RMIP is funded by contributions from the Bank and the retirees. Kabir stated that the Bank pays $3 for every $1 in premiums paid by retirees. After taking into account co-payments, deductibles and coinsurance (all paid by retirees), retirees pay about 40% of the total RMIP expenses and the Bank pays about 60%. Retirees are required to join National Health Plans for which they are eligible; this enrollment is very important as it provides major savings to the RMIP, thus slowing the rate of premium increases. Kabir noted two main areas of concern regarding the RMIP. The first is that until this year retirees were also concerned about having to pay additional large premiums for mandatory enrollment in US Medicare B. This issue has now been resolved. The second area of concern is the difficulty some retirees experience in finding doctors, particularly primary care doctors, who will accept new Medicare patients. Kabir noted that after three years of dialogue between the Bank and the Society’s Insurance Committee, the Bank has corrected the inequity in the way retirees who were obligated to join Medicare B were treated. He said that although retirees in Medicare brought substantial savings to the RMIP, which benefited all members of the RMIP, including the Bank, they were required to pay an additional premium to Medicare but were only partially compensated through discounts on their RMIP premiums. As retirees were informed earlier this year, both by the Bank and the 1818 Society, this problem has been redressed.

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Kabir said that the Bank has agreed that effective July 1, 2012, retirees in Medicare B will be reimbursed for the entire amount of the premium they pay to Medicare. This includes both the standard premium and the income-related monthly adjustment amount. Reimbursement of the standard amount has already begun and those enrolled in Medicare B should already see this amount in their pension checks. Reimbursement of the income-related amount will be made in early 2013 retroactive to July 1, 2012. Other changes made to the RMIP at the same time, Kabir noted, are elimination of the Medicare B discount, reduction of the discount on Medicare A to zero and elimination of the Medicare Savings Bank as of January 1, 2013. The requirement to join Medicare D, announced recently by HR, has been put on hold pending further study of its costs. A second phase of the RMIP review by HR is being done by a newly-formed working group comprising staff from different parts of the Bank, including representatives of the Staff Association and the 1818 Society. This Group is scheduled to start its review on November 5, 2012 and complete its final report by end February 2013. Under Phase 2, several other aspects of the RMIP will be studied and changes made as deemed appropriate. These aspects include a determination of what the level of discounts should be for retirees living outside the US, a review of the case for reintroducing discounts for retirees enrolled in Medicare A, further consideration of the issue of Medicare enrollees not having full access to health care providers and the progressivity of the RMIP premium structure. Kabir stated that the Insurance Committee had also worked on the issue of the LTC proposed premium raise. Metlife, which underwrites our group policy on LTC, has stopped issuing any new contracts of this type and sought to increase their premiums for existing policyholders by 45% this year. The Society has contacted the DC, Virginia and Maryland Insurance Commissions and learned

December 2012

that since our Group Policy was issued in DC, the DC Department of Insurance, Securities and Banking would be the authority to make an appropriate ruling on Metlife’s request. The 1818 Society has twice written to the DC Department to convey its concern with the proposed large increase and have said that among other reasons this increase would impose a financial burden on many retirees living on limited incomes. The Society, through the Insurance Committee, has also followed up with the DC Department of Insurance throughout their process of reviewing the Metlife request and has recently learned that the Department has approved a 10% increase in premiums instead of the 45% requested. In light of the Insurance Committee’s growing workload, Kabir said that in October the Committee has set up two groups under it, the Finance and Policy Group and the Benefits and Administration Group. Voting on Amendment of Society By-laws. Aberra Zerabruk, Society Board member, explained that a series of changes had been proposed to the Society’s by-laws and sent to members for comment. He proposed those present accept the proposed amendments by acclamation and this was done. Report of the Nominating Committee (NC) and Election of Directors. Maryvonne Plessis-Fraissard, a member of the Nominating Committee, gave its report on behalf of the NC chair, Aulikki Kuusela, who could not be present. The purpose of the NC was to propose a slate of candidates for election to the Society’s Board at this November 1st, 2013 Annual Meeting. Maryvonne noted that the NC members included Fakhruddin Ahmed, Conchita Espino, Ruth Kagia, Franz Kaps, Shigeo Katsu, Maryvonne Plessis-Fraissard and Alex Shakow. Aberra Zerabruk kindly served as liaison with the current Board. She explained that the Committee had taken into account the Society’s Board decision to propose an

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increase in the number of Board members from nine to eleven, and to make the Chapter/Group heads ex officio members of the Board. Maryvonne noted the first twoyear terms of three directors would end in 2012; Carroll Long, Hugh Henry-May and Sverrir Sigurdsson. Hugh Henry-May and Sverrir Sigurdsson have expressed their willingness to continue on the Board, while Carroll Long has indicated her wish not to be nominated for a further term. The current Society President, Jayasankar Shivakumar was elected for one additional year in 2011, but has kindly agreed to continue for a full twoyear term to provide needed continuity. This will also conform to the Society’s By-laws that the Chairman and President should be elected for a two-year term. Consequently, there are six positions to be filled with the meeting’s approval of the Bylaw changes adopted earlier in the meeting.

December 2012

To identify possible candidates, the NC reached out to the membership in an email in August 2012, and interest was also solicited through various networks and personal contacts. The priority was to further the skill mix and increase the diversity of the Board. The NC has therefore recommended the following slate of four candidates: (1) for an additional one year term (2013) J. Shivakumar; (2) for another two year term (2013-14) Hugh Henry-May and Sverrir Sigurdsson; and (3) for a two year term (2013-14) Damian von Stauffenberg; (4) for a two year term (201314) Ines Garcia-Thoumi and Evangeline Javier. The other five directors – Kabir Ahmed, Sandra Hadler, Ronald MacLeanAbaroa, Patricia Neill and Aberra Zerabruk will continue through 2013. The Meeting elected the Board members as proposed by the NC by acclamation.

IN MEMORIAM We regret to inform you of the deaths of the following, to whose families we extend our sincere sympathy. If you would like to post information about a friend’s memorial service, you can use the link http://1818members.wordpress.com/in-memoriam/ or go to The Society’s website and click on the flower, on the upper right hand side. Look for In Memoriam, scroll all the way down, and post your comment; it will appear on the top.

Jaime Acevedo-Navas, 84, of Chevy Chase, Maryland, on July 30, 2012. Mr. Acevedo-Navas retired from the Bank in 1984. Erik A. Arrhenius, 80, of Kista, Sweden, on April 4, 2012. Mr. Arrhenius retired from the Bank in 1991. Kenneth A. Bohr, 93, of Bethel, Maine, on October 2, 2012. Mr. Bohr retired from the Bank in 1982. Eugene R. Boostrom, 71, of Rock Island, Illinois, on September 18, 2012. Mr. Boostrom retired from the Bank in 2001. Irma Cajina, 77, of Fairfax, Virginia, on October 4, 2012, spouse of retiree Adan N. Cajina.

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December 2012

Antonio H. David, 63, of Rockville, Maryland, on October 11, 2012. Mr. David retired from the Bank in 2008. Alden Lowell Doud, 77, of Iowa City, Iowa, on October 1, 2012. Mr. Doud retired from the Bank in 1996. Koffi O. Edoh, 73, of Rockville, Maryland, on September 28, 2012. Mr. Edoh retired from the Bank in 2001. Dorothy Farner, 91, of Topsham, Maine, on September 16, 2012, spouse of retiree Frank Farner. Ziolo Fernandez, 82, of Arlington, Virginia, on May 24, 2012. Mr. Fernandez retired from the Bank in 1988. Roman Haile,71, of Rockville, Maryland, on January 4, 2012, surviving spouse of Mr. Shiferaw Demissie Arifa Hashim, 69, of Fairfax, Virginia, on October 25, 2012, spouse of retiree Ali Hashim. Leela Karmarkar, 81, of Bethesda, Maryland, on March 3, 2012, spouse of retiree, Vasant Karmarkar. Vasant Karmarkar, 77, of Bethesda, Maryland, on April 3, 2012. Mr. Karmarkar retired from the Bank in 1999. William C. Keller, 93, of Gaithersburg, Maryland, on August 22, 2012. Mr. Keller retired from the Bank in 1979. Grete Lindbaek, 76, of Oslo, Norway, on May 14, 2012, spouse of Jannik Lindbaek. Florence Lindsay, 81, of Melbourne, Florida, on October 28, 2012, spouse of retiree Thomas Lindsay. John K. Lubbock, 87, of Cordoba, Spain, on September 28, 2012. Mr. Lubbock retired from the Bank in 1986. Delbert T. Myren, 86, of McLean, Virginia, on November 10, 2012. Mr. Myren retired from the Bank in 1987. Charles E Nester, 90, of Gaithersburg, Maryland, on October 22, 2008, spouse of retiree, Ms. Phyllis Nester. Gisele Grothe Ramos, 89, of Charlottesville, Virginia, on October 15, 2012. Ms. Ramos retired from the Bank in 1985. Freida N. Sutherland, 97, of Frederick, Maryland, on March 30, 2012, surviving spouse of Donald N. Sutherland.