Post by proudpd on Dec 8, 2008 8:19:04 GMT -5
Here is the latest monthly health and welfare column from the desk of Lou Weiser. Lou is a retired Lieutenant and former Deputy Commissioner for the NYC Department of Investigation.
He is an expert in health and welfare matters affecting civil service workers (especially NYPD) and has tirelessly worked for our benefits.
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GOV. Paterson has requested unions to reopen negotiations to avoid layoffs due to $5.2 billion budget short fall. The unions have rejected his offer and he has indicated that he does not need their consent to make retirees pay more for their health benefits or to cut Medicare Part B reimbursement. The city labor negotiator has also indicated he favors such cuts but they would require the approval of the City Council.
The latest New York State Audit and Comprehensive Annual Financial Report contained this interesting note: "On November 8, 1938, New York voters ratified an amendment to the State Constitution stating that "retirement benefits shall not be diminished or impaired." I suppose this was included to calm the fears of retirees over the recent loss of billions resulting from poor investments by the pension funds. Most other states have suffered similar or greater losses!
New York City recently reported the loss of $8.8 billion from the 5 pension funds, yet the New York Post headlined their investment in "long shot gamble hedge funds". The VSF or Defined Benefits Funds reported an excess of assets over liabilities of over $1.1 billion for 2007, I am still awaiting the 2008 report. However, the audit firm included this interesting note: "under current law, the Fund is not to be construed as constituting a pension or retirement system. Instead, it provides defined supplemental payments, other than pension or retirement system allowances, in accordance with applicable statuary provisions. While the City guarantees these payments, the New York State Legislature has reserved to itself and the State of New York (the State) the right and power to amend, modify, or repeal the fund and the payment it provides. "However, not to worry, since all retiree groups are very alert to any proposed changes that would modify or change any health or other benefits.
The proposed merger of GHI and HIP still awaiting State approval with the probable reason that the investment climate is not suitable for issuing new stock as would take place if there was the conversion to a for-profit organization as is being contemplated. The state has already claimed any resulting profits (possible several billions) and the city and unions also feel they are entitled to the profits. The only ones who should get any windfall are the subscribers who are being left out of the picture. There is a measure, sponsored by SOAR that would earmark some of the profits to reduce drug costs for retirees! In other states where conversions have taken place, subscriber rates have increased and benefits cut!!
He is an expert in health and welfare matters affecting civil service workers (especially NYPD) and has tirelessly worked for our benefits.
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GOV. Paterson has requested unions to reopen negotiations to avoid layoffs due to $5.2 billion budget short fall. The unions have rejected his offer and he has indicated that he does not need their consent to make retirees pay more for their health benefits or to cut Medicare Part B reimbursement. The city labor negotiator has also indicated he favors such cuts but they would require the approval of the City Council.
The latest New York State Audit and Comprehensive Annual Financial Report contained this interesting note: "On November 8, 1938, New York voters ratified an amendment to the State Constitution stating that "retirement benefits shall not be diminished or impaired." I suppose this was included to calm the fears of retirees over the recent loss of billions resulting from poor investments by the pension funds. Most other states have suffered similar or greater losses!
New York City recently reported the loss of $8.8 billion from the 5 pension funds, yet the New York Post headlined their investment in "long shot gamble hedge funds". The VSF or Defined Benefits Funds reported an excess of assets over liabilities of over $1.1 billion for 2007, I am still awaiting the 2008 report. However, the audit firm included this interesting note: "under current law, the Fund is not to be construed as constituting a pension or retirement system. Instead, it provides defined supplemental payments, other than pension or retirement system allowances, in accordance with applicable statuary provisions. While the City guarantees these payments, the New York State Legislature has reserved to itself and the State of New York (the State) the right and power to amend, modify, or repeal the fund and the payment it provides. "However, not to worry, since all retiree groups are very alert to any proposed changes that would modify or change any health or other benefits.
The proposed merger of GHI and HIP still awaiting State approval with the probable reason that the investment climate is not suitable for issuing new stock as would take place if there was the conversion to a for-profit organization as is being contemplated. The state has already claimed any resulting profits (possible several billions) and the city and unions also feel they are entitled to the profits. The only ones who should get any windfall are the subscribers who are being left out of the picture. There is a measure, sponsored by SOAR that would earmark some of the profits to reduce drug costs for retirees! In other states where conversions have taken place, subscriber rates have increased and benefits cut!!