REPORT FROM THE JBC TO
CUCEA & CUCRA, AT THEIR JOINT MEETING - 4/30/2009
CUCEA and CUCRA function,
among other things, as partners and advisors to the Office of the President on
matters relating to retirees, annuitants, and retirement benefits. We provide insights and information to
aid in the implementation and conduct of programs.
There are times in this
partnership when CUCEA and CUCRA through the Joint Benefits Committee request
clarification and information so that we may provide realistic and informed
advice. Several times recently,
our requests for information went unheeded despite assurances that a response
would be forthcoming. It is our
hope that we can improve the flow of requested information so as to strengthen
the quality of our advice, to improve our understanding of the issues, and to
better inform our constituents.
Following are a number of important issues we discussed at our April 2009
JBC meeting and offer to the broader membership and UCOP:
1 - Future decisions about annuitant
health care benefit costs to the individual should take into account:
(a) the costs paid by annuitants for Medicare Part B coverage; (b) their
generally larger co-payments related to many more doctor visits and
prescriptions; and (c) the lack of ability to pay for health care costs using
before-tax dollars, as is the case for active employees through the use of
Flexible Spending Arrangements.
The cost of health care is the sum-total of premiums, deductibles and
co-payments, not just premiums. It would help, if the specific annual
allocations of funds from the State to cover cost-of-living increases for all
formerly State Funded annuitants were used by the University for the purpose
intended by the Legislature and Governor.
In addition, a comparison of the University health care programs with
those provided to State and CSU annuitants should be undertaken on an annual
basis. Currently, and for many
past years, those annuitants have enjoyed at least comparable benefits at
significantly lower personal cost. For example, for Kaiser, which is the only plan offered to
both University of California and PERS annuitants, we pay 50% more for each
doctorÕs visit, double for each generic medication and 1/3 more for each non-generic
medication.
2 - Concerns about the drug
programs continue to exist, and need to be addressed in the near
future. It would appear that the
formulary available to annuitants is contracting rather than expanding since
the beginning of Medicare Part D, despite assurances that this would not happen.
3 - We urge that
consideration be given to inclusion of hearing aid benefits for
those enrolled in the High Option program. This would seem consistent with the values of our health
care coverage for an aging population.
4 - The plight of those
who retired many years ago continues to worsen, and should be brought
to the PresidentÕs attention by the Chairs of CUCEA and CUCRA. A Òbrain-stormingÓ session, as
previously agreed to by the University, should be arranged before the end of
this year. The purpose should be
to develop ways to allow those who are living at or below the poverty level to
have a normal life in retirement, as originally envisioned by The Regents when
the UCRP was created. For example,
faculty and staff who retired between the periods of 1957 - 1987 could only
receive a maximum annuity equal to 80% of their salary. Professor Vs, who retired between 1957
and 1977 and who were highly paid (essentially over scale) compared to other
retirees, today have a computed retained purchasing power of between $13,200
and $19,600, using the April 2007 UCRP Advisory Council meetingÕs Attachment I
to compute the retained purchasing power sum. Further, these individuals did not have Social Security
coverage. This topic has been
consistently ignored by those with whom we deal. This matter needs to be moved to a higher level as soon as
possible.
5 - It is hoped that, in the
very near future, those who took the PERS/VERIP will be treated
in like fashion to those who took VERIP I, as was the original intent of The
Regents. The funding that was
deliberately not provided originally to ensure annual COLAs on
the Òincentive,Ó is now available due to excess earnings in the established ÒPERS/VERIP
Trust Fund.Ó These individuals are
declining in number each year, and they have only had equitable treatment in
two of the last 18 years, since the program began.
We are encouraged by the
formation of the Task Force on Post-Retirement Benefits, and continue to look forward to cordial and cooperative
relations with OP staff with whom we deal, for the mutual benefit of the
University and its family of annuitants.
Adrian Harris, Chair, UCLA,
Julian Feldman, UCI Jack
Fisher, UCSD Richard Jensen, UCSC & UCSB
William Klein, UCLA Errol Mauchlan, UCB Louise Taylor, UCB
Ex-Officio: Charles Hess, UCD; Colin Bloor, UCSD; Marian Gade, UCB; Lee Duffus, UCSC
[Note: Member Larry Pitts is
on temporary leave.]