Pension News - FABF

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THE FOLLOWING ANNUITIES AND BENEFITS HAVE BEEN GRANTED (cont.) JANUARY 2013 (cont.) Ordinary Disability ENG EDWIN VALE, ENGINE 76 FEBRUARY 2013 Minimum Formula Annuity EMT ENG HECTOR A. ARAMBURU, ENGINE 117 PIC JAMES A. CARUSO, AMBULANCE 42 ENG ROBERT C. GLOPPE, ENGINE 10 ENG JAMES M. PRICE, ENGINE 59 FF CHARLES SWAN, TRUCK 59 Duty Disability FF STEVEN A. GORE, ENGINE 11 Occupational Disability None 12 MARCH 2013 Minimum Formula Annuity EMT CAPT JOSEPH A. GUARASCIO, AERIAL TOWER 1 FF LAWRENCE FRANKLIN, ENGINE 64 ENG MATTHEW J. MOWEN, ENGINE 11 ENG ROBERT RAMOS, ENGINE 15 Duty Disability FF MARTIN J. MROZEK, ENGINE 112 FF SHAWN W. SPURLIN, ENGINE 97 Occupational Disability FF BOYCE R. COLEMAN II, ENGINE 122 FROM THE RETIRED TRUSTEE WALTER CARLSON Hello again to all my old friends. I can’t believe that last year at this time it was 80 degrees in Chicago and this year we’re closer to 20 degrees. That’s Chicago. I’ve been in the habit of saying, “One of the nicest days last summer was St. Patrick’s day”. We can only hope for as nice a spring this year. I can also hope that the Mayor will continue our annuitant health care program too. I want to stress that this is in regards to retirees and widows in the annuitant health care program and not those who retired after age 60 or under one of the recent “free health care” incentives. Those members are still covered in the city of Chicago active employees health care plan. As of April 26, 2013 there has been no offi cial word as to the status of the annuitant health care program beyond June 30, 2013. That is the date that the “Korshak Agreement” which governs the annuitant health care program provided by the city of Chicago as we know it, offi cially expires. I know for a fact that unless legislation is enacted in Springfi eld, the pension fund subsidies (paid by each of the four pension funds on behalf of the members enrolled in the annuitant program) cannot be paid any more. These subsidies pay for about 13% of the total costs of the program. So what does this mean? Are 32,000 former city of Chicago employees and their families currently enrolled in the program going to be out of insurance? Is there going to be another program that we can get into? We are all waiting. But I guess we’re getting used to it. We all waited while the Mayor’s expert RHBC (Retiree Healthcare Benefi ts Commission) performed its analysis about the anticipated future costs of the annuitant health care program. Let me tell everyone interested, this panel did a good job. The report is on-line at the City of Chicago website: http://www.cityofchicago.org/content/dam/city/depts/fi n/supp_info/Benefi ts/RHBC/ReportToMayor/RHBC_Report_to_ the_Mayor.pdf It explains the costs of the existing program and the level of cost sharing and savings among the parties when certain variables are changed. You probably need a math degree to understand it though. As good as this report was, it did not go far enough. Here’s why: 1. The RHBC analysis ASSUMED the inclusion of the pension fund subsidies. I think they should have made some sort of argument about continuing them or not. The costs shared among the City and the annuitants will be increased without these subsidies.
FROM THE RETIRED TRUSTEE WALTER CARLSON 2. I think the RHBC should have also recommended the continuation of a court supervised agreement. That way, all parties would be covered under some extension of the existing agreement and we would not have the nonsense, frustration, anxiety (or expense) of going back to court again and again. We absolutely do not need to re-invent the wheel in this matter. 3. I also think the RHBC should have commented on the continuation of the current program of administration of the annuitant program. I personally have been very satisfi ed with the operation of the program. All items affecting all the parties; coverage, cost sharing, reconciliations etc. were all embodied within the agreement. However, the report was issued and we continue to wait. It’s been two months since the issuance of the RHBC report and no formal announcement or decision has been made. Probably the biggest unknown in this entire equation is to what level the Patient Protection and Affordability Act ("Obamacare") fi ts in and when retirees might be able to switch to plans that will be available under the Act. Supposedly, viable insurance exchanges, where retirees can fi nd competitively priced insurance, are to be operational in the state of Illinois in 2014. These exchanges are supposed to provide alternative options for insurance at lower prices, thereby relieving the former employer of the costs of maintaining the plan. I haven’t heard much of any progress on those exchanges. One of the RHBC panelists even wrote a nice editorial about funneling all the savings the city would reap when all of the annuitants would be adequately covered under the provisions of this Act ("Obamacare") back to the funds as supplemental pension funding. The sun was really shining that day. There have been a few other things in the news about this issue. The Mayor indicated in an interview with Carol Marin a couple of months back that he thought the program would continue beyond June 30, 2013 and that enough was budgeted to run the program through the end of 2013. A few of the Aldermen had a Budget/Audit Committee hearing on the matter and they reviewed all the fi ndings of the RHBC report. They too recognized that the budget had enough money to fund the anticipated costs for all of 2013’s Annuitant Health Care Program under the existing structure (no mention of the lack of subsidies) I’m not sure if that alone is enough authority to continue the plan. I hope it’s OK to keep sending in our bills after June 30, 2013 under such an informal arrangement. The Mayor’s “Roadmap” plan for pension reform including reference to continuing retiree health care, was developed as part of contract negotiations with the police sergeant's union. This was the fi rst time in my career (approx. 50 years worth) that I have ever seen all of these items considered under the umbrella of contract negotiations. It was resoundingly voted down. So here’s the reality. The provisions of retiree health care are not covered under the more ironclad Illinois state constitutional protection afforded to actual pension benefi ts. They know we’re out here waiting and they know June 30, 2013 is around the corner. They know how much future retiree health care is going to cost. I think they might want to hold us hostage in an attempt to bargain for changes to the pension benefi ts for existing city workers and retirees. They know the cost breakouts at several different levels at which they can squeeze the annuitants to pay more. It is likely that current workers and retirees might be asked to choose between future COLA increases in exchange for continued retiree health care. The State is considering that now in various forms of legislative amendment and discussion. I know these are diffi cult issues. I know that the uncertainty of health care is causing a great deal of anxiety, sleepless nights and heartburn, I promise to keep retiree issues at the forefront of all pension business. 13
Page 1 and 2: Spring 2013 PENSION NEWS PUBLICATIO
Page 3 and 4: FROM THE SECRETARY (cont.) the memb
Page 5 and 6: DECEASED PARTICIPANTS FROM AUGUST 1
Page 7 and 8: DECEASED PARTICIPANTS FROM AUGUST 1
Page 9 and 10: THE FOLLOWING ANNUITIES AND BENEFIT
Page 11: THE FOLLOWING ANNUITIES AND BENEFIT
Page 15 and 16: GIFT FUND DONATIONS AUGUST 2012-FEB
Page 21 and 22: ENDE MENZER WALSH & QUINN WIDOWS' A
Page 23 and 24: SOFTBALL 23

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