news archive

12/18/07 – Pension Fund Reforms Announced: State Comptroller Thomas DiNapoli and Insurance Superintendent Eric Dinallo were joined by Governor Spitzer recently in announcing a new set of state pension fund regulations to improve efficiency, protect public employee and retiree pensions, and help restore confidence in governance of the fund. Jointly developed by the Comptroller and Insurance Superintendent, the reforms will improve internal controls, increase transparency and set new ethical standards and fiduciary responsibilities for the $154.5 billion New York State Common Retirement Fund. The Governor said the new regulations will maximize protection for taxpayers, local governments and beneficiaries and he credited DiNapoli with already setting in motion some of these new standards. Comptroller DiNapoli welcomed the partnership with the Governor and Insurance Superintendent and noted that the Retirement Fund’s performance has been and continues to be among the best in the nation. He pledged to set the bar for transparency and integrity very high. OMCE, RPEA (Retired Public Employees Association), PEF, CSEA, NYSUT and other public employee unions support the changes. OMCE President Barbara Zaron released a statement saying: "With these proposed regulations, we are adding on to and extending the 'glass house of public employee accountability' to private sector entities that do business for and with the NYS retirement system. These additional transparency and accountability measures should reassure all the stakeholders that the NYS retirement system will be the most open, best public retirement system in the United States while continuing to be run for the sole benefit of the system's members and beneficiaries."

12/13/07 - Deferred Compensation Limits for Calendar Year 2008: The Office of State Comptroller has issued a payroll bulletin advising agencies of the maximum contribution limits for employees enrolled in the Deferred Compensation Plan in calendar year 2008, pursuant to IRS 457 regulations. The 2008 limits, which will be effective with paychecks dated 1/3/08 for Institution payroll employees and 1/9/08 for Administration payroll employees, are as follows:

· The regular yearly contribution amount for Deferred Compensation will remain at $15,500.

· An additional deferment is available to employees age 50 and over. These employees can defer up to $5,000 in addition to their regular contribution amount for a combined total contribution limit of $20,500 in 2008. However, employees cannot choose to have both the “Retirement Catch-Up” and the “50 and Over Catch-Up” additional amounts deferred in the same year.

Questions regarding Deferred Compensation deductions and catch-up plans may be directed to the NYS Deferred Compensation Helpline at 1-800-422-8463. The NYS Deferred Compensation website at www.nysdcp.com may provide additional information.

12/6/07 - Update: At our November meeting with the Governor's Office of Employee Relations (See 11/7 News item below), we outlined our proposals for M/C employees, including a 10 day vacation exchange program and the salary increases, geographic pay differentials and health insurance provisions (although some copays may differ) the State agreed to with CSEA. While we received no specific commitments, we were advised that the Governor's M/C PayBill will probably be submitted to the Legislature along with the CSEA PayBill, following the expected January 2008 ratification of the new State/CSEA contract by the CSEA membership.

11/20/07 - Important NYS Health Insurance Plan (NYSHIP) Information for Medicare-Primary HMO Enrollees and Dependents: Effective January 1, 2008, Blue Choice, CDPHP and MVP (East) will require their Medicare-eligible enrollees and dependents to join a Medicare Advantage Plan. They join six other NYSHIP HMOs that already only offer Medicare Advantage Plan enrollment to Medicare-primary NYSHIP members. Enrollment will be automatic. Enrollees preferring not to be automatically enrolled can opt out and choose another health plan during the current option transfer period, which ends December 15, 2007. Blue Choice, CDPHP and MVP (East) Medicare-primary enrollees should have received a mailing from NYSHIP explaining the change, along with the 2008 Choices booklet describing the various health plan options that are available to NYSHIP enrollees. You should review the summary of benefits information carefully. Be sure to check the drug formulary and provider lists to be sure your prescriptions are covered and your physicians are in the Medicare Advantage Plan network. Contact information for the Empire Plan and each HMO can be found in the Choices booklet. If you have any questions about NYSHIP or your enrollment options, please call the Civil Service Department’s Employee Benefits Division at 518-457-5754 or 800-833-4344, Monday through Friday between 9:00 AM and 3:00 PM or via the web at: www.cs.state.ny.us.

11/7/07 - We have been receiving questions from members on what’s in store for M/C employees in light of CSEA’s tentative contract settlement with the State.

Historically, the M/C PayBill has been attached to the CSEA PayBill. We do not yet know if that will be the case, but expect it will be. Also, historically, the pattern set by the first union to reach agreement (e.g. CSEA) is applied to the PEF and M/C agreements (with some modifications). Accordingly, we expect the percentage increases (3% retroactive to April 2007, 3% in April 2008, 3% in April 2009 and 4% in April 2010), downstate salary adjustments, pre-tax mass transit commuting savings, health insurance co-pays and additional health insurance benefits such as shingles vaccination, diabetic footwear – two issues OMCE brought to the table – will be applicable for M/C's.

Please note that the CSEA contract agreement must be ratified by the CSEA membership and codified in legislation (PayBill), so it will be some time before the agreement can be implemented. Also, there is no expectation at this time that the Legislature will return before January 2008.

OMCE's next meeting with the Governor’s Office of Employee Relations concerning the M/C PayBill (with a vacation buyback option) is scheduled for November 14. We will post additional information here as soon as it is available.

10/23/07 - Retiree Medicare Part B Premium Reimbursement: Beginning January 1, 2007, premiums for some Medicare Part B enrollees increased when an income-based premium surcharge began to be added to their standard monthly Part B premium. The surcharge, which will increase in future years, was tacked onto the 2003 federal Medicare bill. Affected are single enrollees whose modified gross annual income on their federal income tax return filed in the preceding year is over $80,000 and married enrollees who filed a joint federal return in the preceding year with a modified gross annual income over $160,000.

In January, OMCE raised the issue of whether the State would reimburse affected retirees for the additional premium resulting from the surcharge. Medicare-primary NYSHIP enrollees already receive reimbursement for the standard Medicare Part B premium. We are pleased to announce that, although we received a negative response initially, it has been determined that the law requires the State to reimburse whatever premium a Medicare Part B enrollee pays.

The Department of Civil Service is setting up a system to handle reimbursement. Plans are underway for an annual claims process with claimants submitting a copy of their Part B statement in order to obtain reimbursement. Only retirees who pay the additional premium will need to submit their Part B statement. There will be a 3-year limit on filing retroactive claims. Civil Service hopes to complete the details of the claims process in time to announce it in its January 2008 Empire Plan Report. In the meantime, as we have more information to share, we will post it here.

10/12/07 - Civil Service Department Commissioner Nancy Groenwegen announced yesterday that the Department’s Employee Health Service will begin making flu shots available to State employees in the coming months at the 22 nursing stations it operates statewide. The nursing stations are located at worksites in Albany, Binghamton, Buffalo, Long Island, New York City, Syracuse and Utica. The Employee Health Service estimates it will administer over 7,000 flu shots.

According to the federal Centers for Disease Control and Prevention (CDC) there will be plentiful supplies of flu vaccine available over the course of the 2007-08 flu season. This year's vaccine contains antigens to the three strains of flu virus that experts expect are most likely to be circulating during the 2007-08 flu season. It's important to get a flu shot annually since the viruses that cause flu often change from year to year. Influenza is a serious disease that contributes to 36,000 deaths and 200,000 hospitalizations each year. Those at higher risk for flu include: persons 50 years of age and older, with or without chronic health conditions; children aged 6 months up to their 5^th birthday; pregnant women, health care personnel and all persons (including school-age children) who want to reduce the risk of becoming ill with the flu or transmitting the flu virus to others.

Employees wanting a flu shot should watch for announcements at their worksite. For employees, retirees and the public, information on where to get a flu shot is available from their health care provider, local pharmacist, the media and senior centers, and posted online by the New York State Office for the Aging at: http://www.flu.state.ny.us. More information about the flu can be found online at: http://www.nyhealth.gov.

10/11/07 - Veterans' Day falls on Sunday, November 11, this year and will, therefore, be observed by the State on Monday, November 12. (Under the General Construction Law, holidays which fall on a Sunday are observed by the State on the next Monday.) Section 63 of the Public Officers Law provides that eligible veterans are entitled to the day off on November 11 or, if required to work that day, to a day off in lieu thereof and regular pay* for the time worked. Eligible veterans who work on Monday, November 12, but are not required to work on Sunday, November 11, are not affected by Section 63 since (1) they will have a day off on Sunday, November 11 and (2) receive holiday leave/holiday pay, as appropriate, plus regular pay* for time worked on Monday, November 12. Questions may be directed to your agency/facility personnel office.

*Note that if either Sunday, November 11 or Monday, November 12 is a pass day on which an overtime-eligible employee is working, the employee may be receiving overtime pay rather than regular pay.

8/17/07 - Governor Spitzer has vetoed S.6030 and a similar bill (S.6031-A) which sought to prohibit the diminishment of a public sector retiree’s health insurance coverage or employer contributions without a corresponding diminishment for active employees. The Governor’s veto message is reproduced below. We will be working with other employee/retiree organizations and agencies the Governor identified in his message to study the issue and report to him on the potential impact of these bills and other possible legislative proposals.

“AN ACT in relation to affecting the health insurance benefits and contributions of certain retired public employees”

These bills – which are very similar to bills vetoed four times by Governor Pataki – would place limitations on the degree to which public employers can alter the health insurance benefits of public service retirees. Under S.6030, which applies to the New York State and Local Employees Retirement System, the Teachers Retirement System and the Optional Retirement Program, public employers would be precluded from diminishing the health insurance benefits given retirees, or employer contributions made for retirees, unless a corresponding diminution is made in the benefits of active employees. S.6031, which applies to the New York State and Local Police and Fire Retirement Systems, bars any diminution of retiree health insurance at all on or after the effective date of the bill. Both bills would be in effect only until May 15, 2008, but proponents of the bill undoubtedly will seek to extend them each year.

These bills seek to advance the laudable and important goal of insuring that retiree health care benefits do not become a unique target of budget cuts. Supporters argue that these bills are necessary to protect the health insurance benefits of retirees, since such benefits are neither subject to collective bargaining under the Taylor Law, nor protected under the constitutional ban against diminishment of pension benefits.

While these are strong arguments, there are also powerful countervailing considerations. Employers are deeply concerned that these bills would significantly constrain their flexibility. Many note that under the bill, programs that give somewhat different benefits to retirees to improve compatibility with Medicare, or because of changes in Medicare rules, could be curtailed. Employers also point to the difficulty of administering this bill, and determining the benchmark to which retirees should be compared in cases where a wide variety of employees and benefits are at issue. The Department of Civil Service, in particular, notes that the New York State Health Insurance Program (“NYSHIP”) administers active employees and retirees differently, and states that the bill would “severely constrain” its practices in the future.

Proponents of the bills also advance equity arguments, as retirees of school districts have been governed by similar restrictions since 1994. I note, however, that enacting these bills would also result in the application of different rules to different sets of retirees. I am particularly troubled that S.6031 would prevent any diminution of retiree health benefits, even in a fiscal crisis that required cuts for active employees. If enacted, pension recipients would soon seek the same protection.

In particular, NYSHIP applies a wide variety of different costs and benefits to a host of different bargaining units. If it sought to change retiree benefits, it is unclear how it could coordinate such alteration with a bargained change for every represented group of employees, or how it could be determined whether reductions in such varied benefits were equivalent to those applied to retirees.

In any event, the 1994 school district retiree law was enacted following a study and report by a Task Force that, among other steps, conducted an extensive survey of school districts to determine their health insurance practices vis-à-vis retirees. In contrast, these bills would put a new set of rules in place statewide whose effect is difficult to determine, without similar prior study. There is a great deal of information that is simply not discernable from the submissions on this bill, and which would be essential to evaluating the best approach to the serious concerns raised by the sponsors. Among these issues are: (1) the effect the school district law has had on employer options and costs; (2) the frequency with which retiree health benefits are reduced while those of active workers remain the same; (3) whether there are differences in how school districts and some of the larger entities addressed by this bill administer health insurance, and whether such differences require different approaches; (4) whether, because of the unique set of benefits available to retirees (such as Medicare), there are circumstances where a parallel treatment of retiree and present employee benefits is unwarranted; (5) what impact a universal health care initiative would have on this issue; and (6) whether there are other statutory or regulatory means for protecting retiree health benefits – such as by changing collective bargaining rules or otherwise – that would be a better way of addressing the problems articulated by the bills’ supporters.

Given these open questions, I am directing the Division of the Budget, the Commissioners of Health, Insurance and Civil Service, and the Director of the Governor’s Office of Employee Relations to work with employee and retiree organizations to investigate these issues, and to report back on the potential impact of these bills and other possible legislative proposals. On the basis of the information presently before me, however, I think it would be unwise to impose on every public employer in the State the broad and differing rules mandated by these bills.

8/16/07 - Governor Spitzer has vetoed the OMCE bill that would have provided an optional 25 year retirement plan for police investigators employed by the Attorney General’s Office. The text of the Governor’s veto message is reproduced below. We will be revising the bill to meet the Governor’s concerns and submitting it for reconsideration by the Legislature as soon as is feasible.

Veto Message – No. 110

TO THE ASSEMBLY:

I am returning herewith, without my approval, the following bill:

Assembly Bill Number 6311, entitled:

“AN ACT to amend the retirement and social security law, in relation to the retirement of members employed as investigators assigned to the department of law”

NOT APPROVED

This bill would grant an improved pension benefit to investigators employed by the Offices of the Attorney General (“OAG Investigators”). As a general rule, I believe that pension benefit expansions should be granted only in limited and appropriate circumstances. Pension benefits constitute a significant expense for the State and localities, and the fiscal health of the State depends on its ability to limit their expansion in a way consistent with its other budgetary priorities. While the benefit in this bill is relatively modest, enacting it could lead others to seek a similar plan. For that reason, care must be taken in ensuring that such a special pension benefit is drawn with clear parameters, so as not to invite numerous follow-on bills based on claims that equity requires such benefits for additional titles.

The sponsors and supporters of this bill, however, present a strong case as to these individuals. In particular, they argue and present voluminous documentation and legal citations to show: (1) that the OAG Investigators are defined as police officers by law; and (2) they engage in important and dangerous law enforcement investigations, in such areas as narcotics, terrorism and gang activity. Under these specific circumstances, providing a special pension plan may be warranted.

However, there is one aspect of the bill that gives rise to significant concern. In addition to granting a right to retire with a 50% benefit after 25 years, this bill also provides service credit of 1/60 of salary for each year of service thereafter. Many other comparable employees’ plans lack this element. Because those other groups undoubtedly will seek similar benefits, granting them in this case would have broad fiscal implications beyond those created by this bill alone. As a result, I am constrained to disapprove this legislation.

The bill is disapproved. (signed) ELIOT SPITZER

8/7/07 - Retiree for part-time work: United Way of New York State (UWNYS) is looking for a part-time staff person to oversee the fiscal aspects of contract compliance. The job is located in Albany. Responsibilities include oversight of subcontracts between UWNYS and its local United Ways and regional 211 organizations, review of the regions’ budget submissions and requests for reimbursement of expenses, together with associated documentation, and ensuring fiscal compliance with state and other grant requirements. Experience in managing state or other grants would be helpful. Interested persons should contact Ms. Diane Lasch, UWNYS, at 518-463-2522 or dlasch@uwnys.org. (For info about UWNYS, click here to link to their website.)

8/6/07 - The OMCE bill (S.4694/A.6311) providing an optional 25-year retirement plan for Police Investigators employed by the NYS Office of the Attorney General was sent to the Governor on Friday, 8/3, for signature. Show your support for this important legislation by sending a message to the Governor urging him to sign the bill. It's easy to do: Just Click Here or select ACTION LINE from the menu in the left-hand column and follow the step-by-step instructions. Your email will be on its way in seconds.

8/2/07 - Retirees Take Note: The Department of Civil Service has notified us that, due to a scheduling conflict, the date of the Smithtown Retiree Health Benefits meeting at the Sheraton Long Island has been changed from 10/5 to Friday, October 19. For your convenience, we have posted the Fall '07 Retiree Health Benefits meeting schedule (through 10/30/07) on our Calendar Page.

7/31/07 - The prospects for a vacation exchange program this year do not look good. No progress has been made toward an M/C PayBill, which historically is not addressed until union contracts are negotiated, and the current State/union negotiations are proceeding slowly. Timing constraints and the lack of legal authority without a pay bill to provide for such payments means there will be no vacation buyback this year.

7/31/07 - 2007 OMCE Election: OMCE members will receive ballots in the mail this week to vote on candidates for five seats on the OMCE Board of Directors. In order to be counted, ballots must be received at OMCE headquarters by no later than close-of-business Thursday, August 30, 2007. Ballots received after this deadline will not be counted. Instructions and special return envelopes are included in the mailing. To insure that only OMCE members vote, be sure to leave your preprinted name and address on the outside of the return envelope--ballots in envelopes without return addresses will not be counted. Do not sign or otherwise identify yourself on the ballot. And, before sealing your ballot in the special return envelope, make sure you have voted for no more than five (5) candidates.

7/31/07 - The State has announced that the contract for the Empire Plan Prescription Drug Program is being awarded to United Health Care/Medco. The 4-year contract will become effective January 1, 2008. The prescription drug program is currently insured by Empire Blue Cross/Blue Shield with Caremark serving as Pharmacy Benefit Manager. United Health Care (UHC) is the insurer for the medical portion of the Empire Plan. The State must sign a contract with UHC/Medco before they can become the new vendor.