1.
WHAT HEALTH BENEFITS DO MEMBERS OF CONGRESS RECEIVE?:
Democratic Presidential hopeful John Kerry is touting
a plan to give Americans access to the same health coverage that members
of Congress enjoy. But what sort of health benefits do Congressmen receive?
Members of Congress are eligible for coverage under the Federal Employees
Health Benefits program, administered by the United States Office of Personnel
Management. The program covers 8.3 million Americans from the lowliest
bureaucrats to the most powerful Presidential appointees. (President Bush
is also eligible for FEHB coverage, but it has not been reported whether
he has opted for such insurance.) In addition, FEHB extends benefits to
retirees, spouses and unmarried dependents under the age of 22; domestic
partners are not eligible. FEHB is known for offering its subscribers an
unparalleled range of healthcare options. In the District of Columbia,
federal employees can choose from 19 different plans, ranging from fee-for-service
options to health maintenance organizations. Those living outside the Beltway
have at least a dozen plans from which to choose. The government’s
share of FEHB contributions was fixed in the Balanced Budget Act of 1997.
The rule-of-thumb for congressional staffers and cabinet members alike
is that the government picks up 72% of the average premium cost -- on par
with what a generous private-sector employer would offer. Employees pay
the remainder via payroll deductions. This report is from Slate, on-line
magazine.
2. NORTH
CAROLINA WORKERS’ SUIT GETS NEW LIFE:
We previously reported on the unsuccessful lawsuit brought by State
Employees Association of North Carolina against the governor for illegally
withholding hundreds of millions of dollars in required pension contributions
in order to balance the state budget (see C&C Newsletters for June,
2001, Item 11, and September, 2001, Item 10). Now, the North Carolina
Supreme Court has breathed life into the action, reversing a Court
of Appeals ruling that affirmed dismissal on the ground that SEANC
lacked standing to sue. The high court found there is no requirement
that all association members face potential harm in order for the group
to have standing. Incidentally, the governor has restored part of the
money due to the $42 Billion North Carolina Teachers’ and State
Employees’ Retirement System, but $130 Million remains outstanding.
3. RECORDS
OF “IMPROPERLY INITIATED” POLICE INTERNAL AFFAIRS INVESTIGATION
MAY NOT BE EXPUNGED:
An attorney for the Fraternal Order of Police asked the Coral Gables,
Florida, City Attorney to authorize the Police Department to purge
or expunge documents it generated during an internal affairs investigation
of a police officer. The request was based on the contention that the
investigation was improperly initiated against the officer based upon
his activities as president of the FOP rather than upon his actions
as a law enforcement officer. In an informal advisory legal opinion,
the Florida Attorney General concluded that in the absence of a court
order determining that the subject records are not public records within
the meaning of Chapter 119, Florida Statutes, the documents may not
be expunged. The investigation was ostensibly conducted under the law
enforcement agency’s authority to conduct investigations into
activities of its law enforcement officers. Thus, the records were
generated while the agency was acting in its official capacity in performing
what it considered to be its official duties. “I am not aware
of, nor have you drawn my attention to, any decision of authority that
would permit a public agency to purge or expunge documents which it
created while carrying out what it perceived to be its official duty
based on an accusation that the agency may have been mistaken in such
an assessment.” The Attorney General did note that the retention
schedule applicable to law enforcement for internal investigation records
unfounded or not sustained is one year. Florida Attorney General Advisory
Legal Opinion (Informal) dated July 1, 2003.
4. UNDER
FMLA, SLEEPING EMPLOYEE CANNOT BE FIRED:
After more than four years of highly regarded service as an engineer
on the night shift at Avon Products, Byrne started to read and sleep
on the job. Although his sister told Avon that Byrne was “very
sick,” Avon fired Byrne. As it turns out, Byrne was suffering
from depression, which he surmounted with two months of treatment.
When Avon would not take him back, Byrne filed suit under the Americans
with Disabilities Act and the Family and Medical Leave Act. The trial
court granted summary judgment in favor of Avon, holding that neither
statute excuses misconduct on the job. The United States Court of Appeals
for the Seventh Circuit held that (1) inability to work for a multi-month
period removes a person from the class protected by ADA but (2) FMLA
affords those who cannot work as a result of a “serious health
condition” up to twelve weeks of leave in a year. Byrne’s
condition was serious, and he was ready to work again before the twelve
weeks ran out. Thus, Byrne was entitled to reinstatement, and the judgment
was vacated. Byrne v. Avon Products, Inc., Case No. 02-2629 (U.S.,
7th Cir., May 9, 2003).
5. ALASKA
CONSTITUTION PROTECTS HEALTH BENEFITS:
Article XII, Section 7 of the Alaska Constitution protects retirement
benefits of public employees from diminishment or impairment. But benefits
may be changed if any detriments are offset by advantages. The Supreme
Court of the State of Alaska recently faced the question of whether
as to changes in health insurance plans the balance must be struck
taking the perspective of each individual or the group. The court concluded
that the group perspective must generally be used because individual
evaluations are subjective and uncertain. In so ruling, the court rejected
two other arguments raised by the State: (1) that the subject constitutional
provision does not encompass health insurance benefits and (2) if it
does encompass health insurance benefits, the constitutional provision
only requires that premiums paid on behalf of retirees not be diminished.
Duncan v. Retired Public Employees of Alaska, Inc., Case No. S-10377
(Alaska, June 13, 2003).
6. BALTIMORE
FACES POLICE EXODUS:
Nearly one-fifth of the Baltimore Police Department may retire after
completing three-year participation in the Deferred Retirement Option
Plan. The Baltimore DROP, which provides that accounts earn interest
at 8¼% per annum, has an interesting provision: the balance
can be “folded” into the pension payment to increase the
size of regular retirement checks. (Maybe we missed something, but
isn’t the main purpose of a DROP to provide a lump sum in addition
to regular payments?) Although Baltimore firefighters also have a DROP,
they do not seem to be as eager as police officers to take advantage
of the program. Pension benefits are calculated on the average of the
highest eighteen months. In the last three years, police received record
raises, meaning that their pensions are approaching the highest average
salaries upon which their pensions will be calculated. In contrast,
firefighters did not receive raises and are not seeing the same increase
in average annual compensation.
7.
RUSSELL RECONSTITUTES:
According to plansponsor.com, Russell has completed the annual reconstitution
of its twenty-one domestic stock indexes. The Russell 1000, 2000 and 3000 suffered
an 11% decline in market capitalization. The last reaches from General Electric
($287 Billion) to Verso Technologies, Inc. ($117 Million). The largest stock
in the Russell 3000 decreased 7% from last year and 40% from the year before!
The median capitalization -- the mid-point not the average -- came down from
$700 Million last year to $622 Million. Total market capitalization of the broad
index stands at more than $10 Trillion. Complete lists can be found at http://www.russell.com/us/indexes/membership/default.asp.
8.
ATLANTA OFFICIALS WIDEN PENSION EXAMINATION:
After two arrests in a pension fund theft case, Atlanta officials will examine
hundreds of pension accounts to see whether benefits were improperly paid in
the names of dead retirees. Police and fire pension board members recently received
a report showing that 218 of the 1300 accounts reviewed had received $676,000.00
in questionable payments. Nineteen pensioners were sent at least ten checks after
they died, and a dozen received over $10,000.00 each. One account received twenty-one
checks after the retiree’s death, a total of $51,000.00. In June, a former
city pension board employee and a postal service worker were charged with stealing
$68,000.00 by diverting money to a fraudulent account in the name of a dead retiree.
Atlanta’s police, fire and general employee pension boards administer $1
Billion, distributing $6 Million a month in benefits. The total cost of administration
is $1.2 Million, including a 12-person staff. This item comes from a WSBTV.com
report. |
