November 13, 2007 Meeting
Room 310 State Capitol, Hartford, CT
Minutes
Meeting called to order at 10:44 A.M. by Compton Rees, Treasurer, in the absence of Pres.Welchman and V.P. Killeen
It was estimated that there were 30 members in attendance.
Treasurer’s Report was presented: Assets Expenditures
Savings Account $455.43 Buffet Luncheon 11/13/07
Petty Cash $52.50 $300.00
Checking Account $1183.95
Total Assets $1691.88
Less Expenses -$ 300.00
Current Balance $1391.88
46 members have paid their 2007-2008 dues.
Unless a volunteer Editor can be found for the Newsletter, we will have to hire someone to do the job.Our current income situation (dues) will not be adequate to do that on an ongoing basis.
1. Program Topic: Retirement Issues, an informational session
Mort Tenzer introduced the panelists: 1) Steve Greatorex, Business Manager, CSU Chapter of
AAUP; Treasurer of SEBAC; and member State Employees Retirement Commission;
2) Ed Marth, Executive Director of UConn Chapter of AAUP; and Tom Woodruff,
Director of Retirement and Benefits Services Division, Office of the State Comptroller. Each made a presentation, commented on the other presentations, and answered questions from the audience.
T. Woodruff: 1) The current contract between the State of CT and SEBAC runs to 2017.
2) State statutes require seeking bid proposals on health care contracts from all vendors
every 5 years. No vendor will guarantee prices for 5 years, therefore health care
contract bids are sought every 2 or 3 years to get the best prices.
3) There is no provision to increase state funding for contracts, so costs must be contained
by identifying vendors that will provide similar coverage for a lower price and/or
offering alternative product choices (e.g.HMO’s) that are more restrictive in network
providers.
4) SEBAC and Office of Policy & Management agreed to continue offering the Enhanced
Dental Plan (currently offers more services, but fewer providers). 11 vendors are being
considered in hopes of enlarging the network available to those who elect this expanded
coverage.
5) Prescription co-pay: out-of-area retirees currently have different requirements. Previous
vendor (Anthem) did not have the capability to standardize this. Current vendor has the
capability. State is having discussions on how this could be done. (Marth: this could be a
good thing, but SEBAC is reluctant to participate for fear that approval of the necessary
changes could lead to demands by the State to agree on other contract changes.)
6) State Legislature is funding State Employees Retirement System fund as required by
statute, unlike the problem that occurred with the Teachers Retirement fund.
7) Legal case (Longely vs. State) claims that some Assistant Attorneys General incorrectly
calculated how longevity pay and pay for unused vacation pay credits were factored
into the final retirement benefits calculations for some individuals. Also, what is the
time period allowable for challenges to those final calculations? Does it begin when the
employee ceases work or when the final calculation report is sent to the retiree?
Currently under appeal.
8) There was a backlog of approximately 5700 retiree benefit calculations when
Mr. Woodruff was hired 3 years ago. A very complicated calculation (unique to CT)
was required to make final determinations, and it was all done “by hand”. 150 people
working for a full year would have been required to catch up. That year the staff
number was cut almost by half. With new computers now in place and help in
programming, the back-log should soon disappear.
E. Marth: Discussed the changed landscape of the AAUP. It is no longer only a professional
organization. There has been a shift of membership into a large number of collective
bargaining chapters. The IRS rules for unions are different than those for “charitable
/educational” organizations. Also, the Board members are elected on a geographical
basis (regions), not on a “one person, one vote” representational basis. This is not
compatible with labor regulations. The national AAUP is discussing a proposed
restructuring.
Steve Greatorex: passed out a document he compiled showing the proposed restructuring
of the AAUP into 3 units: 1) AAUP Foundation, a charitable 501 (c) 3 entity to
raise & grow funds to advance public service activities; 2) AAUP-CBC, the
labor union 501 (c) entity; and 3) AAUP, the professional association 501 (c) 6
entity, to which all AAUP members, whether in or out of collective bargaining
would be members. Present AAUP staff would become the staff of #3. A
detailed comparison of the purposes, taxation, activities and governance of the
3 proposed entities was presented. Affect on dues is unknown. The AAUP
Council will vote on the restructuring plan Nov. 16 – 17, 2007. It would
require a vote of approval at the 2008 Annual Meeting.
Other handouts: 1) Supplemental Benefits Program for Employees and Retirees from the
Office of the State Comptroller. 2) Benefits of AAUP membership
2. May Giger: a) made available a written report on the website development; a more detailed
report will be available online. b) Compton Rees has been recruited to write blogs for the
website. Other “bloggers” are welcome. c) Irmgard Rees has been asked to work on the
design for an Emeritus Assembly logo. Suggestions can be sent to
IRMComp@SBCglobal.net
3. The Executive Committee and other interested individuals will meet in January to make plans
for the spring programs and deal with other issues. Pres. Welchman will contact the
members to establish a date, time and place for the meeting.
Respectfully submitted,
Richard P. Wurst, Secretary, pro tempore Minutes approved at 4/15/08 meeting