July 2013

EAST MEETS WEST

To Renew WEP/GPO Efforts

SEPTEMBER 2013 VOICE: Chances are US Senators Mark Begich and Lisa Murkowski of Alaska are not household names to most Massachusetts public retirees. Nor is Alaska often mentioned within the group of seven primary non-Social Security states most impacted by the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO).

GIC OUT-OF-POCKET COSTS DROP 3.8%

SEPTEMBER 2013 VOICE: In its second annual report on out-of-pocket costs (OPC), the state’s Group Insurance Commission (GIC) has found that the non-premium costs borne by retirees and employees actually dropped 3.8% between FY11-12.

The $77 million savings lowered the average OPC to $1,030 per enrollee. OPC includes copayments and deductibles paid when accessing health insurance benefits. It does not include insurance premiums and the cost of over the counter drugs that are not covered by insurance.

LOCAL SYSTEMS INCREASING PENSIONS FOR CERTAIN SURVIVORS

Boards Adopting Laws Sponsored By Association

SEPTEMBER 2013 VOICE: One of the guiding principles of this Association has always been to improve the pension and insurance benefits for surviving spouses,” states Ralph White. “And, when we are successful in enacting legislation toward that end, it must be adopted locally in order to take effect.

ASSOCIATION BILLS ADVANCE

H59 Retiree Insurance Reform Eyed For Fall

SEPTEMBER 2013 VOICE: The Joint Committee on Public Service has favorably released a key bill of particular importance to public retirees.

Under the direction of Co-Chairmen, Senator Will Brownsberger and Rep. Aaron Michlewitz, the Committee unanimously advanced legislation aimed at correcting Option B & C pensions for pre-July 2004 retirees (H2354). Also, among the bills heard by Public Service, is our legislation which increases basic state life insurance benefits from $5,000 to $10,000 (H2288).

STATE-BY-STATE WEP/GPO IMPACT GROWS

Massachusetts Retirees Not Alone

JULY 2013 VOICE: At times, Association members, affected by the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), may feel that they are alone in the fight to repeal both dreaded laws.

COMMITTEE FOCUSES ON KEY ASSOCIATION INITIATIVES

COLA, Option C & Life Insurance Get Early Hearing

JULY 2013 VOICE: The Joint Committee on Public Service kicked-off its 2013 schedule with a public hearing that focused on thirty-seven bills earmarked for early action. Each are bills that received a favorable report from the Committee during the last legislative session or are issues deemed of pressing nature by the House and Senate Leadership.

A FOLLOW UP: FOR-PROFIT HOSPITALS

JULY 2013 VOICE: In our May Voice, we opened the door for discussion on the concept of for-profit hospitals in Massachusetts. Specifically, we referred to the Steward Health Care System, which surprisingly now owns eleven hospitals in our strongly unionized, socially sensitive state.