Please note that the summaries of news items posted on this page do not necessarily represent the official positions of CSU-ERFA or its affiliates.  Links contained within the summaries may take you to the original news sources.  CSU-ERFA is not responsible for the content of linked articles and cannot guarantee the accuracy or completeness of those articles.

August 2010

Don't play too much golf.  Two rounds a day are plenty.  ~Harry Vardon

The September 2010 issue of our newsletter, the CSU-ERFA Reporter, is now available online. _______________________ CSU-ERFA Executive Committee November 2010 Ballot Recommendations The CSU-ERFA Executive Committee (EC) met in July 2010 for an extensive discussion of the propositions on the November 2010 ballot.  The committee took positions on three of the 10 propositions currently on the ballot: Prop. 25 will change the requirement for passing a budget in the state legislature from 2/3rds to a majority. The EC feels that this proposition is so important to the future welfare of the state and its citizens that it recommends that members vote YES on Prop. 25. Prop. 20 will bring congressional districts under the jurisdiction of the commission now being formed to redistrict the State Assembly and Senate after the 2010 Census.  EC recommendation: vote YES. Prop. 27 if passed would eliminate the same commission referred to in Prop. 20 and bring all redistricting back to the legislature.  EC recommendation: vote NO. _______________________

July 2010

Q. How many retirees does it take to change a light bulb? A. Only one, but it might take him or her two or three days. ~Author unknown.

The California Department of Public Health recently announced that whooping cough (Pertussis) has reached epidemic levels throughout the state.  CDPH is recommending expanded immunization against this disease, which can be deadly for infants and small children and debilitating for older adults. People over 64 who have not had a Pertussis booster shot within the last 10 years should contact their medical provider to be immunized.  This is especially important for those of you who come in contact with infants and small children. Those over 65 also should make sure that their immunization against pneumonia is current.  And, anyone over 65 who previously has had chicken pox should ask their physician about the shingles vaccine. _______________________

June 2010

Youth would be an ideal state if it came a little later in life.  ~Herbert Asquith

The Sacramento Bee reported on June 16, 2010 that health insurance premiums for CalPERS members will rise an average of 9.1% for the coming year.  However premiums for Medicare members (most retirees) will rise by only 3.4%.  The actual change in out-of-pocket cost, if any, to members and retirees will depend on the outcome of collective bargaining.  This will determine the employer contributions to the premiums. _______________________

May 2010

Retire from work, but not from life.  ~M.K. Soni

CSU retirees who participated in the Faculty Early Retirement Program (FERP) for any of the academic years from 2003-04 through 2006-07 may be entitled to a monetary remedy if they were assigned a disproportionate FERP workload under an arbitration award that resulted from a grievance filed by the California Faculty Association. An example of a disproportionate FERP workload would be a 15 WTU teaching load for a FERP semester assigned to a faculty member who had been assigned a 12 WTU teaching load on a semester campus before entering FERP.  Determining whether or not a person who was in the Faculty Early Retirement Program during the academic years can be confusing. More information about determining eligibility for a monetary remedy under the arbitration award can be found on the CFA website grievance page.  Use the links on the upper right of the page under the title "Important Documents About Recent FERP Award" to obtain more information, or contact CFA directly. _______________________ The CSU-ERFA Grant Awards Committee would like to remind all members that grants are available to CSU-ERFA members who are pursuing scholarly research, scholarly projects and publications.  Grants up to $2000 will be available for the year 2010-2011. Applications and guidelines will be available September 30th, 2010. The application due date is January 2nd, 2011. All interested parties are encouraged to apply. For further information call the CSU- ERFA Office, (818) 718-7996 _______________________

The Los Angeles Times reported today (May 6, 2010) that California state officials are suing two former CalPERS pension fund officials, Federico Buenrostro Jr. and Alfred R. Villalobos, for their role in a scheme to garner investments from CalPERS for certain investment firms.  The suit alleges that Buenrostro, who was CalPERS chief executive from 2002 to 2008, accepted valuable gifts from Villalobos while still on the CalPERS board. In addition, the suit alleges that two other CalPERS officials Charles Valdes and Leon Shahanian also were involved in the scheme.  The civil suit seeks to recover some $95 million from Villalobos and Buenrostro. _______________________

April 2010

O, blest retirement! friend to life's decline - How blest is he who crowns, in shades like these, A youth of labor with an age of ease! ~Oliver Goldsmith

CalPERS has issued a press release rebutting a recent Stanford Institute for Economic Policy Research report that claimed that California's major public employee retirements systems are underfunded by nearly $500 billion.  According to the CalPERS analysis of the SIEPR report, which was written by two graduate students as part of a class project, the report is based on a number of flawed assumptions. Perhaps the most egregious error committed by the authors of the study was the assumption that only a risk-free rate of return should be assumed in computing the unfunded liabilities of a pension plan. The authors of the study assumed a "risk-free" discount rate of 4.14%, a number typical of intermediate-term U.S. Treasury bonds, while CalPERS according to the press release "has earned an average annual investment return of 7.91 percent – which includes the past two years of investment declines.  This performance exceeds the pension fund’s actuarial rate of return assumption of 7.75 percent needed to pay long-term benefits." Public pension funds generally hold a wide variety of investments including "no-risk" and low-risk fixed income investments as well as higher risk investments in stocks, real estate, venture capital funds, and hedge funds.  The "no-risk" and low-risk investments provide income needed in the short term to pay current annuitants, while the higher risk investments are intended to produce capital gains that will ensure that there are sufficient funds to pay future retirees. _______________________

March 2010

One of the problems of retirement is that it gives you more time to read about the problems of retirement. ~Author unknown.

The Sacramento Bee reported today (3/31/10) that the Fair Political Practices Commission is proposing a $3,000 fine for CalPERS board member Priya Mathur for failing to file a conflict-of-interest statement for 2007 on time.  The Commission also is considering fining Mathur for failing to file her 2008 conflict-of-interest statement on time. Mathur was fined $6,000 in 2006 for failing to file three forms on time, according to the story. _______________________ CSU-ERFA members who are enrolled in Medicare will see the effects of the new healthcare reform law starting in 2011.  Basic Medicare benefits will not change; however, beginning in 2011 screenings for colon, prostate, and breast cancer will be free.  Likewise, beginning in 2011 an annual wellness visit (annual physical exam) will be free. Beginning in 2012 the federal government will begin to reduce the subsidies to Medicare Advantage plans.  Currently the reimbursement rate to these plans averages about 14% more than traditional Medicare.  Part of the additional reimbursement has been used by some of these plans to provide extra benefits such as eye exams (refractions), free or reduced-cost eyeglasses, and gym memberships.  However, much of the extra reimbursement has gone to higher profits for the companies offering the Medicare Advantage plans.  As a result there may be some reductions in these extra benefits for Medicare Advantage plan members. Medicare Advantage plans that meet certain quality standards will receive bonuses that will partly compensate for decreases in reimbursement rates. Since CSU-ERFA members who are enrolled in Medicare do not directly purchase Part D drug coverage, they generally will not be affected by provisions in the new law that will eliminate the "donut hole" in Part D coverage over the next 10 years. One major change that will affect members who have dependents enrolled in CalPERS basic health plans is that their children enrolled in these plans will be able to remain in them until age 26. Another major change, which was supported by CSU-ERFA, removes annual and lifetime caps on reimbursements.  This change will affect certain CalPERS basic and supplement to Medicare plans, which previously included lifetime caps on reimbursement. (The above information was obtained from a variety of sources that are believed to be reliable; however, if you have specific questions about how the new law will affect your health care benefits, call CalPERS at 1-888-225-7377.) _______________________ The CSU-ERFA Grant Awards Committee has announced that it is awarding research grants totaling $4000.  Grantees include Elizabeth Kenneday-Corathers for a project on Mono Lake, John T. Palmer for a project on the history of Sonoma State University, Barnabas Hughes for a project entitled "Using the Physical to Exemplify the Spiritual," Zena Pearlstone for a project entitled "Pueblo Artistic Routes: The Commodification of Hopi Katsinas and Zuni Fetishes," and Charles Lambert for a project entitled "Activation of Meiosis in Ascidian Oocytes." _______________________

According to a press release that we have received from CalPERS, CalPERS Long-Term Care Members Can Expect Premium Increase Options This Month Members of CalPERS Long-Term Care Program will soon receive letters in the mail giving them a number of options to consider regarding the recently announced increase in monthly premium costs. The letters – slated to begin arriving in mailboxes March 15– will outline options for members ranging from maintaining their plan or opting to reduce benefits and benefit periods for savings.  The options are customized based on the member’s current plan and when they first enrolled into the program.  The options may include: Accepting the full rate increase Decreasing daily benefit levels Reducing the benefit period to 6 years Reducing the benefit period to 3 years “We recognize that this premium increase comes during economic hard times for many of our members and their families,” said Anne Stausboll, Chief Executive Officer for CalPERS. “At the same time, we have an obligation to our members using and needing this coverage to maintain the program’s stability. “We encourage all our program participants to carefully review all options before making a decision.  While a lifetime benefit coverage policy may have been appropriate for many members when they first enrolled, a shorter term of coverage may better serve them today and can help reduce the cost of the premium,” she added. Premiums were increased last year to help shore up a 33 percent deficit in the program, caused in part by a decline in investment returns and greater-than-expected plan usage. The increases go into effect July 1, 2010 and will range from 15 to 22 percent depending on the members plan, and may be lower if members select a cost savings option.  Members who select plans that continue to maintain lifetime benefits with inflation protection will see an additional 5 percent increase per year. Members who have questions about the premium increase, or want to discuss their options with program staff can contact a special toll-free number at  1-888-877-4934, Monday through Friday between 8:00 a.m. and 5:00 p.m. Pacific Time. _______________________ The New York Times reported on March 15, 2010 that "three aggressive treatment strategies doctors had expected would prevent heart attacks among people with Type 2 diabetes and some who are the verge of developing it have proved to be ineffective or even harmful." People with Type 2 diabetes, former known as adult onset diabetes, are at significant risk for heart disease, and conventional treatments that include avoiding cigarettes, and using medications to lower bad cholesterol and to reduce blood pressure below 140 (systolic) still leave patients at relatively high risk. For that reason, physicians attempted to reduce the risk further by taking aggressive steps to increase good cholesterol, lowering blood pressure to the normal range (below 120 systolic), and lowering triglycerides.  However, the results of three studies now show that these steps provide no further improvement in heart disease risk, and in some cases actually are harmful. _______________________ In Memoriam:  We note with regret the passing of CSU-ERFA members Nancy Amour, Margaret Hansen, and Thomas O'Brien (Chico); Carol Inberg (East Bay); Robert L. Simpson (Fullerton); William B. Devall and  Ronald R. Young (Humboldt); Anna M. Pamley and Harry E. Stiver Jr. (Long Beach); Pauline Schatz (Los Angeles); Richard Anthony Arthur, Joseph Ford, and James E. Roberts (Northridge); Julius J. Mossuto, Ben Siegel, and Rudolph Zrimc (Pomona); Charles Washburn (Sacramento); Harry D. Broadbent, D.G. Faulkner Jr., Carolyn A. Granrud, Kenneth K. Jones, David S. Milne, and Gennaro "Jerry" Santangelo (San Diego); Stephen A. Hunter and Jack T. Tomlinson (San Francisco); Ada M. Ames, Geoffrey C. Bowman, Jose Cerrudo, Edith C. Johnson, Robert A. Loewer, Franklin R. Muirhead, and Richard Smith (San Jose); Wyman Hicks, Walter E. Kuhlman, and Warren E. Olson (Sonoma). _______________________ An article published in the March 4, 2010 issue of the New York Times raises concerns about the safety of "metal-on-metal" hip replacements.  According to the article "some of the nation’s leading orthopedic surgeons have reduced or stopped use of a popular category of artificial hips amid concerns that the devices are causing severe tissue and bone damage in some patients, often requiring replacement surgery within a year or two." _______________________

February 2010

A committee is a cul-de-sac down which ideas are lured and then quietly strangled.  -- Barnett Cocks

Important Information for Members Enrolled in the CalPERS Long-Term Care Program: (We have received the following update from Health Benefits Committee Chair David Humphers (Sacramento).) The 165,000 enrollees in the California Public Employees Retirement System (PERS), Long Term Care (LTC) program have decisions to make  before the significant premium hike takes place. The PERS board of directors approved LTC premium hikes of 15 percent and 22 percent at the December, 2009, meeting.  The decision was based  on the 2009 actuary's report that the current assets and current premiums are not adequate to fund future benefits. The premium rate increase is effective July 1, 2010.   At the same time the PERS board approved a continuing annual premium rate increase of 5 percent beginning July 1, 2011, only for the policies with lifetime coverage and inflation protection (LTC 1).  PERS staff reported that these new premium rates, along with a new investment strategy, are necessary to ensure the sustainability of the Long Term Care program. Long Term Care rate increase timeline PERS board approved the rate increase 12/16/2009. Rate increase letters mailed to enrollees 3/7 to 3/19/2010. Rate increase responses received from enrollees 3/8 to 4/30/2010. LTC administrator prepares bills 40 days before due date 7/1/2010. The LTC administrator will inform each LTC enrollee by land-mail of the effect of the rate increase on each policy.  The plan administrator will begin the mailing the second week in March. Each enrollee will be informed of options available for modifying the policy coverage.  Enrollees will have until April 30, to inform the LTC administrator of their decisions. The December, 2009, PERS board decision to approve the rate hike followed more than a year of “Closed Sessions” where the PERS board and staff discussed the future of the Long Term Care program.  The Long Term Care Advisory Committee, an important source of information for enrollees, was disbanded two or three years ago.  The lack of transparency regarding the future of the LTC program and the year of “closed sessions” fed rumors that PERS might sell the LTC program.  The only certainty is that current regulations prohibit the sale of an insurance program that is financially unsustainable. A large group of concerned PERS members lined up to speak at the December, 2009, public session on LTC. The Retired Public Employees Association health benefits director reminded the board that LTC enrollees were “initially promised no premium increases ever ... but this premium hike will be the third rate increase.” The California State Employees Association (CSEA) representative proposed an LTC-CSEA partnership in an effort to help save the program. A month has passed and the CSEA has received no response to the offer. All of the speakers at the December meeting were concerned about the big premium increase and almost all asked the board to revive the LTC Advisory Committee because it serves as an important source of information for LTC enrollees. Information about long term care is posted on the CSU-ERFA website. Click on the link:   http://csuerfa.org/services.html _______________________ The San Jose Mercury-News reported on February 13, 2009 that California's revenue exceeded projections by $1.2 billion for the month of January.  Revenue collections have exceeded projections in three of the past four months.  This may be an indication that California is slowly recovering from the most severe economic recession since the Great Depression. _______________________

Unfortunately, the 2010 Census will attract many scam artists intent on identity theft. The Better Business Bureau offers the following tips on the 2010 Census that will help you avoid being scammed by these unscrupulous operators: • If a U.S. Census worker knocks on your door, they will have a badge, a handheld device, a Census Bureau canvas bag and a confidentiality notice. Ask to see their identification and their badge before answering their questions.  However, you should never invite anyone you don’t know into your home. • Census workers are currently only knocking on doors to verify address information. Do not give your Social Security number, credit card or banking information to anyone, even if they claim they need it for the U.S. Census.  While the Census Bureau might ask for basic financial information, such as a salary range, it will not ask for Social Security, bank account or credit card numbers nor will employees solicit donations. • Eventually, Census workers may contact you by telephone, mail or in person at home.  However, they will not contact you by e-mail, so be on the look out for e-mail scams impersonating the Census. Never click on a link or open any attachments in an e-mail that are supposedly from the U.S. Census Bureau. Click on the link near the top of this item to see the full article from the BBB. _______________________