Update October 31, 2008

Benefits

4 Unit Benefits Report                                         October 31, 2008

 

  • The fund closed on October 28th at 8.74 billion. All of the principal investment advisors dealing with our investment program and our actuaries from Buck Consultants talked to the board about the status of our Pension Fund and the Health Care Stabilization Fund. They offered their opinions about the current and future economic conditions. There was lively and informative discussion. They told us that as an example Texas Teachers retirement lost 29 Billion. We are down 4 Billion. The importance of electing qualified board members and the benefit of appointing people with financial backgrounds was quite evident during these discussions. This is no time for politics as usual.

 

  • Some of the highlights from the discussion are;

1.      The DROP program remains cost neutral.

2.      The Health Care Stabilization Fund is projected to 2032

3.      30 year funding is still at infinity.

4.      Medicare B eligibility will increase.

 

  • Bill Deighton inquired about the vacant Governor Appointed board seat and the two other appointed board seats. There is no provision in our code to extend terms and he was told it will probably be 2009 before the appointments are made. The ORSC was sent a letter asking for assistance.

 

  • HB 628 was introduced on October 28th. It contains the provision to allow the OP&F Trustees the ability to cap the Medicare B reimbursement to OP&F members enrolled in Medicare B. We will oppose this provision in the bill.

 

  • There will be a Blue Light Ceremony at about 7pm on November 7th at the OP&F Park next to 140 E Town St. in Columbus. All are welcome to attend. This is the light display for the Holidays honoring our fallen members.

 

  • The OP&F Staff met with Columbus City Personnel Staff and the FOP Attorney to discuss Columbus Police Compensatory Time cash outs. The Fund has never considered cash outs as pensionable salary.

 

  • Board member Bill Deighton inquired about an IRS rule prohibiting anyone retiring before age 55. It has been extended to 2011. At last count, 30 agencies are protesting this rule. This may become a serious problem for all active public employees.

 

  • Some Drop members may be impacted by IRS 415 rules and the OP&F is monitoring the threshold.

 

  • The “In Service” distribution provision of the Pension Protection Act is not an issue with DROP members because no payments are initiated until such time as a member has terminated employment and has met the pay-out provisions.

 

  • Two members receiving disability retirement have decided not to resign from newly prohibited positions and will appeal termination of disability benefits or convert to service retirements.

 

  • Annual open enrollment meetings continue to have low turn out. The members attending expressed concern about rate increases and any coverage changes for 2009.

 

  • Board member Bill Deighton expressed his displeasure with the discovery that 35 members aging in (turning 65) during February 2008, did not receive health care packets from AARP that were due February 1st. Some other issues Mr. Deighton discussed were:

1.      Members bedridden and not able to process paperwork

2.      Sending enrollment packets to deceased members.

3.      Procedures not covered by Medicare.

4.      Buy up figures for the member’s spouse not being included in ACP materials.

5.      No explanation of the 30% discount program affidavit in the ACP materials.

United Healthcare will be contacted to answer questions about these issues.

 

·                                            About 500 OP&F members are in the missing Medical Mutual files and need to   be notified of credit monitoring provisions for them.

 

·                                            The board voted on rule changes to ;

1.      742-3-05 Disability benefits procedure.

2.      742-05-01 Definition of service credit.

3.      742-2-01 Board of trustee election rules

4.      742-9-16 Federal Tax compliance rules

Those rules will be submitted to JCAR for approval.

 

 

 

 

 

 

 

 

 

 

 

 

 

2009 HEALTH CARE PREMIUM CHARTS

 

                                Non-Medicare Eligible                     Non-AARP Eligible                         

                                  Premium Rates                               Premium Rates                                   

PRE 7/86

2008

2009

CHANGE

2008

2009

CHANGE

BEN REC

$152.26

$158.74

$6.48

$49.34

$51.44

$2.10

SPOUSE

$ 201.59

$210.17

$8.58

$83.18

$86.73

$3.55

CHILD

$105.36

$109.85

$4.49

$83.18

$86.73

$3.55

 

 

 

 

 

 

 

POST 7/86

 

 

 

 

 

 

BEN REC

$152.26

$158.74

$6.48

$49.34

$51.44

$2.10

SPOUSE

$302.38

$315.25

$12.88

$124.78

$130.10

$5.31

CHILD

$158.04

$164.77

$6.73

$124.78

$130.10

$5.31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prescription

Premium Rates

PRE 7/86

2008

2009

CHANGE

BEN REC

     $56.61

$62.95

$6.34

SPOUSE

$106.66

$118.61

$11.95

CHILD

$31.70

$35.25

$3.55

 

 

 

 

POST 7/86

 

 

 

BEN REC

$56.61

$62.95

$6.35

SPOUSE

$159.98

$177.91

$17.93

CHILD

$47.55

$52.88

$5.33

 

 

 

 

 

 

 

 

 

               Dental Plan                                                                    Vision Plan

 

2008

2009

 

 

Vision Rates

Benefit Recipient

$23.21

$24.95

 

 

$5.48

Benefit Recipient & Spouse

$43.78

$47.06

 

 

$10.29

Benefit Recipient , Spouse & child

$76.21

$81.93

 

 

$15.63

 

 

2009 Health Care Discount Guidelines

Size of Family Unit

HHS Poverty Income

OP&F Discount Income Level

1

$10,400

$20,800

2

$14,000

$28,000

3

$17,600

$35,200

4

$21,200

$42,400

 

BENEFIT RECIPIENT 2009 AARP RATES PLAN L ONLY

 

OHIO RESIDENT LESS THAN 3 YEARS SINCE MEDICARE EFECTIVE DATE            

 

PREMIUM

OP&F SUBSIDY 75%

 YOU PAY

PRESCRIPTION

PREMIUM

TOTAL

PLAN L

$87.23

$65.42

$21.81

$ 62.95

$84.76

PLAN B

 

$65.42

 

$ 62.95

 

PLAN F

 

$65.42

 

$ 62.95

 

 

OHIO RESIDENT MORE THAN 3 YEARS BUT LESS THAN 6 SINCE MEDICARE EFECTIVE DATE

 

PREMIUM

OP&F SUBSIDY 75%

 YOU PAY

PRESCRIPTION

PREMIUM

TOTAL

PLAN L

$119.50

$89.62

$29.88

$62.95

$92.83

PLAN B

 

$89.62

 

$62.95

 

PLAN F

 

$89.62

 

$62.95

 

 

OHIO RESIDENT MORE THAN 6YEARS SINCE MEDICARE EFECTIVE DATE

 

PREMIUM

OP&F SUBSIDY 75%

 YOU PAY

PRESCRIPTION

PREMIUM

TOTAL

PLAN L

$131.45

$98.59

$32.86

$62.95

$95.81

PLAN B

 

$98.59

 

$62.95

 

PLAN F

 

$98.59

 

$62.95

 

 

SPOUSE AARP RATES

 

OHIO RESIDENT LESS THAN 3 YEARS SINCE MEDICARE EFECTIVE DATE     RETIRED ON OR BEFORE JULY 24, 1986

 

PREMIUM

OP&F SUBSIDY 50%

YOU PAY

PRESCRIPTION

PREMIUM

TOTAL

PLAN L

$87.23

$43.61