AKREA NEWSLETTER
SPRING/SUMMER 2010
STOP THE GAG LAW
By Ann Secrest, AARP
An
initiative that will appear on the August 24 primary election ballot could have
a major impact on how Alaskans participate in the state’s political process if it
passes and silence the voice of principals, teachers, and support staff all
over the state.
The ballot initiative, sponsored by a group
promoting “clean and open government,” claims to reduce corruption in state and
local government. But a further examination of the wording of the initiative
reveals that if the initiative passes, Alaskans would be effectively “gagged”
from either making a contribution to political candidates or participating in
the political process.
Labeled as “anti-corruption,” the wording of the
initiative is vague and misleading. On first read, it sounds like something we
could all support. But peel back the layers and you find a New York-based
activist using Alaska to carry on an anti-government assault.
Measure 1
is backed by Howard (“Howie”) Rich, a New York
multi-millionaire who has targeted states with weak initiative laws. Rich
recruits local supporters to submit initiative petitions and hires professional
signature gatherers. There’s nothing “grassroots” about Measure 1. Rich has set
up “front” organizations in Nevada, Colorado, Montana, South Dakota and most
recently Alaska.
Even though this
initiative is on the ballot it does not mean it passes standards of
constitutionality. In Alaska, getting a measure on the ballot simply requires
collecting a minimum number of signatures.
Lobbyists or persons wanting to speak with elected
officials would be unable to unless specifically invited to do so. Even school
board members would be prohibited from speaking with elected officials, unless
invited to speak. If an individual or business holds a government contract
worth $500 or more, they would be prohibited from contributing to local or
state candidates. The restriction is extended to the person’s family, including
parents, aunts, uncles, stepchildren, nieces, nephews, in-laws and even distant
relatives.
Board members of nonprofit organizations who
receive city or state funds would be prohibited from advocating for their
nonprofit and making contributions to candidates for office. Volunteer leadership and officers of any nonprofit
that receive funding would be impacted, along with the families of those
board members.
Measure 1
outlaws municipal-funded lobbying. Local governments communicate their needs to
the Legislature in Juneau. This will have a major impact on Alaska’s rural
communities. Rural communities would have no voice in Juneau. Communities could
not hire employees or contract with a lobbyist to advocate for their needs in
Juneau. City officials wouldn’t be able to testify on anything unless they were
specifically invited to do so.
Measure 1
also silences our public employees, including firefighters, police, nurses, and
teachers, who would not be allowed to talk about their jobs unless
summoned by an elected body. This attack on speech endangers us all as they
will not be free to talk about the impacts of cuts to our schools and
departments.
AARP Alaska strongly opposes the measure as it
impedes freedom of speech and intimates individuals from actively participating
in the political process. We encourage members of AK-REA to VOTE NO on
Measure 1 August 24. Encourage your friends and neighbors to vote on August
24 – and VOTE NO on MEASURE 1.
Ann Secrest in the AARP
Alaska State Office has gathered Op Eds from
newspaper editors in Colorado, Montana and South Dakota; states in which
similar initiatives were introduced in 2006 and 2008. Contact Ann if you would
like to read what the editors of prominent newspapers in those states
published. Ann can be reached at asecrest@aarp.org. And for more information,
visit http://www.stopthegaglaw.com/
.
VOTE NO ON MEASURE 1 August 24: Don’t let your voice be
silenced
On May 17, AK-REA
leadership voted unanimously to oppose Measure 1 and joined the coalition of
organizations and individuals who also oppose.
BARB’S BYLINE
The weather in Fairbanks is unbelievable, near the
eighties for several days. Hope
everyone else is having as nice weather as we are.
The Legislative year was very
disappointing. We worked very hard in
Juneau. Had some very staunch supporters
but had one person who was opposed to the bill to return TRS and PERS to a
defined benefit plan. His reason is the
unfunded liability, (it is going to be there and get bigger every year until it
is changed back to the DB plan). He agreed,
although reluctantly,
that the DB plan is much cheaper to fund than the DC plan but
still would not budge and allow a hearing.
Maybe we can get some new faces in Juneau that will help with the
battle.
There was good news in that
our health benefits would not be taxed.
The bill to increase Medicare payments to Doctor is expected to pass
next week. That should help with the
Doctor shortage for us older retirees.
One of
the most important issues facing AKREA is finding new officers for next year. We need to have volunteers to take up the
reins and win the fight for our benefits and those of the new retirees that are
coming. I for one am getting too old. We
need new and younger blood. It takes
some work but not a great deal. Most
times it is very rewarding and yes sometimes a little frustrating. The president and vice president usually get
a paid trip to some major city in the Lower Forty Eight. AARP/NRTA has a training
for the officers which is always excellent with highly qualified instructors
and presenters. Often times, committee
chairs get paid trips to help them in their duties. IF
YOU ARE INTERESTED IN BECOMING AN OFFICER PLEASE CONTACT ME OR ANY OF THE OTHER
OFFICERS. bmrich@gci.net
or 907-479-2509 thank
you
Another item is that we are giving
a $2,000 scholarship to the University of Alaska to an education major. Any student of the University is able to get
the information from their financial office and apply. The dead line is July 15. Applications are to be submitted electronically. The reason for this is we want to have a
statewide committee that will determine the recipient. If you would like to be on this committee let
me know. We will send all applications
to you by email. You rate the candidates
and we will then pick the winner. The
board felt we should involve all campuses and have committee members from all
parts of the state select the winner. We
would love to have you on the committee.
Again let me know if you would like to be on the committee. bmrich@gci.net
PLEASE ENCOURAGE ANY NEW
RETIREES TO JOIN AKREA. Have a
wonderful summer. That’s all till next
fall.
Barbara Rich, President AKREA
FAIRBANKS
NEWS
Seven graduating seniors in the Fairbanks North Star Borough School District will be awarded scholarships from the Fairbanks Retired Teachers’ Association. These individuals will be honored guests at our No School Today Brunch on August 18th.
Panika Ellis of North Pole High
School and Kyle Monahan of Lathrop High School will each receive a $1,000
scholarship funded by the association’s monthly penny drive and used book sale.
Lynette Francis from Effie Kokrine
Charter School and Megan Hinzman from West Valley
High School will each receive a $2,500 scholarship funded by former West Valley
and Lathrop High School mathematics teacher, Donald R. DeWitt.
Our association also will award three scholarships
from the estate of Lois E. Meier, a former teacher and counselor in Fairbanks. Zoe Kurth of West
Valley, Anne Goering of West Valley, and Francine St. Laurent of North Pole
High School will each receive a $1,000 scholarship.
Selecting the recipients from the 50 applications were: Patti Shechter, Chairman, Marian Woods, Myra Helmer,
Bev Byington, Linda Pearson and Claudia Hall.
In Memoriam
AKREA Life members
Kathleen Barnes, in Arkansas
Nyal Worsham, in Arizona
, Dee Heim in Anchorage, Dan Crevensten in
Washington, Dr. Merritt C. Olson, Anchorage
Also Naomi Everitt and Carol Dahl both in
Anchorage, Ken Wicks in Hawaii, Leda Milan in Palm Springs, CA.., Claudia
Douglas, long time teacher advocate and Fairbanks teacher and Shirley Craft,
Fairbanks principal.
SOME TRS
ANSWERS
AKREA President recently visited the TRS offices
with some questions about our Long Term Care insurance. These are the written
answers she received from Barbara Rush:
Why were purchasers of the LTC
Platinum and Gold not told that their inflation-proofing would stop at
age 85?
In the
earliest material I can find from the consultants assisting the State in
setting up the inflation adjusted plans in 1997, the age 85 limitation was
clearly stated. Language with the same limitation has always been
included in the brochures describing the Long Term Care inflation-indexed
plans. A copy can be found at this link: http://doa.alaska.gov/drb/ghlb/retiree/pdf/sgpbw.pdf. If
members have further questions about the possible effects of this provision,
please have them call our Juneau office at
1-800-821-2251
What can be done, what changes can be implemented for
members of the LTC who live in areas where a “certified” health
professional/facility is not available? Members who want to provide care
at home for a family member/spouse are unable to do so unless they live in an
urban area where “certified” help is available.
I share
your concern that some members live in areas with no providers qualified to
receive payments from the plan(s). The key plan features governing when
claims may be paid and the qualifications of providers are the IRS tax deferral
regulations governing the tax-qualified status of payments and benefits.
While there are some few instances when plan requirements can be waived – at
least temporarily – due to provider shortages, any change to the plan design to
expand the kinds of providers who are qualified to receive plan payments for
serving our members would likely result in the loss of tax qualified status for
the plans as a whole.
When
members are in the process of retiring, we counsel the member and their family
to consider options for health coverage and long term care – including products
available on the open market. While governed by the same IRS guidelines
for long term care, other products vary in terms of deductible periods,
inflation adjustments and in some cases the kind of provider that must be
involved in service delivery. Care delivered by family members is very
common but may not be a universal exclusion.
Also, if
plan provisions change, it has an effect on the monthly premiums. Since
the plans’ monthly premiums are based on historic claims payment patterns and
expected future claims – any changes that lead to higher and/or more frequent
claims payments would cause an increase in premiums for all plan
participants. It is our understanding that retirees on fixed incomes value
very stable premium rates over almost all other plan features.
If a member
who purchases long term care coverage experiences limitations due to the
availability of local providers, they or a family member should call the
Division and ask what alternatives or appeal rights are available. Also,
some members have decided to relocate to areas where needed services are more
common.
The
Division has asked for a complete financial audit of the long term care plans
in order to help us answer questions about the adequacy of current
reserves. Once that information is in, we will undertake further reviews
of coverage and provider availability. Julie Wilson,
or new Benefits Manager just returned from an inspection visit with the
contractor that processes long term care claims. Her report to me later this
week may reveal other areas of improvement we might accomplish for our
members. Both results will be reported in a future retiree newsletter
Health Care Reform is on everyone’s
minds. The following pages are
information provided to AKREA by Senator Begich and
by our Independent Financial/Insurance consultant. It is offered with no
opinions and hopefully with no bias.
Now that
comprehensive health-care reform has been signed into law, how will it affect
you? While some portions of the law become effective in 2010, other provisions
are phased in over time. Nevertheless, it is almost certain that at least some
of these reforms will have an effect on you and your family.
If you already have health
insurance
First, by 2014, most U.S. citizens and legal
residents will be required to have qualifying health insurance or face a
possible fine. But even if you already have insurance, some reform provisions
may affect you. For instance, beginning this year, you generally can keep your
adult child on your coverage up to age 26. And, your insurer will no longer be
able to rescind your coverage if you get sick, impose lifetime coverage limits,
rescind your coverage except for fraud, or impose coverage exclusions for your
child due to pre-existing health conditions. In 2014, you can no longer be
charged higher rates based on your health status or gender, and insurers cannot
extend waiting periods beyond 90 days. Starting next year, reimbursements from
health flexible spending accounts (health FSAs) and health reimbursement
accounts (HRAs) for over-the-counter drugs will be restricted, and tax-free
reimbursements from health savings accounts (HSAs) and
Archer MSAs for over-the-counter drugs will not be
allowed, while the tax on HSAs and Archer MSAs increases for distributions not
used for qualified medical expenses. In addition, beginning in 2013,
contributions to health FSAs will be limited to $2,500 per year. Finally, the
income threshold for itemizing medical expense deductions will increase from
7.5% to 10% in 2013.
If you have Medicare
Medicare beneficiaries will also see some changes
to their coverage. You'll be covered for most preventive and wellness care expenses
without co-payments beginning in 2011. Medicare Part D participants who find
themselves paying all of the cost of their prescriptions after reaching a
minimum threshold, a situation referred to as the "donut hole," will
gradually see their
out-of-pocket expenses decrease,
beginning in 2010 with the payment of a $250 rebate, until 2020, when the donut
hole is completely filled. If you're a Medicare Advantage beneficiary, however,
beginning in 2011, you may see some of the extra benefits offered by these
plans dropped as government payments to these plans are restructured and, in
some cases, reduced. And, in 2013, if you're an individual with annual earnings
equal to or greater than $200,000,
or a married couple with joint annual earnings of $250,000 or more, your Medicare payroll tax will increase by 0.9%,
from 1.45% to 2.35%. Also, for high income taxpayers, a Medicare tax of 3.8%
will be applied to some types of investment income, such as rent, capital
gains, and annuity payments, but not distributions from qualified retirement
plans, such as IRAs and 401(k) accounts
Beneficiary
information about the $250 Part D Rebate
This information does not pertain
directly to AKREA members who have the TRS insurance, but it is good to know to
help parents or friends who might be eligible for the rebate
The
Centers for Medicare & Medicaid Services (CMS) posted at www.medicare.gov (under "What's New") "Closing the
Prescription Drug Coverage Gap" brochure that describes details about the
tax-free, one-time check for $250 for people who enter the Part D donut hole
and are not eligible for Medicare Extra Help. The first checks are being
mailed June 10 and checks will be mailed monthly after people have entered the
coverage gap.
To help fight fraud and protect beneficiaries
from potential scams, Medicare is reminding seniors there are no forms to fill
out to receive this benefit. Medicare will automatically send a check.
The envelope will have the US Department of Health and Human Services symbol on
it and will say "Medicare Part D." Beneficiaries don’t need to
provide any personal information like Medicare, Social Security, or bank
account numbers to get the rebate check. They are reminded not to give
any personal information to anyone who calls about the $250 rebate check.
People with Medicare should call
1-800-MEDICARE (1-800-633-4227) to report any suspected fraud or scams or with
any questions.
The
following information is from the office of U.S. Sen. Mark Begich regarding how the
benefits of teachers and other public employees will be impacted by the
recently enacted health insurance reform legislation:
The new reform law does not tax your benefits.
Under the new law,
employers will have to report the value of employee's health plans on W-2
forms, but you will not be taxed on these benefits. Right now, the true cost of
health care is largely hidden and the new W-2 listing will help Americans see
the connection between wages and health care costs. The figure disclosed will not
include an employee's claims and all privacy regulations will remain in place.
This system, which the State of Alaska already uses on its paychecks, will
allow easy verification of coverage.
Beginning in 2018, the new law levies an excise tax of 40 percent on insurance
companies, not individuals, for any
health coverage plan above the threshold of $10,200 for single coverage and
$27,500 for family coverage. The totals combine employer and employee
contributions. It is important to note the tax applies only to dollars above
the threshold - not the cost of the entire plan. This threshold will be
increased if growth in the cost of group coverage before enactment is higher
than expected. An additional threshold amount of $1,650 for self-only and $3,450
for family coverage is available for retired individuals age 55 and older and
for plans covering employees engaged in high-risk professions such as police
and firefighters.
For more information you can go to my website at www.begich.senate.gov
or www.healthreform.gov
Hello All!
Here is a summary of what the new
health care system may look like. No comments….. just
the info!
HOW MANY COVERED: 32 million uninsured. Major
coverage expansion begins in 2014. When fully phased in, 94 percent of eligible
non-elderly Americans would have coverage, compared with 83 percent today.
COST: $938 billion over 10 years, according to the
Congressional Budget Office.
INSURANCE MANDATE: Almost everyone is required to
be insured or else pay a fine, which takes effect in 2014. There is an
exemption for low-income people.
INSURANCE MARKET REFORMS: Starting this year,
insurers would be forbidden from placing lifetime dollar limits on policies,
from denying coverage to children because of pre-existing conditions, and from
canceling policies because someone gets sick. Parents would be able to keep
older kids on their coverage up to age 26. A new high-risk pool would offer
coverage to uninsured people with medical problems until 2014, when the
coverage expansion goes into high gear. Major consumer safeguards would also
take effect in 2014. Insurers would be prohibited from denying coverage to
people with medical problems or charging them more. Insurers could not charge
women more.
MEDICAID: Expands the federal-state Medicaid
insurance program for the poor to cover people with incomes up to 133 percent
of the federal poverty level, $29,327 a year for a family of four. Childless
adults would be covered for the first time, starting in 2014. The federal
government would pay 100 percent of costs for covering newly eligible
individuals through 2016.
If the Senate approves a package of changes this week,
a special deal that would have given Nebraska 100 percent federal financing for
newly eligible Medicaid recipients in perpetuity would be eliminated. A
different, one-time deal negotiated by Democratic Sen. Mary Landrieu for her
state, Louisiana, worth as much as $300 million, remains.
TAXES: To make up for the lost revenue, the bill
applies an increased Medicare payroll tax to the investment income and to the
wages of individuals making more than $200,000, or married couples above
$250,000. The tax on investment income would be 3.8 percent. If the Senate
follows through, it would impose a 40 percent tax on high-cost insurance plans
above the threshold of $10,200 for individuals and $27,500 for families. The
tax would go into effect in 2018.
PRESCRIPTION DRUGS: Gradually closes the
"doughnut hole" coverage gap in the Medicare
prescription drug benefit that seniors fall into once they have spent $2,830.
Seniors who hit the gap this year will receive a $250 rebate. Beginning in
2011, seniors in the gap receive a discount on brand name drugs, initially 50
percent off. When the gap is completely eliminated in 2020, seniors will still
be responsible for 25 percent of the cost of their medications until Medicare's
catastrophic coverage kicks in.
EMPLOYER RESPONSIBILITY: Employers are hit with a
fee if the government subsidizes their workers' coverage. The
$2,000-per-employee fee would be assessed on the company's entire work force,
minus an allowance. Companies with 50 or fewer workers are exempt from the requirement.
SUBSIDIES: The aid is available on a sliding scale
for households making up to four times the federal poverty level, $88,200 for a
family of four. Premiums for a family of four making $44,000 would be capped at
around 6 percent of income.
HOW YOU CHOOSE YOUR
HEALTH INSURANCE: Small businesses, the self-employed and the uninsured could
pick a plan offered through new state-based purchasing pools called exchanges,
opening for business in 2014. The exchanges would offer the same kind of
purchasing power that employees of big companies benefit from. People working
for medium-to-large firms would not see major changes. But if they lose their
jobs or strike out on their own, they may be eligible for subsidized coverage
through the exchange.
GOVERNMENT-RUN PLAN: No government-run insurance
plan. People purchasing coverage through the new insurance exchanges would have
the option of signing up for national plans overseen by the federal office that
manages the health plans available to members of Congress. Those plans would be
private, but one would have to be nonprofit.
ABORTION: The bill tries to maintain a strict
separation between taxpayer dollars and private premiums that would pay for
abortion coverage. No health plan would be required to offer coverage for
abortion. In plans that do cover abortion, policyholders would have to pay for
it separately, and that money would have to be kept in a separate account from
taxpayer money. States could ban abortion coverage in plans offered through the
exchange. Exceptions would be made for cases of rape, incest and danger to the
life of the mother.
GOP HEALTH CARE SUMMIT IDEAS: Following a
bipartisan health care summit last month, Obama announced he was open to
incorporating several Republican ideas into his legislation. But two of the
principle ones -- hiring investigators to pose as patients and search for fraud
at hospitals and increasing spending for medical malpractice reform initiatives
-- did not make it into the legislation. The legislation incorporates only one,
an increase in payments to primary care physicians under Medicaid, an idea
mentioned by Sen. Charles Grassley, R-Iowa.
Former Educator Named AARP
President
AARP welcomed Lee Hammond, a former Maryland
Retired Teachers Association State President, as its new president. He
will serve as AARP’s lead volunteer until 2012.
As AARP
president, Hammond will articulate the positions and views of AARP; provide
leadership; and foster creativity and enthusiasm in AARP’s volunteers, members,
and staff. Additionally, he will represent AARP and AARP/NRTA members at key
national and international meetings and events.
Hammond,
of Salisbury, Md., was elected to the Board of Directors in 2002. He has
chaired the Nominating Committee, the Audit and Finance Committee, the
Membership Committee and the National Policy Council. Hammond began his 30-year
career in education in Wicomico County, Md., as a classroom teacher. He then
served as a school administrator for 25 years, developing administrative and
managerial skills while working with diverse student and professional
populations.
Before
joining the AARP board, Hammond served as AARP Maryland State President and as
president of the Maryland Retired Teachers Association. He is a member of the
Maryland Interagency Committee on Aging Services and vice chair of the board of
Directors of MAC, Inc., a non-profit Area Agency on
Aging serving four Maryland counties. He is an ordained Elder at Wicomico
Presbyterian Church and previously served on the U.S. Attorney’s Health Care
Fraud Task Force and on the boards of the Maryland Rural Health Association,
the Maryland Commission on Aging and the Holly Foundation, a non-profit
organization serving the needs of developmentally-challenged persons.
The
all-volunteer, 22-member board of directors is the governing body of AARP and
approves all policies, programs, activities and services for AARP’s millions of
members. Some of the major responsibilities of AARP board members are to
approve the budget and monitor the finances of the Association; determine the
Association’s state and national legislative policy agenda; and set policy that
guides the Association’s strategic plans and activities.
CALLING ALL AUTHORS!
Enter To Win a Chance to
Have Your Book Published!
Are you - or a family member - an aspiring author?
Then don’t miss this opportunity to break into the publishing world and have
your fiction or non-fiction manuscripts reviewed by a dedicated team of
publishing professionals.
The National Association of Elementary School
Principals Foundation, in cooperation with Charlesbridge
Publishing (Boston), has launched the 2010 Children’s Book of the Year Contest
for aspiring children’s book authors. This is your chance to get your work
endorsed by the NAESP Foundation and published by a nationally known publisher.
Entries can be submitted until February 15, 2011. For entry details
and fees, please visit www.naesp.org/Children_Book_Award.aspx.
Can you disinherit your Relatives?
From FIANACIAL BRIEFS, Winter 2009-10
This item is for information only and not
intended to be a legal opinion.
Typically, a spouse is legally entitled to
part of your estate. If you reside in a community property state, each spouse
automatically owns half of all earnings during the marriage. In all other
states, to protect spouses from disinheritance, the surviving spouse has a
right to claim one-fourth to one-third of the estate, depending on state law.
If a will provides less for the spouse, the spouse can elect to inherit under
state law. The only way to ensure that your spouse receives less is to have a
signed prenuptial agreement.
Once
you are divorced, most states automatically revoke any gifts made in a will to
a former spouse. However, you should still make a new will after getting
divorced so your former spouse is not named in it.
Typically,
children have no right to an inheritance from their parents. However, if you
die without a will, state law will typically distribute part of your estate to
your children. Most states will protect against unintended disinheritance. If
you don’t update your will after a child is born, state law will assume you
still want your child to inherit part of your estate. To disinherit a child,
don’t just exclude his/her name from your will. Explicitly state that you are
disinheriting the child so there is no question regarding your intent.
Keep
in mind, however, that numerous assets will pass outside your estate. Assets
owned jointly with rights of survivorship will go directly to the joint owner
after your death. Life insurance policies and individual retirement accounts
will go directly to the named beneficiary. Assets transferred to trusts will go
the trust beneficiaries. Thus, depending on how you structure your estate, it
is possible to ensure that the majority of your assets are distributed the way
you want them to be distributed. But to attain that outcome, you will typically
need to carefully plan your estate.
RECEIVE THE AKREA
NEWSLETTER BY E-MAIL!!
This is the same newsletter sans pictures for
easier e-mailing. It arrives in the body of the e-mail, but can be sent as a
WORD attachment by request.
If you have dropped off the e-mail list please
empty your mail box regularly and be sure AKEDUCATORS is on your list of
recipients. We get several back each time that are over quota OR are designated
SPAM by your server.
If you happen to receive BOTH the e-mail
version and the hard copy, please let us know which you prefer.
AKREA membership year is from January to December. Annual dues are $15. A membership renewal/application follows or can be reprinted from our
web site at AKREA.ORG Dues received
after September 15 will be
attributed to the next year. If your expiration date is ’07 or before this is
the last newsletter you will receive unless we receive our renewal. If you do
not have your membership card, e-mail akeducators@yahoo.com and ask for your
expiration date.
MEMBERSHIP IN THE ALASKA
RETIRED EDUCATORS ASSOCIATION
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Make Check Payable to ALASKA RETIRED EDUCATORS
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mail to: Virginia
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99611