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SAN FRANCISCO, CA

President's Report

January 2015

PRESIDENT: JERRY HALL, 229 De Montfort Ave, SF, CA 94112; 412-0488
GREETINGS AND CONGRATULATIONS TO ALL CHAPTER MEMBERS WITH BIRTHDAYS AND/OR ANNIVERSARIES IN JANUARY. HAPPY NEW YEAR to all and WELCOME to incoming Officers and Committee Chairs/Members for 2015. Thank you to all who served and supported Chapter 65 in 2014.
The Office of Personnel Management is now beginning the implementation of the law passed by Congress and signed by the President that approved the new self-plus-one option for the Federal Health Benefit Program (FEHBP). OPM issued the proposed rule change in the federal register and is seeking comment on its plan for the new coverage option: https://www.federalregister.gov/articles/2014/12/03/2014-28429/federal-employees-health-benefits-program-self-plus-one-enrollment-type
"The self plus one enrollment type will be available starting in the 2015 Open Season for the 2016 plan year," OPM wrote in the proposed rule. "A self plus one enrollment will cover the enrollee and one eligible family member, designated by the enrollee."  Once the rule is finalized, the FEHBP will offer three types of coverage: self; self-plus-one; and self-plus-family. OPM says under its current policies, self-plus-one enrollees should expect to have lower premiums, while those with more than one dependent should expect to pay more for insurance.  "A large percentage of annuitants who currently have self and family coverage would likely benefit from a self-plus-one premium tier, resulting in mandatory savings to the government because the government share of annuitant premiums will decrease," the proposed rule stated. "As enrollees shift from self and family enrollments, OPM will closely monitor the effect on premiums for those remaining in that enrollment type. If premiums for active employees with more than one covered family member rise, there will be increasing costs to the government (assuming appropriation of necessary funds)."  OPM had been hesitant to move to a self-plus-one option because it might disrupt risk-sharing inherent in the plan.
FEHBP carriers are planning to implement the self-plus-one enrollment category, starting in 2016. How it will affect the many participants in FEHBP will not be known until after the program is implemented and probably not fully until the second or third year of the plan, especially how it will affect premiums.
Most folks are unaware that congress "snuck" in the Omnibus funding bill signed on December 15th, with no real discussion or debate, a provision allowing trustees of multiemployer pension plans to cut benefits in order to remain solvent. It was drafted behind closed doors with no input from retirees and their representatives and that bill will allow trustees to cut the already earned benefits of pensions. The federal private pension law, which was enacted 40 years ago, gives the strongest protections to retirees and their families. Once you have earned the pension, it cannot be cut back by the arbitrary actions of employers or trustees. Congress turned back the clock on the law and wiped out 40 years of protections. They seem to want to "balance the books" on the backs of the most vulnerable, retirees. Currently the only time changes can occur to pensions is once the plan completely runs out of money, but with this new law trustees will now be cutting retiree benefits by as much as two-thirds today to save plans that may run out of funds 20 years from now. I believe this should be a concern to all retirees and not be placed into to an Omnibus bill that keeps the federal government running. Unfortunately, what happens first to private sector retirees seems to have a way of affecting all retirees.

Jerry Hall
President, Chapter 65

fritz1313@hotmail.com

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