Saturday, June 21, 2008

RH Jones: We are in trouble without our HC provided for in HB 315

From RH Jones, June 21, 2008
Subject: The Democratic Convention & political delay on HB 315
To all:
Our beloved HB 315 (A bill to provide a steady stream of funding for health care (HC) for retired teachers) seems to be on the back burner due to Ohio politicians being on summer break – like they need one – and they seem to be waiting to see what the coming Democratic Convention is going to tell them about direction of the federal political climate. Therefore, on a personal note, I have taken the time to paint my house and do other maintenance work around it.
As you know, time seems to fly so fast when we get older. However, even little jobs seem to take longer. Please be informed that I will be back trying to do what I can to save our Ohio STRS health care (HC) just as soon as practical. In the meantime, please keep the pressure on for HB 315. I hope that my 45 letters, in support of HB 315 that I have written already, well help. While I am at recess, fill in for me. Please believe me, we are in trouble without our HC provided for in HB 315.
Yours truly,
RHJones, an OH STRS retired teacher member

Friday, June 20, 2008

**STRS FLASHBACK -- 2 YEARS AGO TODAY*** -- STRS Board member Jack Chapman pleads?

From John Curry, June 20, 2008
From John Curry, June 20, 2006
Subject: CORE ALERT - 6/20/06 Another STRS Board member charged with ethics violations
Another former state teacher pension system board member to plead guilty
Canton Repository, June 20, 2006
By PAUL E. KOSTYU
COPLEY COLUMBUS BUREAU CHIEF
COLUMBUS - Another former board member of the state’s teacher pension system ensnared in a broad and ongoing ethics investigation will plead guilty today on three charges of violating state law.
Jack H. Chapman of Reynoldsburg, who resigned from the board in June 2004, agreed to plead guilty to three counts of conflict of interest for receiving things of value from 1998 to 2003. They included multiple tickets to Cleveland Indians and Cleveland Cavaliers games ($884), a golf outing in Washington state ($169) and a ticket to the Broadway show “Hairspray” ($225).
The charges, all misdemeanors, are similar to the three that former Canton City Schools teacher Hazel Sidaway was found guilty of in April. Chapman is expected to receive a similar sentence including community service and payment of fines, investigation costs and restitution. He also has promised to cooperate with investigators on related cases.
At least four other board members, Joseph I. Endry of Westerville, Michael N. Billirakis of Pickerington, Eugene E. Norris of Columbus and Deborah Scott of Cincinnati, attended the Broadway show with Chapman and Sidaway. Billirakis has told investigators who his attorney is.
Prosecutors are expected to file more cases against current and former board members as well as staff who served with Sidaway and Chapman and who took advantage not only of the Broadway tickets but other gifts from Frank Russell Corp. and Salomon Smith Barney, now Citicorp. Both companies provided investment advice to the board and have cooperated with investigators.
The two-year statute of limitations for Chapman was to expire Wednesday. Prosecutors contacted Chapman and his Columbus attorney, H. Ritchey Hollenbaugh, last week saying they would be willing to negotiate a plea deal. Hollenbaugh said an agreement was reached Monday. Prosecutors were prepared to file more than three charges had a deal not been reached.
“There won’t be any other charges against him,” Hollenbaugh said.
Hollenbaugh was the attorney for Sidaway as well as Herbert L. Dyer, the former executive director of the State Teachers Retirement System. Dyer was convicted in September 2005 in a plea deal of one count of violating state ethics laws for not paying for golf — the same outing Chapman took.
David E. Freel, executive director of the Ohio Ethics Commission, said the total value of gifts Chapman received was “a couple thousand.”
Paul Nick, the commission’s chief counsel, said the continuing investigation doesn’t appear to reveal “a high level of corruption” at STRS, but was “recklessness” by board members who “compromised their positions.”
Freel said Chapman’s case is not connected to the ongoing investigation into the Bureau of Workers’ Compensation, though other officials have said there are links between that agency’s troubled investments and those at the state’s pension systems.
The ethics commission investigation of STRS began after media reports, including many by Copley Ohio Newspapers, raised questions about travel, bonuses, artwork and other items.
Reach Copley Columbus Bureau Chief Paul E. Kostyu at (614) 222-8901 or e-mail: paul.kostyu@cantonrep.com

Abbreviated June Board News from STRS (more to come on 6/23/08)

From STRS, June 20, 2008
Subject: [News] Abbreviated June Board News
PLEASE NOTE: The following is an abbreviated version of the June Board News. A more expanded version with additional information about actions taken by the State Teachers Retirement Board at its June 2008 meeting will be e-mailed on Monday, June 23, 2008.

RETIREMENT BOARD APPROVES PREMIUMS FOR 2009 IN PREPARATION FOR HEALTH CARE OPEN-ENROLLMENT PERIOD At its June 2008 meeting, the State Teachers Retirement Board approved the premiums for calendar year 2009 for all of the health care plans offered through the STRS Ohio Health Care Program. In discussing how premiums are set for each plan, staff reiterated that the same factors that affect health care costs nationwide also affect STRS Ohio's members. Medical and drug trend rates continue to outpace the CPI (Consumer Price Index). Contributing to these high trend rates is the continuing introduction of new medical technologies and high-cost services, as well as new prescription drugs.
Another factor considered in calculating STRS Ohio's premiums is the claims experience for each of the health care plans' risk pools (e.g., non-Medicare benefit recipients enrolled in Medical Mutual and non-Medicare spouses enrolled in Medical Mutual). The 2009 premiums also reflect the board's continuation of its contribution strategy of providing a premium subsidy of 2.5% per year of service, up to a 75% maximum, for eligible benefit recipients, and requiring spouses and dependents to pay 100% of applicable rates.
About 93% of the individuals participating in the STRS Ohio Health Care Program are enrolled in the Medical Mutual and Aetna plans. For a 30-year retiree who is not receiving Medicare and is enrolled in the Medical Mutual Plus Plan, the 2009 monthly premium will increase to $207 from $181. A 30-year retiree who is not receiving Medicare and is enrolled in Aetna's Plus Plan will see an increase in the monthly premium to $294 from $235. A 30-year retiree with Medicare will see a $4 increase in the monthly premium, to $73 from $69, for both the Medical Mutual and Aetna Plus Plans.
The monthly premium for a spouse (non-Medicare) in the Medical Mutual Plus Plan will increase to $760 from $669; spouses (non-Medicare) in the Aetna Plus Plan will see an increase to $838 from $717 per month in 2009. The monthly premium for spouses who are receiving Medicare will increase to $336 from $302 for both the Medical Mutual and Aetna Plus Plans.
Non-Medicare retirees who are enrolled in either Medical Mutual's or Aetna's Basic Plan will see no increase in their monthly premium for 2009, regardless of their years of service. Retirees with 30 years of service who are enrolled in these same Basic Plans, but who are also receiving Medicare, will also see their monthly premium remain at $40. Slight graduated increases in the monthly premiums for the Basic Plans will affect those with less service credit.
Spouse (non-Medicare) premiums will increase to $457 from $362 per month for individuals enrolled in the Medical Mutual Basic Plan. Spouses (non-Medicare) enrolled in Aetna's Basic Plan will see an increase to $505 from $388 per month. The monthly premium for spouses who are receiving Medicare will increase to $175 from $146 for both the Medical Mutual and Aetna Basic Plans.
Premium increases for 30-year retirees in the fully insured plans (AultCare, Kaiser Permanente and Paramount) will be less than $15 a month.
All current benefit recipients enrolled in the STRS Ohio Health Care Program will receive additional information about 2009 premiums in a special newsletter that will be mailed in July. In addition, complete lists of premiums for all health care plans will be posted on STRS Ohio's Web site (www.strsoh.org) by July 31, 2008. At that time, premium information is also available by calling STRS Ohio's Member Services Center toll-free at 1-888-227-7877. In late October, all current enrollees will also receive personalized information that outlines their 2009 plan options and monthly premiums. Open enrollment will run from Nov. 1 through Nov. 25, 2008.

Lloyd Knudsen's speech to STRS Board, June 19, 2008 (synopsis)

Good afternoon. My name is Lloyd Knudsen. I was a 30-year teacher in the Woodridge Schools of Summit County. I apologize for not having a written copy of my speech. I did not plan on speaking today but after hearing STRS hired a new ED [Executive Director] I wanted to make a few brief comments about Dr. Damon Asbury and John Lazares. I was going to ask Damon to get out his stopwatch just for old times' sake but I guess we can do without that.
Dr. Asbury, thank you for your service to STRS and your leadership. As Mr. Leibensperger said in his speech, you succeeded Herb Dyer at a very difficult time at STRS. You were faced with many challenges. You had to work with a new and questioning STRS Board; you had to put up with a few intrusive legislators and you also had to deal with some often-critical retirees. But I think you've met all those challenges with class and professionalism. As one of those often-critical retirees (who served on the CORE Committee that met monthly with you) I applaud your efforts for being willing to communicate directly with us. You brought your staff to meetings to answer our questions. We didn't always agree with your answers, but we appreciated your doing it.
Finally, I hope the new ED will continue to communicate with us through this type of committee. I think it's very important and valuable. Thank you, Damon.
Also, I didn't know if I would be at the August STRS meeting so I wanted to say a few things about John Lazares. John, I appreciate the many roles you have played on this Board. You have been the peacemaker, often saying "why can't we all just get along?" You have provided comedic relief by joking, "that's the first unanimous 10-0 vote we've ever had." But most importantly, you have facilitated discussion on this Board. Prior to your and Dr. Leone's being on this Board, members would quietly agree on most STRS matters without so much as a question. I have personally witnessed a great deal of thoughtful discussion (sometimes often-heated discussion) on this Board over the last two years. Silence from Board members doesn't represent teachers. [Actual quote: "Silence doesn't represent anybody."] Active discussion does. John, you have forced this Board (with your second to various motions) to discuss issues and question its actions. Active and retired teachers thank you for that.
I challenge Mr. Myers (who will take your place) and in fact all Board members to take your place in facilitating discussion. Don't let issues die in silence again. I'm reminded of that phrase about not agreeing with your opinion but believing you have the right to your opinion. Vote your conscience. Even if the vote is 10-1. Let people know what you think.
Thank you.

USA Today: Bankruptcy rising among seniors

From June Hughes, June 17, 2008
Bankruptcy rising among seniors
USA TODAY, June 16, 2008
Swamped by debt and rising medical bills, elderly Americans have been seeking bankruptcy-court protection at sharply faster rates than other adults, a study to be released Tuesday indicates. From 1991 to 2007, the rate of personal bankruptcy filings among those ages 65 or older jumped by 150%, according to AARP, which will release the new research from the Consumer Bankruptcy Project. The most startling rise occurred among those ages 75 to 84, whose rate soared 433%.
The study did not address the specific reasons behind the trend. But experts say medical bills have played a major role in the debt that has forced many elderly Americans into bankruptcy proceedings.
"Health care is a big issue for the elderly," says George Gaberlavage, director of consumer and state affairs at the AARP Public Policy Institute. "And out-of-pocket expenses have been going up."
As a result, Gaberlavage says he thinks health care is the single biggest cause of the rise in filings.
During the same 1991-2007 period, bankruptcy filings by younger Americans actually declined.
The 2007 statistics are based on a national sample that included 2,435 responses from bankruptcy filers. It's the first in several Consumer Bankruptcy Project reports supported by AARP, which will later study and spell out the individual factors behind the increase.
The number of personal bankruptcy filings for all age groups declined after a stricter new law took effect in 2005. Still, when the filings from 2007 were compared with those from 1991, those of older Americans, as a percentage of all filings, have surged.
"In past generations, older Americans were more financially secure," says Elizabeth Warren, a Harvard Law professor and co-author of the Consumer Bankruptcy Project study. "Now, instead of going into retirement loaded with assets, Americans are hitting their retirement years loaded with debt."
In previous decades, Warren notes, Social Security helped lift millions of older Americans into a solidly middle-class life. But now, with the rising cost of food, drugs and housing, Social Security often doesn't go far enough.
For the elderly, bankruptcy is a particular concern because it's typically harder for seniors, usually lacking in well-paying job opportunities, to climb back out of it.
"They have so little time to start over and build up savings, and they have few or no job opportunities," says Susan Reinhard, director of the AARP Public Policy Institute. "The connection between health and economic security is a big issue for older Americans."

RETIREES IN DEBT
Relative percentage change in bankruptcy filing rates from 1991-2007, by age category
........Age; % change
........18-24: -64.1%
........25-34: -46.1%
........35-44: -30.1%
........45-54: -24.7%
........55-64: 40%
........65-74: 125%
........75-84: 433.3%
........Total filings: -29.2%
Source: 2007 Consumer Bankruptcy Project

Shirlee Zerkel: More on 2009 HC premiums

From Shirlee Zerkel, June 20, 2008
Subject: More on STRS health premiums for 2009

I would also like to mention that the 30 year service STRS retirees who have Medicare have a premium issue, too, if they insure their Medicare-covered spouse with a STRS supplemental.
For Medical Mutual that retiree and spouse will pay:
...Medical Mutual STRS Supplemental for spouse: $336
...Medicare Part B: about $100.
...Retiree STRS Premium: $73
...Retiree portion of Med. B: about $45.
...Total: $554.
I do not pay that for my spouse as I have him insured with a Medi-Gap supplemental policy at a $150. a month premium and it covers 100% of the costs that Medicare A and B do not cover.
Shirlee

A preview of some 2009 HC premium rates

From John Curry, June 19, 2008
Subject: Some 2009 STRS healthcare premium rates...hope you're sitting down!
Thanks to CORE's Liz Ebbing and Shirlee Zerkel's relating this information to me, we have some (a partial list) of STRS 2009 monthly healthcare premium rates for non-Medicare age retirees (30 or more service years). You'd best be seated before reading on....
Medical Mutual 80/20 "Plus" Plan Monthly Premium:
...Retiree $207
...Spouse $760
...Total = $967
- - - - - - - - - -
Aetna 80/20 "Plus" Plan Monthly Premium:
...Retiree $294
...Spouse $838
...Total = $1,132

From STRS: Info on 2009 HC premium rates

From STRS, June 20, 2008
Subject: [News] Abbreviated June Board News
PLEASE NOTE: The following is an abbreviated version of the June Board News. A more expanded version with additional information about actions taken by the State Teachers Retirement Board at its June 2008 meeting will be e-mailed on Monday, June 23, 2008.
RETIREMENT BOARD APPROVES PREMIUMS FOR 2009 IN PREPARATION FOR HEALTH CARE OPEN-ENROLLMENT PERIOD At its June 2008 meeting, the State Teachers Retirement Board approved the premiums for calendar year 2009 for all of the health care plans offered through the STRS Ohio Health Care Program. In discussing how premiums are set for each plan, staff reiterated that the same factors that affect health care costs nationwide also affect STRS Ohio's members. Medical and drug trend rates continue to outpace the CPI (Consumer Price Index). Contributing to these high trend rates is the continuing introduction of new medical technologies and high-cost services, as well as new prescription drugs.
Another factor considered in calculating STRS Ohio's premiums is the claims experience for each of the health care plans' risk pools (e.g., non-Medicare benefit recipients enrolled in Medical Mutual and non-Medicare spouses enrolled in Medical Mutual). The 2009 premiums also reflect the board's continuation of its contribution strategy of providing a premium subsidy of 2.5% per year of service, up to a 75% maximum, for eligible benefit recipients, and requiring spouses and dependents to pay 100% of applicable rates.
About 93% of the individuals participating in the STRS Ohio Health Care Program are enrolled in the Medical Mutual and Aetna plans. For a 30-year retiree who is not receiving Medicare and is enrolled in the Medical Mutual Plus Plan, the 2009 monthly premium will increase to $207 from $181. A 30-year retiree who is not receiving Medicare and is enrolled in Aetna's Plus Plan will see an increase in the monthly premium to $294 from $235. A 30-year retiree with Medicare will see a $4 increase in the monthly premium, to $73 from $69, for both the Medical Mutual and Aetna Plus Plans.
The monthly premium for a spouse (non-Medicare) in the Medical Mutual Plus Plan will increase to $760 from $669; spouses (non-Medicare) in the Aetna Plus Plan will see an increase to $838 from $717 per month in 2009. The monthly premium for spouses who are receiving Medicare will increase to $336 from $302 for both the Medical Mutual and Aetna Plus Plans.
Non-Medicare retirees who are enrolled in either Medical Mutual's or Aetna's Basic Plan will see no increase in their monthly premium for 2009, regardless of their years of service. Retirees with 30 years of service who are enrolled in these same Basic Plans, but who are also receiving Medicare, will also see their monthly premium remain at $40. Slight graduated increases in the monthly premiums for the Basic Plans will affect those with less service credit.
Spouse (non-Medicare) premiums will increase to $457 from $362 per month for individuals enrolled in the Medical Mutual Basic Plan. Spouses (non-Medicare) enrolled in Aetna's Basic Plan will see an increase to $505 from $338 per month. The monthly premium for spouses who are receiving Medicare will increase to $175 from $146 for both the Medical Mutual and Aetna Basic Plans.
Premium increases for 30-year retirees in the fully insured plans (AultCare, Kaiser Permanente and Paramount) will be less than $15 a month.
All current benefit recipients enrolled in the STRS Ohio Health Care Program will receive additional information about 2009 premiums in a special newsletter that will be mailed in July. In addition, complete lists of premiums for all health care plans will be posted on STRS Ohio's Web site (www.strsoh.org) by July 31, 2008. At that time, premium information is also available by calling STRS Ohio's Member Services Center toll-free at 1-888-227-7877. In late October, all current enrollees will also receive personalized information that outlines their 2009 plan options and monthly premiums. Open enrollment will run from Nov. 1 through Nov. 25, 2008.

Dennis Leone re: New executive director

From Dennis Leone, June 19, 2008
Subject: RE: [News] Retirement Board Selects Executive Director

Among other things, I like the fact that: (1) He has led both a teacher pension system AND a combined PERS/SERS pension system; (2) He has solid experience in health insurance issues; (3) He is a huge Defined Benefit supporter – in a state where the governor was the opposite; (4) His wife is an elementary Reading Recovery teacher – which means that decisions he makes will ultimately affect his wife; and (5) He served 8 years as an elected school board member – and even acknowledged in one interview that [he] realizes administrators sometimes tell their school boards only what they want them to hear. Rare 10-0 vote by the STRS Board on a big issue.


Dennis Leone

Thursday, June 19, 2008

STRS announces new executive director

From STRS, June 19, 2008
During its June 19, 2008, meeting, the State Teachers Retirement Board voted unanimously to name Michael (Mike) J. Nehf as the ninth executive director of the State Teachers Retirement System of Ohio (STRS Ohio). Nehf is currently the executive director of the Employees' Retirement System of Georgia (ERSGA), where he is responsible for the administration of 11 different benefit plans with total assets of $16 billion. Nehf will succeed Dr. Damon Asbury, who is retiring effective June 30, 2008.
Before joining ERSGA in January 2005, Nehf was the executive director of the Public School Teachers' Pension & Retirement Fund of Chicago for 10 years. He also served as an elected school board member for eight years in Illinois. Other past positions include serving as comptroller for the Municipal Employees' Annuity & Benefit Fund of Chicago, and accounting and finance positions primarily in the life and health insurance sectors.
In announcing the Retirement Board's decision, Jeffrey Chapman, board chair, noted, "Mike brings a wealth of public pension fund experience to STRS Ohio. He is knowledgeable about the challenges facing public retirement systems and he is committed to applying that knowledge to address the issues that are of most importance to our members - namely secure health care and continued pension solvency. His past experience working with public plans, including a teachers' fund, and his demonstrated commitment to defined benefit plans will serve us well.
"As we reflected on what we wanted in our next executive director, my board colleagues and I certainly wanted someone who would continue to maintain the trust and confidence of our members and the strengthened dialogue we have with the members of Ohio's General Assembly. Mike is that individual. He'll be a 'hands on' leader who knows how to build consensus on tough issues, whether he's working with members, legislators, the board or our STRS Ohio associates."
Nehf will take over the leadership of STRS Ohio on July 1. The Ohio Attorney General's Office assisted in developing his contract, which provides for a starting annual salary of $225,000. The three-year contract extends through June 30, 2011.
At ERSGA, Nehf and his staff of more than 100 individuals serve as an overall umbrella agency by administering separate defined benefit (public employees, legislators, judges, public school, military, life insurance); defined contribution (part-time employees); 401(k) and 457 deferred compensation; and state Social Security programs. About $900 million in benefits are paid annually.
Nehf is a certified public accountant (CPA). He received his bachelor's degree in accounting from Western Illinois University and his master of management degree from the J. L. Kellogg Graduate School of Management at Northwestern University. He and his wife, Kathy, have grown children who reside in the Chicago, Rochester, Minn., and Atlanta areas. His wife is a Reading Recovery teacher.
The Retirement Board was assisted in its search for an executive director by the Columbus-based firm, Hudepohl and Associates.

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June 2008 STRS Board Meeting Schedule

From STRS, June 11, 2008
PUBLIC MEETING NOTICE
The State Teachers Retirement Board and Committee meetings currently scheduled at the STRS Ohio offices, 275 East Broad Street, Columbus, Ohio 43215, are as follows:
Wednesday, June 18, 2008
.....2 p.m. Disability Review Panel (Executive Session)
.....4 p.m. Ad Hoc Committee for Retreat Review
.....6 p.m. Special Meeting of the State Teachers Retirement Board (The State Teachers Retirement Board will convene a special meeting for the purpose of discussing appointment, employment, compensation or other terms and conditions of employment of a public employee or official, and to handle any other general matters that may arise. An executive session is expected.)
Thursday, June 19, 2008
.....8:30 a.m. Special Health Care Committee Meeting
.....9:30 a.m. Retirement Board Meeting
Friday, June 20, 2008
.....9 a.m. Resumption of the Retirement Board Meeting

A Special Health Care Committee meeting will be held in the Sublett Room at 8:30 a.m. on Thursday, June 18. The Retirement Board meeting will follow at 9:30 a.m. The Board is expected to begin with a report from the Investment Department, followed by the Executive Director's Report (1 p.m.) and public participation. Reports from the Member Benefits Department regarding health care and the Finance Department are expected before recessing. On Friday, June 20, the Board is expected to receive a report from the Information Technology Services Department, discuss the STRS Ohio Travel and Expense Procedures and Guidelines for Associates, address routine matters and any other issues that require the Board's attention.

CORE meeting Thursday, June 19, 2008

From Dave Parshall, June 11, 2008
CORE REMINDER
The next CORE meeting is next Thursday the 19th of June at the STRS building in Columbus. We will meet at 11:30 am during the STRS board meeting lunch break. Our meeting is in the small room just off the STRS cafeteria. One topic on the agenda will be the consideration of an amendment to the CORE constitution to reinstate and set dues and yet allow for larger donations. If you have other items to put on the agenda please e-mail them to Dave Parshall at dparshall@insight.rr.com

Tuesday, June 17, 2008

Duane Tron re: Lindsey Williams lecture and Herbert Meyer essay 'What in the World is Going On? A Global Intelligence Briefing for CEOs'

From John Curry, June 17, 2008
Subject: Duane's input on the Williams video [The Energy Non-Crisis] re: Alaskan oil, etc.?
From Duane Tron, June 17, 2008
Subject: Long but very interesting
All,
This paper was forwarded to me by someone in the know, inside the loop of world events, and government It doesn't deal with hysteria and inaccuracies such as those presented by Lindsey Williams [The Energy Non-Crisis]. Mr. Williams is well intentioned and honest but somewhat lost in the midst of a much larger picture than he portrays. He got about half of his information correct but the grand conspiracy thing is way off base. He is correct about the oil reserves on the North Slope of Alaska (Anwar). Congress has debated the use of these reserves many times and efforts to extract and send this oil south have been blocked by environmental groups a dozen times. Every time Congress has brought expanding the use of nuclear power environmental groups have blocked legislation due to what they describe as safety and environmental concerns. The oil industry attempted to expand refining capabilities a dozen times during the past 35 years and environmental groups have successfully opposed expanding refining capabilities in the United States because they claim it will pollute the environment. BP and ARCO attempted to get Congress to allow them to build a second pipeline south. The environmental groups threw a fit and Congress shelved the request. Russia recently planted the Russian flag below the surface of the Arctic Ocean to claim it as belonging to them. Why? Some of the largest oil reserves in the world are found there and American oil knows this as does the President and Congress.
Mr. Williams claims a grand conspiracy of grandiose magnitude. For starters he's a sincere and honest man but uniformed on a multitude of issues. Such a conspiracy going back to 1900 and 70 would involve President's Johnson (D), Nixon (R), Carter (D), Reagan (R), Bush Sr. (R), Clinton (D), and Bush Jr. Folks, don't you think that these people would have brought this up at some point and especially Carter and Clinton? The idea that they fear for their lives is pure myth. The Secret Service understands, as do President's, that their lives are in danger everyday. This is why we provide intense 24/7 protection for them and their families. He is correct in the fact that Congress has been incompetent but made so by so many special interest groups vying for their positions on everything from elk to the spotted owl and global warming.
Mr. Williams is correct on his assessments of the IMF and Third World loans. He is incorrect on why we haven't tapped our own oil resources. The environmental groups pushed for legislation to stop offshore drilling due to what they describe as the dangers to the environment from possible spills. Congress is once again debating allowing the resumption of offshore drilling. A day late and a dollar short if I might say so.
Mr. Williams in his hour and fifteen minute presentation has it completely wrong on how many refineries we have up and running in the USA. He said we have reduced our refining capacity down to 149 refineries. Folks, we don't have anything close to 149 refineries in the United States. Look it up for yourselves. BP is one of the few oil companies that doesn't purchase Middle East oil and they have two operational refineries in Ohio and they had planned to close the Lima facility until the recent events that took place in oil production globally. Check out how many refineries are operating in this country. It isn't even close to the number Mr. Williams provided. The oil companies attempted to build several new refineries and once again their attempts have been blocked in Congress by the environmental groups, what I refer to as the "Left Coast Bug & Bunny Culture," that has evolved in this country and in some other developed countries. I might add soon to be formerly developed countries at the rate we're going! We need a balance on many issues and we haven't been getting balance because of their reckless and ignorant onslaught against all new development efforts to tap known oil sources, drill for more, to develop nuclear power, build new and modern refineries, and construct a new and larger pipeline to accommodate the flow of oil south.
He is correct in stating that Russia controls the world's largest known oil reserves. Kukos Oil has been tapping these oil sources in Siberia since the collapse of the Soviet Union. Russia presently has more billionaires than any country in the world due to their pioneering efforts in oil. This is also why Russia has tried to claim all known and unknown oil sources in the Arctic. He who controls oil, controls the world as Mr. Williams very adeptly pointed out. He is correct on this point. Grand conspiracy? NOT! Gross incompetence and stupidity? YES!
The following paper points out the realities of the world and doesn't deal in speculation and conjecture. Herb Meyer lays it out and he's right on the money. The issue is much more complicated than Mr. Williams, although well meaning and intentioned, shares with us. If we wish to continue our way of life we have to start becoming totally independent of foreign oil and do it right now. We don't have time to sit around and debate the issues at length. We have to push for development of alternative sources and do it now and not in 20 years. We need to ramp up construction of refineries, nuclear power plants, increase oil drilling, utilize solar and wind power, build more hydro projects, and start using hydrogen gas to power cars and trucks. Incidentally hydrogen which is extremely volatile is truly a clean burning fuel and doesn't pollute the atmosphere like gasoline and it's cheap to produce. We have to make its use, production, and storage safe. We are at a junction in the life of this country. We can either allow corporations and government to develop the necessary energy we need or we can listen to the hysteria of Global Warming Al, and the Left Coast, and watch our country sink into the abyss of a former great civilizations.
A friend shared this with me and I am sharing it with you. If you took the time to listen to the ramblings and conspiracy theories of Lindsey Williams it behooves you to take the time and read the following. If the conspiracy exists that Mr. Williams alludes to he would have been neutralized a long time ago. In other words someone would have shut him up permanently long before now. Think about it?
Duane Tron
St. Paris, OH 43072
This is a paper presented several weeks ago by Herb Meyer at a Davos, Switzerland meeting which was attended by most of the CEOs from all the major international corporations -- a very good summary of today's key trends and a perspective one seldom sees. [Note from KB: I have not been able to find the date when this was first presented; the earliest post I have found so far is Jan. 2007.] Herbert E. Meyer served during the Reagan Administration as Special Assistant to the Director of Central Intelligence and Vice Chairman of the CIA's National Intelligence Council. In these positions, he managed production of the U.S. National Intelligence Estimates and other top- secret projections for the President and his national security advisers.
Meyer is widely credited with being the first senior U.S.Government official to forecast the Soviet Union 's collapse, for which he later was awarded the U.S.National Intelligence Distinguished Service Medal, the intelligence community's highest honor.
Formerly an associate editor of FORTUNE, he is also the author of several books. [Meyer archives]
---
WHAT IN THE WORLD IS GOING ON? A GLOBAL INTELLIGENCE BRIEFING FOR CEOs
By HERBERT MEYER
FOUR MAJOR TRANSFORMATIONS
Currently, there are four major transformations that are shaping political, economic and world events. These transformations have profound implications for American business leaders and owners, our culture and on our way of life.
1. The War in Iraq
There are three major monotheistic religions in the world: Christianity, Judaism and Islam. In the 16th century, Judaism and Christianity reconciled with the modern world. The rabbis, priests and scholars found a way to settle up and pave the way forward. Religion remained at the center of life, church and state became separate. Rule of law, idea of economic liberty, individual rights, human Rights-all these are defining point of modern Western civilization. These concepts started with the Greeks but didn't take off until the 15th and 16th century when Judaism and Christianity found a way to reconcile with the modern world. When that happened, it unleashed the scientific revolution and the greatest outpouring of art, literature and music the world has ever known. Islam, which developed in the 7th century, counts millions of Moslems around the world who are normal people. However, there is a radical streak within Islam. When the radicals are in charge, Islam attacks Western civilization. Islam first attacked Western civilization in the 7th century, and later in the 16th and 17th centuries. By 1683, the Moslems (Turks from the Ottoman Empire) were literally at the gates of Vienna It was in Vienna that the climatic battle between Islam and Western civilization took place. The West won and went forward. Islam lost and went backward. Interestingly, the date of that battle was September 11. Since them, Islam has not found a way to reconcile with the modern world.
Today, terrorism is the third attack on Western civilization by radical Islam. To deal with terrorism, the U.S. is doing two things. First, units of our armed forces are in 30 countries around the world hunting down terrorist groups and dealing with them. This gets very little publicity. Second we are taking military action in Afghanistan and Iraq .
These actions are covered relentlessly by the media. People can argue about whether the war in Iraq is right or wrong. However, the underlying strategy behind the war is to use our military to remove the radicals from power and give the moderates a chance. Our hope is that, over time, the moderates will find a way to bring Islam forward into the 21st century. That's what our involvement in Iraq and Afghanistan is all about.
The lesson of 9/11 is that we live in a world where a small number of people can kill a large number of people very quickly. They can use airplanes, bombs, anthrax, chemical weapons or dirty bombs. Even with a first-rate intelligence service (which the U.S. does not have), you can't stop every attack. That means our tolerance for political horseplay has dropped to zero. No longer will we play games with terrorists or weapons of mass destructions.
Most of the instability and horseplay is coming from the Middle East .
That's why we have thought that if we could knock out the radicals and give the moderates a chance to hold power, they might find a way to reconcile Islam with the modern world. So when looking at Afghanistan or Iraq , it's important to look for any signs that they are modernizing.
For example, women being brought into the work force and colleges in Afghanistan is good. The Iraqis stumbling toward a constitution is good.
People can argue about what the U.S. is doing and how we're doing it, but anything that suggests Islam is finding its way forward is good.
2. The Emergence of China
In the last 20 years, China has moved 250 million people from the farms and villages into the cities. Their plan is to move another 300 million in the next 20 years. When you put that many people into the cities, you have to find work for them. That's why China is addicted to manufacturing; they have to put all the relocated people to work. When we decide to manufacture something in the U.S. , it's based on market needs and the opportunity to make a profit. In China , they make the decision because they want the jobs, which is a very different calculation.
While China is addicted to manufacturing, Americans are addicted to low prices. As a result, a unique kind of economic codependency has developed between the two countries. If we ever stop buying from China , they will explode politically. If China stops selling to us, our economy will take a huge hit because prices will jump. We are subsidizing their economic development; they are subsidizing our economic growth.
Because of their huge growth in manufacturing, China is hungry for raw materials, which drives prices up worldwide. China is also thirsty for oil, which is one reason oil is now at $100 a barrel. By
2020, China will produce more cars than the U.S. China is also buying its way into the oil infrastructure around the world. They are doing it in the open market and paying fair market prices, but millions of barrels of oil that would have gone to the U.S. are now going to China . China 's quest to assure it has the oil it needs to fuel its economy is a major factor in world politics and economics.
We have our Navy fleets protecting the sea lines, specifically the ability to get the tankers through. It won't be long before the Chinese have an aircraft carrier sitting in the Persian Gulf as well. The question is, will their aircraft carrier be pointing in the same direction as ours or against us?
3. Shifting Demographics of Western Civilization
Most countries in the Western world have stopped breeding. For a civilization obsessed with sex, this is remarkable. Maintaining a steady population requires a birth rate of 2.1 In Western Europe, the birth rate currently stands at 1.5, or 30 percent below replacement. In 30 years there will be 70 to 80 million fewer Europeans than there are today. The current birth rate in Germany is 1.3. Italy and Spain are even lower at 1.2. At that rate, the working age population declines by 30 percent in 20 years, which has a huge impact on the economy. When you don't have young workers to replace the older ones, you have to import them.
The European countries are currently importing Moslems. Today, the Moslems comprise 10 percent of France and Germany , and the percentage is rising rapidly because they have higher birthrates. However, the Moslem populations are not being integrated into the cultures of their host countries, which is a political catastrophe. One reason Germany and France don't support the Iraq war is they fear their Moslem populations will explode on them. By 2020, more than half of all births in the Netherlands will be non-European.
The huge design flaw in the postmodern secular state is that you need a traditional religious society birth rate to sustain it. The Europeans simply don't wish to have children, so they are dying. In Japan , the birthrate is 1.3. As a result, Japan will lose up to 60 million people over the next 30 years. Because Japan has a very different society than Europe , they refuse to import workers. Instead, they are just shutting down. Japan has already closed 2,000 schools, and is closing them down at the rate of 300 per year. Japan is also aging very rapidly. By 2020, one out of every five Japanese will be at least 70 years old. Nobody has any idea about how to run an economy with those demographics.
Europe and Japan , which comprise two of the world's major economic engines, aren't merely in recession, they're shutting down. This will have a huge impact on the world economy, and it is already beginning to happen. Why are the birthrates so low? There is a direct correlation between abandonment of traditional religious society and a drop in birth rate, and Christianity in Europe is becoming irrelevant.
The second reason is economic. When the birth rate drops below replacement, the population ages. With fewer working people to support more retired people, it puts a crushing tax burden on the smaller group of working age people. As a result, young people delay marriage and having a family. Once this trend starts, the downward spiral only gets worse. These countries have abandoned all the traditions they formerly held in regard to having families and raising children.
The U.S. birth rate is 2.0, just below replacement. We have an increase in population because of immigration. When broken down by ethnicity, the Anglo birth rate is 1.6 (same as France ) while the Hispanic birth rate is 2.7. In the U.S. , the baby boomers are starting to retire in massive numbers. This will push the elder dependency ratio from 19 to 38 over the next 10 to 15 years. This is not as bad as Europe , but still represents the same kind of trend.
Western civilization seems to have forgotten what every primitive society understands-you need kids to have a healthy society. Children are huge consumers. Then they grow up to become taxpayers. That's how a society works, but the postmodern secular state seems to have forgotten that. If U.S. birth rates of the past 20 to 30 years had been the same as post-World War II, there would be no Social Security or Medicare problems.
The world's most effective birth control device is money. As society creates a middle class and women move into the workforce, birth rates drop. Having large families is incompatible with middle class living.
The quickest way to drop the birth rate is through rapid economic development. After World War II, the U.S. instituted a $600 tax credit per child. The idea was to enable mom and dad to have four children without being troubled by taxes. This led to a baby boom of
22 million kids, which was a huge consumer market. That turned into a huge tax base. However, to match that incentive in today's dollars would cost $12,000 per child.
China and India do not have declining populations. However, in both countries, there is a preference for boys over girls, and we now have the technology to know which is which before they are born. In China and India , families are aborting the girls. As a result, in each of these countries there are 70 million boys growing up who will never find wives. When left alone, nature produces 103 boys for every 100 girls. In some provinces, however, the ratio is 128 boys to every 100 girls.
The birth rate in Russia is so low that by 2050 their population will be smaller than that of Yemen . Russia has one-sixth of the earth's land surface and much of its oil. You can't control that much area with such a small population. Immediately to the south, you have China with 70 million unmarried men who are a real potential nightmare scenario for Russia.
4. Restructuring of American Business
The fourth major transformation involves a fundamental restructuring of American business. Today's business environment is very complex and competitive. To succeed, you have to be the best, which means having the highest quality and lowest cost. Whatever your price point, you must have the best quality and lowest price. To be the best, you have to concentrate on one thing. You can't be all things to all people and be the best.
A generation ago, IBM used to make every part of their computer. Now Intel makes the chips, Microsoft makes the software, and someone else makes the modems, hard drives, monitors, etc. IBM even out sources their call center. Because IBM has all these companies supplying goods and services cheaper and better than they could do it themselves, they can make a better computer at a lower cost. This is called a fracturing of business. When one company can make a better product by relying on others to perform functions the business used to do itself, it creates a complex pyramid of companies that serve and support each other.
This fracturing of American business is now in its second generation.
The companies who supply IBM are now doing the same thing - outsourcing many of their core services and production process. As a result, they can make cheaper, better products. Over time, this pyramid continues to get bigger and bigger. Just when you think it can't fracture again, it does.
Even very small businesses can have a large pyramid of corporate entities that perform many of its important functions. One aspect of this trend is that companies end up with fewer employees and more independent contractors. This trend has also created two new words in business, integrator and complementor. At the top of the pyramid, IBM is the integrator. As you go down the pyramid, Microsoft, Intel and the other companies that support IBM are the complementors. However, each of the complementors is itself an integrator for the complementors underneath it.
This has several implications, the first of which is that we are now getting false readings on the economy. People who used to be employees are now independent contractors launching their own businesses. There are many people working whose work is not listed as a job. As a result, the economy is perking along better than the numbers are telling us.
Outsourcing also confused the numbers. Suppose a company like General Motors decides to outsource all its employee cafeteria functions to Marriott (which it did). It lays-off hundreds of cafeteria workers, who then get hired right back by Marriott. The only thing that has changed is that these people work for Marriott rather than GM. Yet, the media headlines will scream that America has lost more manufacturing jobs. All that really happened is that these workers are now reclassified as service workers. So the old way of counting jobs contributes to false economic readings. As yet, we haven't figured out how to make the numbers catch up with the changing realities of the business world.
Another implication of this massive restructuring is that because companies are getting rid of units and people that used to work for them, the entity is smaller. As the companies get smaller and more efficient, revenues are going down but profits are going up. As a result, the old notion that revenues are up and we're doing great isn't always the case anymore. Companies are getting smaller but are becoming more efficient and profitable in the process.
IMPLICATIONS OF THE FOUR TRANSFORMATIONS
1. The War in Iraq
In some ways, the war is going very well. Afghanistan and Iraq have the beginnings of a modern government, which is a huge step forward. The Saudis are starting to talk about some good things, while Egypt and Lebanon are beginning to move in a good direction. A series of revolutions have taken place in countries like Ukraine and Georgia .
There will be more of these revolutions for an interesting reason. In every revolution, there comes a point where the dictator turns to the general and says, Fire into the crowd. If the general fires into the crowd, it stops the revolution. If the general says No, the revolution continues. Increasingly, the generals are saying No because their kids are in the crowd.
Thanks to TV and the Internet, the average 18-year old outside the U.S. is very savvy about what is going on in the world, especially in terms of popular culture. There is a huge global consciousness, and young people around the world want to be a part of it. It is increasingly apparent to them that the miserable government where they live is the only thing standing in their way. More and more, it is the well-educated kids, the children of the generals and the elite, who are leading the revolutions.
At the same time, not all is well with the war. The level of violence in Iraq is much worse and doesn't appear to be improving. It's possible that we're asking too much of Islam all at one time. We're trying to jolt them from the 7th century to the 21st century all at once, which may be further than they can go. They might make it and they might not.
Nobody knows for sure. The point is, we don't know how the war will turn out. Anyone who says they know is just guessing. The real place to watch is Iran . If they actually obtain nuclear weapons it will be a terrible situation. There are two ways to deal with it. The first is a military strike, which will be very difficult. The Iranians have dispersed their nuclear development facilities and put them underground. The U.S. has nuclear weapons that can go under the earth and take out those facilities, but we don't want to do that.
The other way is to separate the radical mullahs from the government, which is the most likely course of action. Seventy percent of the Iranian population is under 30. They are Moslem but not Arab. They are mostly pro-Western. Many experts think the U.S. should have dealt with Iran before going to war with Iraq . The problem isn't so much the weapons, it's the people who control them. If Iran has a moderate government, the weapons become less of a concern.
We don't know if we will win the war in Iraq . We could lose or win. What we're looking for is any indicator that Islam is moving into the 21st century and stabilizing.
2. China
It may be that pushing 500 million people from farms and villages into cities is too much too soon. Although it gets almost no publicity, China is experiencing hundreds of demonstrations around the country, which is unprecedented. These are not students in Tiananmen Square . These are average citizens who are angry with the government for building chemical plants and polluting the water they drink and the air they breathe.
The Chinese are a smart and industrious people. They may be able to pull it off and become a very successful economic and military superpower. If so, we will have to learn to live with it. If they want to share the responsibility of keeping the world's oil lanes open, that's a good thing. They currently have eight new nuclear electric power generators under way and 45 on the books to build. Soon, they will leave the U.S. way behind in their ability to generate nuclear power.
What can go wrong with China ? For one, you can't move 550 million people into the cities without major problems. Two , China really wants Taiwan , not so much for economic reasons, they just want it. The Chinese know that their system of communism can't survive much longer in the 21st century. The last thing they want to do before they morph into some sort of more capitalistic government is to take over Taiwan
We may wake up one morning and find they have launched an attack on Taiwan . If so, it will be a mess, both economically and militarily. The U.S. has committed to the military defense of Taiwan . If China attacks Taiwan , will we really go to war against them? If the Chinese generals believe the answer is no, they may attack. If we don't defend Taiwan , every treaty the U.S. has will be worthless. Hopefully, China won't do anything stupid.
3. Demographics
Europe and Japan are dying because their populations are aging and shrinking. These trends can be reversed if the young people start breeding. However, the birth rates in these areas are so low it will take two generations to turn things around. No economic model exists that permits 50 years to turn things around. Some countries are beginning to offer incentives for people to have bigger families. For example, Italy is offering tax breaks for having children. However, it's a lifestyle issue versus a tiny amount of money. Europeans aren't willing to give up their comfortable lifestyles in order to have more children.
In general, everyone in Europe just wants it to last a while longer.
Europeans have a real talent for living. They don't want to work very hard. The average European worker gets 400 more hours of vacation time per year than Americans. They don't want to work and they don't want to make any of the changes needed to revive their economies.
The summer after 9/11, France lost 15,000 people in a heat wave. In August, the country basically shuts down when everyone goes on vacation.
That year, a severe heat wave struck and 15,000 elderly people living in nursing homes and hospitals died. Their children didn't even leave the beaches to come back and take care of the bodies. Institutions had to scramble to find enough refrigeration units to hold the bodies until people came to claim them. This loss of life was five times bigger than 9/11 in America , yet it didn't trigger any change in French society.
When birth rates are so low, it creates a tremendous tax burden on the young. Under those circumstances, keeping mom and dad alive is not an attractive option. That's why euthanasia is becoming so popular in most European countries. The only country that doesn't permit (and even encourage) euthanasia is Germany , because of all the baggage from World War II.
The European economy is beginning to fracture. Countries like Italy are starting to talk about pulling out of the European Union because it is killing them. When things get bad economically in Europe , they tend to get very nasty politically. The canary in the mine is anti- Semitism.
When it goes up, it means trouble is coming. Current levels of anti- Semitism are higher than ever.
Germany won't launch another war, but Europe will likely get shabbier, more dangerous and less pleasant to live in. Japan has a birth rate of 1.3 and has no intention of bringing in immigrants. By
2020, one out of every five Japanese will be 70 years old. Property values in Japan have dropped every year for the past 14 years. The country is simply shutting down. In the U.S. we also have an aging population. Boomers are starting to retire at a massive rate. These retirements will have several major impacts:
Possible massive sell off of large four-bedroom houses and a movement to condos.
An enormous drain on the treasury. Boomers vote, and they want their benefits, even if it means putting a crushing tax burden on their kids to get them. Social Security will be a huge problem. As this generation ages, it will start to drain the system. We are the only country in the world where there are no age limits on medical procedures. An enormous drain on the health care system. This will also increase the tax burden on the young, which will cause them to delay marriage and having families, which will drive down the birth rate even further.
Although scary, these demographics also present enormous opportunities for products and services tailored to aging populations. There will be tremendous demand for caring for older people, especially those who don't need nursing homes but need some level of care. Some people will have a business where they take care of three or four people in their homes. The demand for that type of service and for products to physically care for aging people will be huge.
Make sure the demographics of your business are attuned to where the action is. For example, you don't want to be a baby food company in Europe or Japan . Demographics are much underrated as an indicator of where the opportunities are. Businesses need customers. Go where the customers are.
4. Restructuring of American Business
The restructuring of American business means we are coming to the end of the age of the employer and employee. With all this fracturing of businesses into different and smaller units, employers can't guarantee jobs anymore because they don't know what their companies will look like next year. Everyone is on their way to becoming an independent contractor.
The new workforce contract will be: Show up at the my office five days a week and do what I want you to do, but you handle your own insurance, benefits, health care and everything else. Husbands and wives are becoming economic units. They take different jobs and work different shifts depending on where they are in their careers and families. They make tradeoffs to put together a compensation package to take care of the family.
This used to happen only with highly educated professionals with high incomes. Now it is happening at the level of the factory floor worker.
Couples at all levels are designing their compensation packages based on their individual needs. The only way this can work is if everything is portable and flexible, which requires a huge shift in the American economy.
The U.S is in the process of building the world's first 21st century model economy. The only other countries doing this are U.K. and Australia The model is fast, flexible, highly productive and unstable in that it is always fracturing and re-fracturing. This will increase the economic gap between the U.S. and everybody else, especially Europe and Japan .
At the same time, the military gap is increasing. Other than China , we are the only country that is continuing to put money into their military. Plus, we are the only military getting on-the-ground military experience through our war in Iraq . We know which high-tech weapons are working and which ones aren't. There is almost no one who can take us on economically or militarily.
There has never been a superpower in this position before. On the one hand, this makes the U.S. a magnet for bright and ambitious people. It also makes us a target. We are becoming one of the last holdouts of the traditional Judeo-Christian culture. There is no better place in the world to be in business and raise children. The U.S. is by far the best place to have an idea, form a business and put it into the marketplace.
We take it for granted, but it isn't as available in other countries of the world. Ultimately, it's an issue of culture. The only people who can hurt us are ourselves, by losing our culture. If we give up our Judeo-Christian culture, we become just like the Europeans.
The culture war is the whole ballgame. If we lose it, there isn't another America to pull us out.
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Video of the Lindsey Williams (author and former volunteer chaplain on the Alaska Pipeline) lecture October 24, 2007 on The Energy Non-Crisis: http://video.google.com/videoplay?docid=3340274697167011147

78% of West Virginia educators decided to "switch back" to the defined BENEFITS retirement...and, with good reason! You can't retire with peanuts!?

From John Curry, June 17, 2008
I'll bet the banks, brokerage houses, and their lobbyists in West Virginia are "singing the blues" right about now! Their loss is the retirees' gain.....and then some! John
Charleston Daily Mail: "The average teacher had saved just $33,944 in his or her TDC retirement account, according to state data. Of the 1,100 enrollees age 60 or older, only 23 had more than $100,000. None had more than $157,000."
Tuesday June 17, 2008
Will teachers retirement switch cause a flood of departures?

by Kelly Holleran
Daily Mail staff
School administrators are still trying to estimate how many teachers in the state will decide to retire this year after a change in state law will allow them to switch retirement plans.
"We haven't been able to actually see," Kanawha County Superintendent Ron Duerring said of the number of teachers who plan to retire.
All school staff who plan to retire by September 1 must notify school administrators by June 30.
In Putnam County, too, it has been difficult to predict how many teachers will retire or are considering it.
"I've had one teacher inquire, but we could very well have several," said Barbara Brazeau, director of personnel for Putnam County schools. "Hopefully we'll have better data in the next couple of weeks."
About 5,404 teachers and administrators in West Virginia are eligible to retire this year, but that does not mean all will.
"It's always a possibility," said Liza Cordeiro, spokeswoman for the Department of Education. "I'm not going to speculate on the number of teachers who will."
In 2009 an additional 1,091 teachers will be able to retire and 1,094 more could retire in 2010, Cordeiro said.
About 15,000 West Virginia school employees chose to transfer from the new Teachers Defined Contribution system, a 401(k)-type retirement savings program, into the old Teachers Retirement System, a program that guarantees a pension benefit based on their salaries.
The average teacher had saved just $33,944 in his or her TDC retirement account, according to state data. Of the 1,100 enrollees age 60 or older, only 23 had more than $100,000. None had more than $157,000.
The Legislature tried to solve the problem in 2005 by letting school workers vote on whether to return to the traditional retirement system. There was a requirement that if the majority voted to do so, all would be required to make the switch.
That didn't go over well with many teachers.
A lawsuit was filed, and the requirement was overturned in Kanawha Circuit Court. Plaintiffs successfully argued that the state was proposing an illegal taking of retirement savings from those who wanted to stay in the defined-contribution plan.
Under this year's legislation, at least 65 percent had to vote in favor of transferring for school employees to have been allowed to switch back to the old retirement plan. A majority of employees -- 78.3 percent, or 14,871 -- voted in favor of the switch by the May 12 deadline.
In the defined contribution plan, employees were required to contribute 4.5 percent of their earnings, while those in the defined benefit system were required to contribute 6 percent.
Therefore, those who opt to switch to the older plan must pay an amount equivalent to 1.5 percent of their salary for every year spent in the defined contribution plan, plus 4 percent interest.
That is a substantially lower cost than what they would have been forced to pay had fewer than 75 percent of employees voted in favor of switching.
Employees who want to switch to the older plan but don't have the money may elect to receive only 75 percent of the normal benefit without paying the buy-in cost.
Duerring said he has his doubts that many Kanawha County teachers will choose to retire this year. He thinks many may have voted in favor of switching back to the TRS so they would be guaranteed an opportunity to retire in the future, not necessarily so they could immediately retire.
Still, he said he can't be too sure.
"We won't have the numbers until the end of summer," he said.

Monday, June 16, 2008

Doctors turning the tables; now rating the health insurance companies

From John Curry, June 16, 2008
Subject: My, My...how the table has turned...now, the MD's are rating the healthcare insurance companies and...United Healthcare comes in at the bottom!?
Medicare came in at the top! Gee, a government run healthcare insurance system as compared to privatized systems....who would ever have thought (tongue in cheek)? Here's a link to the grade card and some red faces! John (Click here to view report)
Jun 16 2008 - AP
By CARLA K. JOHNSON - Associated Press Writer
Some health insurance companies rate doctors on their performance. Now doctors are turning the tables. The American Medical Association issued its first health insurance report card at the group's annual meeting Monday. The primary focus is on the how quickly and accurately doctors get paid.
"Physicians are spending 14 percent of their total revenue to simply obtain what they've earned," said Dr. William Dolan, an AMA board member.
The report card is an effort to reduce the cost of claims processing to doctors and help them as they negotiate contracts with insurance companies, he said. The report card will help patients if it reduces wasteful administrative costs, Dolan added.
The report card compares Medicare and seven national commercial health insurers on the timeliness and accuracy of claims processing. It is based on a random sample drawn from 3 million claims.
There are no grades like A, B and C, and many of the technical measures may not mean much to most patients. But business leaders and health policy makers are interested in cutting an estimated annual $210 billion in wasted administrative claims processing costs, AMA leaders said.
Four years ago, Dr. Marcy Zwelling got so frustrated with the time and cost of making sure she was paid accurately by insurers that she stopped dealing with them. She now runs a so-called "boutique" practice. Most of her patients pay her an annual fee out of their own pockets.
"The best thing is, I get to be a doctor" instead of a claims processor, said Zwelling, of Los Alamitos, Calif. She says she doesn't make any more money than she did when she accepted insurance, but she has more time with patients.
United Healthcare had the lowest rate of contract compliance, according to the AMA report. About 62 percent of medical services billed were paid by United Healthcare at the contracted rate, compared with 71 percent for Aetna and 98 percent for Medicare.
Medicare performed better than the private insurers in most areas, said Dr. Lawrence Casalino, a University of Chicago health economist and former physician. Commercial insurance plans compete by promising employers that they are tough on holding down the cost of claims, he said.
"There's no question that administrative costs for doctors and the country would be a lot lower in a single-payer system," Casalino said in an interview after the meeting. But a market-based system has advantages of competition, choice and innovation, he said. "Are the benefits enough to justify the cost?"
Peter Lee of the Pacific Business Group on Health welcomed the report card, but said he hoped the AMA would look at a broader range of areas that would be helpful to consumers.
"Increased payments to physicians means increased premiums and increased costs in a system that is spiraling out of control," Lee said.
Susan Pisano, a spokeswoman for America's Health Insurance Plans, said that for claims to be processed accurately and quickly it takes two parties: insurers and doctors.
She said that while insurance companies that rate doctors generally share the information with doctors before they make it public, the AMA did not share its report with insurers before releasing it online Monday.
"It would have been constructive for that same courtesy to be extended to us," Pisano said.
The AMA is holding its five-day policy-making meeting in Chicago. The meeting runs through Wednesday.

25 million Americans who are but aren't....are you one of them?

From John Curry, June 16, 2008
Subject: 25 million Americans who are but aren't....are you one of them?‏
Editorial from Ohio.com, June 16, 2008
Barely insured
Want more evidence of America's flawed health-care system? The 25 million insured citizens who don't get the care they need
The plight of the growing numbers of Americans (estimated at more than 49 million this year) who have no health insurance has been a staple for years in the debate about fixing the health-care system. Overlooked, all too often, are the problems confronting the underinsured, those who do have health insurance but find their coverage leaves them with very high out-of-pocket expenses.
A new study by the Commonwealth Fund published last week gives further indication of the impact of the flaws inherent in the current system of health care. Analyzing data from 2007, the study estimated that 25 million American adults between the ages of 19 and 64 are underinsured.
An update of a 2003 study, the new report found the number of underinsured (people spending 10 percent or more of their annual income on out-of-pocket medical expenses) increased 60 percent over the four years. Among adults earning more than $40,000 a year, the rate of underinsurance nearly tripled. The number of adults with adequate health insurance year-round dropped by 10 percentage points between 2003 and 2007.
In 2007, the study concluded, about 42 percent of adults in the country either had health coverage that was inadequate or none at all.
Simply put, the crisis of inadequate coverage is rapidly creeping up the income ladder, along with related concerns about access to care when it is needed and the cost burden on families.
As this study and others have noted, the underinsured are only marginally better off than those who lack coverage. The underinsured are as likely as the uninsured to delay medical visits and care for chronic conditions until their problems are acute. They are just as likely to skip expensive prescription medications, diagnostic tests and referrals to specialist care. Medical expenses cut deep into family finances, threatening financial stability and forcing difficult choices that affect other obligations such as housing and education.
Cost-sharing policies (such as co-payments and deductibles) are making coverage less affordable for more middle-income households. But as the Commonwealth Fund correctly points out, policies that restrict the content of the benefits package, what is covered under the insurance plan, equally restrict access to care. Increasingly, the market for health insurance defines ''affordability'' by limiting coverage, often excluding pre-existing conditions or vision and dental care or capping benefits for chronic illnesses.
The steady rise in underinsurance underscores the stark realities driving the debate over health insurance reform. At issue in this instance is that the availability of coverage is not enough to ensure effective medical care for a growing percentage of Americans.
Larry KehresMount Union Collge
Division III
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