The audio recording of Gary Johnson‘s presentation to the BOT follows:
Presentation to the Board of Trustees
by Rene G. Rodriguez
February 18, 2019
Good evening. My name is Rene Rodriguez, President of the college district Retirees’ Association. I served the college district as a faculty member and as an administrator in various capacities on all three campuses and at the district office as an institutional researcher. I retired as Vice President of Business Services from Oxnard College in 2004 after 34 years of service to the District.
First, thank you and the Chancellor for facilitating the January 23 meeting with representatives from the District, Burnham, CalPERS, OptumRx, the AFT and the SEIU.
The Retirees’ Association requested this meeting to ask questions of CalPERS representatives regarding the CalPERS Health Plans that the District is proposing as a replacement for the current Anthem/Blue Cross and Kaiser Plans. Members of the Retirees’ Association Benefits Committee and Executive Board spent two and a half hours asking the three CalPERS representatives questions that had arisen from examining the CalPERS Choice Basic and the CalPERS Choice Supplement Plans, the two plans that the District is offering active employees and retirees.
I will share two of the questions that I asked, along with the responses from the three CalPERS representatives present.
The first question I asked dealt with a statement that is found in both the Basic and Supplement plans early on in each plan. The statement is titled IMPORTANT INFORMATION and it is in bold face type. Because my time is limited, I will summarize what the statement says for you. It says, that ANY benefit to be found in either plan can be changed, or even eliminated, by CalPERS. Their only responsibility is to let you know the effective date of the change, or elimination, of a benefit.
My question to the panel of three CalPERS representatives was, “WHY IS THIS STATEMENT IN THE PLAN, AND WHAT IS ITS PURPOSE?”
There was a long silence, until one of the CalPERS representatives said that this statement was there just to apprise a subscriber that a benefit that was available in the previous year, is not available this year. I replied, that is not what the statement says. It says CalPERS can make changes or eliminate benefits at any time during the benefit year. More silence, and then, “We’ll have to get back to you on this.”
My second question related to the same statement. I noted that this statement, that is found in both of the plans being offered to District employees and retirees, that it does not appear in the PERS CARE BASIC and PERS SELECT BASIC plans. I asked, “WHY DO SOME CALPERS PPO PLANS HAVE THIS STATEMENT AND OTHERS DO NOT?” Again, they said, “We’ll have to get back to you on that.”
It has been almost a month since the January 23 meeting, and I have not received a response to these two questions as yet.
Anthem PPO plans do not have this statement in their plans. They do not have the right to change or eliminate benefits in their plans in the middle of a benefit period. These changes are meant to be negotiated items, between the District and bargaining units, and the insurance company.
BECAUSE OF THIS “IMPORTANT STATEMENT” IN EACH PLAN, THE DISTRICT AND ITS EMPLOYEES AND RETIREES WOULD BE LEFT AT THE MERCY AND DISCRETION OF WHATEVER CALPERS DECIDES TO DO IN ANY GIVEN BENEFIT PERIOD.
I EXPECT THAT ANY DECISION EXERCISED BY CALPERS WOULD BE IN THEIR INTERESTS, LEAVING THE DISTRICT, THE ACTIVE EMPLOYEES OR RETIREES INVOLVED, WITH NO SAY SO, OR RECOURSE, IN THE MATTER.
Thank you for your kind attention.
