Gary Johnson‘s report below was emailed on May 18, 2020 to all retirees for whom we have email addresses:
After months of strong negotiations resistance, both SEIU and AFT have agreed to accept the District contracting with CalPERS. Little option was available as the District was committed to imposing its CalPERS decision and salary increases of 10.28% over three years plus a $2400 bonus were contingent on acceptance.
The District is driven to save the $12.4 million per year on benefit costs it envisions with CalPERS. That savings may be problematic given the Covid 19 economy and reduced tax revenues expected to result in cuts in State support for the Colleges.
The focus is now on the Retirees with the same District “hard ball” approach, though for a time likely presented in a “soft sell” appeal. As a start, the District has asked for us to share with it all avenues to reach us. In response to 80 appeal and protest letters Retirees recently sent to Trustees and the Chancellor, the District has sent a sales response to each of us, noting the plan we will be assigned to, and touting the positive attributes of the plans, and plan experiences we should expect, and the ways the District proposes to mitigate plan shortcomings.
In response to Retiree concerns and appeals over the last ten months, our voice has consistently been dismissed by three Trustees and the Chancellor with the repeated refrain that they respect and appreciate us and only have our best interests in their considerations. The result does not seem so as they propose to brush aside 43 years of contract language and the Settlement Agreement, because past commitments do not square with CalPERS edicts and current District priorities.
Contracting with CalPERS does not bring in new money to the District. It simply creates an opportunity to stealthily shift the sum of CalPERS savings from benefit costs to salary increases. A 10/1/19 District negotiating document using District assumptions states that in moving to CalPERS on 9/1/20, as now agreed to by the unions, more than 100% of the District’s CalPERS savings over the three years of the new contracts will go to salary increases.
Retirees play both the role of manipulated pawn and predominant contributor to the District strategy of providing raises. The cost of the Retiree CalPERS Supplemental Plan for a couple ($11,903.76) is 56.1% cheaper than projected cost of the composite rate for the 20/21 current Anthem ASCC Plan ($27,144.16), while the Basic Plan for an active employee couple ($17,670.72) is 34.9% cheaper. It is small wonder that the District is demanding Tier I Retirees accept Medicare as the core of their District-provided health benefit. The $1500 proposed to reimburse Retirees who will be covered under the new Basic Plan for added out-of-pocket expenses they will experience is a paltry sum compared to the salary and bonus rewards for current employees.
Retirees have spent the last ten months studying CalPERS from every possible angle:
-
-
- The overall organization
- Detailed coverage and cost comparisons from “Evidence of Coverage” booklets of its plans and our current plans
- Where coverages and cost differences will affect Retirees
- Cost savings strategies and cost shifting means and other actions used to try to keep premiums down
- Difficulties communicating with CalPERS for information, assistance, and problem solving
- What Community Colleges contracting with CalPERS and those that have left CalPERS have to say
- The reasons CalPERS reports for 30-plus employers leaving CalPERS during the last four years
-
Using what we have learned, we are prepared to regularly critique all benefit information sent to Retirees by the District. We expect there will always be more to the story than what the District provides.
Please check the Association blog regularly to learn the latest news, access relevant benefits and CalPERS information, and read our responses and critiques of the District’s proposals and materials as we receive them.
(http://www.blog.vcccdra.org/)
We recommend YOU DO NOT make changes in your benefits NOW merely at the urging of the District. If you are Tier II and must sign up for Medicare at 65, do so. If you want to change between Anthem and Kaiser in open enrollment, do so. If Medicare is a good choice for you now, enroll. Otherwise, wait until we provide more information and make a determination about legal action against the District.
Legal Committee Update
Leadership of the Legal Committee is being assumed by retirees Lyn MacConnaire (Vice President of Instruction, Ventura College) and Patricia Parham (District Vice Chancellor of Human Resources) as co-chairs. Lyn and Patricia have extensive firsthand experience in District contract development, negotiation, and administration. Patricia was a District negotiator in the Settlement Agreement. We are in consultation with Tom Sharpe, the attorney the Association worked with on the Settlement Agreement. Due to the negotiation status between the District, SEIU and AFT, we are reserving comment for now and will quickly bring information to the Retirees when the time and circumstances are appropriate.
