Impact on Active Employee Premiums of Restoring Combined Insurance Pool
Retirees are asking the Board of Regents to restore promised retiree benefits, by putting pre-65 retirees back into the combined insurance pool (also called blended pool). Click this link to view an analysis that shows the resulting increase to active employee health insurance premiums would be small ranging from 0.2% to 2.1% depending on coverage.
UNM Pre-65 Retiree Concerns About Recent Changes to Retiree Health Care Benefits
Five UNM retirees met with each UNM Regent, President Frank, EVP Harris, Chancellor Roth, and Provost Abdallah to discuss their concerns about the recent changes made to retiree health care benefits. They also gave each of them a binder containing important related documents and information, which can be viewed at this link. It includes the following:
- Documentation of the benefits UNM promised to retirees.
- Analyses of premiums and percent increases.
- UNM's application for the federal Early Retiree Reinsurance Program.
- Analysis of how the increased premiums actually increased UNM's accrued liability not decreased it.
- Insurance premium rate comparisons with comparable organizations.
- GASB (Governmental Accounting Standards Board) publications stating that retiree health insurance benefits are a form of deferred compensation.
- NM Supreme Court opinion that states organizations must take into account promises made to retirees that are stated in policy manuals.
- US Department of Labor document stating health care benefits promised to retirees must be honored.
Save ERB Cola
On December 19, 2013, the NM Supreme Court issued an unanimous decision that our COLA is not a part of our vested property right. The Opinion can be viewed by going to Legal Documents on the erbcola website, which will be available until March 1, 2014. SAVE ERB COLA is obviously disappointed in the decision of the New Mexico Supreme Court in Bartlett v. Cameron. We believe that the Court failed to recognize national standards of accounting and actuarial practice which unequivocally treat the Cost of Living Adjustment (COLA) as an integral part of the benefits granted by a retirement plan. Thanks to all of you who donated funds to pay the legal costs of this important challenge to reduction of our retiree benefits. All funds collected were sent to the attorney representing us. Although we were unable to cover all of the attorney's costs, we have closed the fundraising efforts, the checking account was audited, and a final report was made to the Internal Revenue Service. Rest assured all funds collected were sent to the attorney. Thanks again for supporting this important effort.