February-March 2010 Retiree Notes

Northern Cook volunteers energized by youthful candidate

 

With their charter pending, the newly organized Northern Cook County Sub-chapter 161 is creating excitement among the area’s retirees and making an impact on the political scene.

“We wanted to be a part of the action,” said Charlie Hogan, interim president of the new sub-chapter. “We knew many of the sub-chapters and members were involved in campaigns, rallies and regular meetings, so this was our turn.”

Attendance at the initial sub-chapter meetings has stayed consistently around 40 to 50 – drawing high marks from chapter leaders.

Then came the February primary election. Many of the group volunteered to work with the campaign of Patrick Keenan- Devlin, a 25-year-old activist who ran for state representative in a district that included most of Evanston, a northeast corner of Chicago and several other suburban North Shore communities.

“Our folks were geared up about participating in the primary,” Hogan said. “But I don’t think we were prepared for the major impact that it would have on us.”

The retirees became part of a campaign organization filled with energy, idealism and a highly competent campaign staff.

“We worked with people from all walks of life,” Hogan said. “From trained professionals to green volunteers. Everyone was disciplined and had a variety of talents. It bridged generations, bringing together people of various ages to push for a common cause. I think most of us felt a renewed faith in the system, working for a candidate that was eager to change things for the better and it opened our eyes to the power of retirees.”

The campaign fell short of getting the candidate nominated, but it was working against steep odds and far exceeded expectations.

“We retirees have great untapped power in the extensive experience, skills and networks of people,” Hogan said. “We have the ability to organize that power through our retiree chapter, which allows us to protect what we have worked for.

“Nothing is required to be a victim, but to change things and protect the things you have, you have to work.”

 

Stimulus grant comes via tax return for some retirees

 

Before AFSCME stepped in, the $250 one-time payment for seniors contained in the American Recovery and Reinvestment Act was originally targeted for those who receive Social Security.

The International Union’s lobbying team pushed to include those public- sector retirees who are not coordinated with Social Security. They were successful, and the legislation, referred to as “the federal stimulus,” was changed so that these retirees could receive the money.

Unfortunately there is a hitch. Social Security beneficiaries didn’t have to do anything to receive their $250; it came along with their regular Social Security checks. But retirees who did not pay into Social Security while working will have to file a special form on their federal income tax return to claim the grant. Cook County, city of Chicago and state university retirees are among those affected.

“I knew that I had read about AFSCME successfully fighting for a tax credit for public sector retirees who don’t get Social Security,” said Wayne Schaefer, a member of Springfield Sub-chapter 86, “but when I started doing my taxes, I wasn’t sure how I could claim it.”

He found out that retirees in that situation must file Schedule M—Making Work Pay and Government Retiree Credits—with Form 1040A or 1040.

“Sometimes people forget that not all retirees get Social Security,” Schaefer said. “In fact those of us who don’t, had to pay at a higher rate into our pensions, so we appreciate AFSCME for helping legislators remember that we are out here.”

 

Proposal would benefit Cook County retirees

 

Affordable health-care coverage for all Cook County retirees retirees is on the table in ongoing contract talks.

Under the current retirement plan, the county’s retirees can purchase health insurance through the Cook County Retirement Fund, with the fund paying 55 percent of the cost. Even with this subsidy, however, the plan options are very expensive, especially for retirees who are under age 65 and for those age 65 and over who are not eligible for Medicare. Coverage is more affordable for Medicare-eligible retirees, depending on the plan they select.

Council 31 continues to press management for a retiree health-insurance program that would utilize the county’s high-quality system of clinics and hospitals, anchored by the John Stroger Hospital and the Fantus Clinic.

“This would result in a substantial increase in benefits while decreasing healthinsurance costs for retirees who use the plan,” Council 31 benefits director Hank Scheff said. “Such a health plan would, in effect, be a countyoperated HMO, using the health system’s own staff of highly qualified primary-care and specialty physicians.”

“The county should be able to put such a plan together at a cost well below what is currently charged by the current health plans offered through the pension fund,” Scheff said. “It would be a win for retirees and a plus for the County’s health system by providing a source of insured patients.”

Under the AFSCME proposal, retirees with 10 or more years of Cook County service could join this plan. They would pay premiums and co-payments at the same rate that current county employees now pay for the county HMO.

“It’s going to be tough to get the county to agree to expand retiree benefits in this belt-tightening era,” Scheff said. “But we believe this is a viable plan and we’re going to keep pushing.”

 

New Sub-chapter revs up in southern Cook County

 

With the state threatening to shift more health-care costs onto retirees, AFSCME retirees in southern Cook County decided the time was right to form a sub-chapter in their area.

“Since I have retired, I have been receiving so many calls from people asking me when we were going to get a sub-chapter here,” said Ida Calloway, president of the newly organized Sub-chapter 163. “Retirees from this area wanted to be involved, but hated the drive into the city and the expense of parking.”

Calloway and a group from the area had begun work in the summer of 2009 to organize the sub-chapter and finally saw their efforts pay off when they received their charter from AFSCME International in February.

Their meetings, which now take place in the Bloom Township Center in Chicago Heights, began at a challenging time. The state was trying to close the Howe Developmental Center, a state-operated residential habilitation program serving more than 320 individuals with severe developmental disabilities.

“Howe has been at the heart of this community for a long time,” Calloway said. “Not only do many people work there and rely on it to pay for their mortgages, their children’s educations and health care, but the closure would displace the people who live there, who have bonded to their caretakers. It would be hard for them to adjust some place else.”

She added that “sub-chapter members are also concerned about the increased pressure to shift health-care costs onto retirees and feel that having a monthly meeting to get updates on issues that impact them is definitely welcome.”

 

Budget crisis brings cuts to senior services

 

The state’s 13 area agencies on Aging and Senior Centers are feeling the pinch of Illinois’ budget crisis. As a result of cuts and late payments these agencies are struggling to keep programs like Elder Abuse Prevention, home-delivered meals and Community Care going.

These programs rely almost entirely on the state’s General Revenue fund, and the agencies that operate them are being hit hard because the state has not kept pace with reimbursement.

“The lack of payment has created extreme hardship for the agencies to deliver services,” said Julie Hubbard, President of the Illinois Association of Area Agencies on Aging.

Most of these communitybased provider agencies are not-for-profit organizations. They have taken unprecedented steps to continue services, including: borrowing as much money as their banks will allow, laying off employees, requiring furlough days, reducing employee benefits and cutting services.

Many of these agencies fear that they will be forced to close their doors unless funds are received. Critical services such as home-delivered meals and transportation to medical appointments may no longer be available in many geographical areas of the state.

Of course, the ultimate victims of this fiscal crisis are older adults and their families. The services being cut help them continue living in their homes. Without them, they may be forced into the homes of relatives or into long-term care arrangements that are much more expensive for taxpayers and much less desirable for many seniors.

For example, the Community Care Program, which serves around 50,000 people statewide, is designed to keep seniors in their homes and out of nursing homes until they truly need it. It sends a care coordinator to evaluate the needs of the individual. If program criteria are met, services will be provided, including in-home service, adult day service, emergency home-response service, flexible senior services, and, in some areas of the state, a senior companion.

“We urge the General Assembly to take the action necessary to ensure the continued provision of service to Illinois’s most vulnerable populations,” Hubbard said.

Retirees who want to help can contact their legislators and ask them to pass a responsible budget, in particular House Bill 174. For more information on this bill go to http://www.afscme31.org/too ls/assets/files/HB174AFSCME FactSheet.pdf.