Dear Fellow Retiree,

On Wednesday, September 26, as your representative on the PEC, I was supremely pleased to sign a Public Employee Committee (PEC) agreement with the City of Somerville.  As a result of this agreement, we retirees will be contributing less to our health insurance premiums for the next six and a half years; this is the maximum period allowable by law.  During these volatile and uncertain economic times a favorable long-term percentage split, such as the one we have been able to negotiate, provides us with a measure of much-needed stability.

As you know, starting in May of 2009,  the City of Somerville, in taking two votes, began its move against the retirees.  First, it dramatically  increased  the health premium contributions of retirees, settng them even higher than the contributions of the city’s active employees.  As a result of this increase, retirees found themselves paying  25% of their HMO plan premiums and 40% of their indemnity plan premiums. Subsequent to this action, the city adopted Section 18, mandating Medicare for eligible retirees.

As we all reeled from these retiree-directed injuries, the city approved Section 19 with the purpose of eventually moving all active and retired Somerville employees into the Group Insurance Commission (GIC).   With the state’s passage of new health care legislation this past July, the city adopted Section 23, making entrance into the GIC a fait accompli.

We can do nothing about being forced into the GIC, and we can do nothing about being forced into Medicare (if eligible).

However, we have been working hard for the past few months to accomplish the two things left open to us: secure a premium percentage split that is is an improvement over the high contribution rate we currently pay and initiate the move into the GIC under Section 19 rather than under Section 23.

Making the change to move into the GIC under Section 19 has been vitally important to us as retirees because we are not protected by a union or covered by a municipal contract.  If we moved into the GIC under Section 23, as originally voted by the city, we would be completely on our own, forever isolated and vulnerable to the whims of the city and exposed to the possibility that the city would continue to erode our benefits down to a 50/50 split. To stop that catastrophe from happening, a thing we have been determined to do, it has been important that retirees be guaranteed  a continued voice and vote at the city’s bargaining table through the PEC, and the only way to make that happen was through entrance into the GIC under Section 19.

This past Thursday, September 22,  a majority of the members of the Public Employee Committee and the City of Somerville finally agreed to a plan under Section 19.  It will cover both retirees and active employees for the next six and a half years, all at the same contribution rates.  This is the plan that I was pleased to participate in signing on your behalf on the 26th,  as it provides all retirees with a greater degree of financial security and peace of mind. The plan, for the next year and a half, will raise retirees to an 85/15 contribution split, up from the 75/25 split we currently have.  After that, for two years, the split will be 82.5/17.5,  and finally, for the remaining three years, the split will 80/20.  (This plan, for the full six and a half years, raises the indemnity rate from the 60/40 contribution rate currently  paid by retirees to a 75/25 contribution rate).  So, with this agreement in effect as of January 1, 2012, we have clearly been able to improve the health insurance landscape for ourselves.

Reaching the above agreement has been a sometimes stressful and troubling  journey down a long and  bumpy road. I have learned to respect and admire some of the folks I have worked with on the PEC – particularly Leah Arredondo, Jackie Lawrence, and Mary Ripley, who are all thoughtful, knowledgeable, and far sighted colleagues.  Each of them deserves to be roundly applauded for their hard work on the committee.

I have also stood in awe of my fellow retirees. So very many of you have proven time and again during these past two years how effectively and forcefully you will advocate for yourselves and for each other.  I have been forever grateful to have you standing beside me, and I have been proud to represent you as the Chair of the PEC.  Your friendship, advice, and efforts have been a source of inspiration and strength to me. Thank you.

Best wishes,
Linda Vitiello


P.S –

Your job now is to decide which of the GIC offerings works best for you. There are two websites you should be visiting for information.

The GIC website is http://www.mass.gov/?pageID=afagencylanding&L=4&L0=Home&L1=Insurance+%26+Retirement&L2=Oversight+Agencies&L3=Group+Insurance+Commission&sid=Eoaf

The city of Somerville web site is http://www.somervillema.gov/.

The various unions will be having informational meetings for the next couple of months and the city's personnel office will meet with retirees..

This is to let you know that at its meeting  tonight the BOA voted to include us in the GIC for health insurance.

Attention Somerville Retirees Please See Attached PDF Document.

Attachments:

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Somerville_Alert	35 Kb

Please download the attached document.

Attachments:

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gic_doc.pdf	3894 Kb