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University Times.) Greenwood and Walsh, Who 2009 in Federal Court in Pitts- Record on a Form the Routes, Stops Button” As Riders Flash Their Ids

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University Times.) Greenwood and Walsh, Who 2009 in Federal Court in Pitts- Record on a Form the Routes, Stops Button” As Riders Flash Their Ids F E A T U R E I N T H I S I S S U E The spring University Senate Interested in the future of Oakland? plenary session examined the There’s still time to get involved in the development of the Oakland relationship between teaching 2025 plan..........................................2 excellence and tenure. Facilities Management introduces its See pages 7-10. U N I V E R S I T Y sustainability team............................3 TIMES VOLUME 43 • NUMBER 17 APRIL 28, 2011 UNIVERSITY OF PITTSBURGH Pitt recovers most Staff, faculty of millions lost in needed to test Westridge fraud case Port Authority large portion of Pitt consolidated endowment fund, endowment funds that and its remaining unrecovered Awere lost in an investment principal interest represents less “smart card” scheme has been returned to the than $8 million or approximately University. 0.3 percent of the University’s Pitt received $44.4 million — $2.4 billion endowment,” Fedele technology about 85 percent of its net invest- stated. ment — last week in a distribution More of investors’ money from Robb Evans & Associates, could be returned to them as the the court-appointed receiver in receiver continues its efforts to connection with the Westridge recover additional funds. taff and faculty volunteers pants. The May 16 target date is an terms of negotiation time, the end Capital Management fraud case. CMU announced last week that are needed for a pilot pro- important one as the full program of that contract is relatively soon, Brick Kane of Robb Evans it had received payments totaling Sgram to test Pitt ID cards roll-out [for Pitt ID holders] is Ritchie said. stated that, per a March 21 federal more than $40 million, which rep- on the Port Authority of Allegheny planned for Aug. 1. The goal is In addition, Pitt could ask for court order, the receiver on April resents approximately 83 percent County’s new farebox technology. to work out all potential glitches a renegotiation of fees based on 21 began distributing $792 million of its $49 million investment. The program runs May this summer.” the most recent round of service to investors in entities operated Pitt and CMU jointly filed a 16-June 17. Volunteers are asked The system will replace the cuts made by the Port Authority, by Paul Greenwood and Stephen complaint against Greenwood to register with Panther Central current process, where Port which went into effect March 27. Walsh. and Walsh and their firms in at [email protected] and agree to Authority drivers push a “Pitt (See Jan. 20 University Times.) Greenwood and Walsh, who 2009 in federal court in Pitts- record on a form the routes, stops button” as riders flash their IDs. Pitt’s Fedele said, “Obviously, operated Westridge Capital Man- burgh in hopes of recouping their and times of their rides on Port According to spokesperson the service cuts have been a chal- agement, WG Trading Investors investments, which included an Authority vehicles during the pilot Jim Ritchie, the Port Authority lenge for those who travel to and other related firms, were estimated $65 million of Pitt’s test period. The goal is to ensure expects to convert fully to the new work by Port Authority buses, but charged in 2009 with operating endowment. (See March 5, 2009, that valid Pitt IDs will be identified system for Pitt riders, including because the cuts have only been a $1.3 billion Ponzi-style scheme University Times.) as such by the new system. students, on Aug. 1, assuming in place for a little more than a that misappropriated money from The University’s FY09 finan- In recent months, the Port the technology is shown to work. month, Pitt has not yet done any institutional investors including cial statement reported the value Authority has installed new fare- The transit authority expects to formal assessment of the impact Pitt and Carnegie Mellon Uni- of its investment as $34.9 mil- boxes on all its vehicles. (Installa- implement the system for the on University [employees and versity, as well as pension funds lion, representing a 50 percent tion on the T, or light rail transit, is general public sometime in 2012, students]. and foundations. write-down from its previously expected to be completed in May.) Ritchie noted. “The University’s agreement Instead of investing the funds, recorded fair value. (See Oct. 29, The fareboxes are equipped Pitt issued new ID cards with with the Port Authority does the two men are accused of spend- 2009, University Times.) with new “smart card” technology, the smart card technology embed- include language acknowledging ing millions on lavish lifestyles that Pitt’s investment included whereby riders will “tap” their IDs ded in them in 2009. that the compensation paid by the included the purchase of horses, $21.25 million that was wired to on the farebox scanners, which are The new system is expected University is in consideration for a mansions, cars, art, books and WG Trading Co. just days before mounted on a designated orange to yield a more accurate count of certain level and type of service,” collectibles. regulators suspended Greenwood square atop the farebox. Pitt riders than the current manual he said. According to Pitt associate and Walsh. Although the Univer- Pitt associate director of news system. It also aims to weed out “The University does plan to director of news John Fedele, the sity argued that those funds should John Fedele said: “We are aiming invalid ID cards, Pitt and Port consult with the Port Authority University previously recovered be returned in their entirety, that for several hundred participants, Authority officials said. regarding service modifications approximately $9.3 million from amount was included as part of but will begin the pilot on May 16 In a related matter, the Uni- and the impact these may have a Westridge-related account. Pitt’s receivership claim, according using the number of participants versity’s contract with the Port on our riders. These discussions “All of the funds recovered have to Fedele. we have at that point. Currently, Authority may be affected by the may also include recommended been returned to the University’s —Kimberly K. Barlow n we have 125 confirmed partici- new technology, as well as by other compensation adjustments if it is recent developments. determined that service modifica- The University’s five-year con- tions have a significant impact on Open enrollment deadline is May 11 tract with the Port Authority for the University’s overall ridership pen enrollment for Pitt’s Plan, is 3.3 percent for the lion-$104 million, up from about fare-free rides runs through July levels.” employee benefits con- health plan year that begins July $100 million for the current plan 31, 2012. Pitt is paying $5.91 mil- Currently, there are no con- Otinues until May 11. 1, according to Benefits direc- year. The University will continue lion for 2010-11. The agreement tract-related negotiations sched- Information packets with details tor John Kozar. That compares to absorb 80 percent of the annual calls for Pitt to pay $6.8 million uled, Fedele said. of Pitt’s benefits plans, including to a projected national average rate increase to the medical pro- for 2011-12. (See Oct. 11, 2007, The University’s payment to vision and dental plan options, and increase of 6.4 percent, he noted. grams covered under the UPMC University Times.) the Port Authority is subsidized in long-term care and life insurance Panther Gold enrollees, who medical plan options, Kozar said. But, Port Authority officials part by the $90 per term security, choices, were mailed during the make up about 90 percent of Employees who elect to main- have said, under terms of the con- safety and transportation fee that week of April 18. the approximately 23,000 plan tain their current benefits need tract signed in 2007, implemen- Pittsburgh campus students pay. Employees who did not receive members (employees, spouses/ not take any action; all others tation of the farebox technology (The balance comes from the their packets should contact Ben- domestic partners and children), must make changes by May 11. triggers a reopener clause in the auxiliary operations budget of the efits at 412/624-8160. will see their monthly premiums Changes must be made elec- contract. Instead of Pitt paying a Office of Parking, Transportation Pitt health insurance premi- rise $2 for individuals, from $57 tronically by following the online monthly fee, the University will and Services.) ums are going up next year, but to $59; $5 for parent/child(ren), enrollment procedure, accessible be charged by the ride as it is Ritchie said, “We are in at a rate lower than the national from $140 to $145; $7 for two at www.hr.pitt.edu by clicking on “scored” by the smart card system. continuous discussions with the average, officials here say. Copays adults, from $208 to $215, and the “open enrollment” link. An That per-ride fee will have to be University on these issues and on prescription drugs also will $10 for family coverage, from instruction sheet for online enroll- negotiated, Ritchie confirmed other things like smart card imple- increase. $290 to $300. ment is provided in the printed this week. mentation and routing. The level The overall cost increase of Pitt’s overall health care costs enrollment materials. “It’s my sense that the con- of service for Oakland has not been Pitt’s medical plans, which are for the coming plan year are A confirmation letter will tract that’s in place likely will run reduced significantly.” administered by UPMC Health projected to be roughly $103 mil- CONTINUED ON PAGE 6 through next year,” because, in —Peter Hart n 1 U N I V E R S I T Y TIMES U N I V E R S I T Y S E N A T E MM A TA T E RT S /T Nathan E HersheyR S Is your salary unfairly low? by John J.
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