Sept. 2008 Issue 8 Academic Year 2008-2009

Retirees Newsletter

Professional Staff Congress

CHAIRMAN’S ANNUAL REPORT: JACK JUDD

The Retirees Chapter maintains a Ed Ott, Executive Director of the proactive schedule throughout the New York City Central Labor year. The Executive Committee and Council, on the municipal labor the general membership meet scene; Mr. Sean Sweeney, regularly, on a monthly basis, from Executive Director of the Global October to June. Our Executive Labor Institute of Cornell University’s Committee meetings are open to any School of Industrial and Labor PSC retirees desirous of attending. Relations, on Global Warming, and Professor Marie Gottschalk from the Chapter meetings draw audiences University of Pennsylvania, who ranging from 45 to 120 members. spoke to us about the issues During the year, we regularly have surrounding a national health plan. presentations from President Barbara Bowen, or Vice-President Steve London, on the “State of the Union.” In addition, Clarissa Gilbert Weiss speaks on Pension and Welfare Benefits, and Larry Morgan and Estelle Giammusso, from the PSC/CUNY Welfare Fund, speak on Health and Welfare Benefits.

Our guest speakers for the 2007- 2008 year included, Mr. Marvin Miller, First Executive Director of the Marvin Miller, one of Baseball Players Union, on the the many guest speakers at our chapter meetings creation of a union for baseball players; a docent from the Our emphasis is to provide the Metropolitan Museum of Art, who members with basic information provided a slide presentation on the concerning union activities, up-to- new Roman and Greek galleries; Mr. date information on their health and

1 welfare benefits, and on cultural and Not neglecting cultural affairs and political affairs. In addition, we hold activities, the chapter launched what two luncheons, one in January and has turned out to be a very one in June. The luncheons have successful book group. The drawn over 130 participants. Our possibility of establishing other June luncheon of this year coincided groups in locations outside New York with the Israel Kugler Memorial City, is now being investigated. Program. During the year, many of us attended an off-Broadway theater This chapter publishes a monthly performance on an immigration Newsletter which has received theme. We look forward to other praise from our members for the such events. coverage of important information relative to retiree interests. The Active in union activities, our Newsletter is comprehensive and members serve on every major PSC responds to the needs of our Committee, including: constituents.

Miriam Balmuth Alternate Delegate to DA Joel Berger Delegate to DA Francine Brewer Officer-at-Large Judith Bronfman Officer-at-Large Mary Bryce-Jennings Secretary Jack Donoghue Alternate Delegate to DA Peter Jonas PSC Executive Council Member Jack Judd Chairman, Delegate to DA Lawrence Kaplan Chairman Emeritus Martin Kaplan Officer-at-Large David Kotelchuck Delegate Steven Leberstein Alternate Delegate Eileen Moran Officer-at-Large James Perlstein Chapter Vice-Chair PSC Executive Council Member Ezra Seltzer Delegate Robert Wurman Alternate Delegate Irwin Yellowitz Chairman Emeritus WF Advisory Council

Included in the list are two elected rallies, sign and collect postcards, representatives who serve on the and provide telephoning when called PSC Executive Council, a Welfare upon. Fund Trustee, and a Welfare Fund Council member. We are now In our NYSUT affiliate, we are the represented on every major entity major higher education components within the PSC and the Welfare of Retiree Councils 37 and 38. Fund. As a group, retirees attend Through those two councils, we also

2 comprise a part of the higher That sub-committee met separately education coterie for ED 52 of with Clarissa Weiss and NYSUT. During the year, we representatives of TIAA in an effort attended an ED 52 meeting held in to cope with individual issues, and to Albany, and the recent NYSUT offer some hope that major problems Representative Assembly in New will be resolved in the near future. York City. Again, in partnership with NYSUT, and as a component of the Through our own efforts, within the Committee of 100, we engaged in chapter, we contributed over lobbying activities. $10,600 to COPE. Our members, currently numbering 2,397, strongly recognize the necessity of lobbying our legislative representatives.

We are also active members of the We’ve had representatives at the Council of Municipal Retiree AFT Retirees Conference, and the Organizations of the City of New AFT Convention in Chicago in July York (COMRO). Four of us serve on with a strong contingent of retirees. the Executive Council of COMRO. It is that organization that acquired, Within RC 37-38, and in ED 52 of after years of lobbying, the NYSUT, we are the leading enactment of legislation providing for advocates for action by the NYS the 100% reimbursement of Legislature in seeking to provide Medicare Part “B” payments to Inflation Protection Equity for those municipal employees by the City. retirees who opted for one of the COMRO is now seeking to enhance optional retirement plans. Our the COLA component of municipal persistence was rewarded this year retiree pensions. when the Representative Assembly of NYSUT endorsed such action. Furthermore, several of our This is a complicated issue, and it members serve on the New York will take more years before a fruitful Central Labor Council, concerned equity conclusion is obtained. with labor issues pertaining to NYC.

The leading optional retirement plan We have representation on the adopted by our members is TIAA- Alliance of Retired Americans, and CREF. That organization, which is with its affiliates, NYSARA and now a public organization, has been NYCARA. This chapter was a experiencing a number of serious founding member of Rekindling problems recently. The TIAA sub- Reform, a leading voice in the committee of the Retirees Chapter movement to bring about a national has been holding separate meetings health care system. Our members where information is disseminated to also serve in the NYSAAUP. interested members as to how to cope with some of the problems they All told, the Retirees Chapter spent a may be facing in dealing with TIAA. very interesting and fruitful year.

3 THE JUNE 11 RETIREES they gathered in the auditorium for CHAPTER MEETING: During our the Israel Kugler Memorial Program. abbreviated June 11 meeting, held prior to the Israel Kugler Memorial A CELEBRATION OF THE LIFE OF Program, a question was raised ISRAEL KUGLER: regarding the solvency of the PSC- CUNY Welfare Fund. A related item in this Newsletter will address that issue.

The retirees were called upon by Jim Perlstein, Vice-Chairman of the Chapter, to bring to the attention of the Program Committee suggestions for future programs and activities at our meetings, or for outside events. He may be reached at the PSC office, or by E-Mail at: [email protected].

In a memorial program, held at the The attendees were also informed by Graduate Center, on the afternoon of Clarissa Gilbert Weiss, PSC Pension June 11, many former colleagues, and Benefits Officer that, at the family members, trade unionists, conclusion of our first meeting in the Workmen’s Circle representatives, new academic year, on October 6, and a substantial number of attendees will be separated into two members of the PSC, and its groups: those under the TRS Retirees Chapter, came to pay pension system, and those under homage to the memory of Israel TIAA pensions. Representatives Kugler(1917-2007), a pioneer in from both organizations will explain higher education unionization. new fund choices which are now Speaking about the various major available to retirees. I am certain activities of Israel Kugler were: Irwin that those sessions will be very well Yellowitz on the creation of the attended. United Federation of College

Teachers in 1963, and its merger Irwin Yellowitz, President of NYSUT with the Legislative Conference in Retiree Councils 37 and 38, provided 1972 in forming the Professional an overview of the work of the two Staff Congress; Irwin Polishook, councils. He remarked about the President Emeritus of the PSC, and activities our members had engaged Barbara Bowen, President of the in as part of Councils 37 and 38. PSC, spoke of Kugler’s active role in

the union from the time of its Following the meeting, our members inception until declining health moved into the lobby for a buffet intervened. Other speakers luncheon catered by Restaurant included, Peter Pepper, Workmen’s Associates. Immediately afterward, Circle President; Arieh Lebowitz,

4 representing the Jewish Labor Committee; Jerry Grayson, former colleague at the New York City College of Technology and, speaking for the Kugler family, Phil Kugler, son of Israel Kugler, and currently AFT Assistant to the President for Organizing and Field Services.

The program also provided a documentary film depicting Israel Kugler’s many years of active unionizing. It was introduced by Albert Sherman, Chair of the College Laboratory Technician’s Chapter, PSC.

A reception concluded the Memorial program.

A DISTINGUISHED AWARD: Dr. David Kotelchuck, a member of the Retiree Chapter’s Executive Committee, and a Trustee on the PSC/CUNY Welfare Fund, has been informed that he is to receive a Distinguished Award. He was notified that:

On behalf of the Occupational Health and Safety Section of the American Public Health Association, I am pleased to notify you that you have been selected as the 2008 recipient of the Alice Hamilton Award, an award recognizing the life-long contributions of individuals who have distinguished themselves through a career of hard work and dedication to improve the lives of workers. Congratulations!

We, too, offer David Kotelchuck our heartiest congratulations. ------WELFARE FUND FINANCIAL POSITION CLARIFIED:

By David Kotelchuck, with assistance from Larry Morgan

At the June 11 Retirees meeting a on to state that lack of attention to question was raised regarding a flyer the Welfare Fund by its trustees may that was recently distributed by a result in loss of valuable benefits. retiree candidate for Alternate Delegate to the PSC Delegate As the Retiree Trustee on the Assembly. The flyer claimed that a Welfare Fund Board, David NY State audit had found the PSC- Kotelchuck, noted that the data CUNY Welfare Fund “on the referenced was from an audit three economic endangered list”. It went years old and that a series of

5 measures taken since that time has capita increases, unique flat increased accumulated reserves payment contributions by CUNY and from under $4 million to over $37 a large lump-sum settlement that million at present. added over $32 million to the reserves. Successful investment Larry Morgan, Executive Director of strategies have brought in over 6% the Fund, who had previously been returns on these accumulated invited to speak on the status of the reserves. Fund, reported briefly: The “audit” on which the endangered status Projections of reserves at the end of designation was based was not an FY 2008 (6/30/2008) show $37.5 audit at all, but a compilation of million, the largest reserve fund in audited financial statements the Welfare Fund’s history. provided to the City Comptroller by Insolvency is not an immediate each of the 116 “union-administered” concern. funds which has a collective bargaining agreement with the City These extra funds have been used of New York. One of these was the to improve benefits. Thus benefits PSC Welfare Fund, which provides are not in danger. such documents annually, as required by law. The title of the document is Analysis of the Financial QUEST, A COMMUNITY FOR and Operating Practices of Union- LIFELONG LEARNING, in its13th Administered Benefit Funds with year, invites retired and semi-retired Fiscal Years Ending in Calendar CUNY faculty and staff to join the Year 2005. (Our emphasis – DK) best Peer Learning group in New The accompanying cover letter for York City. Here's a chance to the document is dated December 28, create, lead and participate in your 2007. choice of over 30 stimulating courses in a friendly intellectual and social On June 30, 2005 the Welfare Fund environment. Quest is affiliated with had a reserve of $3.74 million with a CCNY's Division of Worker projected operating deficit in FY Education, located at 25 Broadway. 2006 of $4 million. The Plan For details about our upcoming open Trustees were paying very close house, please visit Quest’s website: attention and the Union leadership www.questonline.org was able successfully to bargain per ------KAPLAN REPORT JUNE 2008: Seniors and the High Cost of Prescription Drugs: By Lawrence J. Kaplan

It’s no secret that people today are living longer than ever before. Unfortunately, however, the aging process often brings with it chronic illnesses, such as heart disease, high blood pressure, high cholesterol, and an endless list of other ailments.

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While advances in medical technology and the discovery and manufacture of effective pharmaceuticals have made longevity possible, the downside is that the cost of these prescription drugs has become prohibitive.

Health care spending increases significantly every year. In 2006, health care spending reached a new high, $2.1 trillion, over 2005, when it was $2.0 trillion. A major factor in the increase was prescription drug spending which rose sharply to $216.7 billion, up 8.5 percent over 2005. The prescription drug companies have been charging higher prices, and earning exorbitant prices. These profits and high administrative costs are mainly responsible.

Sharon L. Davis, a budget analyst for the U.S. Department of Commerce, decided to find out “how much profit drug companies really make.” She obtained “the actual price of active ingredients for the most popular U.S. drugs.” A sample of five drugs are analyzed in the attached table

Drug companies have the largest lobby in Washington, with more lobbyists than elected representatives in Congress, and they contribute heavily to political campaigns. The industry is primarily engaged in generating profits, but with a determined public, real reform could happen. For example, by assigning the prescription drug program to the non-profit, efficient Medicare program, where administrative costs are under 3 percent, not 30 percent as in private companies, and by giving Medicare the legal authority to negotiate prescription drug prices, a power which it does not now possess, drug prices could be considerably reduced.

Seniors today must often choose between food and necessary prescription drugs. This is a sad reflection on the industry which today is so powerful politically that the drug company lobbyists have stalled legislation which would make cheaper generic drugs readily available, saving the American public billions of dollars. The achievement of Universal Health Care, such as Medicare For All (HR676), would help significantly in solving this problem. June 2008

See chart on next page►►

7 Markups of Selected Prescription Drug Prices

Consumer Cost of Drug Price Active Price (100 tablets) Ingredients Markup

Celebrex (100 MG) $130.27 $0.60 21,712% (Arthritis)

Claritin (10 MG) $215.17 $0.71 30,306% (Allergies)

Keflex (250 MG) $157.39 $1.88 8,372% (Antibiotic)

Lipitor (20 MG) $272.37 $5.80 4,696% (Cholesterol)

Norvasc (20 MG) $188.29 $0.14 134,493% (Blood pressure)

Source: Sharon L. Davis, Budget Analyst, U.S. Department of Commerce, published in the News Letter, January 2008 Issue, of the Long Island Coalition for a National Health Plan, Box 382, Hicksville, NY 11802-0382.

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