may 2014 state council actions - csu-erfsa

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Publication of the California State University Emeritus and Retired Faculty Association http://www.csuerfa.org Inside this issue: State Council Actions 1 Modification of Proposition 13 - the Proverbial “Cold Day in Hell?” 1 From the President 2 Letter to the Editor: Another View of the State Council Resolution on the Community College BA 3 Quotable on Online Education 3 Pre and Post-Retirement: The Public Employees Pension Reform Act 4 CSU-ERFA Research Grants 4 Health Benefits Report: LTC and Drug Cost Containment 5 Frugal Ferper - Summer is Here - Minimize Air Travel Hassles 6 PPIC Study of Online Courses Shows Completion Problems 6 ASCSU Report: “Double Trouble at the May Plenary” 7 Legislative Report: Legislation, the State Political Scene 8 LAO’s Recommendations on California’s Long-Term Debt and Liabilities 8 Did Your May Check Go Down? 9 Controversial Issues Already On November Ballot 11 CSU-ERFA Foundation Challenge Grant Successfully Matched 11 May 2014 The CSU-ERFA state council met on Saturday, April 26, 2014 at Cal Poly Pomona’s Kellogg Center. Highlights of the meeting included the contest between Harold Goldwhite and Barry Pasternack for election as the retiree member of the statewide academic senate, honoring Don and Beverly Gerth for having the CSU Archives named after them, and concur- rence with the statewide senate’s position on community college BA degrees. Don Gerth (former president at both CSU Dominguez Hills and CSU Sacramento) and his wife Beverly were honored at CSU Dominguez Hills on May 2nd on the occa- sion of the dedication of the CSU Archives in their names. Prof. Judd Grenier of Dominguez Hills authored a resolution, unanimously approved by the council, con- gratulating Bev and Don for this signal honor. Both Don and Bev were present at the council meeting, of which Don is a member. Barry Pasternack (Fullerton) and Harold Goldwhite (LA) were candidates for the post of retiree member of the statewide academic senate. The selection committee could not decide between these two highly qualified candidates and recommended that the choice be put to the state council for a vote. Goldwhite, the incumbent, has served us well in this post since 2008. Pasternack, the challenger, has recently retired and offered his credentials to the committee. Each seemed eminently quali- fied. Pasternack was elected by a narrow (Continued on page 10) Proposition 13 Might Be Modified (!) - Is It the Proverbial “Cold Day in Hell”? Assemblyman Brian Nestande (R-Palm Desert) got it right: “It must be a cold day in hell. The cow jumped over the moon. And pigs are flying somewhere.” The reason? The Howard Jarvis Taxpayers Association and its leader, Jon Coupal, known for its opposition to any changes to 1978’s Proposition 13, let it be known in mid-May that it would not be opposed to a bill that would modify Prop. 13 to close a loophole through which many companies have avoided paying the higher property tax seemingly necessitated when property changes hands. In this case, it is commercial property, and the precipitating incident seems to be Michael Dell’s purchase of Santa Monica’s Fairmont Miramar Hotel, with the new owners dividing ownership shares among his wife and two business partners so that no one of them owned more than 49% of the property. Under the existing rules, no reassessment is triggered in those circumstances, which saved Dell about $1 million a year in prop- erty taxes. Assemblyman Tom Ammiano (D-SF), coauthor of AB 2372, said that “This particular loophole really pushed a button in people.” Supporting the general notion of modify- ing Proposition 13 was the Field Poll’s release in April 2014 of a California Opinion Index regarding changes in the proposition. About half (49%) of the voters surveyed said that they generally support- ed changing parts of Prop. 13, while 34% were opposed. By a 69% to 17% margin, the voters supported changing the (Continued on page 9) State Council Actions By Alan Wade, Legislative Chair

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Page 1: May 2014 State Council Actions - CSU-ERFSA

Publication of the California StateUniversity Emeritus and Retired

Faculty Associationhttp://www.csuerfa.org

Inside this issue:State Council Actions 1

Modification of Proposition 13 - theProverbial “Cold Day in Hell?” 1

From the President 2

Letter to the Editor: Another View ofthe State Council Resolution on theCommunity College BA 3

Quotable on Online Education 3

Pre and Post-Retirement: The PublicEmployees Pension Reform Act 4

CSU-ERFA Research Grants 4

Health Benefits Report: LTC andDrug Cost Containment 5

Frugal Ferper - Summer is Here -Minimize Air Travel Hassles 6

PPIC Study of Online Courses ShowsCompletion Problems 6

ASCSU Report: “Double Trouble atthe May Plenary” 7

Legislative Report: Legislation, theState Political Scene 8

LAO’s Recommendations onCalifornia’s Long-Term Debt andLiabilities 8

Did Your May Check Go Down? 9

Controversial Issues Already OnNovember Ballot 11

CSU-ERFA Foundation ChallengeGrant Successfully Matched 11

May 2014

The CSU-ERFA state council met onSaturday, April 26, 2014 at Cal PolyPomona’s Kellogg Center. Highlights ofthe meeting included the contest betweenHarold Goldwhite and Barry Pasternackfor election as the retiree member of thestatewide academic senate, honoring Donand Beverly Gerth for having the CSUArchives named after them, and concur-rence with the statewide senate’s positionon community college BA degrees.

Don Gerth (former president at both CSUDominguez Hills and CSU Sacramento)and his wife Beverly were honored at CSUDominguez Hills on May 2nd on the occa-sion of the dedication of the CSU Archivesin their names. Prof. Judd Grenier ofDominguez Hills authored a resolution,unanimously approved by the council, con-

gratulating Bev and Don for this signalhonor. Both Don and Bev were present atthe council meeting, of which Don is amember.Barry Pasternack (Fullerton) and HaroldGoldwhite (LA) were candidates for thepost of retiree member of the statewideacademic senate. The selection committeecould not decide between these two highlyqualified candidates and recommendedthat the choice be put to the state councilfor a vote. Goldwhite, the incumbent, hasserved us well in this post since 2008.Pasternack, the challenger, has recentlyretired and offered his credentials to thecommittee. Each seemed eminently quali-fied. Pasternack was elected by a narrow

(Continued on page 10)

Proposition 13 Might Be Modified (!) - Is It the Proverbial “Cold Day in Hell”?Assemblyman Brian Nestande (R-PalmDesert) got it right: “It must be a cold dayin hell. The cow jumped over the moon.And pigs are flying somewhere.”

The reason? The Howard Jarvis TaxpayersAssociation and its leader, Jon Coupal,known for its opposition to any changes to1978’s Proposition 13, let it be known inmid-May that it would not be opposed to abill that would modify Prop. 13 to close aloophole through which many companieshave avoided paying the higher propertytax seemingly necessitated when propertychanges hands.

In this case, it is commercial property, andthe precipitating incident seems to beMichael Dell’s purchase of Santa Monica’sFairmont Miramar Hotel, with the newowners dividing ownership shares amonghis wife and two business partners so that

no one of them owned more than 49% ofthe property.

Under the existing rules, no reassessmentis triggered in those circumstances, whichsaved Dell about $1 million a year in prop-erty taxes. Assemblyman Tom Ammiano(D-SF), coauthor of AB 2372, said that“This particular loophole really pushed abutton in people.” Supporting the general notion of modify-ing Proposition 13 was the Field Poll’srelease in April 2014 of a CaliforniaOpinion Index regarding changes in theproposition. About half (49%) of the voterssurveyed said that they generally support-ed changing parts of Prop. 13, while 34%were opposed. By a 69% to 17% margin,the voters supported changing the

(Continued on page 9)

State Council ActionsBy Alan Wade, Legislative Chair

Page 2: May 2014 State Council Actions - CSU-ERFSA

CSU-Emeritus andRetired Faculty Association

www.csuerfa.orgExecutive Committee

2013-2014Barbara Sinclair (LA) PresidentWilliam Blischke (DH)Vice PresidentRita Jones (Long Beach) SecretaryHarry Sharp (SLO) TreasurerMark Shapiro (Fullerton) WebmasterH. Dieter Renning (Stanislaus)

Past PresidentAlan Wade (Sacramento) At largeBarry Pasternack (FU) At largeHarold Goldwhite (LA) At largeDavid Wagner (Sacramento) At largeTed Anagnoson (LA) Reporter Editor Donald Cameron (Northridge)

Executive Director

Committee ChairsSally Hurtado de Lopez (Sonoma)

Grant AwardsAlan Wade (Sacramento)

Legislative AffairsDavid Wagner (Sacramento)

Health BenefitsEdward Aubert (Stanislaus)

Membership Thomas Donahue (San Diego)

Pre- and Post-RetirementTed Anagnoson (LA) Publications

ArchivistJudson Grenier (Dominguez Hills)

LiaisonsHarold Goldwhite (LA) CFAWilliam Blischke (DH)

CSU Academic Senate

Administrative StaffLinda Zimmerman, Office ManagerShaun Park, Admin. Assistant

The Retiree Center18111 Nord hoff Street Northridge

CA 91330-8339Phone: (818) 677-6522Fax: (818) 677-6511Email: [email protected] site: www.csuerfa.org

The Reporter welcomes submis-sions by members of CSU-ERFA orother appropriate individuals ofadvertisements for academically ori-ented materials or services, to beprinted at the discretion of the edi-tor.

CSU-ERFA Reporter May 20142

service needs as well as general day-to-dayliving. The question is whether or not theeconomy will be able to support increasedfunding by these plans as the older popu-lation increases and their financial needsescalate.

Alzheimer’s Disease. One of the mostinteresting papers that I heard involvedAlzheimer’s disease. This tragic conditionis becoming more prevalent and thus fardoes not have a cure. It was suggestedthat the condition resulted from a varietyof imbalances occurring in the brain, espe-cially at synaptic connections, and there-fore, multiple treatments as opposed toone medication are necessary. Continuedresearch will be worthwhile to review.

Fall Prevention. Better planning andimplementation of programs and methodsto prevent physical harm to older adults isbeing implemented. Fall prevention is agood example, as one in three individualsover the age of 65 will fall and of thosewho do, one in three will fall again. A number of specific actions are being rec-ommended for seniors to maintain orincrease both their physical and intellectu-al abilities. Many are encouraged to volun-teer by sharing their skills with others, toutilize creative learning sessions includingmusic- and art-based approaches to mean-ingful activities and to frequently interactwith others at various programs and sites.

Policy improvements are being implement-ed as data involving research, education,and advocacy become more available. Weare even seeing the potential for anotherWhite House Conference on Aging, per-haps in 2015. If you have the opportunity, I wouldstrongly urge you to attend conferencesregarding older populations. The informa-tion is truly interesting and certainlyappropriate to all of us. Best wishes,

BarbaraBarbara P. Sinclair,

President, CSU-ERFA

From the President...Dear Colleagues,

State Council. Our State Council meet-ing was recently held at Cal Poly Pomonaand covered a great deal of organizationalbusiness. Once again, our officers, execu-tive director, and committee chairs did agrand job in reporting information regard-ing the work accomplished by themselvesand their groups. I thank all of these indi-viduals, as their efforts result in the workneeded to keep CSU-ERFA viable. Also, Ithank all of the members of the council asthey did a super job in discussing issuesand helping to conclude necessary busi-ness in a positive manner.

Honoring Don and Beverly Gerth. Ofspecial interest was our archivist JuddGrenier’s resolution regarding the congrat-ulations to be offered to Dr. Donald Gerthand his wife Beverly for having theCSUDH Archives and Special CollectionsDepartment named in their honor. Theresolution was passed unanimously.Fortunately, I was able to attend the for-mal dedication at Dominguez Hills andwas greatly impressed with the recogni-tion ceremony and the outstandingarchives locale in an upper floor wing ofthe library.

Conferences. Since my last column, I’vehad the opportunity to attend several con-ferences on older populations. I am quitetaken with all of the information that isbeing presented, especially on the futureof aging, and since we fall into the catego-ry, I thought I would share just a fewareas with you. One of the greatestadvances in our history is the significantgrowth of life expectancy and the fact thatbeing old does not necessarily mean beingfrail. Even seniors over the age of 85 farexceed society’s expectations, not only inphysical well-being but also in the mainte-nance of cognitive skills and emotionalinteractions (hopefully, these speak wellfor all of us). Options for individuals who are aging intheir communities are also improving.Maintaining and living full time in one’shome, or utilizing adult day care services,or moving into an independent or assistedliving facility can be positive for older pop-ulations. Consideration of health and well-ness is a must and Social Security,Medicare and Medi-Cal are imperatives assignificant numbers of seniors need finan-cial support and assistance to meet health

Page 3: May 2014 State Council Actions - CSU-ERFSA

CSU-ERFA Reporter May 2014 3

Letter to the Editor: Another View of the State CouncilResolution on the Community College BAAt the recent CSU-ERFA state council meeting, the group wasasked to affirm the statewide academic senate resolution con-cerning the implementation of community college baccalaureatedegrees that had been passed by the ASCSU unanimously.Because I am totally opposed to the implementation of communi-ty college baccalaureate degrees, for the reasons cited below, Icould not vote yea in support of the resolution.The bill in question, SB 850, if passed and signed by theGovernor, would give the Board of Governors (BOG) of theCalifornia Community Colleges (CCC) authorization to establishbaccalaureate degree pilot programs at up to 20 community col-lege districts in direct opposition to current law that differenti-ates the missions and functions of both public and independentinstitutions of higher education. Although the bill presently stip-ulates that the CSU and UC must be consulted, the actual imple-mentation requires only approval by the CCC BOG. The ASCSUresolution expresses concern for the legislation and puts forthfour stipulations as to its implementation. By doing this, the res-olution as written, for me, does not oppose the formulation of theprogram; rather, it defines its possibilities. Such a stance iscounter to the mission of the state university system and isanother instance of the degradation of higher education asdefined by the master plan.A new report from the University of Pennsylvania Institute forResearch and Higher Education, From Master Plan to Mediocrity:Higher Education Performance & Policy in California (GraduateSchool of Education, April 2014) notes, “Despite the transfer mis-sion of California community colleges set out by the Master Plan,completion and transfer rates at two-year institutions are belowthe national average.” I question how the addition of baccalaure-ate degree programs at these institutions will overcome the dis-mal completion and transfer rates that presently exist.

The analysis of SB 850 (Bill Analysis, Senate Committee onEducation, April, 2014) notes as a need for this legislation thatthe state must increase the number of Californian four yeardegree graduates substantially by 2025 but does not describe thewell-documented current history of underfunding of higher edu-cation in general and CSU funding in particular. The analysisalso explains that there are presently several collaborative effortsby community colleges and CSU campuses to respond to the

work-force needs. Although these are enumerated in the analysis,there are no completion or success data showing that the pro-grams are successful, nor is funding explained. The analysis doespose some questions for the Senate Committee concerning otheroptions: (a) Should additional funding be provided to public baccalaureatedegree-granting institutions to increase the number of degreeslots available in high demand areas? (b) Should the process for developing collaborative efforts toaddress workforce needs be modified to facilitate greater prolifer-ation of these programs? (c) Should a community college be required to demonstrate thatexisting avenues for partnering with other institutions are notpossible or viable before seeking authorization to offer a BAdegree?

Yet the bill itself without considering any of the above optionspassed the senate education committee unanimously.

I agree with the author of the legislative analysis when he/shestates, “This bill proposes a broad departure from the differentia-tion of mission established by the Master Plan and by statestatute. Prior authorizations to depart from these differentiatedmissions have been much more limited in scope. Additionally, theCPEC no longer exists to provide an independent review, evalua-tion and recommendations regarding a college’s proposal for newbaccalaureate degree programs.” The resolution passed by the ASCSU and affirmed by the CSU-ERFA state council is focused on what specific steps should beincluded in the program offered in SB850, not on what the resultof its passage will mean to the CSU. For this and all the otherreasons stated above, I could not vote to affirm ASCSUResolution AS-363-1k/AA(Rev). Dr. Leni CookEmerita ProfessorCollege of EducationCSU Dominguez HillsCSUDH Emeritus Faculty Association Representative to the ERFA State Council.

Quotable on Online EducationPresident of the University of California Janet Napolitano, talk-ing in March to Mark Baldassare, president of the Public PolicyInstitute of California: “I think there’s a developing consensusthat online learning is a tool for the tool box, where higher edu-cation is concerned; that it is not a silver bullet the way it wasoriginally portrayed to be. It’s a lot harder than it looks. And, bythe way, if you do it right, it doesn’t save all that much money,because you still have to have an opportunity for students tointeract with either a teaching assistant or an assistant profes-sor or professor at some level. And preparing the courses, ifthey’re really going to be top-quality, is an investment as well.”

“Early on, the notion was you could use online learning to helpstudents who were getting started, for remedial English or math,to be up to speed. I think that’s false. I think those students needthe teacher in the classroom working with them. I think whereonline learning will turn out to be the most useful is to comple-ment the upper-division coursework that we have.”

In contrast, Governor Brown quoted at a January 2014 regentsmeeting: “If this university can probe into" black holes, he said,"can't somebody create a course — Spanish, calculus, whatever —totally online? That seems to me less complicated than that tele-scope you were talking about.”

Page 4: May 2014 State Council Actions - CSU-ERFSA

CSU-ERFA Reporter May 20144

and $132,000 for those without SocialSecurity, increasing as the Social Securitymaximum annual worker contributionincreases in future years.”

Lawsuits Filed in Reaction. This actproduces a substantive and basic changein the provision of pensions for stateemployees, and the immediate reactiontook the form of lawsuits by the state'stransit workers, and by employees inMerced, Alameda, Marin, and ContraCosta counties. These suits allege unfairlabor practices through conflicts with con-tracts previously negotiated and overlap-ping with the PEPRA start-up date. Thefederal Department of Labor agreed withthe plaintiffs. CalPERS and the state gov-ernment have been trying hastily to patchup these matters in recent months.

CalPERS at this point supports PEPRA,apparently comfortable with a system thatrequires the future managing of anothertier of revenue and investment practices.

The Effects. What is not clear is theeffect of this act on highly compensatedCSU executives: those involved in allocat-ing resources and in the management of

Q. What has been going on since GovernorBrown signed the Public Employees’Pension Reform Act (PEPRA) in early2013?

A. PEPRA evolved in response to pub-lic criticism of public employee pen-sions in recent years. It was designed toproduce a savings of $22.7 billion forCalSTRS and between $42 billion and $55billion for CalPERS over the next 30years. According to Audrey Wall at the Council ofState Governments Knowledge Center, forall persons hired under these retirementsystems: “PEPRA increases minimumretirement ages and establishes a single,less generous, basic safety (police and fire-fighter) formula, along with two slightlymore generous optional safety formulas,and a single non-safety formula, applica-ble to all employees hired on or after Jan.1, 2013. It increases contributions formany employees, including all new stateemployees, to 50 percent of the actuarialnormal cost of the benefit. For newemployees, the annual pay used to calcu-late benefits will be capped, initially at$110,000 for workers in Social Security

Pre and Post-Retirement Report: The Public Employees Pension Reform ActBy Tom Donahue, Chair, Pre- and Post-Retirement Commitee

budgets (read: in the 15 hour a day, tachy-cardia rooms here and there across thecampuses.) It may be presumed that thosepersons will have to learn the skills of per-sonally managing 403(b) funds, perhapswith the advice from favored outsideinvestment institutions on the CSU sys-tem level, or perhaps instead on the localcampus level. It may also be presumedthat our executives will require consider-ably higher salaries than those theyreceive now.

An Executive Revolving Door? Some ofus fear that there may be a new, revolv-ing-door ethic in the CSU, where capableexecutives will spend seven to ten yearswith us and then move on to positions inother states where they may have achance at an additional or different kind ofretirement support.

The Likely Outcome. But consider this:those at the state council meeting who areinformed about these issues believe thathighly paid CSU executives in the futurewill have their pay split into two parts.The first $110,000 will be paid from statefunds and will be subject to both SocialSecurity and a CalPERS defined benefitpension. Everything above that will bepaid through the university foundationswhere there will be a different retirementscheme, probably like a 457 or 401(k), theway that many coaches are paid at pres-ent. Furthermore, we shouldn’t worry thatexperienced and wiser people might notcome here. The CSU is attractive to new-comers in their fifties because they knowthat after a brief period here, they willhave excellent health care for the rest oftheir lives. The committee feels that these will be themost likely outcomes for PEPRA.Please send questions for this column to:Tom Donahue [email protected].

CSU-ERFA Grant Cycle 2014-2015The CSU-ERFA Foundation is accepting grant proposals beginning May 19,

2014.Research grant deadline is December 19, 2014. Awards will be announced in February, 2015

Who?CSU-ERFA retired faculty and staff members pursuing scholarly research, creative

projects, and publications. (Not a member? You can become one at the time of application.)

What?Grants up to a total of $4,000 for the current 2014-2015 grant cycle

Grant applications, guidelines, submission information, and end-of-year report formsmay be downloaded from the CSU-ERFA website at http://www.csuerfa.org, or

obtained from the CSU-ERFA office for more information at (818) 677 6522.You mayalso contact Sally Hurtado de Lopez at [email protected].

We welcome tax-deductible contributions to the CSU-ERFA Foundation.You can now donate monthly. See www.csuerfa.org for more information.

The CSU-ERFA Foundation is a 501(c)(3) charitable organization.

Page 5: May 2014 State Council Actions - CSU-ERFSA

CSU-ERFA Reporter May 2014 5

Long-Term Care Insurance. Those whostill maintain CalPERS long term careinsurance with coverage including lifetimebenefits and/or built-in inflation protectionwere again notified of the five percent pre-mium increase for 2014. In 2015 there willbe an additional 85 percent premiumincrease spread over two years. These increases were announced last yearand policy holders were given a number ofoptions in 2013 and again in 2014 to avoidor reduce premium increases. If you select-ed one of these options by the announceddeadline of May 9, 2014, coverage andyour new premium amount become effec-tive July 1, 2014. If you did not respond byMay 9th you will continue to be enrolledin your current plan. However, you will begiven an opportunity next year to selectoptions which will reduce your benefit cov-erage and reduce the 2015 rate increase.This is the second year that options havebeen presented to policy holders to avoidsignificant rate increases which are target-ed for 2015. Past issues of The Reporterhave commented on the general topic ofCalPERS long-term care insurance and onthe options, first presented in 2013, toreduce or eliminate premium increases byreducing benefit coverage. CalPERSreported that during last year’s selectionperiod 28 percent of policy holders withopen-ended policies, or about 16,000 mem-bers, migrated to less expensive coverageoptions.

LTC Lawsuit. Some readers may wonderabout the status of a lawsuit filed againstCalPERS on August 6, 2013 by some LTCpolicyholders. It alleges that CalPERSintentionally misled policy holders aboutfuture rate increases. The plaintiffs seekclass action status for their suit and arescinding of the announced 85 percentrate increase. The case is still pending inLos Angeles Superior Court. Argumentson whether the lawsuit may continue totrial are scheduled for May 21, 2014.

Cost Containment: Specialty Drugs.CalPERS continues efforts to reduce thecosts of specialty prescription drug servic-es. There are two staff proposals underconsideration for implementation in 2015

with the goal of reducing specialty drugcosts for prescriptions under PPO basicplans. The first proposal would initiate areview of site of care for delivery of certaindrugs. This would be accomplished,CalPERS staff note, by directing the mem-ber “to a lower-cost, clinically appropriatesite of care and or channel of dispensing.”For example, home infusion may be appro-priate rather than at an outpatient facili-ty. If adopted this type of program wouldimpact 390 current CalPERS members. Asecond proposal would expand the AnthemBlue Cross list of specialty drugs requiringprecertification prior to prescribing.

Cost Containment: Generic Drugs.CalPERS staff is proposing two mutuallyexclusive options whichfocus on those whoreceive outpatient pre-scription drug benefitsmanaged by CVSCaremark. If approved,implementation wouldoccur in 2015. The goal isto provide members withgeneric alternatives tobrand drugs when clini-cally appropriate in 15drug classes Over 17,000CalPERS members wouldbe impacted by this proposal. The follow-ing information is a summary of the staffproposal presented to the CalPERS pen-sion and health benefits committee onApril 15, 2014.

Option one is the CVS Caremark’shigh-performance generic-step thera-py that CalPERS staff explains wouldsteer members “to more cost-effective first-line generics and provides coverage for onepreferred select brand in some classes” ofdrugs. The retail pharmacy or mail ordercenter would alert the prescriber torequest a new prescription for a genericalternative. Dispensing a generic alterna-tive would require a new prescription. Ifthe prescriber determines that a generic isnot appropriate the prescriber can call theprior-authorization department to requesta medical-necessity clinical-exceptionreview. If no generic claim is processedwithin 72 hours of a brand claim rejection,the member and the prescriber will be

notified of the alternatives and optionsavailable.

Option two, targeted brand fourthtier copay, is similar to the “member-pays-the-difference” program. When theretail or CVS Caremark mail servicereceives a prescription request for a branddrug in one of the identified 15 drug class-es where an approved generic is available,the prescription for the brand drug will befilled. The member then has a choice: topay a higher copayment or have the phar-macist contact the prescriber for a newprescription for the lower cost generic. Aswith the first option the prescriber maycall the prior authorization department torequest a review. The proposed cost for

this fourth-tier copay is$125 for up to a 30 daysupply at retail or $250for up to a 90 day supplyby mail.

The estimated annualsavings in adoptingeither alternative issix million dollars.Both plans would requirelarge-scale coordinatedcommunication cam-paigns directed at both

prescribers and members. Concerns wereexpressed in April at both the CalPERSstakeholder engagement meeting and atthe pension and health benefits committeeabout both options. Public comments, par-ticularly early feedback from organizationsrepresenting retirees, stressed that shouldeither option be approved special effortsmust be made to provide information tomembers subject to these changes wellbefore the implementation deadline. Wewill follow the progress of these proposedchanges with great interest and offer sug-gestions to promote prescriber-patient con-versations with pharmacists before anoption becomes policy. Otherwise there isdanger that members will face possibledelays in receiving medication or payinghigher prices.

Health Benefits: LTC Insurance Options and CalPERSDevelopment of Drug Cost Containment Options By David Wagner, CSU-ERFA Health Benefits Director

CalPERS reports thatduring last year’s selec-tion period 28 percent oflong-term care policy

holders with open-endedpolicies, or about 16,000members, migrated toless expensive coverage

options.

Page 6: May 2014 State Council Actions - CSU-ERFSA

CSU-ERFA Reporter May 20146

As we approach the summer months manyof us may be contemplating a trip involv-ing an airplane. I longingly think back tothe days when you could get to your gatewithout having to remove your shoes, belt,and computer and, once you got on the air-plane had a chance to be served a hotmeal. Well, unless you are flying overseasor business or first class domestically, get-ting served a hot meal is, at best, a distantmemory. However, while your food choicesmay be limited, you can get through secu-rity without the need to partially disrobeand remove your computer and small liq-uid bottles from your carryon bag.

Be a “Trusted Traveler.” The govern-ment has two programs which, for a fee,will certify that you are a “trusted travel-er” who does not warrant detailed screen-ing. These programs are TSA Precheck(see http://www.tsa.gov/tsa-precheck) andGlobal Entry (see http://www.cbp.gov/glob-al-entry/about). While neither program isfree, the nominal annual cost may beworth it considering the hassles oneavoids.

TSA Precheck. TSA Precheck is a domes-tic program (but includes Canada) whichallows one to enter a separate line forscreening that does not require the normal“disrobing” and removing items to bechecked separately. While originally onehad to be invited to join TSA Precheck byan airline, now anyone who meets the eli-gibility requirements may apply. Theapplication fee is $85, but this is good for afive year period, so in effect, one is payingonly $17 per year. What one gets for thisis a Known Traveler Number (KTN) whichyou can give to your airline so that yourboarding pass will show that you areenrolled in this program. While not all aircarriers participate in TSA Precheck, thefollowing currently do so: Air Canada,

Alaska Airlines, American Airlines, DeltaAir Lines, Hawaiian Airlines, JetBlueAirways, Southwest Airlines, UnitedAirlines, US Airways, and Virgin America.One can apply online, but once the appli-cation is accepted, a visit to an applicationcenter (there are currently over 250 suchcenters) to be fingerprinted and presentvalid required identity documentation isrequired.

Global Entry. Anyone who has returnedto the US after a ten-hour or more planeride from overseas knows the challenge ofwaiting in line for an hour just to getthrough customs. One way to avoid this isto participate in Global Entry. Accordingto its website, Global Entry “is a U.S.Customs and Border Protection (CBP) pro-gram that allows expedited clearance forpre-approved, low-risk travelers uponarrival in the United States.”

At select airports, participants avoid thenormal customs line and go instead toGlobal Entry kiosks where they present amachine readable U.S. passport, placetheir fingertips on a reader, and make acustoms declaration. The kiosk issues atransaction receipt and, upon its receipt,the passenger goes directly to baggageclaim and then the exit. According to theGlobal Entry website, members may alsoget expedited entry in other countries.

The Trusted Traveler Card.Participants in Global Entry receive aTrusted Traveler card which can also beused in lieu of a passport for land or seatravel to Canada and Mexico. The fee forGlobal Entry is $100 for five years andsome high-end credit cards will reimbursethis fee (seehttp://thepointsguy.com/2013/08/1-things-you-didnt-know-about-global-entry/ formore information). One thing that is not

Summer is Nearly Here - Minimize Air Travel Hassles By Barry Pasternack, CSU Fullerton, The "Frugal Ferper”

made clear on the websites is that partici-pants in Global Entry are automaticallyentered into TSA Precheck, so paying $100for five years of participation may be thebetter option (note that TSA Precheck is aTSA program while Global Entry is a USCustoms and Border Patrol program).

Other Programs. In addition to TSAPrecheck and Global Entry, there are anumber of other trusted traveler pro-grams. These include NEXUS, SENTRI,and FAST (for details seehttp://www.cbp.gov/travel/trusted-traveler-programs). Another point to note is thatone may find that one’s ticket will indicateTSA Precheck without having applied forthis. It seems that the TSA is doing this assort of a loss-leader in order to attractmore individuals to the program. Thishappened to me on a recent trip to Hawaiiwhere my wife, my sister, and my brother-in-law all received the TSA Precheck des-ignation while I had to go through the nor-mal screening process. Seeing that theygot through security about ten minutesfaster than I did persuaded me to apply.

Combatting Boredom. While the aboveprograms may help in getting throughsecurity and customs, there are invariablywaiting times associated with one’s trav-els. To pass the time, I typically bringnewspapers, magazines, or books to read.One inexpensive source of magazine sub-scriptions is DiscountMags.com (seehttp://www.discountmags.com/). Theyoften have annual magazine subscriptionson sale for $5 or less. To get informationon these deals, one needs to sign up fortheir newsletter (click on the sign-up linkon the right hand side of the top red ban-ner).Have a safe and enjoyable summer!

PPIC Study of Online Courses Shows Completion ProblemsA recently completed Public Policy Institute of California (PPIC)study shows that online course enrollment in California’sCommunity Colleges (CCC) has grown in the last 10 years, withnearly 20 percent of the students who took courses for credit tak-ing at least one on line in 2012. However, students are less likelyto complete an online course than a traditional course, and theyare less likely to complete an online course with a passing grade.The PPIC study, released in May 2014, is based on longitudinal

student and course level data from all 112 community colleges.

Online course enrollment at CCC—the nation’s largest postsec-ondary system—has increased by almost 1 million since 2002.Today the colleges offer more online courses for credit than anyother public higher education institution in the nation. Onlineparticipation has increased among each of the state’s largest

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In this age of captivating headlines andsound bites, I wanted to grab your atten-tion. Hopefully, I did! I was the doubletrouble at the May plenary session ofASCSU. I wore the CSU-ERFA liaison hatat both the March and May sessions andthe official, voting member hat of theretiree member of the ASCSU (sinceHarold Goldwhite was at a wedding inGreat Britain) during the May meeting.Barry Pasternack will assume that posi-tion at the September plenary.Here are the highlights of the March ple-nary meeting:

Emeritus Status for Lecturers. ASCSUpassed a resolution expressing support forthe inclusion of lecturers as eligible foremeritus status, with lecturers goingthrough the same campus processes, usingthe same criteria, as full-time faculty. Atthe Oct. 26th CSU-ERFA State Councilmeeting, we passed a motion encouragingour campuses to do so as well. At lastcount, sixteen already do and several oth-ers are in the process of adding these long-term contributors to our emeriti groups.

Community College BAs. The senatealso passed a resolution regarding thepending legislation in Sacramento to allowCalifornia community colleges to offer bac-calaureate degrees. ASCSU suggested cri-teria for approving such degrees include acost/benefit analysis, consultation withCSU and UC, provision of resources toCSU or UC to offer or expand such exist-ing degrees, and the assessment of theresources (e.g. faculty with doctorates,fully equipped labs, internship opportuni-ties, etc.) needed to offer the degrees atthe two-year institutions. It was very clearin the Senate that existing CSU programs,such as nursing, should be expanded inour system rather than duplicated at theCC’s. Once again, the CSU-ERFA statecouncil strongly supported this position.

Shared governance. There have been anumber of issues at CSU campuses regar-ding appointments by deans, provosts, vicepresidents and presidents of faculty toadministrative positions and to recruit-ment committees without consultationwith the local senate. There have alsobeen presidential appointments sans cam-pus visits. This has been justified by the

CO and BOT on the basis that it would bethe death-knell for presidents of other uni-versities who wanted to move to our sys-tem and were not selected. In effect, how-ever, the faculty, staff and students (otherthan the single representatives of eachgroup on the committee) do not get achance to meet and “grill” their futurecampus CEO. There were a number of other importantissues that were considered at the Mayplenary.

Harold Goldwhite. Harold, in hisabsence, was accorded an incredible andwell-deserved commendation that will beadded to our website. Please send himyour congratulations and reminiscences.

Chancellor White. In continuing con-trast to his predecessor, our currentChancellor has met with the Senate ateach plenary during his 16+ months inthat position. In all of these sessions, hegave a brief overview of academic, budget-ary and the other major issues facing theCSU. He has fielded very challengingquestions and answered them, not to allSenators’ satisfactions, at each of thesemeetings. The most important resolutions debated atthe May plenary included:

Discipline Councils. ASCSU recom-mended the creation of discipline councilsbeyond the few that already exist so thatfaculty can share program ideas with theircounterparts at other CSU campuses (AS-3167-14)

On-Line Course Modalities. This reso-lution addressed the crucial and rapidly-changing balance between face-to-faceclasses, on-line classes and varioushybrids (AS-3169-14)

Student Success Fees. Though some ofus feel that a fee by any name is makingthe CSU increasingly unaffordable, thestudents on some of our campuses havevoted to impose this on themselves. Thevery complex issues involved will be ana-lyzed if the task force recommended inthis resolution is created. I suggested thatCSU-ERFA be copied on it and that wehave the historical perspective on these

issues that might make us valuable addi-tions to the group.

Faculty Trustee Legislation. ASCSUcontinues to lobby for the passage of thelegislation that would avoid an empty fac-ulty trustee seat if the governor does notfill it when the incumbent’s term is up.

Eligibility of Lecturers for Research,Scholarship, and Creative Activity(RSCA) Awards. Another step in terms ofallowing lecturers to access funds and con-tribute to the campuses would formalizetheir eligibility for RSCA grants. AS-3173-14 was approved unanimously.

A closing personal note. I have enjoyedbeing your liaison for the last three years.It allows me to keep in touch with devel-opments in the system where I spentalmost half a century (I feel ancientexpressing it in that way). The followinghandwritten note was very moving. Itcame from members of the ASCSU execu-tive committee and said, “It’s been a truepleasure working with you this year. Weare SO glad you’ll be here next year asthere is so much more progressive work todo.” I look forward to continuing to workwith this impressive group of dedicatedand articulate faculty members and tostrengthening the role and involvement ofCSU-ERFA in the CSU.

ASCSU Report: “Double Trouble at the May Plenary”By Bill Blischke, CSU-ERFA Liaison to the ASCSU

Online Course Study(Continued from page 6)

ethnic groups, although participation isuneven across groups. It is much lower forLatino students, in part a reflection of thedigital divide. It is particularly high forAfrican Americans, a group underrepre-sented in California higher education. But online course success rates are lowerthan those for traditional courses. In 2012,60% of all students enrolled in onlinecourses completed them with a passinggrade—10% lower than the average suc-cess rate of 71% in traditional courses.After the researchers control for differ-ences among students and other factors,they find that those in online courses areat least 11% and as much as 14% less like-ly to successfully complete online com-pared with similar traditional classes.

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CSU-ERFA Reporter May 20148

Legislative Report: Legislation, the State Political SceneBy Alan Wade, Legislative Committee ChairThe challenge for your legislative chair isto sort through as much as he can absorbof the vast mash-up of information aboutCalifornia government to which all of ushave media access, and determine whatshould be CSU-ERFA’s priorities forthought and action. Here are some that Ithink deserve our attention.

Public Opinion. The public’s negativeview of the state legislature has hit a newlow as three Democratic senators havefallen from grace through criminal indict-ment. The name of one of them remains onthe ballot for Treasurer in the upcomingprimary. The two-thirds majority enjoyedby the Democrats for a few months hasdisappeared, at least temporarily forcingthe governor to deal with the Republicanson revenue issues. This is not necessarilya bad thing. Perhaps a bigger problem forthe legislature (remember when even thepress referred to legislators as “Solons” —“wise lawgivers”?) is what to do with thesurplus generated by the tax increasepassed by the voters (Proposition 30). Thegovernor is determined to take the fiscalprudence route and set it aside for a“rainy day,” while the “liberal” wing aversthat it is raining now and urges that thesurplus be spent to restore some of thesocial safety net that has unraveled inrecent years, along with expansion of pre-K education programs.

The Governor’s Priorities. The gover-nor, history suggests, is not a specialfriend of either “lower” or “higher” publiceducation for California. Further, hisavowed fiscal prudence seems not toextend to his two favorite infrastructure

projects, high-speed rail and the twin tun-nels designed to transfer water from thenorth to the south. As he has said, beinggovernor is like paddling a canoe, you pad-dle left, and then you paddle right.

Is the Legislature Corrupt? This begsthe question that is on the minds of atleast those who pay attention: is the entirelegislature corrupt? My own view is thatmost members are as devoted as the restof us to the “Public Good” and do the bestthey can to achieve it during their careers.The realities of money and power in themodern world frequently get in the way,and changing definitions of just what isgood for the public conspire to changeone’s mind. For example, is there a cleardifference between bribes that demand aquid pro quo and a contribution intendedto open the door to conversation? Perhapsa wide-spread and intelligent debate onthe topic could spur the development ofwhat some might call an evolved “PublicEthic.” (I ask your indulgence for a littledreaming by an old Progressive.)

“OPEBS.” Meanwhile. what of our pen-sions and “OPEBS” (Other Post-Employment Benefits), especially healthcare? The public pension battle will go on,even though it is temporarily on the politi-cal back burner. San Jose Mayor ChuckReed has withdrawn his initiative to“eliminate” (well, not exactly, but it’s along story) public pensions. He is nonethe-less well-funded by “Those of GreatWealth” and promises to be back. Theflames are continually fueled by local gov-ernment bankruptcies and reports of insol-vency. It doesn’t help, either, that few

retirees in the private sector enjoy thebenefits we as retired public employeeshave come to regard as our right underlaw and practice. There is no immediate threat to currentretirees, although those who come behindus need to pay attention to the anti-pen-sion movement if they would like to avoidthe poorhouse (which exists only in thecollective unconscious) as their ultimatefate. I think we need to help them in everyway possible. Your CSU-ERFA state coun-cil took a remarkable step in the directionof our own political involvement by agree-ing to provide in its budget a modest butimportant $4,800 as a contribution to thepolitical arm of the Retired PublicEmployees Association (RPEA). We haverelied on the RPEA for bill tracking, lobby-ing, and inside legislative information formany years but have contributed nothingbut our voices and ideas, not that thesehave been insignificant. Now we willbecome admittedly small but nonethelesswilling players in the political process.

Please remember to cast your ballot in theJune 3 primary. I intend to cast my votefor Neel Kashkari, hoping to utilize the“top two” process to advance theRepublican candidate most likely in thefall to force a meaningful debate withJerry Brown over California’s priorities.Could such a debate ignite a genuine pur-suit of that new “Public Ethic”? There isalways hope. If Tim Donnelly is the bestthe tattered Republican party can come upwith, Jerry Brown will simply (and

(Continued on page 11)

LAO’s Recommendations on California’s Long-Term Debt and LiabilitiesA California Legislative Analyst’s Office report on AddressingCalifornia’s Key Liabilities, issued in May 2014, found that themajor liabilities of the state total $340 billion and result fromactions that the state has taken that allowed it to provide servi-ces but to pay for them later. Liabilities include debt, deferredpayments, and other liabilities.

Over $140 billion of the liabilities have been addressed by cur-rent law; no changes are necessary to eliminate this debt. Thisincludes $50 billion in liability for the CalPERS retirement sys-tem. At press time, CalPERS was 69.6% funded for the future,and this is after several years of solid stock growth, and assumesthat the CalPERS principal will grow at greater than 7% in thefuture. Other debt that is being taken care of includes state gen-

eral obligation bonds totaling $75 billion, lease revenue bonds($10 billion), almost $5 billon in economic recovery bonds, andseveral other small categories.

On the other hand, about $200 billion in liabilities are at least inpart not being addressed and merit further legislative attention.For example, absent corrective action, the California StateTeachers’ Retirement System (CalSTRS) pension program isexpected to deplete its assets during the 2040s. The CalSTRSdebt totals $75 billion. Other debt and liabilities include retireehealth benefits for state employees, some $65 billion at present,the UC pension program ($14 billion), retiree health benefits for

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9CSU-ERFA Reporter May 2014

On May 1, the annual Cost of LivingAdjustments (COLA) and PurchasingPower Protection Allowance (PPPA)adjustments will be reflected in retireechecks. The COLA is given to everyone toadjust for inflation; it is limited, however,to a maximum of 2% per year. The PPPAis given to a few people, some 32,000 ofthe 575,000 CalPERS members whoreceive a check each month. You get aPPPA when the amount of inflation hasbecome so great that the value of yourcheck each month is less than 75% of theinflation-adjusted value. However, for this year, something is differ-ent. This will be the first year where theCOLA outpaced inflation. Because theCOLA outpaced inflation, the PPPA bene-fit will be reduced accordingly for thoseretirees who are entitled to PPPA, approx-imately 32,000. In addition, retirees may see a further

decrease in their PPPA because of previ-ous overstating of PPPA amounts inprior years when the timing of theadjustments was not coordinated. Thiscould result in a retiree’s total retire-ment allowance being reduced, despitethe increase in COLA. We estimate thatapproximately 9,000 (28%) individualswill have a reduction in PPPA but willstill see a net increase to their grossretirement allowance due to the corre-sponding COLA increase. Approximately 23,000 (72%) individualswill see an overall decrease to theirretirement allowance; however, nearlyall of those will have an impact of lessthan $20. It is important to note that anydecrease in PPPA due to previous over-statements will occur only once this year.All impacted retirees should havereceived a notification from CalPERSexplaining the change prior to receivingtheir May 1 check.

In MemoriamChico – Lois Christensen

Fresno – Benjamin Bakkegard, Robert Comegys, Eugene Krebs, Dorothy Renzi, Janbie Supersad

Long Beach – Doris Nelson, Paul C. S. Tang

Los Angeles – Douglas L. Currell, Seymour Levitan, Robert H. Simmons, Joseph E. Soldate

Pomona – George Galbreath San Diego – Richard W. Berry,

Patrick Groff, Louis Ezra Smith

Sonoma – Arthur Warmoth

Did Your May 1st Check Go Down?

Modifying Proposition 13 - Has The Time Finally Come?

(Continued from page 1)provsion discussed above. Only 39% of vot-ers supported the idea of reducing the two-thirds majority vote requirement toincrease local taxes to a 55% majority.

Many misconceptions among voters as toProposition 13’s exact provisions still existsome 36 years after its enactment. Only a42% plurality is aware that Proposition 13applies to both residential and commercialproperty. Some 53% understand that Prop.13 requires a two-thirds majority of thevotes in an election to increase local taxes,and 68% know that more recent homeown-ers living in similar homes in the sameneighborhood generally pay higher proper-ty taxes than homeowners who have livedin their homes for longer periods. In eachcase, between 15% and 24% of voters vol-unteer that they don’t know the correctanswer, while between 17% and 34% givean incorrect reply.Other findings concerned the size of gov-ernment:

• Most California voters (54%) say theyprefer lower taxes and fewer government

services to higher taxes and more govern-ment services (35%). • Voters are divided about the overalllevel of government spending inCalifornia, with 39% in favor of holdingspending at about current levels. About athird (34%) favor a reduction in govern-ment spending, while a quarter (24%) sup-port an increase. • Few voters (8% to 15%) support reducingcurrent spending on K-12 schools, mentalhealth, highway building or repair, andlaw enforcement. For K-12 schools andmental health, majorities favor morespending. Voters are more divided aboutspending on environmental protection andwelfare, with sizable proportions advocat-ing either more or less spending than cur-rent levels.

Debt & Liabilities(Continued from page 8)

UC employees ($13 billion), school andcommunity college obligations of $10 bil-lion, and several smaller categories under$5 billion each. LAO suggests prioritizing the liabilitiesand paying down those that result in thegreatest benefits. LAO’s assessment isthat the top priority should be CalSTRS,and that the state should aim to fund thesystem fully in about 30 years. LAOstates: “Doing so will be difficult.Depending on the funding arrangement,the additional contributions from thestate, teachers, and districts combinedcould total over $5 billion per year by theearly 2020s. Addressing this difficult chal-lenge, however, only grows more costly thelonger we wait, meaning that the mostimportant action the state can take tominimize costs is to act quickly to increasecontributions to CalSTRS.”

The other priority, LAO feels, should beprefunding retiree health liabilities.Because of the prefunding, putting away$1.8 billion this year, while significant,will dramatically reduce state costs overthe long run because of investmentreturns.

Logistics of Death OnlineIf you want to place the information in theCSU-ERFA Survivors Manual online,three web sites will do the job: www.everplans.com, http://aftersteps.com/,and http://www.principledheart.com/.

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State Council Meets, Votes for Pasternack,Approves RPEA Contribution for Political Action

(Continued from page 1)margin.As the result of pending legislation aimedat implementing the conferring of bac-calaureate degrees in California communi-ty colleges, the statewide academic senateprepared a detailed resolution of firm butcautious opposition to the prospect. Thestate council concurred with the senateaction, which read in part “The ASCSUholds that distinctions between publicinstitutions of higher education in theState of California should remain clear,adhering as much as possible to theMaster Plan.” The resolution recognizedthe fact that the CSU has been authorizedunder specified circumstances to offer doc-toral programs in specialized fields. Foranother view of the resolution, see the let-ter on page 3 from Dr. Leni Cook of CSUDominguez Hills.

The state council recognized CSU-ERFA’slong-term commitment to joint politicalaction to protect our pensions and otherpost-employment benefits in Sacramentoand elsewhere. The proposed budget rec-ommended $3,200 as our contribution tothe Retired Public Employees Association(RPEA), but an amendment to increasethe amount to $4,800 was approved on aclose vote. The $4,800 amounts to about3% of our budget, and will help pay forindependent political expenses, such asthe services of lobbyist Aaron Read andAssociates, who has for decades providedus with priceless information and adviceon matters of critical importance. This isan important step forward, as we have formany years enjoyed the benefits of RPEA’swork without contributing anything.We are represented on the RPEA legisla-tive committee by CSU-ERFA’s legislativechair, who also has a voice in how thefunds are spent. RPEA’s independentexpenditures committee, a political actioncommittee, is funded by voluntary contri-butions from its own members, not bydues. The increase in the budgetedamount for this item was debated, andnarrowly passed. No voices were raised inopposition to the principle of paying asmall but significant amount for a neces-sary part of our promise of service to ourmembers. We should be proud that CSU-ERFA has at last taken this step towardparticipation in the unruly but necessary

game of legislative action.

We owe a debt of gratitude to all thosewho have worked so hard for CSU-ERFAin the past in this arena, including WilmaKrebs, Milt Dobkin, Bob Bess, and DavidHumphers, among others. This newdimension is a tribute to their tirelesswork on the political action scene. The council also elected three new mem-bers-at-large for 2014-17: Ted Lucas ofChannel Islands, Maynard Moe fromBakersfield, and Ernie Simpson from CalPoly Pomona.

Pictured below:(Top) Beverly and Don Gerth, honoredwith a resolution upon the occasion ofnaming the CSU Archives at CSUDominguez Hills as the Donald R. andBeverly J. Gerth Archives and SpecialCollections. (Photo: Linda Zimmerman)(Bottom) Four new delegates examiningprocedures for donating to the CSU-ERFA Charitable Foundation. Fromleft: Bob Cherny (SF), David Wagner(Sacramento), Joan Merdinger (SanJose), and Dean Popp (San Diego).(Photo: Judd Grenier)

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Controversial Issues Already On November Ballot The controversial medical malpractice ini-tiative has qualified for the November bal-lot, meaning that again we will see vastamounts of money spent by both sides onthe issue of increasing the sum victimscan recover in medical malpractice law-suits. The current limit is $250,000 forpain and suffering in medical malpracticecases; the measure would raise thatamount by over 400%, to $1.1 million, andthen peg the $1.1 million to inflation. The initiative is the fifth to qualify for thefall ballot. The proponents spent $2.1 mil-lion to prepare the initiative and collectsignatures; the opponents already havealmost $32 million in the bank to spend inthe fall, so it should be a hot campaign,even by California standards.

Another initiative on the fall ballot willgive the insurance commissioner new pow-ers to reject health insurance rate increas-es. Currently the insurance commissionerdoes not have such powers and can onlyraise questions about proposed increases.Past experience is that when insurancecompanies are involved, initiative cam-paigns are very good for radio and televi-sion station revenue streams, to put itmildly. There have been more than a few peoplelaughing about the initiative to separateCalifornia into six states. Even if it passesin California, both Congress and the exist-ing state legislature would have toapprove the change before it would beimplemented, and it is doubtful that either

body would do so. Furthermore, since theinitiative would create both the richeststate in the nation, the area includingSilicon Valley, and the poorest, the areaincluding the Central Valley, it is doubtfulthat something so controversial wouldpass the voters, but it might. However, like many initiatives that have a“hide-the-pea” feature, it turns out that ifthe state were to approve the initiative toseparate California into six states, severalmeasures in it would go into effect even ifCongress turns us down. Charter countieswould get more autonomy from state lawon taxes and development. Counties wouldhave the ability to group together intoregional governments, and the regionalgovernments, say the opponents to themeasure, would have the ability to ignore

CSU-ERFA Charitable Foundation Challenge Grant Successfully MatchedWe are pleased to report that the $500 challenge grant to theCSU-ERFA Charitable Foundation announced in the last issue ofThe Reporter was a success. Donations totaling $550 werereceived during the challenge period.

The foundation still is in need of donations to permit it to contin-ue its work supporting the research, scholarly, and creative activ-ities of CSU-ERFA members through grant awards.The CSU-ERFA Charitable Foundation is a 501(c)(3) organiza-tion. Donations in any amount from both CSU-ERFA membersand the general public are always welcome.

Donations to the foundation generally are deductible from stateand federal income taxes.You may donate to the foundation by sending a check made outto the CSU-ERFA Charitable Foundation to CSU-ERFA, 18111Nordhoff Street, Northridge, CA 91330-8339. Alternatively, mem-bers can choose to donate to the foundation monthly through adeduction from their CalPERS pension warrant.A convenient donation form is available online athttp://csuerfa.org/pdf/Donation-Agreement.pdf.

Featured speaker at the Spring State Council Meeting was SusanMenkes of the Senior Medicare Patrol, who warned of the dangersfacing seniors from healthcare fraud perpetrated by scam artistspurporting to be Medicare representatives. At left is her colleagueWendy Packer. (Photo: Mark Shapiro)

future state laws if they don’t have the money to implementthem. For counties to adopt a charter giving them more localauthority, there would have to be public hearings and elec-tions in each county.

As of mid-May, the proponent, Tim Draper, has spent some$3 million collecting signatures, but he still has not decidedwhether to turn them in for the November ballot or to waitanother two years for the 2016 ballot.

(Continued from page 8)rightfully) ignore him. And that would serve only to delay thedebate indefinitely. In March 2014, Legislative Chair Wade joined the RPEA leg-islative committee in considering positions on 49 bills of directconcern to retirees. Thirteen of these concerned residentialcare reform. Positions ("Watch, Support, Oppose") were takenon each. The remaining list of 12 was made available to theCSU-ERFA State Council on April 26. Topics included resi-dential care, elder abuse prevention, and an initiative reformmeasure. We will keep you informed of any that require spe-cial attention during the remainder of the session.

Legislative Report

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CALIFORNIA STATE UNIVERSITYEMERITUS AND RETIRED FACULTYASSOCIATIONThe Retirement Center18111 Nordhoff StreetNorthridge, CA 91330-8339http://www.csuerfa.orgHave you moved? If so, please report your newaddress to the CSU-ERFA office at the aboveaddress.

Address Service Requested

CSU-ERFACalendar of Events

August 14, 2014 - CSU-ERFA Executive Committee meets in Torrance.

August 29, 2014 - CalPERS mails ballots for three seats on the Board ofAdministration. First round of voting closes for three seats on theCalPERS Board of Administration on September 29, 2014.

October 18, 2014 - CSU-ERFA State Council meets at CSU Dominguez Hills.

November 7, 2014 - CalPERS runoff ballot packages sent, if necessary. Dueback by December 8, 2014.

December 19, 2014 - CSU-ERFA research grant applications due.

April 27, 2015 - State Council meets at CSU Long Beach.

October 17, 2015 - State Council meets at CSU Fullerton.

CSU-ERFA New Members

Fresno – Felton Burns, Cheryl A. Kershaw, Robert D. Merrill

Los Angeles – Marlene ZepedaPomona – Danette Ailene Cook

Adamson

Sacramento – Gary S. SzydelkoSan Francisco – Gregory A. Antipa

San Marcos – George Diehr** Denotes new lifetime member