Pension Board Letter Dated: 31Jan20

The Pension Board sent out a letter 31Jan20 titled: Attn: 2019 Health Insurance Premium Subsidy. If you are retired and have not received this letter call the Pension Board and request it. As we all know, there has been litigation on-going since 1983 in regards to the City and/or the Pension Fund being legally obligated to provide retiree health insurance or a subsidy for it. Almost all the court decisions have ruled against us. The Pension Fund has been ordered by the court to give a subsidy to Police retirees. This subsidy is either $21 or $55/ month depending on if you are Medicare eligible or not.

This letter has an enclosed form for retirees to fill out to receive your 2019 subsidy, In addition, retired Lt. John Brundage brought to my attention that the letter states that retirees are able to receive a subsidy for the years 2017-2019 if their health insurance policy premium is paid directly out of their annuity or not. But, starting 01Jan20 the Pension Fund will only pay you a subsidy if your policy is one that the Fund has approved to be paid directly out of your annuity. This is stated in the letter on page 3, paragraph 1 “Under current law,….”).

The question is; under what “current law” can the Fund change the subsidy rules starting on 01Jan20? Is it a State Pension code? A court order? Or just the Funds policy?

I called the Pension Board and talked to the Boards lawyer, Mr. Justin Kugler. He told me that the rules for which insurance policy premiums will be paid directly out of our annuities are laid out in a court order dated 16Jan19. I have attached the court order for anyone who wishes to review it. Sections 1, a, iv & 1, b, iv are where the judge ordered the Pension Board to pay the subsidy the way they are doing it. So, for those that might be wondering, the Fund is following a court order in how they pay out the subsidy.

Author: Terrance McMahon

OTJ: 02/80-01/10 003,009,007,126

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