January 11, 2008
Important Supplement
to the January Newsletter:

The following information was distributed to the TelCo Retirees Association after the January Newsletter was finalized and distributed to our membership.  Because of its potential impact on our members, their families and friends, this supplement to the January Newsletter is being distributed.  Please share!


The NRLN has put out the following follow-up information on an EEOC Ruling item discussed in the January Newsletter:

      On December 26, 2007, the Equal EmploymentOpportunityCommission (EEOC) published in the Federal Register its final rule that gives employers free reign to use age as a basis for reducing or eliminating healthcare benefits for retirees 65 and older. The EEOC's rule is in response to a decision in theErieCounty(PA) lawsuit in 2000 by theU.S.Court of Appeals for the 3rd Circuit. The Court ruled that the Age Discrimination in Employment Act requires employers to spend the same amount on health insurance benefits provided Medicare-eligible retirees as those received by younger retirees.

      The NRLN believes the EEOC is misguided in its view that employers' compliance with the Court's decision would result in companies reducing or eliminating the retiree health benefits they were providing - leaving millions of retirees under 65 with less health insurance, or no health insurance at all.

      The NRLN has had this issue on its plate since 2004. Here is some background:

  • The EEOC created the "proposed rule" in July 2003 and solicited public opinion before approving the rule in April 2004.
  • The NRLN issued a news release on 4/21/04 and sent messages to Congress opposing the "proposed rule" at that time. 
  • The NRLN accused the EEOC of legislating, rather than upholding, the law. 
  • The NRLN supported AARP's decision to sue the EEOC at theU.S.District Court level. In February 2005, the federal judge temporarily blocked the EEOC rule. The same District Court judge who ruled in favor of AARP the first time later reversed her own decision.
  •  AARP appealed the ruling to theU.S.Court of Appeals for the 3rd Circuit. The same federal appeals court that brought theErieCountydecision in 2000 ruled in June 2007 that the EEOC was authorized to issue exemptions if a strict interpretation of the age discrimination law would be contrary to the public interest. "We recognize with some dismay that the proposed exemption may allow employers to reduce health benefits to retirees over the age of 65 while maintaining greater benefits for younger retirees," the Court said. But it said the Commission had shown that the exemption was "a reasonable, necessary and proper exercise" of its authority.
  • The NRLN has commended the AARP for its filing of an appeal with theU.S.Supreme Court. The NRLN'sWashington,D.C.staff has met with AARP's legal staff to see if they would allow the NRLN to file an amicus (friend of the court) brief. Eventually, the Lucent Retirees Organization connected with AARP's attorneys and those from National Employment Lawyers Association (NELA). The LRO board has approved funding to support filing of the brief. NELA filed the amicus brief in the pre-certification stage of the legal proceeding, meaning the brief was intended to urge the court to agree to hear AARP's appeal. They filed on the 12/20/07 deadline.
  • In spite of theU.S.Supreme Court deliberation as to whether to hear the case or not, the EEOC "issued" the final rule, making it effective last week.

    Here is the game plan as the NRLN currently sees it:
  • The NRLN issued today the following news release. It will serve as a precursor to future lobbying for Congressional action, if necessary.
  • The NRLN 2008 Legislative Agenda that will be issued following the NRLN's Annual Leadership Conference/Board Meeting in late January will feature this issue, the EEOC rule, as an action item.
  • Should theU.S.Supreme Court agree to hear the case, there will be another round of preparation and filing of amicus briefs, this time urging the Court to strike down the EEOC rule.
  • Should theU.S.Supreme Court refuse to hear the case or uphold the lower courts' decisions, the NRLN will immediately lobby Congress for legislative change to reverse the EEOC rule. Congress threatened to do this earlier but may have to be persuaded again. 
  • The NRLN will want to stimulate Congress to change the law that now grants the EEOC some latitude to make judgments like this "if deemed to be in the public interest."

    Stay tuned and be prepared to take action if the NRLN requests your assistance.



NEWS RELEASE - National Retiree Legislative Network

FOR IMMEDIATE RELEASE

For Information Contact:

Bill Kadereit                         Ed Beltram
214-725-5289                     719-687-6157
bkad@sbcglobal.net             edbeltram@msn.com


Retiree Leader Condemns EEOC's Regulation
As Damaging To Medicare-Eligible Retirees

Agency Created To Prevent Discrimination Publishes Policy Allowing
Employers To Discriminate Against Retirees Age 65 And Older

WASHINGTON - (Jan. 2, 2008) The leader of the National Retiree Legislative Network (NRLN) today condemned the publishing of a new regulation by the Equal Employment Opportunity Commission (EEOC) that allows employers to reduce or eliminate healthcare benefits for retirees when they turn 65 and become eligible for Medicare.
      "More than 10 million American retirees who rely on employer-sponsored healthcare and prescription drug plans stand to be hurt by the EEOC's rule," said Bill Kadereit, NRLN President. "How can the agency that was created to prevent discrimination issue a policy that discriminates on the basis of age?"
      Kadereit said he believes that the EEOC is overstepping its authority and is attempting to legislate rather than protecting older retirees as required by the 1967 Age Discrimination in Employment Act (ADEA). 

      "EEOC, as part of the Executive branch, just took away the legislative authority of Congress," Kadereit said. "This is wrong and a slap in the face to all retirees age 65 and older."
Kadereit noted that the preamble of the EEOC's new regulation states, "The final rule is not intended to encourage employers to eliminate any retiree health benefits they may currently provide."
      "The NRLN has already seen evidence of the EEOC policy's negative impact on older retirees," Kadereit said. "For example, this year, Alcatel-Lucent will hit Medicare-eligible management retirees age 65 and older with higher charges for company prescription drug coverage than younger retirees


"Further, the Medicare Act of 2003, as written, would allow this company to keep it's $80 million subsidy since it did not gouge people beyond the bare minimum required to match the Medicare Part D plan," he said.
      "The more than 10 million retirees in this country who stayed with their employers for 30 years instead of moving to competitor firms are being sacrificed on the altar by the Courts and now by the Executive Branch of theU.S.government," Kadereit said. "Who passes the laws in our country today? What does it take for Congress and the EEOC to get the message? They are taking away benefits earned by this group of more than 10 million citizens. They built our economic base. Why steal from them?"
      Kadereit said the NRLN supports AARP's appeal to theU.S.Supreme Court of lower courts' decisions upholding the EEOC position. He said if the Supreme Court does not hear AARP's appeal or rules against that appeal, the NRLN would support legislation repealing the EEOC's rule. "If Congress won't repeal the EEOC's rule, then when Senators and Representatives retire and turn age 65 they should lose their healthcare insurance," Kadereit said.
      "Employers who support the Commission's rule argue that companies would cancel healthcare plans for all retirees," Kadereit said. "This is self-serving nonsense since companies can and are canceling plans and shifting costs to retirees without this discriminatory ruling. The EEOC is being used as a pawn of employers to the detriment of older Americans. Congress must protect those who earned benefits.

 Communications Workers ofAmericaLeader Elected To
National Retiree Legislative Network's Board Of Directors

Union And Management Retirees Share Desire For Legislation
To Protect Retirees' Corporate-Sponsored Pensions And Benefits

WASHINGTON(Thursday, January 10, 2008) - The president of the National Retiree Legislative Network (NRLN) today announced the election of Ralph Maly, Communications Workers ofAmericaVice President for Communications and Technologies, to the NRLN's Board of Directors.
      "Ralph Maly's election to our 13-member national board will provide more than 163,000 retirees in the CWA Retired Members Council (RMC) with a strong voice in shaping and implementing the NRLN's legislative agenda," said Bill Kadereit, NRLN President. "The NRLN is committed to protecting the pension and healthcare benefits of retirees and future retirees through the enactment of federal legislation."
      "The CWA's decision to support my candidacy to serve on the NRLN's national board is because of the organization's stellar reputation and national scope with members from 17 retiree associations who are former employees of many ofAmerica's leading corporations," Maly said. "Based on working with the NRLN to gain passage of the Pension Protection Act of 2006, I know first hand that the NRLN is respected on Capitol Hill.
      "The NRLN is focused on pension and healthcare protection and the preservation of purchasing power for retirees who are being stripped of benefits by former employers and are sometimes ignored by Congress," Maly said. "The CWA's RMC members are looking to accomplish the same things as NRLN members. Combining forces inWashingtonand acrossAmericawill create a larger and stronger activist base needed to pursue these common goals."
      Maly said the CWA's Retired Members Council (RMC) and the NRLN's Grassroots Network composed of retirees in all 50 states share many common interests. "I'm looking forward to asking the CWA's RMC retirees to sign up as NRLN Grassroots Advocates so they can use the NRLN's Capwiz system to communicate important messages to their elected representatives in Congress and receive instant messages and legislative progress reports from NRLNWashington."
      "The NRLN and CWA are on the same page when it comes to lobbying for legislation to force corporations to keep their pension and benefits promises to retirees," Kadereit said. "We also want a law that requires companies to use surplus pension fund assets and Medicare Part D subsidies exclusively for the healthcare benefits of retirees or for pension cost of living adjustments (COLA). Today, they can use surplus funds to pay off corporate business expenses."
      "Like other retiree associations affiliated with the NRLN, the CWA's RMC retirees will be able to maintain their own identity while working for a better future for all ofAmerica's retirees," Maly said.

 

About the NRLN
      Based inWashington,D.C., the NRLN is dedicated to securing federal legislation that will guarantee the fair and equitable treatment of retirees in the private and public sector. The NRLN represents a non-partisan, grassroots coalition of retiree associations with a combined membership of some two million men and women who are seeking to protect their pension and healthcare benefits. For more information, visit the NRLN Website at www.nrln.org.

 

About the CWA
      The Communications Workers ofAmericarepresents 700,000 workers in communications and internet technology, print and broadcast journalism, publishing, health care, higher education and public service, manufacturing and the airline industry. The CWA Retired Members Council is the voice for 163,00 retirees. More information visit www.cwa-union.org.