Unions
plan rally to protect benefits
Saturday, May 14, 2005 • BY JOE
DONOHUE • Star-Ledger Staff
Thousands of unionized public workers are
expected to stage a Statehouse rally Monday to protest a
move to make some retired workers pay more for prescription
drugs.
The rally comes as unions respond to
statements by acting Gov. Richard Codey and lawmakers that
public employee health and pension benefits are too costly
for the state. In his March 1 budget address, Codey said in
the past four years the cost of health benefits for state
workers has risen 50 percent and has tripled for retired
state and college employees.
"The thing that is most important to
people is their health care and pensions," said Alan
Kaufman, lobbyist for the Communications Workers of America,
which represents more than 36,000 state workers. "People are
going to fight to protect their retirement security just
like they did in California, just like they resist the Bush
attack (on Social Security)."
Kaufman said a recent move by the State
Health Benefits Program to make some retirees pay more for
prescription drugs helped spark Monday's rally. Unions
representing teachers, firefighters, police and other public
workers also will attend, he said.
Under the pending benefit change, about
90,000 retired teachers and state and local workers who are
covered by non-HMO health insurance plans would have to make
co-payments on all prescription drugs they need after Jan.
1.
Currently, those retirees make co-pays of
$7 for generic drugs, $14 for "preferred brand" drugs and
$29 for other brands. They don't have to make any
co-payments, however, after they contribute more than $552 a
year toward their benefits. Only about a third of all
retirees exceed the cap.
But an analysis by the state Division of
Pension and Benefits found that once they are no longer
required to make co-payments, retirees tend to buy more
expensive retail prescription drugs rather than lower-cost
generic or mail-order drugs. Division officials estimate
dropping the limit on co-payments will save the state,
school districts and municipalities about $26 million a
year. Retirees will bear some of this cost but can avoid the
full brunt by buying cheaper drugs, they say.
State officials also say retirees with
HMO coverage have no cap and must make
co-payments.
"We see this as an issue of fairness,"
said Tom Vincz, spokesman for the state Treasury
Department.
Kelley Heck, Codey's spokeswoman, said
the acting governor realizes "state workers are hard workers
and deserve to have a fair benefits package. But we also
need to ensure that it's a fair benefit package the state
can afford."
William Dressel, executive director for
the New Jersey State League of Municipalities, said mayors
strongly support the proposal.
"In tight financial times, you have to do
all that you can do to keep these costs down," he
said.
But Edithe Fulton, president of the New
Jersey Education Association, said unions resent efforts by
Codey and others to target their benefits.
"We don't have any entitlements," she
said. "Our members work hard, and we should not have to
defend our right to a decent pension and medical
benefits."
Joe Donohue covers state government and politics. He can
be reached at jdonohue@starledger.com or (609)-989-0208.
© 2005 The Star-Ledger. Used by NJ.com with
permission.
|