After meeting with gubernatorial candidates Republican Gov. George Pataki and Democratic challenger H. Carl McCall, the New York State Public Employees Federation (PEF), an affiliate of AFT Public Employees, endorsed Gov. Pataki.

PEF reports the decision by the union's 124-member executive board was made after each candidate appeared before the board to answer questions on issues ranging from declining tax revenues and pension reform to mandatory overtime for nurses. It is the first time in 12 years that PEF's executive board has endorsed a gubernatorial candidate.

"George Pataki has earned our endorsement," said PEF president Roger  Benson. "Over the last four years, the governor has made a priority of preventing layoffs of our members, despite some very difficult economic times. He pledged to our board to continue these important job security activities next year."

Like candidate endorsements across the public employee division, the decision was made based on the candidates' positions on issues that affect the jobs and quality of work life of union members.

Urban Institute examining state medicaid decisions

The Urban Institute is scheduled to release a report on state Medicaid policies in November. Alan Weil, director of the institute's Policy Center on Assessing the New Federalism, says the report examines why policymakers are making the decisions they make about Medicaid and what parts of the program are being protected or cut as states try to fill across-the-board budget gaps.

Jo Romero, president of the Colorado Federation of Public Employees, an affiliate of AFT Public Employees, recently spoke out against Colorado's cuts in the fiscal 2003 Medicaid program. Colorado now will forgo an estimated $18 million in federal Medicaid matching funds.

"In Colorado, they have very few optional eligibility groups," observes Weil. "It doesn't have a lot of room to cut because it is not doing a lot more than it is required to do. It is one of the most limited eligibility programs in the country."

No more business as usual, labor tells Wall Street

The AFL-CIO has designated Oct. 19 as a National Day of Action to educate and energize workers about the corporate greed that has cost more than 2 million workers their jobs and has drained $1.5 trillion from worker retirement and savings funds since the collapse of Enron late last year.

The Day of Action is part of the AFL-CIO's multi-pronged "No More Business as Usual" campaign, which began earlier this year and included a rally led by AFL-CIO president John Sweeney outside the New York Stock Exchange July 30. More than 1,000 workers attended that rally, including former employees of Enron, Arthur Andersen and WorldCom.

Delegates to the AFT's convention took a stand against corporate abuses when they overwhelmingly passed a resolution called "Protecting Workers' Retirement Security and Preventing Future Enrons." This resolution calls on the legislative and executive branches to support legislation on accounting reform and investor protections.

Unionized workers have better benefits

Unionized workers have better benefits than their nonunion counterparts, according to new research conducted by the Economic Policy Institute in Washington, D.C. Specifically, EPI found that the "typical unionized workers is 53.9 percent more likely to have a pension plan, is 28.2 percent more likely to have health insurance, and gets three more days of paid vacation each year." Furthermore, unionized workers are 36.1 percent more likely to be covered by a defined-benefit plan.

The information is featured in The State of Working America, 2002-03. For more information, visit the EPI Web site at http://www.epinet.org/.

Regs for retirement plans under way

Regulations implementing congressionally mandated changes to Section 457 retirement plans (deferred compensation) are under way. A public hearing was held Aug. 28 in Washington, D.C., to discuss the revised regulations that amend Section 457 of the Internal Revenue Code.

AFT Public Employees lobbied for Section 457 pension modernization for five years, gaining congressional approval in 2001.

Noteworthy changes to the law include: graduated contribution ceilings starting in 2002 and greater portability by allowing plan participants to roll a 457 into an individual retirement account, 401(k) or 403(b). The new contribution maximums are: $11,000 for 2002; $12,000 for 2003; $13,000 for 2004; $14,000 for 2005; and $15,000 for 2006. After 2006, the $15,000 is adjusted for cost of living.

The new law also allows workers over 50 to make "catch-up" contributions.