• Cloture Vote on Medicare Payment Bill Falls Short
• On the Record: Sen. Obama Rejects Social Security Privatization, Restates Plan To Raise Payroll Tax Cap
• On the Record: Sen. McCain's Conflicting Stands on Social Security
• Beset by Rising Costs and Declining Benefits, Employees Saving Less for Retirement
• West Virginia Educators Vote Overwhelmingly for Pension Switch
• South Carolina 29th To Charter State Alliance for Retired Americans
• 22,000 Colorado Employees Vote for Union Representation
• Safeway Offers $4 Generic Drugs
• Submit Your Tributes to McElroy and LaCour
• Send Your Best Wishes to Sen. Kennedy
• Quote of Note: West Virginia Educators Vote To End D.C. Pension Plan
• Web site of the Week: http://www.fightprostatecancer.org/library/

CLOTURE VOTE ON MEDICARE PAYMENT BILL FALLS SHORT

The U.S. Senate fell six votes short of the 60 votes needed to end a Republican filibuster on S. 3101, the "Medicare Improvements for Patients and Providers Act of 2008." The 54 to 39 vote in favor of the bill failed to end debate and move the legislation. Called the Baucus-Snowe bill, the measure would eliminate a 10.6 percent cut in doctor fees scheduled to take effect July 1. This would help ensure that providers who see Medicare patients would continue to do so and be more likely to accept new Medicare patients. In addition, the bill would have improved the Medicare program for low-income seniors and stopped abusive marketing techniques of some private Medicare Advantage (MA) plans by requiring them to report on quality care measures. The measure would have also helped reduce prescription drug errors by providing incentives to providers to use electronic prescribing systems. President Bush has threatened to veto any measure that cuts overpayments to MA plans. Many rapid-response Alliance for Retired Americans members, after being contacted by e-mail, called the U.S. Capitol switchboard and asked their senators to vote in favor of the bill. www.senate.gov/legislative/LIS/roll_call_lists/.

ON THE RECORD: SEN. OBAMA REJECTS SOCIAL SECURITY PRIVATIZATION, RESTATES PLAN TO RAISE PAYROLL TAX CAP

In a speech on the economy in Raleigh, N.C., on June 9, Sen. Barack Obama (D-Ill.) reiterated his plan to strengthen Social Security, reject privatization and keep the current retirement age. Sen. Obama said that he would save Social Security for future generations by asking the wealthiest Americans to pay their fair share of taxes. Under current law, Social Security taxes are collected only on the first $102,000 of an individual's income, indexed for inflation. The Obama plan would tax all income below the $102,000 level and all income above a threshold, said to be around $250,000, as yet to be determined.

ON THE RECORD: SEN. McCAIN'S CONFLICTING STANDS ON SOCIAL SECURITY

The Alliance for Retired Americans has called upon Sen. John McCain (R-Ariz.) to clarify his position on Social Security privatization, in the wake of inconsistent statements and votes on the subject. In response to a question posed by New Hampshire Alliance president John Mendolusky at a June 12 town hall meeting, Sen. McCain was quoted by the Nashua Telegram as saying, "I am not for quote 'privatization of Social Security.' I never have been, never will be." In a March 3 interview with the Wall Street Journal, however, Sen. McCain said, "As part of Social Security reform, I believe that private savings accounts are a part of it-along the lines that President Bush proposed." The same article said that Sen. McCain is considering raising the Social Security retirement age to 68 and reducing the cost-of-living adjustment (COLA). In 2006, he had voted to shift Social Security's annual surpluses into a reserve account that would be converted into private accounts. Earlier in his Senate career, Sen. McCain voted twice to replace Social Security's guaranteed benefits with income from risk-based private investments.

BESET BY RISING COSTS AND DECLINING BENEFITS, EMPLOYEES SAVING LESS FOR RETIREMENT

Planning for healthcare expenses in retirement is an increasingly difficult process complicated by rising costs, fewer savings, and declining employer benefits, according to an Employee Benefit Research Institute issue brief released June 3. The report's co-author, Paul Fronstin, estimates that a couple age 65 will need $635,000 in current savings to cover healthcare costs to pay for health expenses in retirement. According to the brief, the declining availability of retiree health benefits may partly explain the growing number of people ages 55 to 64 who are now working. Between 1996 and 2006, the labor force participation rate for that group increased from 67 percent to 69.6 percent for men and from 49.6 percent to 58.2 percent for women. The brief found that men retiring at age 65 in 2008 will need between $196,000 and $331,000 to have a 90 percent chance of covering their healthcare expenses. The comparable figures for women age 65 were $223,000 to $390,000. EBRI also found that 36 percent of individuals responding to a recent survey reported that they have decreased their contributions to a retirement plan as a result of the increased cost of healthcare in 2006, up from 25 percent in 2004. Fifty-two percent of respondents had decreased other savings in 2007, compared with 45 percent who had decreased such savings in 2005.

WEST VIRGINIA EDUCATORS VOTE OVERWHELMINGLY FOR PENSION SWITCH

More than three-quarters of education employees in West Virginia have voted to change from their defined-contribution pension plan to a traditional defined-benefit plan. AFT-West Virginia, working closely with the independent West Virginia School Service Personnel Association (WVSSPA), conducted joint information sessions across the state to educate their members about what the complicated pension plan selection process. In the end, more than 75 percent of employees opted to move from the underfunded Teachers' Define Contribution Plan to the Teachers Retirement System. The 75 percent figure was the threshold needed to trigger millions of dollars in state funds to help with transition costs. Those who voted not to transfer can continue with the defined-contribution plan.

SOUTH CAROLINA 29TH TO CHARTER STATE ALLIANCE FOR RETIRED AMERICANS 

South Carolina has just become the newest state affiliate of the Alliance for Retired Americans, receiving its formal charter before a crowd of more than 50 activists at a founding convention June 13. The South Carolina Alliance for Retired Americans (SCARA) will work with the national Alliance to create a powerful statewide network of union and community-based retiree organizations. Members and incoming leaders of SCARA have voiced their concerns on such issues as Social Security and pension reform, healthcare and prescription drugs, and rising transportation and energy costs. UFT activist Sam Breidner and Alliance Southern regional director Bill Cea, a NYSUT retiree, played key roles in the chartering process. Pam Creech and Julie Harbin, newly elected co-presidents of SCARA, pledge to get to work immediately on an ambitious agenda.

22,000 COLORADO EMPLOYEES VOTE FOR UNION REPRESENTATION

More than 22,000 Colorado state employees sent a message on June 11: We want a greater voice in workplace decision making; we have ideas for improving public services; and we want representation through our union-Colorado WINS (Workers for Innovation and New Solutions), a coalition union made up of the AFT, the American Federation of State, County and Municipal Employees, and the Service Employees International Union. The ballots were cast by workers in five occupational groups representing more than two-thirds of the 32,000 state employees eligible to unionize. The union organizing campaign came about last fall after Gov. Bill Ritter issued an executive order expanding the workplace rights of state employees through union-management partnership agreements. "The executive order, combined with the representation election, starts a new chapter for Colorado state employees and the people they serve," says AFT president Edward J. McElroy.

SAFEWAY OFFERS $4 GENERIC DRUGS 

The giant supermarket chain Safeway began a new program June 11, offering more than 300 generic prescription drugs at $4 for a 30-day supply. The initial program covers stores in New Jersey, Maryland, Virginia, Delaware, Washington, D.C., and the Chicago area and follows test marketing in Houston and Dallas. The move comes two years after retail chain Target instituted a similar program.

SUBMIT YOUR TRIBUTES TO McELROY AND LaCOUR 

AFT president Edward J. McElroy and secretary-treasurer Nat LaCour will retire as leaders of the national union at the 2008 AFT convention in Chicago. AFT members are invited to submit their personal comments to the outgoing officers using this online form. Your thoughts and warm wishes will be compiled and presented to McElroy and LaCour at the convention in July. Please submit your comments by June 30.

SEND YOUR BEST WISHES TO SEN. KENNEDY

The AFT has a long history of supporting our members and friends during times of need. It is in that spirit that the union is contacting members regarding the illness of Sen. Edward Kennedy (D-Mass.). As many of you know, for more than four decades, Sen. Kennedy has been a leading voice in the Senate advocating for excellent schools, a better healthcare system and labor policies that support hard-working Americans. What you may not know is that Sen. Kennedy also is an honorary AFT member. President Edward J. McElroy bestowed that honor on the senator at the 2006 AFT national convention in Boston. During this difficult time for Sen. Kennedy and his family, we ask that you take a few moments to add your name and best wishes to this get-well message, which we will deliver to the senator.

QUOTE OF NOTE: WEST VIRGINIA EDUCATORS VOTE TO END D.C. PENSION PLAN

"These employees, trapped in a failed retirement plan that had little chance of producing enough money for retirement, can now count on a secure and viable retirement benefit." 

Judy Hale, President
AFT-West Virginia

WEB SITE OF THE WEEK:  http://www.fightprostatecancer.org/library/

The 2008 state-by-state report from national Prostate Cancer Coalition, a non-profit group of business and researchers, ranks states by mortality, screening and detection measures and support for increased federal initiatives to combat prostate cancer.