13 Comments

Thank you for this comprehensive and detailed report! Boy do we need answers.

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Why won’t the Welfare Find publish the actuarial studies so that the membership and an independent actuarial firm can analyze the actuarial soundness of Mulgrew’s position?

Why is that so hard for Mulgrew to do? Isn’t he for transparency?

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Five facts:

1. We keep reserves for good fiscal integrity. The reserves that you portray as being used for nefarious fashion are there to protect our plan for several years. Reserves should not be used to fund any benefits that will become unsustainable once it gets depleted. We explore benefit enhancements with regularity. Enhancements must be done in a smart fashion.

2. The dental RFP is ongoing. This has been reported regularly.

3. The patronage myth is false. Two former pedagogues work at the Fund. Me and Joe Usatch. Both of us were Chapter Leaders and have a substantial history of union involvement.

4. The UFT and the UFT Welfare Fund are two separate entities and finances are completely separate. Suggestions that they are commingled is inaccurate.

5. Your suggestion to audit the Fund is responsible…and has been happening for decades. The UFT Welfare Fund is regularly audited by both a reputable independent actuary and the NYC Comptrollers office. We have never been flagged for nefarious spending.

Thank you,

Geof Sorkin

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Oct 18·edited Oct 18Author

Maybe Geof can tell us where we can find the actuary reports. Where do these live?

The last published Comptroller audit report, FOUR YEARS AGO, of all the city welfare funds was not itemized or looking at things like how much money is spent on each benefit offered. It was very much an overview.

Of note that year and in other years this past decade though is that.. while the UFT is not the largest union in this city it walks away with the most $.

DC 37 has the most members of all the city unions yet it received almost 100 million dollars less for its WF from the City in 2020. This gap between both is widening over the last years. Why is that?

Will Geof commit to a forensic audit?

Maybe a more detailed report for the executive board.

https://comptroller.nyc.gov/reports/?fwp_agency=welfare-fund

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Oct 18Liked by Educators of NYC

So release the actuary report and their assessment of potential benefit enhancements and the repercussions to members. Easy.

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Oct 18Liked by Educators of NYC

Geof I couldn’t agree more, reserves should not be used to fund any benefits that will become unsustainable once depleted. Then let me ask why did your union destabilize the health stabilization fund by withdrawing $1 billion to convey to the city of New York to fund your contract, thus destabilizing the city healthcare program for all city, workers, retirees, and their families? 🤔

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Oct 18·edited Oct 18Author

Hundreds of millions more have been taken from the healthcare stabilization fund beyond that initial billion and transferred to welfare funds that have little oversight as to whether they are going to health related benefits …only for us to be told we must accept “cost savings” such as inferior and predatory Medicare Advantage with its countless pre-approvals and limited providers.

We’ve also been hit with much higher co-pays and deductibles to our GHI benefits plan because the HSF reserves have been depleted.

So how is any of this three card monte game where Peter robs from Paul and our other city union siblings so that those monies can sit idly in reserve in our Welfare Fund while hard working UFT members now also pay thousands out of pocket for their dental bills … “good fiscal integrity”?

Maybe taxpayers need to ask for an investigation at this point?

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Oct 18Liked by Educators of NYC

Yes that was part of the quid pro quo to get the unions in the MLC to agree to the Mulgrew scheme of taking $1 billion for their contract in 2014. Each union would get an additional $165 a year per employee and Retiree for their welfare fund. The City cannot provide any oversight or enforcement of a welfare fund. Once taxpayer dollars are in the union welfare funds, there is no oversight.

And while the Comptroller office does an audit, it’s perfunctory and they have absolutely no enforcement power. Even unions welfare funds have extremely high administrative costs and low benefit cost ratios are never taken to task. There are even unions with welfare funds in the red, and nothing happens.

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Oct 18·edited Oct 18Author

Excellent point! As the WF bureaucracy eats up more HSF reserve $ earmarked originally for the healthcare of all city workers, those monies can also be set aside for other purposes like the millions Mulgrew’s and Sorkin’s political patronage machine spends on IT or other non-healthcare related projects like legal services. And while the latter is worthwhile work, it’s not what the original monies were earmarked for — the healthcare of city workers and retirees and their families.

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Oct 18·edited Oct 18Liked by Educators of NYC

@geof sorkin

Right and Joe Wohl told another lie in October 2018 when he insisted that none of what was in the MOA was on the table including MAP.

How is it that CSA provides far better benefits than the UFT to both actives and retirees, including a no cost catastrophic plan?

Is the UFT local 2 the only NYSUT local that requires its retirees to pay dues in order to access plans that we then pay a monthly premium for?

What is your current patronage or whatever you want to call it Unity salary? I see that one of the “special reps” was pulling in $188,000 in 2020 or so. What’s your point Geof? Better in your pockets than serving the members as it’s intended to?

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Actually Geof Jonathan Rosenberg, Director of Budget Review at the New York City Independent Budget Office, stated in his testimony to the City Council that there is little to no oversight on the Welfare Funds.

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Oct 18Liked by Educators of NYC

The independent budget office also suggested combining welfare funds citywide to leverage all city, workers, retirees, and their families for greater discounts and purchases of benefits for drug, vision and dental. 1.2 million people in a benefit plan would surely get a better discount then 200,000.

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Oct 18Liked by Educators of NYC

Furthermore, consolidation beats the hell out of dumping us all into an Advantage plan.

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