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Herald-Leader
October 31, 2003
UK looks at retiree benefits cap
Health care costs forcing changes
After English professor Jean Pival retired from the University of Kentucky
in 1984, she paid $7 a month for her health care. A few years later, that cost
dropped to zero, then two years ago, it went to $21.
"There was a big outcry," Pival recalled. "But there always
is after something changes."
If that holds true, another big outcry may be right around the corner.
Under changes proposed by a UK task force, the roughly 2,300 retired faculty
and staff will retain the benefits they have now, but UK will cap its contributions
to the benefit plans at $625 a month, or $7,500 a year. The retiree would have
to pay any future increases on top of that. That change could start in 2005.
Currently, for UK retirees older than 65, the university pays $249 a month
and retirees pay $21 a month. Health care inflation is running between 12 percent
to 15 percent a year. At 12 percent inflation a year, the costs to the university
would exceed $625 a month in about nine years.
For those who retire later than the proposed date, UK would make a provision
of $50,000, based on 2005 dollars, for health benefits for each retiree.
Each year, the initial allocation would be adjusted for inflation. Retirees
would still pay their contributions, and UK would track the portion of its money
spent over time. At the end of each year, 4 percent interest on the balance
remaining in the account would be added to it.
When that money ran out, the retiree would have to pay the full cost of health
care.
Joey Payne, UK's director of employee benefits and a member of the task force,
says the plan is the fairest solution, one that would allow retirees to keep
their benefits when health care costs are squeezing institutions all over the
country.
"The proposal would not eliminate any benefits," Payne said. "It
would put a cap on the benefits."
In addition, UK would keep its early retirement provision, which allows employees
to retire when their age plus years of service at UK equals 75. About 1,600
employees are now eligible for retirement.
The proposed changes were sparked by the Government Accounting Standards Board,
which said that by 2006, governmental bodies should include the liability of
retiree health care on their financial statements.
In the past, UK, like many other organizations, paid retiree health benefits
out of pocket every year. But including those as future costs would add an estimated
$351 million to UK's financial obligations. With the changes proposed, that
decreases to $256 million.
Private industry had to change how it accounted for retiree benefits about
10 years ago.
"We ought to recognize we've been making promises to our retirees that
have not been funded," said Tom Samuel, a professor in the UK School of
Public Health, who led the task force.
If the university doesn't deal with this, Samuel said, the school's bond rating
could be affected.
A series of forums will be held around campus to discuss the changes. If accepted
by President Lee Todd, they wouldn't go into effect until 2005, allowing those
eligible to decide whether they want to retire now or wait a few more years.
The task force should expect an earful, said Pival.
"I feel it's the fairest thing we can get," said Pival, a task force
member. "I think there will be some people who will kick and scream because
they have to pick up more cost. But it's better than losing it altogether."
Hans Gesund, an engineering professor who at age 75 could retire, will be among
the people commenting.
"I think it sucks," he said. "They're violating an agreement
they've had with faculty; they're violating what everyone was counting on."
Gesund thinks other savings could be found, such as by eliminating the early
retirement provision.
Jeff Dembo, chairman of the University Senate, said the changes will further
demoralize faculty and staff and will hurt efforts to attract and retain employees.
"We're still trying to deal with the fact that faculty and staff salaries
are still low compared to our benchmarks," he said.
A report in 2000 by the American Association of University Professors found
that 90 percent of large public universities offered retiree health care benefits,
and only 44 percent of private schools did.
"But that's being revisited around the country, and I would guess it will
go in the direction of providing less benefits because so many institutions
are being squeezed with their budgets," said John Curtis, director of research.
But Samuel said the task force was trying to find solutions instead of doing
what many private businesses have done -- scrapping retiree health care altogether.
"We're trying to realistically realize today what is sustainable into
the future and offer a realistic benefit," he said.
Kentucky New Era
October 28, 2003
Adult Education program receives reward
For 36 years, the Christian County Adult Education program has been helping
area residents work toward bettering themselves through knowledge.
With the addition of $21,633 in reward funds announced last week by Kentucky
Adult Education, the local program will be able to keep its students up-to-date
with the latest in study materials and computer equipment.
"That's a big chunk," program coordinator Bev Thomson said of the
reward funds that will extend the capabilities of the program's annual budget
of $303,000, which is all grant-funded.
To be eligible for state reward money, county programs had to meet enrollment
goals. The amount of money awarded to each program then was based on enrollment
numbers and the number of performance goals met.
"We met 100 percent of our performance goals," Thomson said. "And,
our enrollment was about double our enrollment target."
Seventy-five counties received a total of $879,555 in reward money this year.
Christian County, because of the size of the program and number of goals met,
was No. 7 on that list. Trigg County received $5,012; Caldwell, $4,686; and
Todd, $2,387.
Thomson said Christian County's program, operated under the county Board of
Education, primarily will use the reward money to purchase mandated GED study
materials and update computers for Internet and study use by students. The money
comes as good news to the program's eight full- and five part-time employees.
"We weren't going to be able to buy the materials without laying someone
off," Thomson explained.
According to the 2000 Census, more than 10,700 Christian countians over the
age of 18 are without a high school diploma.
Since 2002, the program's Learning Center located on the campus of Hopkinsville
Community College has helped 184 adults earn a GED. Since that time, a total
of 2,638 have been enrolled in the Learning Center's programs, which includes
free remedial instruction for adults wishing to enter college or vocational
training, family literacy for parents of preschoolers and elementary school
students, English as a second language, community awareness activities to promote
literacy and assessment services for GED and Tests of Adult Basic Education
for employment.
The Daily Independent
October 31, 2003
Hair-raising treats
ACTC cosmetology students paint faces, give cuts to kids
ASHLAND When Island Tackett first sat down in the beautician's chair in Ashland
Community and Technical College's cosmetology department Thursday, she was sobbing
and trembling.
Her teacher, Gale Morris, had to take the 7-year-old Greysbranch Elementary
first-grader on her lap while cosmetology students tried to comfort her.
Soon, Morris was able to slip away; ACTC student Teresa Ison took out her scissors
and started snipping.
"We just had to talk to her a little bit and calm her down, so she'd know
we weren't going to hurt her," Ison said.
By the time Ison had shaped the child's hair, the tears had dried and Island
was smiling. Ison dabbed on a little bit of makeup and Island hopped out of
the chair, gave her a hug and skipped away to show off her new look.
"It makes your heart so happy when that happens,' said Ison. The cosmetology
students at ACTC get several chances a year to earn hugs, because the program
offers free services to special-needs children in several area school districts.
It's their chance to help some children and get valuable real-world experience,
said Patti Banfield, director of the program.
"At a shop, they're going to be exposed to this. They have to learn to
entertain children as well as provide a service," Banfield said.
Most commercial shops don't have the time or staff to keep an entire first
grade class occupied during haircuts, she said.
The cosmetology students, on the other hand, clustered three and four around
each chair, smiling and admiring the children. "They get attention they
wouldn't get in a shop," Banfield said.
As a Halloween extra, they painted designs on the children's faces. Corey Winnick,
a fifth grader, said he was going to have a bat and a ball on his face, because
he likes baseball.
First grader Karina McBride opted for a pumpkin. She liked the way the students
cut her hair, she said.
The trip to ACTC was more than an excursion for the kids, Morris said. "It's
not just a field trip; it's a community-based instruction activity," she
said.
The children learn hygiene and other personal-care skills, she said. "The
students here are wonderful with them."
The cosmetology department also offers haircuts and makeovers to graduates
of the GED program housed next door. Graduates receive vouchers for haircuts
to help them prepare for job interviews.
Participants in Ready to Work, a welfare-to-work program, also can get free
services at the department to help them in their job preparation.
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