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PEP Oct. 2001
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Public Employee Press

How are health care and welfare benefits funded?

District Council wins funding for members’ health coverage through the collective bargaining process.

By GREGORY N. HEIRES

District Council 37 wins the money for members’ health coverage through the collective bargaining process.

Together with wages and salaries, the financing for health insurance and city payments to union benefit plans are the big-ticket items at the negotiating table.

Many union members assume — incorrectly — that their dues pay for their health insurance and the benefits provided by the DC 37 Health and Security Plan. In fact, city contributions won in contract negotiations fund union benefits, such as prescription drugs and dental care. And under agreements with the municipal unions, the city must pay directly for health insurance.

Members’ dues cover union services, such as contract negotiations and enforcement (grievances, arbitrations and work-related legal cases), publications and political action.

The DC 37 Health and Security Plan plays an important role in contract talks. It works closely with the Negotiating Committee, union leaders and the Research and Negotiations Dept. to win adequate funding for health insurance and union-provided benefits.

The Plan is governed by a Board of Trustees, who are responsible for maintaining its financial health. DC 37 Deputy Administrator Eliot Seide chairs the board and Brooklyn Public Library Local 1482 President Marlene Rosenberg is vice chair.

The other trustees are Real Estate Employees Local 1219 President Magda De Jesus; Water Supply, Gas and Electricity Local 1322 President John Townsend; Hospital Employees Local 1420 retiree Dorothy Brown; Civil Service Technical Guild Local 375 retiree James Parker; and Deputy Administrator and Research and Negotiations Director Dennis Sullivan.

In an arrangement that goes back decades, funding for the 14 health insurance plans offered to employees is tied to the amount the city pays the Health Insurance Plan of New York for each participant. The HIP/HMO rate is used to determine how much the city contributes to other plans besides HIP. Subscribers to plans that charge the city more than the HIP rate pay the extra amount, which is deducted from their paychecks.

Workers may continue coverage during unpaid leave
Members who take unpaid leave may keep their city-provided health insurance and union welfare fund benefits.

Under the federal Family and Medical Leave Act, city employees may take off up to 12 weeks a year of unpaid leave if they have a serious illness or wish to provide care for a dependent child or family member. Benefits provided by employers and unions must continue throughout the 12-month period.

 

 

 
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