The Latest News

From Dean Angelo at FOP
Major Legislative Update
Fraternal Order of Police, Chicago Lodge #7
November 29, 2016

SB 440 Passes the House

We are happy to report that Senate Bill 440 (COLA Bill) passed the House today with an 81 - 31 bi-partisan vote. The results of this passage changes the full 3% COLA increase from the born before date of January 1, 1955 to the new born before date of January 1, 1966.

Included in the passage of SB 440 is an increase of 1.5% CPI for widows. This means the minimum widow's annuities shall be no less than 125% of the Federal Poverty Level beginning January 1, 2017.

This passage also eliminates the gap in the Tier 2 Death Benefit. This now ensures that a surviving spouse, child, disabled beneficiary and dependent parents are entitled to a benefit in the event of the participant's untimely death.

Annuitants born after January 1, 1955 had been waiting far too long for a benefit that previous annuitants regularly received. The Lodge's hard work on SB 440 has finally been able to correct what was considered by many to be an impossible task during these fiscally difficult times. We are very proud of our Lobbyists and all of those who supported our efforts.

Be Safe and God Bless the Police

President Dean C. Angelo, Sr.
Fraternal Order of Police, Chicago Lodge #7
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The State House over rode Rauners veto of the COLA passing SB 440 with 81 votes. This gives everyone born before January 1, 1966 a 3% pension raise every year. ...

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Happy Thanksgiving to all First Responders. If you are fortunate enough to be able to be with your family today that is great and if you are spending your day at work then God Bless you even more. ...

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The below email was sent out by FOP, Lodge 7. They have a system in place to try and assist non-Medicare eligible retired CPD in obtaining a health insurance plan. There is information for in-person appointments or by phone.

Retiree Healthcare Update for Non-Medicare Eligible Members
As a result of numerous requests coming into the FOP Lodge, a representative from Labor First will be available at the FOP, on the 2nd Floor, to assist Non-Medicare Retirees with choosing and enrolling in a new healthcare plan.

Appointments are being taken by Lisa at Labor First by calling 856-291-4613.
You must have an appointment to be seen.

Also, the Ullico exchange is up and running and is available via telephone to provide quotes. The telephone number to call and speak to a representative and enroll is 855-492-1084
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A salute to FDs everywhere
www.facebook.com/wesupportfirefighters/videos/1029432280512620/
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The dangers of firefighting! Please don't forget to share and like to show your support for all firefighters!

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From one of ours
This may help with some of the confusion.

Medicare consists of several plans or “parts”:

Parts A and B are often referred to as Original, or Traditional, Medicare. Part A helps pay your hospital bills, and most people have paid for their Part A premiums through payroll taxes while working. Part B helps pay for doctor visits and other medical services, including screenings for heart disease, diabetes and some types of cancer.
Part C plans, also known as Medicare Advantage plans, are Medicare-approved plans offered by private insurance companies. Part C plans are an alternative to Original Medicare. Along with covering doctors and hospitals, they often cover prescription drugs, too.
Part D plans are Medicare-approved private plans that help people who have Parts A and B to pay for prescription drugs.

MEDICARE ADVANTAGE PLANS ARE AN ALTERNATIVE to original traditional medicare. This is also known as Plan C. If you take an advantage plan, you are LITERALLY SIGNING YOURSELF OUT OF TRADITIONAL MEDICARE. Depending on your health circumstances, you may not be able to sign back up for original medicare if you chose to leave your Medicare Advantage Plan.

If you want to keep the traditional medicare, then look for MEDICARE SUPPLEMENT INSURANCE also known as MEDIGAP. You will then have to also pay for a Part D plan for drugs. Sheila Magnus
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FYI

Another Health Care Option - Paying With Your 457

This is another way of paying for your health care using your deferred comp and also receiving your $3,000.00 Public Service Deduction. He also has some additional options for non medicare retirees. I suggest texting or emailing Mike Marron with your questions.

From Michael Marron, Financial Consultant.

I've attached the information regarding the ability to use the Chicago 457 Deferred Comp plan to utilize the Retired Public Safety Officer tax deduction. Retirees who wish to pay premiums for Health insurance and Long Term Care insurance can use up to $3,000 per year from 457 funds and deduct it from their Federal taxes (page 16, Sec. 4.08). The insurance bill is submitted to Nationwide and NRS sends the payment directly to the insurance carrier. I've done this for years for my clients for their LTC premiums. Next year I will be helping them complete the forms for paying the health insurance premiums for those retirees who do not choose the City of Chicago group options.

In the City of Chicago 457 Plan Document (Attached) you’ll see a provision on page 18, sec. 6.03 regarding the new loan provision. It took me over eight years to get NRS to implement this in the City of Chicago plan. The loan is also available to current retirees. The general purpose loan is for five years and the interest rate is prime plus 1 percent. All the principal and interest is paid back to the members account and there is a small application fee to initiate the loan. It is paid through a personal checking or savings account and can be paid off any time after the first year.

Also, there is always a question that comes up regarding if the City has financial problems can the 457 plan be used. The laws have changed over the years and especially after what happened to Orange Co. in the early 1990’s. The Chicago 457 plan is in a trust for the exclusive benefit of the participants. This has removed the earlier issue of City access. The only issue which is true of any insurance company is the guarantees if the issuer has any financial problems. In the State of Illinois any insurance company is covered by the state guaranty association which is funded by taxes on the insurance companies that do business in Illinois. Like the Guarantee’s from the FDIC and NCUA, every resident has association coverage of $250,000 per insurance company. The main thing to be aware of is that in group insurance company plans there is an aggregate limit for the plan of 5 million dollars. (Attached is the Illinois law Section 531.03, subsection 3, paragraph C. )

I look forward to working with retirees as we continue to face changes in retirement. I have been working with City of Chicago employees since 1990, first at PEBSCO/Nationwide and The Financial Planning and Education Center at the Chicago Patrolmen’s Credit Union since 2002. I hope to be a resource together with my team at MAF to help Chicago Retirees as they need to make decisions for Health Care in 2017.

Have a great weekend!

Mike

Michael Marron, Financial Consultant
MAF Companies, Inc.
1200 Harger Road, Suite 718
Oak Brook, IL 60523
312.802.0587 Cell
mike@mafcompanies.com
630.834. 2210 Ext. 3405
630.834.2297 Fax

AND...FROM THE FOP NEWSLETTER;

The Lodge has been working on a group insurance plan for ALL Chicago Police Retirees, their spouses, and surviving spouses. Mailings were sent out on Tuesday October 18th and the FOP logo will appear on the mailing. All of your questions can be answered by the Labor First team (at 855-979-8840 or 312-248-7251 ) AFTER OCTOBER 17th, please call Labor First directly once you've received this mailing.

There will also be Open Enrollment Info-Group Meetings held on the North and South sides, important dates and locations are listed below.

2016 IMPORTANT DATES!

Pre-Scheduled Open Enrollment;
(APPOINTMENT IS REQUIRED)
October 29, 30, 31 at FOP HALL (9 a.m.-4 p.m.)
November 1, 2, 3, 4 at FOP HALL (9 a.m.-4 p.m.)

Open Enrollment Info-Group Meetings (NORTH)
November 1 and 3 at Lone Tree Manor and Banquets
(9 a.m.-Noon)
Located at 7730 N Milwaukee Ave Niles 60714
(No appointments necessary for Informational
Sessions)

Open Enrollment Info-Group Meetings (SOUTH)
November 2 & 4 at Bourbon Street Bar
(9 a.m.-Noon)
Located at 3359 West 115th Street Merrionette Park
(No appointments necessary for Informational
Sessions)

All meetings requiring appointments will be scheduled directly through Labor First.

Labor First can be reached to set up and appointment at the FOP Hall by calling 855-979-8840 or 312-248-7251 AFTER OCTOBER 17TH

Open Enrollment Dates are as follows:
Medicare Annuitants & Spouses:
October 17 – December 6
Non-Medicare Annuitants & Spouses:
November 1– December 6
Medicare Annuitant with Non-Medicare Spouse:
November 1–December 6

Premiums for these programs will be deducted from your pension check to assist Annuitants in maintaining the $3,000 HELPS Tax Deduction to which Retired Public Safety Officers are entitled.
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Subj: TENTATIVE Dates for Healthcare Workshops


The following are the dates and locations for upcoming healthcare meetings. You can have all you questions answered here and sign up..

FOP Hall

29/30/31 October 9am-4pm
1/2/3/4 November. " "
(By appt)

Lone Tree Restaurant
7730 N Milwaukee
NILES

1/2 November 9-noon

115 Bourbon Street
3359 W 115th St, Merrionette Park, IL 60803.

3/4 November. 9 - Noon

The FOP is also contemplating sending representatives to "out of state", monthly meetings for retired officers in states such Nevada, Arizona, Florida, to name a few. If you have monthly meetings and would be interested, kindly contact Doreen at the FOP,
at, 1 (312) 733-7776
...

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SPECIAL RETIREE HEALTHCARE SECTION CHICAGO LODGE 7 ■ OCTOBER 2016 29
This Special Retiree Healthcare Pull-Out section is the Lodge’s initial attempt to communicate as much
information as possible regarding the changes to Retirees’ healthcare. The changes to Retiree Healthcare
will begin as of January 1, 2017. Please know that along with the assistance of representatives from Aetna
(the recommended Medicare Eligible carrier) and Labor First (the contracted Retiree Benefits Administrator),
the Lodge will continue to assist with the Retiree enrollment. Therefore, these three entities
(Lodge 7, Aetna, Labor First) will continue to communicate with and work to ensure that each and every
Retired member of the Chicago Police Department (FOP members, non-FOP members and surviving
spouses) will have multiple opportunities to secure the insurance coverage of their choice prior to the
start of 2017.
The transition that our Retirees will be facing during the course of the next few weeks and months will
certainly be a stressful and difficult experience. Along with the expertise that comes by way of Labor First
and the knowledge of the Aetna support team, the Lodge believes we have worked toward ensuring that
all of the necessary steps were taken to surpass
expectations and minimize frustrations.
We are well aware that there is nothing in life
which can be completely guaranteed. Furthermore,
we can never promise that anything would
be 100% problem-free, but what we can share
with everyone is that for nearly three years the
Lodge has spent a tremendous amount of time
and effort to research and eventually select what
we believe to be the best Retiree Healthcare alternatives
available.
Finally, we hope this ‘Pull-Out’ section assists
everyone with transition.
Dean C. Angelo, Sr.
President
TABLE OF CONTENTS
Page 2: Letter from President Dean C. Angelo, Sr.
Page 3: Letter from City May 15, 2013
Page 4: Questions and Answers
Page 4: Important Dates
Page 5: Labor First & Ullico Private Exchange
Page 6: Recommended Aetna Medicare Plans
Page 7: Non-Medicare Ullico Private Exchange
Page 8: Before you Call or Meet Checklist
30 CHICAGO LODGE 7 ■ OCTOBER 2016 RETIREE HEALTHCARE PULL-OUT SECTION
FRATERNAL ORDER OF POLICE
CHICAGO LODGE #7
THE ELECTED REPRESENTATIVE OF CHICAGO’S PATROL OFFICERS
2017 CPD Retiree & Surviving Spouse Healthcare Notification
For nearly three years, the present FOP Administration has been working on an alternative Retiree Health
Care Option for Medicare, Non-Medicare and surviving spouses of each and every retired member of the
Chicago Police Department. At the end of September we had a meeting with representatives from the City
who once again, informed us that the City’s participation towards Retiree Health Care was ending as of
December 31, 2016 and that there will no longer be any forthcoming contributions towards Retiree Healthcare
costs starting January 1, 2017.
VERY IMPORTANT NOTE:
Current retirees (or surviving spouses) who retired before August 23, 1989 will remain on the
City of Chicago Blue Cross/Blue Shield Plan. This guarantee was a decision confirmed by Judge
Cohen’s ruling in the Underwood vs. City of Chicago proceedings and in the letter from the City
dated May 15, 2013. Furthermore, any Retiree who left with the 55 and/or 60 and out benefit will
maintain the same coverages as an active Member.
Soon the City of Chicago will be soliciting all Retirees that retired after August 23, 1989 in a new
Voluntary Blue Cross/Blue Shield (BC/BS) plan that although sponsored by the City, will be entirely paid for
by the individual Retiree. Presently, the new Voluntary City Medicare Advantage option appears to be more
expensive while only providing similar or less benefit coverages compared to what Aetna has designed.
Additionally, the City’s initial Non-Medicare options are more expensive in comparison to what a Retired
member could purchase on the private exchange.
Medicare Eligible Retirees
FOP is moving forward with the rollout of a recommended health care program that would utilize Aetna
for the Medicare Eligible Retirees. This program was designed with the input from several meetings with
current Retirees and also by the Retiree Committee. In the coming weeks everyone (FOP and non-FOP
Retirees) will be receiving more information about the two very strong Aetna Medicare Advantage with
Prescription Drug (MAPD) plans being offered. The mailer will have the Fraternal Order of Police Lodge
No. 7 Logo on the envelope.
Non-Medicare Eligible Retirees
Non-Medicare eligible Members and their Spouse will need to shop for plans on the Private Exchange.
To help guide everyone through what could be a difficult and confusing process, the FOP has partnered
with Labor First, a Retiree Benefits Administrator & Advocacy Company that specializes in Retiree Health
Care and does so specifically for the labor union marketplace. Labor First will be available to assist with
reviewing and enrolling in a plan; and will also be providing ongoing member support as long as you are
participating in a FOP / Aetna Plan.
It is the Lodge’s opinion that these Retiree Health Plan Options, which utilize two Aetna MAPD
options, offer better coverage at a significantly lower premium cost than the plan(s) being proposed by
the City through BC/BS. Premiums for these programs will be deducted from your pension check to assist
Annuitants in maintaining the $3,000 HELPS Tax Deduction to which Retired Public Safety Officers are
entitled.
PLEASE DO NOT DISCARD THE FOP HEALTH CARE ENROLLMENT KIT WHEN IT ARRIVES
Dean C. Angelo, Sr.
President
RETIREE HEALTHCARE PULL-OUT SECTION CHICAGO LODGE 7 ■ OCTOBER 2016 31
32 CHICAGO LODGE 7 ■ OCTOBER 2016 RETIREE HEALTHCARE PULL-OUT SECTION
This is a trying time for a Retiree and making this transition as
smooth as possible is the number one goal.
The following will help make this transition a little easier:
2016 IMPORTANT DATES
Pre-Scheduled Open Enrollment
(APPOINTMENT IS REQUIRED)
October 29, 30, 31 at FOP HALL (9 a.m.-4 p.m.)
November 1, 2, 3, 4 at FOP HALL (9 a.m.-4 p.m.)
Open Enrollment Info-Group Meetings (NORTH)
November 1 and 3 at Lone Tree Manor and Banquets
(9 a.m.-Noon)
Located at 7730 N Milwaukee Ave Niles 60714
(No appointments necessary for Informational
Sessions)
Open Enrollment Info-Group Meetings (SOUTH)
November 2 & 4 at Bourbon Street Bar
(9 a.m.-Noon)
Located at 3359 West 115th Street Merrionette Park
(No appointments necessary for Informational
Sessions)
All meeting requiring appointments will be scheduled directly
through Labor First.
Labor First can be reached to set up and appointment at the
FOP Hall by calling 855-979-8840 or
312-248-7251 after October 17.
Open Enrollment Dates are as follows:
Medicare Annuitants & Spouses:
October 17 – December 6
Non-Medicare Annuitants & Spouses:
November 1– December 6
Medicare Annuitant with Non-Medicare Spouse:
November 1–December 6
RETIREE HEALTHCARE PULL-OUT SECTION CHICAGO LODGE 7 ■ OCTOBER 2016 33
LABOR FIRST, a Retiree Benefits Administrator & Advocacy Company that specializes in retiree
healthcare specifically for the union marketplace. Labor First will be available to assist retirees with not
only reviewing and enrolling in a plan, they will also be providing ongoing retiree support as long as
you are participating in a Fraternal Order of Police Chicago Lodge No. 7 Aetna Plan.
Ullico’s Private Exchange gives Retirees access to health and major medical plans, available both “on” and
“off” the public healthcare exchanges.
• Online: A personalized website built just for Fraternal Order of Police Chicago Lodge No. 7 and their
families that will allow for you to not only review plan options but to enroll on your own.
• Over the Phone: A dedicated local and toll free number will be available for you to call and discuss the
plan options with one of our Retiree Advocates.
• Dedicated call center with Retiree Advocates to assist with plan selection
• Physician and pharmacy assistance on a real-time basis
• Outbound three-way calls to Medicare, vendors, providers, pharmacies and Social Security
• Follow-up calls to Retirees after a healthcare date of service, to review any additional needs
• Claims, billing and payment support
• Assistance with pharmacy related questions such as generic availability, prior authorizations and
mail-order services
• On-site retiree educational seminars and retiree club breakfasts, allowing retirees to become familiar
and comfortable with our team
• Paper Applications: Paper applications can be mailed at your request.
• Online: A personalized website built just for Fraternal Order of Police Chicago Lodge No. 7 and their
families that will allow for you to not only review plan options but to enroll on your own. Information on
this feature will be detailed in the coming mailing.
• Over the Phone: A dedicated local and toll free number will be available for you to call and discuss the
plan options with one of our Retiree Advocates.
• Onsite Meetings: Labor First Retiree Advocates will be available for “Scheduled InPerson
Face to
Face Meetings”. Information on when, where, and how these meetings will occur will be detailed in the
coming mailing.
Retiree Advocacy Service for you:
Enrollment resources available for Non-Medicare
Retirees or Spouses:
Enrollment resources available for Medicare Eligible:
PRIVATE EXCHANGE
34 CHICAGO LODGE 7 ■ OCTOBER 2016 RETIREE HEALTHCARE PULL-OUT SECTION
RETIREE HEALTHCARE PULL-OUT SECTION CHICAGO LODGE 7 ■ OCTOBER 2016 35
Labor First and the Union Labor Life Insurance Company “Ullico” (the nations’ only-union owned insurance
company), have partnered to deliver a national healthcare solution for Non-Medicare eligible retirees of
labor unions.
As a retiree of FOP Lodge 7 you will have access to both telephonic and online enrollment options through
a private healthcare exchange. Under either option you will be able to calculate federal premium subsidy
dollars and shop for plans that are available in the geography where you reside.
Via an online portal, available carriers, health plans, corresponding benefit descriptions, network descriptions,
and prescription drug coverage will all be available for comparison purposes so that you can select
the best option for your personal situation.
Additionally, all of the online information is also available over the phone by calling one of our Exchange
advocates who can assist with advice, plan selection, and finalization of the enrollment process.
These services have been not only put together to assist the retirees of the FOP Lodge 7 with the review
and selection of the best coverage options available to them, but to also provide ongoing support to our
retirees and their families .
• After requesting insurance information on line, a representative will call you.
• After receiving an informational mailing, you may call to speak to a licensed agent.
• A licensed agent specializing in your state will join the conversation,
and your insurance needs will be identified.
• Personal information is collected that will help narrow down plan
options that are a good fit for you.
• Once you’ve selected a policy, submit and finalize with an application specialist.
• A phone call will let you know that your policy is approved and active.
• Your policy packet will arrive in the mail.
• Congratulations, you are covered!
Client Interactive Process
GET STARTED
CONSULT AN EXPERT
GETTING COVERED
Non-Medicare Private Exchange
Retired Chicago Police Officers & Surviving Spouses
PRIVATE EXCHANGE
36 CHICAGO LODGE 7 ■ OCTOBER 2016 SPECIAL RETIREE HEALTHCARE SECTION
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FYI Chicago Police Retirees

****As a reminder: Those of us that retired with the contractual 55-59 or 60+ active health plans are not affected by this UNTIL we turn 65 and need to look for Medicare supplemental plans.

****Also, Chris Kislov, the lawyer handling the "Underwood" case is going into court this week to ask the Illinois Supreme Court to issue an injunction prohibiting the City from implementing their plan to cease offering retiree health insurance until the "Underwood" case has been ruled on by that court.
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The attachment below was sent out by Chicago Lodge 7 FOP. They have been working for a year or so on offering a retiree health care plan in case the City's plan of stopping retiree health care insurance actually goes through. It is my understanding that the information in the attachment is lifted from their Oct./16 newsletter which will be mailed on 17Oct16.

I have read through it a couple of times and have listed a few things that stood out to me. I am sure when I read it a couple of more times I will see other important things as there is a lot of information here.

----The premise here is the City is going to stop offering and supplementing retiree health insurance.
----The FOP has worked to offer replacement retiree health plans:

For Medicare Eligible:
--Aetna as the Insurance company for Medicare Supplemental plans
--Labor First as the Plan Administrator
--There are 2 plans listed with benefits and premiums shown

For Non-Medicare Eligible
--Labor First and the Union Labor Life Insurance Company “Ullico"
(will work with you individually to find a plan on the Private Exchange marketplace)

There is a section labeled "2016 Important dates" which lists several
"Informational Meeting Dates" for the North & South sides.

In addition, it states that in the packet itself will be phone #'s and websites to the insurance companies so you can research yourself what plan, if any of these, is the right one for you.

The City packet with their offer from BCBS directly and the FOP packet should be in your mailbox by the end of October.

I strongly suggest that everyone look at both the City and FOP plans before deciding on one of these or another plan entirely. Since everyone's personal and financial situation is unique to themselves there is no one best plan for all.

Stay Safe & Good Health,

Terry McMahon
CPD Lt.'s Retiree Representative
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