Statement of the AEVC Steering Committee Concerning Proposed Changes to the College's Retiree Medical Plan

September 14, 2010

Dear Colleagues:

I am writing you on behalf of the AEVC steering committee concerning the recently proposed changes to the College's Retiree Medical Plan as outlined in Leslie Power's letter of August 25. We have attended the two meetings Leslie called to review those changes (Sept 2 and 8) and have discussed, among ourselves, the merits and weaknesses of the plan proposed by the Vassar Administration. All of us acknowledge the rising costs in insurance premiums faced by Vassar and its retirees. All of us also acknowledge that those premiums will continue to increase in the years ahead, putting further strain on both Vassar's budget and our own. That is the troubling context in which the College has decided to end Vassar's present model of providing medical insurance for retirees and to adopt a radically new one.

Although the steering committee is significantly divided on a number of the issues, we want to share with you some of the concerns these proposed changes have raised.

1. Process 2. Fundamental Change in Concept and Expectation 3. Medical and Drug Coverage 4. Enrollment Assistance 5. Future Contributions 6. Uncertain Effects on Present and Future Retirees


After reading Leslie Power's letter, attending the recent information sessions, speaking with Jesse Kalin and drawing on our prior experience on several different compensation committees, we believe the College will proceed in adopting this very different approach to retiree medical benefits. While we as a group are not of one mind in appraising this very important change, we have tried to identify for you and the relevant College officers where we think the plan is vague, flawed or unfair. We've also tried to alert you in advance that the time between now and Jan 1 when the old plan expires and your new choices have to be made is very short. Please make the very best use of this time and the special assistance provided by the Benefits office. The security of your medical insurance coverage depends on it.

Michael Mc Carthy
For the AEVC Steering Committee
Betty Daniels, Jesse Kalin, Harvey Flad, Glen Johnson, Michael Mc Carthy