Month: February 2022

The Relation Between COVID-19 and Depression

Mary Pat Campbell

Link:https://www.genre.com/knowledge/publications/cflh21-2-obrien-en.html

Excerpt:

A number of studies have looked at the incidence of Long COVID, including a recently published state-of-the-art review of post-acute sequelae of severe disease.1 This indicates that 33% to 98% of survivors have symptoms or complications for at least a month. The most common of these are fatigue (28.3%‑98%), headache (91.2%), dyspnoea (13.5%‑88%), cough (10%‑13%), chest pain (5%‑42.7%), anxiety or depression (14.6%‑23%) and deficits in smell or taste (13.1%‑67%). The importance of understanding the long-term effects of COVID‑19 is vital in planning future care and management strategies. The National Institutes of Health (NIH) in the U. S. has recently allocated $470 million to build a national study population including diverse research volunteers and, to support large-scale studies on the long-term effects of COVID‑19. This is known as the NIH Researching COVID to Enhance Recovery (RECOVER) study.2

….

A recent study of the effects of the pandemic on anxiety and major depression has estimated a significant increase in the prevalence of both major depressive disorder, with an estimated additional 53.2 million cases worldwide, and anxiety disorders with an additional 76.2 million cases. These findings are particularly concerning because depression and anxiety were already leading causes of disability worldwide. By using the global burden of disease study model, the study gives estimates of additional disability-adjusted life-years (DALYS). Major depressive disorder caused 49.4 million DALYs, and anxiety disorders caused 44.5 million DALYS in 2020.9

Whether the increase in depression and anxiety can be solely ascribed to the effects of the pandemic or whether the disease itself can induce these conditions remains uncertain. Soon after the start of the pandemic, a UK‑wide surveillance study trying to identify neurological and neuropsychiatric complications identified patients with altered mental status, which fulfilled the clinical case definition for psychiatric diagnoses:10

21 of the 23 cases were new diagnoses.

10 had new onset psychosis.

6 had a neurocognitive syndrome.

4 had an affective disorder.

Author(s): Dr. John O’Brien, Life/Health Chief Medical Officer, London

Publication Date: Feb 2022

Publication Site: GenRe

Life and Annuity Issuers Watch for Interest Rate Hike Sunshine

Mary Pat Campbell

Link:https://www.thinkadvisor.com/2022/02/04/life-and-annuity-issuers-watch-for-interest-rate-hike-sunshine/

Excerpt:

Executives are hoping that Fed interest rate increases could increase the yields on insurers’ huge investment portfolios.

Higher rates could be a good thing for Prudential, the company’s vice chairman told analysts.

MetLife’s CEO said higher short-term rates could mean a flatter yield curve that would be less favorable to life insurers.

Author(s): Allison Bell

Publication Date: 4 Feb 2022

Publication Site: Think Advisor

AstraZeneca to End Its US Corporate Pension Plan

Mary Pat Campbell

Link:https://www.ai-cio.com/news/astrazeneca-to-end-its-us-corporate-pension-plan/

Excerpt:

AstraZeneca, a British–Swedish biopharmaceutical company responsible for developing one of the world’s most widely distributed COVID-19 vaccines, announced on January 25 that it will be transferring its pension assets to an insurance company.

“This is a common practice, achieved via a process known as ‘plan termination’ and ‘buy-out.’ This action does not impact any participant’s eligibility to receive the benefit earned under the pension plan,” AstraZeneca representatives wrote in a statement explaining the transition.

AstraZeneca’s US pension initially began struggling with its funded status in 2017, and the company made the decision to freeze benefit accruals that year. This move ended up making a significant difference, bringing funded status from 80% in 2017 up to 99.19% by the end of 2018. The plan currently has $1.3 billion in assets under management (AUM) and serves approximately 7,000 employees, according to its Form 5500.

Author(s): Anna Gordon

Publication Date: 7 Feb 2022

Publication Site: ai-CIO

Education & Labor Committee Releases Multiemployer Pension Rescue Tracker

Mary Pat Campbell

Link:https://edlabor.house.gov/media/press-releases/education-and-labor-committee-releases-multiemployer-pension-rescue-tracker

Graphic:

Excerpt:

Today, the House Committee on Education and Labor unveiled a new Multiemployer Pension Rescue Tracker to highlight the hard-earned pensions saved and businesses protected under Congressional Democrats’ and President Biden’s American Rescue Plan Act.  The multiemployer pension crisis – which was accelerated by the COVID-19 pandemic – threatened to strip more than a million retirees of the pensions they earned over a lifetime of work, jeopardized tens of thousands of businesses and endangered tens of thousands of jobs.

In response, the American Rescue Plan Act created a Special Financial Assistance (SFA) Program to avert the immediate crisis threatening the retirement security of American workers, retirees, and their families.  This solution was supported by a diverse group of stakeholders, including the AFL-CIO, AARP, the United States Chamber of Commerce, UPS and scores of other employers who participate in multiemployer plans.

….

To view the pension tracker, click here.

Author: Education and Labor Committee

Publication Date: 2 Feb 2022

Publication Site: House of Representatives

‘The Pension Bill Has Something For Everybody’: A Look Into How Illinois Lawmakers Justified Their Pension Benefit Boosts

Mary Pat Campbell

Link: https://www.forbes.com/sites/ebauer/2022/02/03/the-pension-bill-has-something-for-everybody-a-look-into-how-illinois-lawmakers-justified-their-pension-benefit-boosts/?sh=207f9a5233bb

Excerpt:

In my prior article, I laid out the Illinois General Assembly’s repeated unanimous, near-unanimous or strong bipartisan majority support for a series of bills increasing pension benefits for public employees from 1989 – 2000.

….

With respect to the SERS benefit increase, the Senate debate centers around collective bargaining. As Senator Jones says in the May 31, 1997 transcript, “I think Senator Collins had worked hours, and many hours and years to sponsor this piece of – this legislation so that we can arrive at the point we are today. So I – I stand up gladly and proudly to – to support you in this endeavor, but I think we should know where the real, real support originally came from and how it all came about. And it came about as a result of collective bargaining legislation.” (Again, all transcripts can be viewed online.)

On the House side, there was more discussion. The CGFA’s summary notwithstanding, there were a number of benefit boosts, including a “30 and out” provision. It was explained by Rep. Poe that the bill was “funded” by the fact that during the AFSME contract negotiations, the union accepted a reduced wage increase (relative to what they’d otherwise have demanded) in order to achieve this pension benefit increase, and it was taken on faith that the bill was indeed therefore truly “paid for,” when it ought to simply have been met with incredulity instead.

….

This is, of course, exactly the core of the reason why public sector unions are fundamentally so ripe for abuse, when the individuals who nominally have the role of “employer” gain so much politically from providing these generous benefits.

This brings us to the Teacher’s equivalent and the transcripts of May 21 – 22, 1998. Here the path of the bill was not as simple, as the speaker delayed moving the bill out of the Rules committee.

….

Finally, we have transcripts of the 1989 COLA/pension funding bait-and-switch bill to read. Again recall that this bill was wholly rewritten through negotiations, and presented in its final form on the day it was voted upon, June 30, 1989. 

….

“The pension bill has something for everybody, folks. It’s been designed in such a way that everybody’s got something in here.” 

But as Schuneman continues to speak, it is clear that he is cynical about this design and in fact he is concerned about the cost, and he continues talking about the pension debt as the equivalent to paying the minimum payment on a credit card – but gets no traction. The next speakers are far more interested in clarifying the (even more generous) benefit boosts for General Assembly members, and after some side-tracking Jones picks up his “something for everything” point but not with Schuneman’s cynicism but sincerely calling for passage, citing the governor’s support (and with no mention of costs or the funding plan): 

“Sure, there is something in here for everyone. The Office of the Governor came out very strongly for the workers of the State of Illinois and in strong support for the compounding of the increases for State Employees and retirees. So, let’s give me a favorable vote on this bill, and we will do good for the people who work hard for the State of Illinois.”

Author(s): Elizabeth Bauer

Publication Date: 3 Feb 2022

Publication Site: Forbes

State pension system is unsustainable, says Heather Humphreys

Mary Pat Campbell

Link:https://www.irishtimes.com/news/politics/state-pension-system-is-unsustainable-says-heather-humphreys-1.4792791

Excerpt:

The State pension system is “not sustainable” and there is “no getting away from that fact”, Minister for Social Protection Heather Humphreys has said.

Ms Humphreys also said there are “no easy options” when it comes to reforming the State pension.

The Oireachtas Joint Committee on Social Protection, Community and Rural Development and the Islands said in its report, published on Wednesday, that the State pension age should not rise beyond the age of 66.

Its view runs counter to the stance of the Pensions Commission which argued the pension age should rise in steps to 67 by 2031 and then to 68 by 2039.

….

“Today we have 4.5 people working for every one pensioner, by 2050 we will have two people working for every pensioner,” Ms Humpreys said.

Author(s): Sarah Burns

Publication Date: 3 Feb 2022

Publication Site: Irish Times

Colin McNickle: Are Pittsburgh’s pension changes prudent?

Mary Pat Campbell

Link:https://triblive.com/opinion/colin-mcnickle-are-pittsburghs-pension-changes-prudent/

Excerpt:

The City of Pittsburgh has revised its employee pension program. But whether the moves were prudent remains an open question, concludes an analysis by the Allegheny Institute for Public Policy.

It was in December that outgoing Mayor Bill Peduto signed ordinances that eliminated a pension reduction for some city employees, modified the employee contribution rate and extended the number of years that the city will dedicate parking taxes to those pensions.

….

All this said, new ordinances return and/or add more city employees to the pension plans’ liabilities, increasing them from $87.9 million to $96.9 million, based on an actuarial analysis. And they assume a robust recovery in post-pandemic parking tax revenue to meet the pledged contribution to the pension plans.

But do remember that the 2010 ordinance states that the city’s full faith and credit are pledged to meet the parking tax obligation. “That means other sources of tax or non-tax revenue may be called upon if needed,” Montarti says.

“If the city can reach an 80% funding ratio without the inclusion of the parking tax pledge, then it is possible that the dedication of the revenue to the pensions may end earlier than 2051, based on language in the new ordinances,” he says.

….

“Why not wait until the pension funding ratio was further into that range or, even better, actually met the level of ‘no distress’ (of 90 percent or above)?” Montarti asks. “What if the stock market underperforms and the city’s pensions lose ground?”

Author(s): Colin McNickle

Publication Date: 3 Feb 2022

Publication Site: Trib Live

How Much Is ‘Enough’?

Mary Pat Campbell

Link:https://www.asppa-net.org/news/how-much-%E2%80%98enough%E2%80%99

Excerpt:

Looks like those hoping for some clarity on a threshold issue involving ERISA fee litigation will have to wait for another day.

I’m referring, of course, to last week’s ruling by the Supreme Court on the case of Hughes v. Northwestern University et al.—a case that the law firm of Schlichter Bogard & Denton—which seems to have “invented” this class of excessive fee litigation—said was having a “chilling effect” on this type of lawsuit, more precisely their ability to proceed to trial (or settlement). Consequently, ERISA fiduciaries were waiting anxiously for a ruling on the case, which involved allegations that Northwestern University had failed to comply with its fiduciary responsibilities with regard to the options available to plan participants. 

Indeed, the allegations in this case weren’t all that different from the litany transgressions outlined in any number of such cases over the years—but in making their case to be heard by the nation’s highest court the plaintiffs’ attorneys (the aforementioned law firm)—had noted (complained?) that suits “with virtually identical” claims were being dismissed out of hand, while other courts were allowing them to go to trial. This they claimed was “…not a factual disagreement about whether the specific allegations at issue clear the pleading hurdle,” but rather “a legal disagreement about where that hurdle should be set.” 

….

Consequently. some clarity as to how, and how much, must be established by those who file the suits before they get to take the issue(s) to trial is timely, to say the least. Or, said another way, how much is “enough.” 

….

Rather, the court had merely determined that there were some prudent alternatives on the menu, and that the participants could choose them if they had an issue with those that (allegedly) weren’t as expensive and that, for that district court, was enough.

Author(s): Nevin E Adams, JD

Publication Date: 3 Feb 2022

Publication Site: ASPPA

ILLINOIS CAN SAVE $577M ON PENSIONS BY ADDING A DATE TO A LAW

Mary Pat Campbell

Link:https://www.illinoispolicy.org/illinois-can-save-577m-on-pensions-by-adding-a-date-to-a-law/

Excerpt:

Essentially, all pension debt stems from Tier 1 benefits promised to state employees hired before 2011, like Crenshaw. Tier 2 employees hired after 2011 will likely pay more than their benefits will be worth to subsidize Tier 1 benefits.

Implementing optional Tier 3 plans is one of the solutions to Illinois’ woes set out in the Illinois Policy Institute’s Illinois Forward 2023. The General Assembly passed Tier 3 plans during the fiscal year 2018 budget process. A technical error left an implementation date out of the language, and it hasn’t been corrected since. Lawmakers could fix this oversight for fiscal year 2023, which begins July 1, 2022.

“A lot of times we’re not given the intricacies of how a Tier 3 or alternative pension plan could benefit us,” Crenshaw said.

Author(s): Dylan Sharkey

Publication Date: 3 Feb 2022

Publication Site: Illinois Policy Institute

The 5 Highest-Population States’ Current COVID-19 Mortality Picture

Mary Pat Campbell

Link:https://www.thinkadvisor.com/2022/02/07/the-5-highest-population-states-current-covid-19-mortality-picture/

Graphic:

Excerpt:

Life insurers had hoped that vaccination campaigns, social distancing efforts and the effects of past COVID-19 infections on people’s immune systems would start to reduce the impact of the pandemic on people with commercial life insurance and other commercial insurance products.

While the fall 2021 surge was underway, information about deaths and life insurance claims emerged slowly. Some life insurers suggested that the fall surge seemed to be spiking hard but ending quickly.

Now, Unum Group, Lincoln Financial, MetLife and other life insurers are saying that the fall surge did cause big increases in the ratio of death benefits to life insurance premiums. At Unum, for example, the ratio increased to 98.3% in the latest quarter, from 71.7% in the fourth quarter of 2019, before the pandemic began.

Author(s): Allison Bell

Publication Date: 7 Feb 2022

Publication Site: Think Advisor

Lamont will ask lawmakers to resist the urge to spend big in next CT budget

Mary Pat Campbell

Link:https://ctmirror.org/2022/02/08/lamont-will-ask-lawmakers-to-resist-the-urge-to-spend-big-in-next-ct-budget/

Excerpt:

That doesn’t mean there’s nothing important in the budget. Connecticut is in the midst of a two-year plan to put nearly $6 billion in federal coronavirus aid to work to bolster its schools, health care system, economy, and state and local governments.

While the plan is generating big surpluses in state finances, the jury is still out on the overall Connecticut comeback. And since the state will invariably face a fiscal shock in 2024 — when $6 billion in federal aid has expired — Lamont is cautious about tackling anything more ambitious right now.

….

The state has the legal maximum in its rainy day fund, $3.1 billion or 15% of annual operating expenses, and already made a supplemental $1.6 billion payment last fall to reduce pension debt.

But with a nearly $2.5 billion surplus projected for the current fiscal year, the state can keep its reserves full, reduce more pension debt and help do more for those hardest hit by the pandemic, Walker said. 

Author(s): Keith Phaneuf

Publication Date: 8 Feb 2022

Publication Site: CT Mirror

Veterans Voice: For ‘service and sacrifice.’ Vets call pension tax exemption long overdue

Mary Pat Campbell

Link:https://www.providencejournal.com/story/news/local/2022/02/07/ri-veterans-pension-tax-exemption-long-overdue/6664797001/

Excerpt:

In 1998, Reform Party candidate Victor Moffitt campaigned for state treasurer on a platform that included eliminating the state income tax on military pensions. 

Said Moffitt in 1998: “That’s a small amount to pay to the people who risked their lives to preserve our freedom and democracy.”

This history frustrates Vasquez-Hellner because Rhode Island is one of only four states that does not have a specific exemption for veteran pensions. (The first $15,000 of all pensions, regardless of source, are tax-exempt.)

….

Supporters argue the change is a long-overdue step to counter the impression that Rhode Island does not treat its veterans as well as other states, such as Massachusetts and Connecticut. Both fully exempt veteran pensions from state income tax.

Author(s): Frank Lennon

Publication Date: 7 Feb 2022

Publication Site: Providence Journal