U.S. Insurer of Pensions Sees Flood of Red Ink

By ERIC LIPTON - The New York Times - May 20, 2009
WASHINGTON — The deficit at the federal agency that guarantees pensions for 44 million Americans tripled in the last six months to a record high, reaching $33.5 billion, largely as a result of surging bankruptcies among companies whose pensions it expects it will soon need to take over.

The agency, the Pension Benefit Guaranty Corporation, faced a shortfall of just $11 billion as of October. The combined effect of lower interest rates, losses on its investment portfolio and rising numbers of companies filing for bankruptcy produced the jump in its projected deficit, officials said Wednesday.

Because the agency has $56 billion in assets — most of which is invested in Treasury bonds — it is not facing any prospect of default in the short term, officials said.

“The P.B.G.C. has sufficient funds to meet its benefit obligations for many years because benefits are paid monthly over the lifetimes of beneficiaries, not as lump sums,” the agency’s acting director, Vince Snowbarger, testified Wednesday at a Senate hearing. “Nevertheless, over the long term, the deficit must be addressed.”

The financial troubles are just a small part of the challenges facing the pension agency, which was created by Congress in 1974 and today is responsible for pension programs covering 1.3 million people. It pays about 640,000 people actual benefits worth about $4.3 billion a year.

The P.B.G.C.’s former director, Charles E. F. Millard, was subpoenaed to testify at the hearing Wednesday. But he cited his constitutional right to avoid self-incrimination and declined to answer any questions.

Mr. Millard, who resigned in January, has been accused by the agency’s inspector general of having inappropriate contact with companies including BlackRock, JPMorgan Chase and Goldman Sachs, all of which competed for and won contracts to help manage $2.5 billion of the agency’s funds. Those contracts will now most likely be canceled.

Employers nationwide with so-called defined-benefit, or traditional, pension plans pay fees to the P.B.G.C. in return for a promise that it will take over their pension plan if a company fails.

On Tuesday, for example, the agency announced that it had assumed the pension plan once run by the Lenox Group, a bankrupt maker of tableware, giftware and collectibles based in Eden Prairie, Minn. Assuming control of pensions for this company’s 4,300 workers will cost the agency an estimated $128 million — the difference between what Lenox had in its pension fund and what the total estimated obligations are.

In the last six months, 93 companies whose pension plans are covered by the agency have filed for bankruptcy, including Chrysler, whose failure alone could cost the agency $2 billion. A bankruptcy by General Motors would make the situation worse. G.M. had 670,000 workers as of late last year in its pension system, whose collapse would cost the agency an estimated $6 billion.

Options to close the $33.5 billion deficit include a federal bailout by taxpayers, a change in insurance premiums it charges employers or increasing its investment returns.

Last year, the agency’s board voted to allow it to shift its investment strategy to put more money into stocks, private equity and real estate, in an effort to reduce the deficit.

If that shift had taken place, the losses would most likely have been larger. But only a relatively small amount of the funds have already been shifted to stocks, so the losses on the investment portfolio were responsible for just $3 billion of the jump in the deficit in the last six months.

Senator Herb Kohl, Democrat of Wisconsin and chairman of the Senate Special Committee on Aging, which held the hearing Wednesday, blamed poor supervision by the agency’s board and management, at least in part, for the troubles, adding that he intended to introduce legislation that would expand the board and require it to meet at least four times a year. The board has not met in person since February 2008.

“The role of P.B.G.C. is too crucial to allow its governance to slip through the cracks,” Mr. Kohl said.

Read more in The New York Times

People who apply for disability benefits sometimes wait years for a ruling

By ALEX BRANCH - Fort Worth Star Telegram - May 21, 2009
HALTOM CITY — Linda King says diabetes and heart problems forced her to quit her office job and apply for disability benefits in January 2007.

While she waited, she made ends meet off the $300 to $350 her cousin gave her every month. That had to cover bills, medicine, and lunchmeat and soup.

"It’s really hard, but you tell yourself you can do it while you wait," said the 61-year-old Haltom City woman.

Two years and five months later, she still waits.

King, who was initially turned down for benefits, is among more than 750,000 Americans trapped in a backlog of disputed Social Security disability claims. Applicants who seek an appeal hearing sometimes wait years for one.

In Fort Worth, applicants as of April waited an average of 355 days from the time they request a hearing until they get one, according to the National Organization of Social Security Claimants’ Representatives. The wait in Dallas ranges from 342 to 418 days.

Social Security Administration officials have blamed the backlog on a rising number of claims and staffing shortages. Earlier this year, Commissioner Michael Astrue warned that the faltering economy had triggered a 10 percent increase in new claims, hampering the agency’s efforts to reduce the existing backlog.

"It’s so frustrating," King said. "I check my mailbox every day and hope I get an answer."

A long process

To request an appeal hearing, applicants’ claims must first be denied twice. The first decision takes an average of 106 days, according to administration officials.

The second ruling usually takes 45 to 60 days, said Marva Foster, team leader for Mash Inc., a Fort Worth agency that guides people through the application process.

About 64 percent of applicants are initially denied.

Hearings are held before administrative judges, and that’s where things can grind to a halt. The agency is handling twice the number of claims it did in the 1990s, according to administration figures.

"If you’ve been waiting a long time, of course you’re frustrated," said Tom Clark, spokesman for the North Texas Social Security Office. "We’re working very hard to reduce that backlog."

Progress has already been made, he said. The agency now has fewer than 300 cases nationwide that have lingered at least 900 days — down from about 135,000 cases.

It has also opened a National Hearing Center to concentrate on backlogged cases, hired 100 administrative judges and identified about 50 illnesses as cases to be expedited.

Also, the administration’s work force will grow by about 3,200 under President Barack Obama’s 2010 budget plan to handle retirement and disability claims from aging baby boomers.

'It’s really sad’

In the meantime, those ailing and caught in the backlog face struggles.

"They get no medical benefits, no income, unless there is a spouse working," Foster said. "If you got out and try to find some kind of job while you wait, you risk being denied because, well, now you’re working."

Fort Worth’s average wait time is better than most regions. It was the 18th shortest on a list of 142 U.S. processing centers. However, advocates for applicants say that 355 days is still a long time.
King has worked most of her life, never smoked or drank and has been hospitalized several times because of her heart condition, her lawyer Daniel Gregory said.

"Her car is broken down, so she couldn’t even get out to apply for food stamps," he said. "It’s really sad to see her having to live in such difficult circumstances."

King finally got her hearing in January. But she still hasn’t received a ruling from the judge.

"We just hope it comes soon," Gregory said.

The economy has stoked fears that the backlog will get worse. People with disabilities have a lower employment rate and have a harder time finding a new job if they get laid off, said Ethel Zelenske, director of government affairs for the National Organization of Social Security Claimants’ Representatives in Washington, D.C.

"A lot of people with disabilities try to work even if it is not the best thing for them," she said. "They would rather not apply and only do it when they feel like they have to."

Needed paperwork

Experts say one thing applicants can do to help shorten their wait time is to carefully document their condition.

The most common reason for initial denials is incomplete information, they say.

"You can’t just walk in and say, 'I’m really sick,’ "

said Stephanie Weatherford, who helps applicants through a Tarrant County Mental Health and Mental Retardation program.

"They will say, 'Show me the record.’ If you can show them the medical records, you will most likely get approved."

Others whose initial claims are denied often failed to follow up on the claim in a timely manner, she said. There are deadlines to appeal rulings.

"It is daunting and intimidating for people who don’t do a lot of paperwork," Weatherford said.

For her part, King says she had done her best preparing her appeal.

"All I can do now is hope and wait," she said. "One of these days I’ll get an answer."

By the numbers 750,000: Pending claims nationally

106 days: Average wait for an initial ruling on a claim

64 percent: Percentage of claims initially denied

355 days: Average wait for an appeal hearing in Fort Worth

3,200: Workers to be added to the Social Security Administration
Read more in the Fort Worth Star Telegram

Health Insurers Agree to End Higher Premiums for Women

By ROBERT PEAR - The New York Times - May 6, 2009
WASHINGTON — Insurance companies offered Tuesday to end the practice of charging higher premiums to women than to men for the same coverage.
Karen M. Ignagni, president of America’s Health Insurance Plans, a trade group, made the offer in testifying before the Senate Finance Committee.

It was the latest concession by insurers as Congress drafts legislation to overhaul the $2.5 trillion health care industry.

In November, insurers said they would accept all customers, regardless of illness or disability, if Congress required all Americans to have coverage. In March, insurers offered to stop charging higher premiums to sick people.

Ms. Ignagni said the industry would accept aggressive federal regulation, but would resist creation of a government-run insurance program of the type proposed by President Obama and many Democrats in Congress. The government-sponsored program would compete with private insurers.

Senator John Kerry, Democrat of Massachusetts, told Ms. Ignagni, “The disparity between women and men in the individual insurance market is just plain wrong, and it has to change.”

She said she agreed the disparities “should be eliminated.”

Mr. Kerry introduced a bill on Tuesday to prohibit insurers from considering sex as a factor in setting premiums for policies in the individual insurance market.

Women are often charged 25 percent to 50 percent more than men for insurance providing identical coverage.

In interviews last fall, insurance executives said they had a sound reason for the different premiums: Women ages 19 to 55 tend to cost more than men of the same age because they typically use more health care, especially in the childbearing years. Moreover, insurers said women were more likely to visit doctors, to get regular checkups, to take prescription medications and to have certain chronic illnesses.

Congress is considering proposals to provide tax credits or subsidies to millions of people with low or moderate incomes to help them buy insurance. Without substantial changes in the insurance market, such assistance would be worth less to women because of the higher premiums.
Read more in the New York Times

Rep. Chris Turner on the H1N1 Virus

With increasing concern that the H1N1 virus (swine flu) is spreading across our state and nation, I want to make sure that you know where to find the most up to date information regarding this serious situation.

Our office is being updated on a regular basis regarding the spread of this virus and we are closely monitoring school closures near or in House District 96.

Below is some basic information provided by the Centers for Disease Control (CDC) regarding swine flu:


* Cover your nose and mouth with a tissue when you cough or sneeze. Throw the tissue in the trash after you use it.

* Wash your hands often with soap and water, especially after you cough or sneeze. Alcohol-based hand cleaners are also effective.

* Avoid touching your eyes, nose or mouth. Germs spread this way.

* Try to avoid close contact with sick people.

* If you get sick with influenza, CDC recommends that you stay home from work or school and limit contact with others to keep from infecting them.


In children, emergency warning signs that need urgent medical attention include:

* Fast breathing or trouble breathing

* Bluish skin color

* Not drinking enough fluids

* Not waking up or not interacting

* Being so irritable that the child does not want to be held

* Flu-like symptoms improve but then return with fever and worse cough

* Fever with a rash


In adults, emergency warning signs that need urgent medical attention include:

* Difficulty breathing or shortness of breath

* Pain or pressure in the chest or abdomen

* Sudden dizziness

* Confusion

* Severe or persistent vomiting


If you are experiencing symptoms, call your health care provider.

More information is available at http://www.cdc.gov/swineflu/swineflu_you.htm. You may also visit the State's Office of Emergency Management for daily reports regarding how H1N1 is affecting our state -- http://www.txdps.state.tx.us/dem/pages/index.htm. Finally, for local information, you may visit the Tarrant County Public Health website at http://www.tarrantcounty.com/eHealth/site/default.asp.

If you have questions or concerns regarding what the state is doing to address the H1N1 virus situation, please do not hesitate to contact my district director, Matthew Geske, by calling 817-478-5096.
As always, if you need help with any state matter, please do not hesitate to contact my office. We are here to serve you.

In Fort Worth, Tarrant, events fall victim to swine flu fears

By STEVE CAMPBELL and ELIZABETH ZAVALA - Fort Worth Star Telegram - May 1, 2009
The popular Mayfest festival was canceled right before it opened Thursday, and parents scrambled to cover child care as area residents adjusted to life in the epicenter of a national public health crisis.

The number of confirmed swine flu cases in Texas grew to 26 Thursday as health officials continued massive rounds of testing, said Williams Ayers, a spokesman for the Texas Department of State Health Services. No deaths have been reported since the one confirmed Wednesday.

In Tarrant County, confirmed cases rose from one to five, and there are 15 probable cases, the health department said Thursday afternoon. Two of the confirmed cases are in Euless and three are in Fort Worth, with patients’ ages ranging from 11 months to 37 years.

With the number of infected residents growing, Fort Worth officials canceled most city-affiliated public events, including the Cinco de Mayo celebrations in north Fort Worth, and county health officials issued orders aimed at limiting gathering places for schoolchildren.

Inside Fort Worth schools, which were ordered closed Wednesday night, crews began sanitizing 144 campuses that serve 80,000 students. Administrators spent much of the day determining what effect the districtwide closure would have on payroll, finances and academics.

Birdville school district officials announced that the Shannon Learning Center, the district’s alternative education program, would be closed though May 11 because an educational assistant is one of the confirmed cases of swine flu, said Mark Thomas, the district’s spokesman. All other campuses will remain open on their normal schedule.

Mayfest grounded

Fierce spring weather has never stopped the Mayfest festival — it was pounded by fist-sized hail that injured 90 people on May 5, 1995 — but the swine flu shut it down.

Organizers of the 37-year-old event were alerted shortly after noon via e-mail that the Fort Worth Parks and Community Services Department and Tarrant County Public Health were canceling it and other outdoor gatherings in the city to try to slow the spread of the flu.

Mayfest leases the park from the city, so organizers had no choice but to close.

"I guess everyone needs to go lock themselves in their homes," said Steve Morgan of Arlington, who, along with his partner, Tempie Rodgers, spent nearly three months working on Terror on the Trinity, a haunted house.

Organizers expect to lose about $500,000 with the cancellation. The event’s board expects to meet soon to discuss whether vendors’ fees will be reimbursed, said Elizabeth Basham, Mayfest’s executive director.

The reason for closures

After-school and sports programs at Fort Worth recreation centers are canceled until at least May 8, although the facilities will stay open, Mayor Mike Moncrief said at a news conference. Polling places for city and school board elections will also remain open.

Dr. Sandra Parker, the medical director for Tarrant County Public Health who recommended Wednesday that Fort Worth schools close, said most of the local cases have involved Fort Worth students. She said she advised canceling Mayfest and Cinco de Mayo events because "they’re identified with the population we’re concerned with."

"Social distancing" measures she ordered Thursday — advising that students stay away from malls and movie theaters — are aimed at places where young people are likely to hang out, she said.

She is discussing the situation with officials at the Fort Worth Zoo, Rangers Ballpark in Arlington and other gathering places, although they remain open.

Tarrant County Administrator G.K. Maenius said Thursday that the county’s public health department has not shut down schools or public events, but has recommended closures. Recommendations for school closures are also coming from the Texas Education Agency, he said.

"We recommended not holding organizing events like Mayfest or Cinco de Mayo or celebrations that are specifically designed to attract the attendance of Fort Worth ISD students, who as a group has been identified as an at-risk population," Maenius said.

Medical precautions

Local hospitals aren’t taking any chances.

Face masks are being distributed to patients at JPS Health Network clinics and hospitals, said JPS spokeswoman Jamie Brown. "Registration reps will provide patients a mask if someone is experiencing flulike symptoms," she said.

JPS is also working with Fort Worth school officials to keep its school-based clinics open, so children who have flulike symptoms can be seen by medical staff away from other patients to help prevent the spread of the flu.

Cook Children’s Medical Center canceled a neonatal intensive care unit reunion this weekend. About 500 families were expected to attend, spokeswoman Kristin Peaks said.

Arlington Mayor Robert Cluck said people should remain calm and take simple steps, such as washing their hands and avoiding sick people. "There is no cause for alarm," he said.

Cleburne Superintendent Ronny Beard said he was awakened by state health officials at 4:30 a.m. Wednesday telling him he should close the district’s schools. He said the state is following pandemic guidelines in urging schools with probable cases to close because it can take several days to know how many children have been exposed to the flu.

The city of Keller said it was sanitizing all of its public facilities, including buildings, playgrounds and parks. Commonly touched surfaces were being treated with antiseptic solution. Girl Scouts canceled their council-sponsored events in Fort Worth through May 10, including a dance party, a zoo overnight and a performance of Cinderella by the Fort Worth Opera.

Churches, too, are adjusting their routines.

The Roman Catholic Diocese of Fort Worth will not serve wine during Mass until further notice. Other churches are asking members not to shake hands or hug.

Major concert venues and museums throughout North Texas — including the Nokia Theatre at Grand Prairie, Billy Bob’s Texas, House of Blues in Dallas, Bass Hall, the Kimbell Art Museum and Amon Carter Museum — said Thursday that they would remain open. Both the Kimbell and the Modern Art Museum of Fort Worth canceled children’s programs scheduled for the next week, however.

"An opera performance is not the same environment as a school, so we are not concerned at this time," said Darren Woods, general director of the Fort Worth Opera, which has performances scheduled at Bass Hall this weekend.

Six Flags Over Texas said it plans to have normal park hours Saturday and Sunday.

On the job

Fort Worth-based American Airlines, a major air carrier between the U.S. and Mexico, extended to May 31 changes in travel plans without penalty.

Doug MacHatton, a spokesman for Alcon Laboratories, said the firm’s 3,000 employees have had "no significant" absenteeism due to parents staying home with their children.

But the flu scare is letting the air out of at least one local business.

Jane Stiles, co-owner of All Star Party Service in Fort Worth, began getting cancellations on this weekend’s bounce-house party bookings immediately after the school district announced closings.

"We had our equipment up and they called up to come and take it down," Stiles said.

Contributing to this report were staff writers Alex Branch, Mike Lee, Anna Tinsley, Anthony Spangler, Susan Schrock, Eva-Marie Ayala, Diane Smith, Dianna Hunt, Gene Trainor, Bill Hanna, Lois Norder, Lee Williams, Susan Schrock, Tracy Shurley, John Austin, Andrea Ahles, Mitch Mitchell and Trebor Banstetter.
Read more in the Fort Worth Star Telegram

Fort Worth district wrestling with administrative issues tied to flu closure

By EVA-MARIE AYALA and JESSAMY BROWN - Fort Worth Star Telegram - May 1, 2009
Fort Worth school district workers began sanitizing all 144 campuses Thursday while administrators dealt with payroll, academic and finance issues related to the closing of the district because of swine flu concerns.

Spokeswoman Barbara Griffith said administrators are applying for state waivers to avoid making up the missed days and allow it to pay certain employees including teachers, librarians, counselors, principals and other staff.

"We are looking into every legal waiver," she said.

The 80,000-student district announced late Wednesday that it would close all campuses through May 8 because of concerns about the swine flu. All district-related activities have been canceled, including this weekend’s Military Ball and proms scheduled for the next two weekends.

On Thursday, some parents drove their children to school, only to find them closed. They struggled to find day care or were forced to stay home from work.

Texas Wesleyan University closed in part because many students have children in the Fort Worth district, officials said.

School board President Ray Dickerson said he and officials understood that having so many students suddenly out of school would be an inconvenience to many parents and employers.

"My feeling is that if we’re going to make a mistake, we’re going to make a mistake on the side of safety for our students and our children," he said.

Many students enjoyed the day off.

John Linebarger, 18, overslept Thursday but later found out that he needn’t have hurried. The senior at Diamond Hill-Jarvis High spent Thursday morning at Ridgmar mall and plans to take a road trip with buddies to visit his grandmother in Oklahoma — against the advice of local health officials, who are encouraging the students to stay at home.

"It’s going to take more than just a virus to take me out," Linebarger said.

Big week for academic tests

One of the biggest concerns is state testing.

Students in several grades were scheduled to take Texas Assessment of Knowledge and Skills tests Thursday, including the high school exit-level science tests needed to graduate. The district has 410 juniors and seniors who have not passed that test.

Griffith said that if the district can resume classes May 11, administrators are confident that state tests can be rescheduled and graded before June 5, the last day of school.

Graduation ceremonies are unchanged, Griffith said.

The disruption of tests will affect Polytechnic High School more than any other campus. How its students perform on the TAKS will determine whether the school will be shut down by the state. It has been rated academically unacceptable four years in a row because of poor performance on state tests.

Students had been building up momentum in recent weeks, with extra tutoring after school and on Saturdays.

Poly Principal Gary Braudaway said the students’ health and safety come before any test. While the closure may have interrupted efforts, he said the school will prevail. "We are extremely focused and ready for that test," he said. "With a week off, it may take us a day or two to get back the focus we had, but I’m confident we’ll do it."

TEA spokeswoman Debbie Graves Ratcliffe said, "We will do what we can to work with the superintendent to develop a plan to help Poly."

Schools keep close watch

Keller district officials said they are monitoring three cases of Type A influenza to determine whether they are the swine flu strain. The Northwest district is monitoring two cases.

Trinity Valley School, a Fort Worth private school, was closed Thursday and today. In a message on the campus Web site, Head of School Gary Krahn said the closure is to provide time for campus leaders "to make the best decision for our children."

Dallas, Houston, Austin, Wichita Falls and Corpus Christi all closed at least one campus Thursday, but no other district closed entirely on Thursday. Six districts have closed so far, with Fort Worth being the largest.

Dr. Sandra Parker, medical director for Tarrant County Public Health, said Wednesday that she advised Fort Worth to close because the district had four probable cases at four different schools.

She said it was best to close the district to prevent further spread of the highly communicable disease.

On Thursday, the state pledged to create guidelines about when schools should shut down, The Associated Press reported.

After meeting with Gov. Rick Perry, school district superintendents around San Antonio said they expected the state to provide those guidelines as quickly as Thursday night. They said consistency was needed because parents had questioned why some campuses were closed and others were not.

"We’re looking at Fort Worth and saying, 'What constituted that?’ " said Richard Middleton, superintendent of North East school district in San Antonio. "That’s the precedent we’ve got to worry about."

Staff writer Nathaniel Jones contributed to this report, which includes material from The Associated Press.
Read more in the Fort Worth Star Telegram

1 RISD School Closed, Others Monitor Swine Flu

By Stephanie Lucero - NORTH TEXAS (CBS 11 News) ― April 27, 2009

Canyon Creek Elementary school, in the Richardson Independent School District, has confirmed one case of Swine Flu on the campus and closed for the remainder of the week. Other North Texas school districts are monitoring the situation and informing school officials, parents, and students today about Human Swine Influenza.

Tim Clark, the director of communications for Richardson ISD, confirmed that there is one confirmed case, one probable case and one suspected case of Swine Flu on the Canyon Creek campus.

A Richardson ISD principal told CBS 11 News that none of the students with confirmed, probable or suspected cases have had to be hospitalized. Officials say some 50 students at Canyon Creek were absent Monday; which equals about 20-percent of school population. School and county health officials will closely track the absent students, for any new Swine Flu cases.

In Dallas, health officials sent a notice to parents of students attending Dallas County schools, that read in part - "This situation has the potential to rapidly escalate and particularly has implications for school-age students and schools."

Officials with Dallas County Health and Human Services (DCHHS) confirm that they are investigating several potential Swine Flu illnesses. "Dallas County has three probable cases of Swine Influenza infections in separate locations of the county," DCHHS Medical Director John Carlo, M.D., said in the notice.

The symptoms of Swine Flu include fever, cough and runny nose, and possibly other symptoms, such as body aches, nausea, or vomiting or diarrhea.

Trying to avert a major Swine Flu outbreak, the Dallas Co. notice, issued with "urgent" priority, lists several recommendations. Parents are urged to keep children home who have symptoms and seek medical care as you would during a typical flu illness. To keep any infection from spreading, health officials also advise everyone to simple cover their mouths and noses when coughing.

The Carrollton-Farmers Branch Independent School District is using podcasts and Twitter to release similar information to parents and students.

Tarrant County Health officials also distributed information Monday to schools districts and private schools in the county.

A release from the Fort Worth ISD urged, "Principals and department heads are asked to read and post the precautionary measures for prevention and discuss with employees and students."

Tarrant County Public Health confirmed that they are investigating one probable case of Swine Influenza; involving a 12-year-old female student from McLean Middle School. County health officials say the girl is recovering well.

In the Denton ISD officials have implemented the Stage I level plan as health officials continue to monitor the Swine Flu situation. In Stage 1, the district heavily monitors the situation by staying in close contact with the local health department. No swine flu cases have been reported in Denton ISD.

While there have been no confirmed cases of Swine Flu in the Plano ISD, Health Services Department workers are said to be working closely with the Collin County Health Services Department and monitoring the Center for Disease Control.

(© MMIX, CBS Broadcasting Inc. All Rights Reserved.) Read more on CBS11TV

Governor Declares Health Emergency in Texas

On April 29, 2009, Governor Perry declared state disaster declaring a health emergency exists in the entire State of Texas from Swine Flu (H1N1), in accordance with the power vested in the Governor authorized under Section 418.017 of the code. Under Section 418.016 of the code, Governor Perry declared all rules and regulations which may inhibit prompt response to this threat are suspended for the duration of the threat.