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Archive for the ‘Retirement’ Category

A Baton Rouge district court judge has struck down the so-called Edmonson Amendment, declaring the special retirement benefits enhancement amendment for State Police Superintendent Mike Edmonson and one other state trooper unconstitutional.

Meanwhile, LouisianaVoice has learned that a state police commander passed out a controversial “Hurt Feelings Report” to state troopers several months ago. https://www.google.com/search?q=hurt+feelings+report&hl=en&biw=1280&bih=585&tbm=isch&tbo=u&source=univ&sa=X&ei=ydYYVJ_gGYSuogSpwoK4Aw&sqi=2&ved=0CB0QsAQ

(For an example of “Hurt Feelings Report” forms, click on any image, then move cursor to right and then click on “View Image.”)

Edmonson may now wish to fill out one of those reports.

Judge Janice Clark of 19th Judicial District Court issued the ruling Tuesday morning in a special hearing, bringing to an official end the question of legality and propriety of Amendment 2 of Senate Bill 294, passed on the last day of the recent legislative session.

The ruling leaves egg on the collective faces of Edmonson, his Chief of Staff Charles Dupuy, who conceived of the underhanded (as in sneaky) legislation; State Sen. Neil Riser (R-Columbia), who slipped the last minute amendment past his unsuspecting colleagues in the Senate and House; Gov. Bobby Jindal’s executive counsel Thomas Enright Jr., who supposedly read and blessed the bill, and Jindal, who signed it as Act 859.

The effect of the bill, which was introduced by State Sen. Jean-Paul Morrell (D-New Orleans) as a bill to address disciplinary action to be taken in cases where law enforcement officers are under investigation, was to bump Edmonson’s annual retirement up by $55,000, from its current level of $79,000 to his current salary of $134,000.

Edmonson had entered into the Deferred Retirement Option Plan (DROP) several years ago at his captain’s pay grade in exchange for more take home pay at the time he signed onto DROP. Because of that decision, which is irrevocable, Edmonson was set to receive 100 percent of his captain’s salary after 30 years of service.

Riser’s amendment would have allowed Edmonson to retire instead at 100 percent of his current salary. The bill also benefitted Master Trooper Louis Boquet of Houma even though he was oblivious to events taking place in Baton Rouge.

LouisianaVoice was the first to report the real impact of SB 294 after a sharp-eyed staff member in the Division of Administration (DOA) tipped us off.

Edmonson at first defended the bill on a Baton Rouge radio talk show, saying he was entitled to the increase. He said then that at age 50 he was “forced” to sign up for DROP. That was not accurate; state employees at the time were required to decide whether or not to participate in DROP, but no one was forced into the program.

Continuing the pattern of misrepresentations, Riser said he had no knowledge of who inserted the amendment into the bill during a conference committee meeting. He later acknowledged it was he who made the insertion. Riser was one of three senators and three House members who were on the conference committee.

Jindal, of course, remained strangely quiet about the entire mess, emerging from Iowa or New Hampshire or the Fox News studios only long enough to say that the legislature should correct the matter when it convenes next spring. After making that brief policy statement, he immediately returned to his presidential campaign.

Meanwhile, retired state troopers as well as other retired state employees who had opted into DROP and later received promotions and accompanying pay raises only to have their retirements frozen at the level they were being paid at the time of their entering DROP, went on a rampage with several retired troopers offering to file suit if the State Police Retirement System (LSPRS) Board did not.

At a special meeting of the LSPRS Board earlier this month, it was learned that Dupuy had initiated contact with the board’s actuary several weeks before the session ended to discuss the amendment which he obviously intended to have inserted into the bill in the closing hours of the session. That pretty much shot down any deniability on Riser’s part. And Riser would certainly never have made such an attempt without Jindal’s blessings.

The board, meanwhile, was advised by an attorney with experience in pension plans that it had no standing as a board to file such a suit but board member and State Treasurer John Kennedy immediately announced his intentions to do so as a private citizen.

Meanwhile, State Sen. Dan Claitor (R-Baton Rouge) saw a way to give his campaign for 6th District congressman to succeed U.S. Rep. Bill Cassidy a boost and quickly filed his own suit.

It was Claitor’s suit on which the hearing on a motion for declaratory judgment served as the basis for Judge Clark’s ruling on Tuesday.

Neither Edmonson nor Boquet nor the LSPRS Board opposed the motion.

Following the hearing, Kennedy said the bill was unconstitutional on both the state and federal levels—on several different legal points. “Not only was it unconstitutional,” he said, “it was wrong.” https://www.dropbox.com/sh/erw91d3j3ivkis9/AABhtU96O_u88tVSYLfIQqPra?dl=0#lh:null-IMG_8155.MOV

“This law was patently unconstitutional,” Kennedy said. “Now it’s null and void. This is a win for retirees as well as taxpayers across Louisiana.”

In a statement released after the ruling, Kennedy said one of his objections was that the law would have drawn the enhanced benefits from an experience account that funds cost-of-living increases for retired state troopers and their families.

He testified in the hearing that Louisiana’s four retirement systems already have an unfunded accrued liability (UAL—the gap between the systems’ assets and liabilities) of $19 billion, the sixth worst UAL in the nation.

“This is not about personalities,” he said. “This was about fairness. Regardless of whether you’re a prince or a pauper, you should not receive special treatment.”

The “Hurt Feelings Report” forms, intended to intimidate or demean harassment victims or others who feel they have been slighted or who feel they have been made victims of racial, sexual, or other forms of discrimination, are parodies that attack otherwise genuine concerns of bullying in the workplace.

The commander who passed the forms out to his troopers obviously thought it was a hilarious joke and a great way to deal with potential complaints but officials in Buffalo, Wyoming didn’t think they were so funny.

A 13-year veteran Buffalo High School football coach who passed out the “survey” to his players was forced to resign after his actions became public. The survey listed several options as reasons for hurt feelings, including “I am a queer,” “I am a little bitch,” and “I have woman like hormones.” It asked for the identity of the “little sissy filing report” and for his “girly-man signature,” plus the “real-man signature” of the person accused of causing hurt feelings.

Coach Pat Lynch, as is always the case when those in positions of authority are caught doing something incredibly stupid, offered a letter of resignation in which he said, “I would like to apologize for my lack of judgment and the poor choice….” (You know the words to this worn out song by now. We’ve heard them from politicians like David Vitter, athletes like Ray Rice, even ministers like Jimmy Swaggart.)

So now we have a state police commander who has attempted by distribution of this document to ridicule—in advance—anyone under his command who feels he or she has been the victim of discrimination or harassment and to discourage them from filing formal complaints.

There appears to be no level of stupidity to which some people will not stoop.

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“Despite the special counsel’s recommendation, I would strongly urge that as chairman, you ask the board to authorize the system attorneys to file the necessary documents to obtain a final declaratory judgment on this amendment. That judgment will provide the necessary finality to this matter.”

—State Police Superintendent Mike Edmonson, in a letter to Frank Besson, chairman of the Louisiana State Police Retirement System Board.

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State Police Superintendent Mike Edmonson did a sudden about-face, the Louisiana State Police Retirement System (LSPRS) Board was unanimous in its decision to allow board member and State Treasurer John Kennedy sue the board, and before the board could adjourn, State Sen. and 6th District Congressional candidate Dan Claitor filed his own lawsuit but Kennedy said he would go forward with his litigation anyway.

Just another day in the soap opera we know as Louisiana state government.

And it could only happen in Louisiana.

The LSPRS Board was meeting to wrestle with the problem of Act 859 which started out as Senate Bill 294 by State Sen. Jean-Paul Morrell (D-New Orleans), a bill ostensibly dealing with police officer disciplinary matters but which morphed into what retired state trooper Robert Landry described as an “underhanded, unethical, unconstitutional” amendment giving Edmonson an extra $55,000 per year in retirement income.

Special legal counsel Robert Klausner, a renowned pension system authority from Florida, advised the board that it had no legal standing to file suit in an attempt to have the new law declared unconstitutional but added almost parenthetically that any citizen of Louisiana could file suit.

“Could I file?” Kennedy asked. “I’m a taxpayer.”

Klausner said that Kennedy could indeed initiate litigation and if the board failed to defend it, legal expenses would be minimal and the matter could be settled once and for all as opposed to waiting to see if the legislature would repeal the act next year and if Gov. Bobby Jindal would sign such a bill.

While the board was tossing the issue back and forth and speculating whether or not Attorney General Buddy Caldwell would take it upon himself to defend such a suit should the board refuse to, Claitor left the meeting and apparently called his attorney to instruct him to file suit on behalf of Claitor.

Earlier, Claitor had spoken to the board, saying that passage of the Edmonson Amendment was not open or transparent. “It was an unconstitutional act because it was not published in advance, and was not germane to retirement issue. “I would ask that you exercise your fiduciary duty,” he said. Apologizing for having voted for the amendment because he was told that conference committee had addressed his earlier concerns about police disciplinary matters, he said, “I’m sorry to ask you to clean up this mess.”

The “mess” occurred when State Sen. Neil Riser, a member of the conference committee composed of three members each from the House and Senate, inserted the crucial language that gave Edmonson his financial windfall.

Basically, the amendment allowed Edmonson to revoke his decision years ago to enter into the state’s Deferred Retirement Option Plan (DROP) which froze his retirement at 100 percent of his captain’s salary of $79,000. The revocation would have allowed him to instead retire at 100 percent of his $134,000 colonel’s salary.

LSPRS actuary Charles Hall told the board that the upfront cost of fully funding the benefits at their present, or discounted, value would be a $359,000 investment to cover the increased benefits for Edmonson and a Houma trooper who also happened to qualify under language of the amendment. That amount is $59,000 more than the original $300,000 estimated cost provided three days after the amendment’s passage. Kennedy pointed out that the actual cost would be in excess of a million dollars and he asked Hall to provide him with a computation of those figures.

Hall said he received a request to “call a trooper to discuss a bill” on the Friday before the Monday, June 2 adjournment of the legislature.

He said it became clear in his conversation with the state trooper that “they wanted to introduce an amendment to enhance (Edmonson’s) benefits.”

After a few routine questions, Kennedy asked Hall if he knew the name of the trooper whom he was asked to call and to whom he subsequently talked.

“Charles Dupuy,” Hall answered.

Dupuy is Edmonson’s Chief of Staff who has benefitted from a 52 percent increase, from $80,500 to $122,200, since Edmonson’s appointment as State Police Superintendent by Gov. Bobby Jindal in January of 2008. Dupuy’s wife, Kelly Dupuy, also has received increases in salary, from $65,000 to $80,600.

It was the first time that anyone has officially identified Dupuy as the source of the Edmonson Amendment.

Dupuy, a member of the LSPRS Board, was not in attendance at Thursday’s board meeting.

Riser, who first denied any involvement with introducing the amendment during the conference committee meeting in June but later admitted his complicity but said he did not realize it would benefit only two people.

Hall, however, in speaking to the board on Thursday cast doubt on that part of Riser’s story as well when he said it was believed that the amendment would affect only one person—Edmonson.

“This act has hurt the reputation of the state,” Kennedy said. “Someone pushed hard for this law. If I sue and the attorney general decides to defend it, I will begin taking depositions. I will send out subpoenas and we will find out who was behind this.”

Kennedy said he would foot the cost of the litigation which he said would be minimal provided the attorney general does not opt to defend the law.

The board, which had been seen as heavily stacked with Edmonson and Jindal loyalists, had been expected to display reluctance to go against the two. Instead, board members were unanimous in authorizing Kennedy to proceed with personal litigation in his “individual capacity.”

But even as Kennedy was making his offer, Claitor was already setting in motion his own litigation which he obviously had instructed Baton Rouge attorney Jack Whitehead to prepare and to stand by to file with the 19th JDC clerk’s office.

In fact, Whitehead even prepared a press release to accompany Claitor’s lawsuit, making it obvious that Claitor had planned the move well in advance of the board meeting.

Claitor, in his petition, asked the court to find Act 859 unconstitutional on four grounds:

  • Act 859 failed to meet the “one object” requirement of the Louisiana State Constitution;
  • The act did not meet the germaneness requirement of the state constitution;
  • No public notice was provided as required by the constitution for retirement-related legislation and the bill itself never indicated proper notice was given, also in violation of the constitution;
  • The source of funding for the increased benefit is the LSPRS “Employment Experience Account,” which is reserved as the source of future cost of living benefits and payments toward the system’s unfunded accrued liability.

To read the full text of Claitor’s litigation, click here: Press Release Letter & Petition

Baton Rouge Judge Janice Clark issued a temporary restraining order until she can hold a hearing on Sept. 16. To read her order, click here: CLAITOR VS LSP

The real kicker came when a two-page letter from Edmonson to the board was read. In that letter, Edmonson said he fully supports assertions “from legislators and others that the bill should be repealed.”

Then, addressing board Chairman Frank Besson, Edmonson said, “Despite the special counsel’s (Klausner) recommendation, I would strongly urge that as chairman, you ask the board to authorize the system attorneys to file the necessary documents to obtain a final declaratory judgment on this amendment. That judgment will provide the necessary finality to this matter.”

That represents a complete 180 from Edmonson’s earlier admission that a “staffer” had originally approached him about the prospects of the amendment’s benefitting him and his instructions to proceed.

It was a move of necessity brought on by a groundswell of sentiment against the amendment by retired state troopers which forced Edmonson to have a change of heart in an effort to save face and to avoid further embarrassment to his boss, Gov. Jindal. Because make no mistake, he wanted that money and Dupuy, no matter what anyone says to the contrary, did not take this upon himself as a solo act. It’s pretty obvious that Dupuy initiated the amendment at the direction of his boss who in turn had the blessings from the Fourth Floor and Riser was simply the instrument by which the amendment was inserted. That makes Jindal, Riser, Edmonson and Dupuy all complicit in a devious little scheme to reward Edmonson at the expense of every other state employee, including state troopers and retirees across the board.

That’s the way this governor and his band of sycophants work.

To read Edmonson’s letter, click here: EDMONSON LETTER

Kennedy, when told after the meeting adjourned of Claitor’s lawsuit, said, “That’s great. I’m glad. But I’m still moving forward with my own lawsuit. This is a bad law and it must be addressed.”

 

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If anyone has any hopes that the matter of the Edmonson Amendment will be resolved Thursday when the Louisiana State Police Retirement System (LSPRS) Board meets, it might be worth your while to consider a few developments in the Department of Public Safety (DPS) on the watch of Superintendent of State Police Mike Edmonson, aka “Precious.”

We have already examined the placing of “consultant” Kathleen Sill on the state payroll and paying her $437,000 plus $12,900 in air travel for 21 flights for her between Baton Rouge and her Columbia, S.C. home.

And we told you about DPS Undersecretary Jill Boudreaux’s taking a $46,000 cash payout incentive to retire at her $92,000 per year salary as Deputy Undersecretary, plus about $13,000 in payment for 300 hours of accrued annual leave and then re-hiring two days later—with a promotion to Undersecretary and at a higher salary of $118,600—while keeping the incentive payment and annual leave payment.

We even told you about then-Commissioner of Administration Angelé Davis ordering her to repay the money but resigning before she could follow through on her instructions. Under her successor, Paul Rainwater, the matter was quietly forgotten.

But we didn’t tell you about Boudreaux’s son-in-law Matthew Guthrie who, while employed in an offshore job, was simultaneously on the payroll for seven months (from April 2, 2012 to Nov. 9, 2012) as a $25 per hour “specialist” for the State Police Oil Spill Commission.

Nor did we tell you about John W. Alario, the son of Senate President John Alario (R-Westwego) who serves as the $95,000 a year director of the DPS Liquefied Petroleum Gas Commission. (We had earlier told you about his wife, Dionne Alario, who was hired in November o 2013 at a salary of $56,300 to work out of her Westwego home supervising state police personnel in Baton Rouge—something of a logistics problem, to say the least.)

Or about Danielle Rainwater, daughter of former Commissioner of Administration Paul Rainwater, who works as a “specialist” for State Police.

And then there are the spouses brought into the fold.

Jason Starnes has benefitted from two quick promotions since 2009 as his salary jumped from $59,800 to $81,250, an increase of almost 36 percent.

As if that were not enough, his wife Tammy was brought in from another agency on Jan. 13 of this year as an Audit Manager at a salary of $92,900. So not only does she now make nearly $11,700 a year more than her husband, she also is in charge of monitoring the agency’s financial transactions, including those of her husband.

In January of 2008, just before Edmonson was named Superintendent of State Police by Gov. Bobby Jindal, State Trooper Charles Dupuy was pulling down $80,500. Today, as Edmonson’s Chief of Staff, he makes $122,200, a bump of nearly $42,000, or 52 percent. Dupuy, it should be noted, is the Edmonson staffer who originated the drive to push the Edmonson Amendment through the Legislature on the last day of the session that gives his boss a $55,000 pension boost because the amendment allows Edmonson to revoke his decision to freeze his retirement at 100 percent of his $79,000 captain’s salary some 15 years or so ago to 100 percent of his current colonel’s salary of $134,000.

Kelly McNamara and Dupuy, both troopers, met at work and eventually married and Kelly Dupuy’s star began ascending almost immediately. Her salary has gone from $65,000 in 2009 to $80,600 today

Doug Cain serves as State Police Public Affairs Commander at $79,000 per year but the position appears to have been created especially for him, according to payroll records.

State Civil Service records for most promotions indicate whether or not the person being promoted is moving into a slot previously occupied by someone else. In Cain’s case the “Former Incumbent” block on the promotion form is blank indicating there was no one in that position prior to Cain’s being named to it.

The same is true for Edmonson’s brother Paul Edmonson.

On Sept. 7, 2011, Paul Edmonson was promoted from lieutenant to Captain, filling the spot previously held by Scott Reggio. On Oct. 10, 2013, Paul Edmonson was again promoted, this time to the rank of major. This time however, he was promoted into a spot in which there was no incumbent, indicating that the position was created especially for his benefit.

His rise has been nothing less than meteoric. Since December of 2006, less than eight years ago, he has gone from the rank of sergeant to lieutenant to captain to major at warp speed and his pay rose accordingly, from $57,500 to $93,000 a year, a 62 percent increase—all under the watchful eye of his brother.

And keep in mind all this transpired while the rank and file state troopers—and other state employees—were having to make do without pay raises.

As his reward for taking care of his people in such a noble way, Dupuy and State Sen. Neil Riser (R-Columbia) conspired, along with Gov. Bobby Jindal, to sneak the amendment to Senate Bill 294 during the closing minutes of the session that allowed Mike Edmonson a “do-over” on his decision to enter the state’s Deferred Retirement Option Plan (DROP) which froze his retirement at his pay at that time.

The major problem with that little plan is that it leaves other state troopers and state employees who similarly opted to enter DROP and then received significant promotions or raises out in the cold because the amendment does not afford the same opportunity for them.

Accordingly, a group of retired state troopers have indicated their willingness to litigate the matter should the LSPRS board not decide to challenge the amendment in court themselves.

And it’s not at all likely the board will take that decisive step—for two reasons, neither of them sound.

First, Florida attorney Robert Klausner, an authority on pension law, advised that the amendment is unconstitutional and that the board should simply ignore it and refused to pay the increased pension should Edmonson and one other trooper caught up in the language’s net apply for the higher benefits.

The board would have a difficult time justifying such action, however, because it is bound by the Louisiana Constitution to comply with laws passed by the Legislature. The only recourse to that action would be to file a lawsuit formally challenging the constitutionality of the amendment. To ignore it would solve nothing, several attorneys and State Treasurer John Kennedy, a member of the board, have said.

Second, the LSPRS board is stacked heavily with those who are unquestionably Edmonson and Jindal loyalists. It was Jindal who signed the bill into law as Act 859 and his Commissioner of Administration Kristy Kreme Nichols is an ex-officio member of the board, assigning as her designee Andrea Hubbard. No way she’s going against the administration.

State Sen. Elbert Guillory (R/D/R-Opelousas), chairman of the Senate Retirement Committee, is nothing short of wishy-washy as evidenced by his constant switching from Republican to Democrat and back to Republican. He is Jindal’s lap dog and would cut his throat before invoking the governor’s ire and potential endorsement for lieutenant governor.

Dupuy is a member as well but should be run off by a mean, biting dog if he does not abstain from voting for his obvious conflict of interest as Edmonson’s Chief of Staff as well as the one who originally pushed the amendment.

A couple of other members are active troopers and they are a lock for bucking litigation since their boss will be watching and waiting for any sign of weakness or betrayal.

The only certain vote in favor of litigation will come from Kennedy when the board convenes Thursday at 3 p.m. in the Louisiana State Employees Retirement System LASERS) Building at 4501 United Plaza Blvd. in Baton Rouge.

And unless Chicken Little was correct about the sky falling, Kennedy’s will be a lone voice when the dust settles.

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Things appear to be heating up on the issue of the behavior of the upper tier of the Louisiana State Police, though the rank and file (and retired officers) appears for the most part to support our efforts to peel back the veneer to expose widespread abuse by those in charge.

For openers, State Police Superintendent Mike Edmonson’s Chief of Staff Charles Dupuy, the number-two man at State Police headquarters, has reportedly taken to name-calling as a result of revelations by LouisianaVoice and fellow blogger C.B. Forgotston.

Names like “idiots” and “a—holes” have apparently found their way into the discourse whenever Dupuy mentions us, according to a post by Forgotston. Those pet names reportedly accompanied his curious claim that the notorious Edmonson Amendment was constitutional—despite assurances to the contrary by the Florida attorney, a pension authority, brought in to examine the amendment by the Louisiana State Police Retirement System (LSPRS).

It has been our experience that when we are able to invoke such colorful language it is usually because we’ve made someone extremely uncomfortable. And we would guess that knocking someone out of an additional $55,000 per year on his retirement income would make just about anyone uncomfortable. And calling attention to a questionable retire/re-hire in which the proponent gets to keep nearly $60,000 in unwarranted payouts could make one uncomfortable as could reporting the hiring of a South Carolina consultant as a state employee and paying her $437,000 over 28 months, plus another $13,000 in airfare to shuttle her back and forth between Baton Rouge and Columbia, S.C.

Dupuy is a member of the LSPRS board which will be discussing the amendment at the Sept. 4 board meeting.

We would strongly suggest that because it was he who pushed the amendment in the first place—not to mention his prejudicial comments about the messengers—he would be precluded from participation in next week’s board meeting called to discuss options regarding the amendment. His actions—and his comments—make it abundantly obvious that his mindset does not lend itself to an impartial and dispassionate discussion or vote on a course of action for the board.

State Sen. Dan Claitor (R-Baton Rouge) has even weighed in on the controversy, though his comments are somewhat puzzling considering that he is a candidate for the 6th Congressional District seat being vacated by U.S. Rep. Bill Cassidy who is trying to unseat incumbent U.S. Sen. Mary Landrieu.

Claitor, it seems, has been actively posting jokes on his Twitter account about our concerns over the Edmonson Amendment. It’s certainly nice to know that someone seeking elective office is so willing find humor in legitimate concerns over shady legislative practices—particularly when those practices originated in the State Senate where he currently serves. You may wish to ask him about that next time he solicits your vote.

Matthew L. Issman of Madisonville, a former state trooper and federal law enforcement officer who presently serves as police chief for LSU-Alexandria, has weighed in on the controversy surrounding Senate Bill 294, signed into law by Gov. Bobby Jindal as Act 859, the bill that was amended in conference committee by State Sen. Neil Riser to give Edmonson that generous retirement boost.

Contacted by the office of Rep. John Schroder (R-Covington), Issman wrote that his biggest concern with the advice received by LSPRS from that Florida attorney “is that the advice of ‘do nothing, and wait’ until someone files for the benefits and then refuse to pay, is that it will force a state board or agency to pick and choose which laws it likes or doesn’t like and which laws it will and won’t enforce.”

Schroder’s office had asked Issman to provide his rationale for litigating versus legislative repeal of the amendment.

Issman pointed out that once the governor signs the bill, it becomes law and until it is repealed or a court finds it unconstitutional, “it sets a very, very bad precedent for any agency or board to arbitrarily not comply with a state law.”

As a law enforcement officer, he said he “cannot pick and choose which laws I will enforce and which ones I will ignore. You cannot do that. It must be litigated now and a court must find it unconstitutional, otherwise other state employees who made an irrevocable DROP elect can file federal ‘equal rights’ suits against the state for the same equal status (as Edmonson). This has to be fixed now by litigation to have a court find it unconstitutional,” he said.

As a follow up to that message, Issman also sent an email to members of the LSPRS Board.

“Civics 101 tells me that you (LSPRS) are a state board in the executive branch. You carry out the laws passed by the legislative branch. The advice of your Florida counsel is in a vacuum specific to the retirement board issue of the law passed and signed by the governor (executive). I believe you are about to set a very poor precedent and are outside your charter, authority and the state constitution when you as a board decide that you have the options to pick and choose which laws you will enforce, agree with and like, and which ones you arbitrarily choose to ignore.

“You do not have the ability or authority. Hence, your options are to follow the law signed by the executive and passed by the legislative branch, or request the judicial branch review the law for constitutionality.

“I am not a constitutional scholar; however, 41-plus years in state, local, parish and federal government law enforcement have taught me the authorities and responsibilities of governmental agencies and branches.

“I am requesting you follow the law, your charter and state constitution and challenge this law through litigation in court,” he said.

Issman also is protesting the 15-speaker, two-minute limit per speaker being imposed by the board at its Sept. 4 meeting.

“I don’t believe that this meets the requirements, spirit or intent of the Open Meeting Law, nor is it enough time to hear the many concerns of the retirees you represent, unless the goal is to restrict and limit such comments,” he said in an email to board members. “I think limiting comment to 30 minutes regarding an issue that has engendered such interest and controversy is insulting to the interests of the retirees and citizens you purport to represent on this Board.

“Therefore, I am requesting that the public comment time be reasonably increased proportionately to the larger public attendance that you are anticipating.”

Meanwhile, State Treasurer John Kennedy, who, like Dupuy, is a member of the LSPRS Board, continues pressing for information about the circumstances surrounding the last minute legislative passage of Edmonson’s pension boost.

Kennedy also requested key players in the benefit becoming law appear at the Sept. 4 board meeting, including Gov. Bobby Jindal’s executive counsel Thomas Enright, who approved the legislation for the governor’s signature.

The law that created the enhancement for Edmonson and another veteran trooper was tacked on to legislation that had nothing to do with retirement benefits. And attorneys for the pension board recently concluded the action violated the constitution because, among other issues, proper notice was not given that the change would be proposed and the pension provision was added to legislation that had nothing to do with retirement law.

Kennedy said he wanted to know Enright’s opinion.

Kennedy’s requests came in a letter to the retirement board’s executive director Irwin Felps and board chairman Frank Besson, president of the Louisiana State Troopers Association.

We can’t speak for any of the others involved in this back door deal, but we are willing to give odds that Kennedy will not be able to convince anyone from the governor’s office to attend that meeting. Nor will Riser dare make an appearance.

Those kinds of people never do their work out in the open for everyone to see and we feel safe in predicting they will continue to avoid the glare of public accountability.

 

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Back in the spring of 2011, LouisianaVoice predicted that higher premiums and reduced benefits would by the immediate by-product of privatization of the Office of Group Benefits Preferred Provider Organization (PPO).

The administration initially—but only temporarily—proved us wrong by reducing premiums as the lead-in to contract with Blue Cross/Blue Shield of Louisiana as the third party administrator for the PPO.

If we wished to be vain about that move, we could have said that Gov. Bobby Jindal made that move just to prove us wrong. But it wasn’t nearly as simple as that; there was, in fact, a far more sinister reason for the premium reduction.

Because the state pays 75 percent of state employees’ premiums, cutting those premiums reduced the financial obligation to the state, thus allowing Jindal to divert money that normally would have gone to health care for some 230,000 state employees, retirees and dependents to instead be used to plug gaping holes in what has become an annual budget shortfall, thanks to slipshod management of state finances by the governor.

The recent developments pertaining to impending radical changes that will force eligible retirees onto Medicare and out of Group Benefits are not about who is right and who is wrong; it’s about people. It’s about people like you and me (yes, I’m a state retiree who is one of the lucky ones who is eligible for Medicare by virtue of my hire date after April 1, 1986 and by virtue of some 25 years of newspaper reporting work in the private sector).

In all the rhetoric coming out of the office of Kristy Nichols, the people she and her boss serve appear to be the forgotten element as Jindal has become a 100 percent absentee governor while he chases the impossible dream of becoming POTUS.

FAQs

Tragically, retirees with no private sector experience and who began with the state prior to April 1, 1986, are ineligible for Medicare and the steep premium increases looming on the near horizon—open enrollment is Oct. 1 through Oct. 31—can mean only one thing for them: financial devastation. A new premium increase to go with the one that took place on July 1 is scheduled to go into effect Jan. 1, placing an additional financial burden on enrollees.

Of course, if you look back, you will see how the administration fed us a string of outright lies in 2011. Thanks to loyal reader Kay Prince of Ruston, we have a copy of a letter written by then-Commissioner of Administration and who later served as Jindal’s Chief of Staff until his unexpected resignation last March which can only be described as a laundry list of lies to state employees and retirees.

Read the text of Rainwater’s letter here: https://www.groupbenefits.org/portal/pls/portal30/ogbweb.get_latest_news_file?p_doc_name=4F444D324D5441344C6C4245526A51344E7A413D

If one has to wonder where this latest political assault on state employees originates, one has only to Google “ALEC Health Care Agenda” for the answer.

HHS_2013_SNPS_35_Day

ALEC, of course, is the acronym for the American Legislative Exchange Council, the non-profit political arm of the Koch brothers and the Walton Family of Wal-Mart fame. ALEC, which drafts “model bills” for its member legislators to take back home for passage, includes sweeping changes to health care benefits for public employees as one of its primary objectives.

While we don’t normally advocate political boycotts, perhaps state employees should give serious consideration to a complete boycott of Wal-Mart and Sam’s Club as a response to the ALEC-inspired medical benefit cuts you are about to experience. A word or two to friends and relatives might not be a bad idea either.

For a comprehensive look at the ALEC agenda as it pertains to medical benefits, go here:

http://www.alecexposed.org/wiki/Health,_Pharmaceuticals,_and_Safety_Net_Programs

Here is a list of Louisiana legislators, both present and past, who are now or once were members of ALEC. http://www.sourcewatch.org/index.php/Louisiana_ALEC_Politicians

Girod Jackson (D-Marrero), who was charged with fraud and failure to file taxes, resigned and is no longer in the legislator and it is our understanding that Sen. Bob Kostelka (R-Monroe) is no longer a member of ALEC.

And certainly, let’s not forget that until recently, BCBS was a member in good standing of ALEC and BCBS was listed as a member of ALEC’s Health and Human Services Task Force and ponied up $10,000 for a “Director” level sponsorship of ALEC’s annual conference held in New Orleans at which Jindal received the organization’s Thomas Jefferson Award. BCBS of Louisiana paid an additional $5,000 and served as a “Trustee” level sponsor of that 2011 conference.

And ALEC continues to have its logo prominently displayed on the Louisiana Legislature’s web page. http://www.legis.la.gov/legis/OtherGovSites.aspx

Despite all the spin from Kristy Nichols, the Aug. 11 report to the Joint Legislative Committee on the Budget by the Legislative Fiscal Office paints a much truer picture of what’s in store for members.

Read the LFO report here: LFO_OGBReport_August_2014

Apparently, the working media also do not buy into the Kristy Kreme version of “it’s all good,” as the proposed changes are attracting the attention of Capitol reporters like Melinda Deslatte, a very capable reporter for Associated Press: http://www.shreveporttimes.com/story/news/local/louisiana/2014/08/26/health-benefit-changes-planned-state-workers/14651363/

As a barometer of just how serious the proposed changes are and the impact they will have on members, House Speaker Chuck Kleckley, apparently in response to the request of State Rep. John Bel Edwards (D-Amite) is apparently willing to buck Boss Jindal and call a special meeting of the House as a Committee of the Whole as reported here by the Baton Rouge Advocate’s Marsha Shuler: http://theadvocate.com/home/10100116-123/house-group-benefits-meeting-possible

Undaunted, Nichols trudges on like a good soldier. Today, state employees arrived at work to find emails, mass distributed via the state’s “Bulletin Board,” attempting to address the “incorrect” information “distributed over the last few weeks” regarding the anticipated health insurance changes.

Basically, she denied all negative information, threw up administration smoke screens, made lame excuses and (ho-hum, yawn) blaming the Affordable Care Act (Obamacare), which has absolutely nothing to do with the Office of Group Benefits.

While Kristy rants that premium increases will be negligible (if one can consider a 47 percent bump negligible), we would remind her it’s not about the premiums; it’s about the benefits. It’s about the co-pays. It’s about the deductibles. Kristy, you can’t ignore the elephant in the room indefinitely.

As state workers peruse Kristy’s latest missive, it is important to refer back to the aforementioned Paul Rainwater letter of April 29, 2011, to get a quick refresher as to just how capable the administration is of clouding an issue with misinformation and outright lies.

They lied then so what’s to keep them from lying now?

The fact is the Jindal administration, what’s left of it, does not nor has it ever cared about the welfare of state employees.

Jindal is joined at each hip by his former—and only—private sector employer McKinsey & Co. on one side and ALEC on the other and both have the same agenda: the destruction of working Americans in favor of ever increasing corporate profits. Together, they guide each and every step Jindal takes.

McKinsey & Co., it should be noted, is also a member of ALEC and is the same company that once consulted General Motors into bankruptcy, advised AT&T there was no future in the cell phone market and which structured the corporate plan for Enron.

These are the ones who are maneuvering to control the health care future of 230,000 state employees, retirees and dependents.

Only last November, the state flirted with McKinsey & Co. for the purposes of retaining the firm to put together a Business Reengineering/Efficiencies Planning and Management Support Services proposal.

Apparently Jindal opted to go with the less expensive Alvarez & Marcel (A&M) for that contract that has grown from $4.2 million to $7.5 million for A&M to find $500 million in savings over a 10-year period.

But McKinsey did submit a 406-page proposal and a two-page cover letter to Ruth Johnson of the Division of Administration (DOA) which LouisianaVoice has obtained.

Much of McKinsey & Co.’s proposal was redacted by DOA before its release to us—including every word in the proposal dealing with health benefits.

That’s correct. Not a single word about health benefits as proposed by McKinsey was readable. Skip down to page 37 for the redacted health benefits section to see what we mean.

Read the McKinsey report here: McKinsey – State of LA Cost Proposal – Final

In case you don’t have a lot of time, here is a shorter proposal from McKinsey: McKinsey – State of LA Cost Proposal – Final

Are you sufficiently comfortable with that to sit back and trust this administration to do what’s best for you?

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The underhanded attempt to rip off the Louisiana State Police Retirement System (LSRPS) on behalf of State Police Superintendent Mike Edmonson (aka “Precious”) through a shady back door amendment steered through the Legislature by State Sen. Neil Riser wasn’t the first time that the agency charged with protecting Louisiana citizens has illicitly commandeered state funds on behalf of one of its own.

And, it seems, the more deeply we venture down the rabbit hole that is the Department of Public Safety (DPS), the uglier and scarier the unfolding picture becomes.

In April of 2010, the Jindal administration, in an offer to implement across the board savings, made a one-time incentive package offer to various state agencies as a means to encourage state employees to take early retirement.

Handled properly, it appeared at the time—and still does appear—to have been an economical and compassionate way to nudge employees who wanted out but who could not afford to retire, into making the decision to walk away, thus reducing the number of state employees which in turn translated to long-term savings in salaries and benefits paid by the state.

On April 23 of that year, DPS Deputy Undersecretary Jill Boudreaux sent an email to all personnel informing them that the Department of Civil Service and the Louisiana State Police Commission had approved the retirement incentive as a “Layoff Avoidance Plan.”

In legal-speak, under the incentive eligible applicants would receive a payment of 50 percent of the savings realized by DPS for one year from the effective date of the employee’s retirement.

In simpler language, the incentive was simply 50 percent of the employee’s annual salary. If an employee making $50,000 per year, for example, was approved for the incentive, he or she would walk away with $25,000 in up-front payments, plus his or her regular retirement and the agency would save one-half of her salary from the date of retirement to the end of the fiscal year. The higher the salary, the higher the potential savings.

The program, offered to the first 20 DPS employees to sign up via an internet link on a specific date, was designed to save the state many times that amount over the long haul. If, for example, 20 employees, each making $50,000 a year, took advantage of the incentive, DPS theoretically would realize a savings of $1 million per year thereafter following the initial retirement year.

That formula, repeated in multiple agencies, could produce a savings of several million—not that much in terms of a $25 billion state budget, but a savings nonetheless.

The policy did come with one major caveat from the Department of Civil Service, however. Agencies were cautioned not to circumvent the program through the state’s obscure retire-rehire policy whereby several administrative personnel, the most notable being former Secretary of Higher Education Sally Clausen, have “retired,” only to be “rehired” a day or so later in order to reap a monetary windfall.

“We strongly recommend that agencies exercise caution in re-hiring an employee who has received a retirement incentive payment within the same budget unit until it can be clearly demonstrated that the projected savings have been realized,” the Civil Service communique said.

And, to again quote our favorite redneck playwright from Denham on Amite, Billy Wayne Shakespeare from his greatest play, Hamlet Bob, “Aye, that’s the rub.” (often misquoted as “Therein lies the rub.”)

Basically, to realize a savings under the early retirement incentive payout, an agency would have had to wait at least a year before rehiring an employee who had retired under the program.

Boudreaux, by what many in DPS feel was more than mere happenstance, managed to be the first person to sign up on the date the internet link opened up for applications.

In Boudreaux’s case, her incentive payment was based on an annual salary of about $92,000 so her incentive payment was around $46,000. In addition, she was also entitled to payment of up to 300 hours of unused annual leave which came to another $13,000 or so for a total of about $59,000 in walk-around money.

Her retirement date was April 28 but the day before, on April 27, she double encumbered herself into the classified (Civil Service) Deputy Undersecretary position because another employee was promoted into her old position on April 26.

A double incumbency is when an employee is appointed to a position that is already occupied by an incumbent, in this case, Boudreaux’s successor. Double incumbencies are mostly used for smooth succession planning initiatives when the incumbent of a position (Boudreaux, in this case) is planning to retire, according to the Louisiana Department of Civil Service.

http://www.civilservice.louisiana.gov/files/HRHandbook/JobAid/5-Double%20Incumbency.pdf

Here’s the kicker: agencies are not required to report double incumbencies to the Civil Service Department if the separation or retirement will last for fewer than 30 days. And because State Civil Service is not required to fund double incumbencies, everything is conveniently kept in-house and away from public scrutiny.

On April 30, under the little-known retire-rehire policy, Boudreaux was rehired two days after her “retirement,” but this time at the higher paying position of Undersecretary, an unclassified, or appointive position.

What’s more, though she “retired” as Deputy Undersecretary on April 28, her “retirement” was inexplicably calculated based on the higher Undersecretary position’s salary, a position she did not assume until April 30—two days after her “retirement,” sources inside DPS told LouisianaVoice.

Following her maneuver, then-Commissioner of Administration Angelé Davis apparently saw through the ruse and reportedly ordered Boudreaux to repay her incentive payment as well as the payment for her 300 hours of annual leave, according to those same DPS sources.

It was about this time, however, that Davis left Gov. Bobby Jindal’s administration to take a position in the private sector. Paul Rainwater, Jindal’s former Deputy Chief of Staff, was named to succeed Davis on June 24, 2010, and the matter of Boudreaux’s payment quickly slipped through the cracks and was never repaid.

This occurred, it should be noted, at a time when state employees, including state police, (except for a few of Edmonson’s top aides, who we plan to discuss in future posts) were already into a period of five or six years of going without pay raises because of the state’s financial condition which has deteriorated in each year of Jindal’s administration.

Meanwhile, Jill Boudreaux continues in her position of Undersecretary of the Department of Public Safety at her present salary of $118,600 per year.

Now that we have shone a little light on her retire-rehire ploy, the question becomes this: Will anyone in the Jindal administration look into this matter and demand that she repay the money—with interest?

Or will the governor, who insisted as Candidate Jindal that “it is time we declare war on the incompetence and corruption” https://www.nrapvf.org/articles/20070720/nra-pvf-endorses-congressman-bobby-jindal-for-governor-of-louisiana

and that incompetence and corruption “will not be tolerated,” http://www.npr.org/templates/story/story.php?storyId=15503722

and that he has “zero tolerance for wrongdoing,” http://theadvocate.com/home/5500946-125/federal-grand-jury-looks-at

continue to ignore problems at home as he racks up frequent flyer miles in quest of the presidency that is far beyond his grasp?

Governor, the ball is now in your court.

Put up or shut up.

 

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