FORMER FEGS STAFF
Information Concerning Former FEGS Staff
- Updated September 13th, 2017 -
Dear Former FEGS Employees,
Please read below to update you on some new information:
1. To: Former FEGS Staff Member(s) covered under United Healthcare/Oxford Insurance Plan in 2015:
You may have received a notice from United Healthcare/Oxford (the health insurer for FEGS) regarding a Medical Loss Ratio Rebate (MLR) that FEGS and other insured entities with Oxford were eligible for as provided by the federal Affordable Care Act. Under the Affordable Care Act, insurers generally must spend a minimum percentage of premiums received each year on health care services, such as doctors and hospital bills, and activities to improve health care quality. Insurers whose expenditures fall short of MLR targets must pay rebates. In early April, the 2015 rebate checks for eligible individuals were processed and mailed (to the most updated address on record). Rebate amounts correspond to each individual's portion based on the exact percentage of the premiums he or she paid to the Oxford health plan during 2015. Eligible individuals will be receiving or have already received, via USPS mail, a rebate check in a similar fashion as the 2014 rebate check. Note that rebate amounts vary from a few dollars upwards to an average of under $10.00 and that this payment is unrelated to any claims that you may have in the FEGS bankruptcy proceedings.
It is imperative that if you changed addresses and have NOT already updated your address on FEGS.org (see section #5 below) that you please do so.
2. As you may be aware, Local 215, District Council 1707, CSAEU, AFSCME, AFL-CIO (the "Union"), through its outside lawyers, has for the past several months been engaged in discussions with FEGS and the Creditors’ Committee about a settlement of the members’ severance, WARN Act and vacation pay claims. On November 23, 2016, FEGS, with the support of the Creditors’ Committee, filed a Motion to approve a proposed Settlement Agreement with the Union those claims as well as the claim of the National Labor Relations Board for back pay. The Settlement was approved and those payments were sent out on February 17th, 2017 to eligible Union employees who worked at FEGS and were due a settlement payment. If you were scheduled to receive a settlement payment and did not yet receive it by mail, please contact the Union. The Union’s contact number is: (212) 219-0022.
3. Settlement Agreement between FEGS and the NYS Department of Labor on behalf of FEGS non-union employees- The New York State Department of Labor ("the Department" or "DOL") reached a settlement (the "Settlement") with Federation Employment and Guidance Service, Inc. ("FEGS") in the FEGS bankruptcy case.
Checks for eligible former non-Union FEGS staff have been sent.
On August 4, 2017 the Bankruptcy Court entered an order confirming the Settlement on behalf of FEGS’s former non-union employees ("Non-Union Employees") and settles the following: (1) a claim for damages made by the Department under the New York State Worker Adjustment and Retraining Notification Act (the "WARN Act") in FEGS’s bankruptcy case (the "DOL WARN Claim"); (2) severance payments owed to Non-Union Employees ("Severance Claims"); and (3) remaining non-priority vacation pay owed to Non-Union Employees that would be considered a general unsecured claim under the bankruptcy law.
Pursuant to the Settlement Agreement between the Department and FEGS, each Non-Union Employee will receive a payment of 50% of the amount the Department contends is owed in WARN damages and 80% of the severance owed (collectively, the "Settlement Amounts"). The Settlement Amounts for each Non-Union Employee were sent to each eligible former non-Union FEGS employee. (A final schedule of the Settlement Amounts, containing any corrections agreed to with DOL, will be filed with the Court.) Per the court order these Settlement Amounts (less applicable withholding taxes) will be paid to each employee by check within 45 days of approval of the Settlement Agreement by the Bankruptcy Court. In addition, the Settlement Agreement also includes a general unsecured claim for remaining vacation pay ("GUC Vacation Pay Claim"), owed to each Non-Union Employee. Employees who are entitled to a GUC Vacation Pay Claim will receive at a later date the same pro rata share of his/her claims that all other unsecured creditors receive in accordance with a confirmed plan.
This Settlement Agreement reached by the Department and FEGS is on the same terms as was recently obtained by Local 215, District Council 1707, CSAEU, AFSCME, AFL-CIO on behalf of the former FEGS union employees.
To better ensure the prompt receipt of payment as well as any general correspondence in the future, employees are strongly encouraged to provide any updated address information to the FEGS estate by visiting clicking this link.
Should you have any questions, please feel free to contact Richard Grossi, Statewide Rapid Response Coordinator, at 516-457-9880. As soon as the Bankruptcy Court approves the settlement, updated information will be provided on this site.
4. Information about the claims process is available at http://omnimgt.com/fegs or call: 866-205-3142
5. In order to ensure that FEGS’s former employees’ records are correct, as it relates to any correspondence sent now or in the future, please fill out your information in all the fields by clicking this link. If your address has changed since your employment with FEGS, please update your information.
Note: This action is not required if you’ve already submitted the form, and your address has not been changed since you last submitted it.
6. To request employment verification regarding former FEGS staff, please click here to download and complete the release form - http://metalquest.com/MQInnerTrust.html.
Director, Senior Human Resources
Phone 212-366-8541/Email: ASlutsky@FEGS.org