Benefits May 27, 2008

FL County Tells Smoking Applicants: Do Not Apply

May 27, 2008 (PLANSPONSOR.com) - A Southwest Florida county government has joined the list of employers refusing to hire smokers because of the employees' increased risk of health problems.
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TheSarasota Herald Tribune reported that Sarasota County officials cited Centers for Disease Control research estimating the annual cost of hiring a smoker at $3,400 in lost productivity and medical expenses.

According to the news report, prospective new hires will now be required to undergo a drug test for nicotine and sign a statement they have not smoked in the last 12 months. Existing employees will be encouraged to join free stop smoking classes.

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Sarasota County Administrator Jim Ley told the newspaper the new hiring policy great out of “a five- or six-year strategy to produce a healthier work force and manage our long-term health care costs.” The county now pays about $31 million annually in health benefits for 3,600 employees.

Ley said 15% of the county’s employees with severe illnesses account for 85% of the health care costs.

The Herald Tribune said Florida local government agencies that refuse to hire smokers include the sheriff’s offices in Hernando, Hillsborough and Pasco Counties and the city of Atlantic Beach.

Smoking workers for neighboring Manatee County must pay more for the best health care coverage and attend a class about smoking. The county is also exploring ways to get more people to quit, Manatee County Administrator Ed Hunzeker, told the newspaper

The Herald Tribune said the right for Florida employers not to hire employees who smoke was upheld by a 1995 ruling of the state Supreme Court. An applicant sued the city of North Miami arguing that an anti-smoker policy violated her privacy.

In that case, the city argued that each smoker cost taxpayers $4,611 (in 1981 dollars) annually because of medical bills, the news report said.

Administration May 23, 2008

French Trader Blamed for $7M in Losses Might Have Had Help

May 23, 2008 (PLANSPONSOR.com) - Societe Generale trader Jerome Kerviel has been accused by the French bank of building up massive share market bets that led to a record trading loss.
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However, Reuters said a report published by the bank indicated Kerviel may have had internal help with his actions. The internal report said the trader, blamed for $7.7 billion in trading losses, may have been aided by an assistant, but also said there was no conclusive proof.

“We have discovered indications of internal collusion involving a trading assistant, a middle office operational agent,” said the report, according to Reuters. “Due to the current on-going criminal investigation, we have been unable to question this employee on this subject. The possibility of such internal collusion must therefore be confirmed by the courts.”

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In addition, the report blamed weak supervision and poor control systems for the rogue trading scandal. The bank said Kerviel’s direct supervisor lacked relevant experience and that the direct supervisor and the manager above him carried out inadequate reviews of Kerviel’s trading activities.

France ‘s second largest bank revealed the trading losses in January which it blamed on unauthorized stock market trades carried out by Kerviel. The trader was freed from prison in March after an appeal against his detention, but he remains under formal investigation for breach of trust, computer abuse, and falsification, the news report said.

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