The governor’s proposed budget completely eliminates the state’s contribution to the retired teachers’ health insurance fund for the next two years.
The law requires the state to pay one-third of the medical costs for retirees. The governor’s budget proposal overrides this law and eliminates the state’s contribution to the health fund for two years, shortchanging the fund by over $70 million. This puts teachers’ retired health insurance fund in serious jeopardy. Contact your legislators and Governor Malloy and tell them to protect the solvency of the fund.
The reduction in the state’s contribution to the health fund will negatively affect its long-term solvency. Active and retired teachers have been paying into the health fund with the understanding that it will be there for them when they retire. Active teachers make the largest contribution to the retired teachers’ health insurance fund — contributing 1.25% of salary annually. In 2012-13, contributions from active teachers of over $45 million will be deposited into the health fund.
The state should honor its obligation – active and retired teachers have always dutifully made their required health insurance contribution.
For more information on the topic read here.
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