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.
Click the link at the top of the page to contact your local legislators.
Bristol Federation of Teachers 
David, from my email, I am sharing with you an informative response from our State Representative – Rob Sampson, regarding the proposed “cut” of funding for the retired teachers’ health benefits. Maybe this will shed a different light on the topic for you. Here it is:
There are three revenue sources for the fund that maintains money for retired teachers’ health benefits: 1) State subsidy, 2) Active teacher contributions, and 3) Retired teacher contributions. The state subsidy used to account for one-third of the contributions to the fund. However, this year, the state’s share was reduced to 25%.
Currently, the fund has a balance (surplus) of approximately $92 million.
Governor Malloy is proposing that we tap the fund balance to cover the state subsidy for the next two years. A total of $32.5 million would be used in FY 14 and $38.4 million in FY 15. As proposed, the elimination of the state subsidy is only for the next two years, and is not permanent.
In the near term (the next two years), the change should have no impact on contributions from retired teachers or active teachers. Nor should it impact their benefits. However, if the practice of relying on the fund balance continues, the balance will eventually disappear, and the state will have to make a decision about whether or not it will continue to subsidize the fund. If the state chooses to permanently end the subsidy, the remaining costs will have to be covered by another source – presumably retired and/or active teachers.
I share your concerns and will do my best to advocate that promises made are indeed kept and that this fund is maintained going forward.
Feel free to write me again on this or any other issues.
Best,
Rob Sampson
State Representative, Connecticut’s 80th District (Wolcott & Southington)
1-800-842-1423
http://www.repsampson.com
—–Original Message—–
From: Connie Gauvin [mail to: ]
Sent: Tuesday, March 12, 2013 9:51 PM
To: Representative Rob Sampson
Subject: Keeping true to the expectations…
I am not too happy reading about Gov. Malloy’s proposed budget plan which will cut out the portion of the state’s standing contribution to the retired teacher’s health insurance fund. I realize that “everyone” needs to tighten their belt to help reduce the states’ spending, but it appears to me that this is wrong.
In seeking “savings”, we need you to not diminish the (financial) health security of retired teachers who have devoted their careers to educating our youth. An important aspect of job value is what you can rely on when you retire. Connecticut teachers truly EARN their retirement benefits. Active and retired teachers have been paying into the health fund with the understanding that it will be there for them when they retire. The state should keep its promise to teachers and continue to fund the retired teachers’ health insurance fund.
Where is that line when you need it?….a penny earned is a penny saved. Please guide the decision process so teachers can continue to look at retirement with the knowledge that our health insurance fund will be intact….and there for us when we retire in years to come.
Thank you, Connie Gauvin
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