Health Insurance Changes

• The Retired Teacher Pension is underfunded by more than 13 billion dollars.
• Active teachers saw an increase of 1% pension contribution. They now contribute 7% of their income to the retirement fund.
• Increase of teacher contribution to the fund is being used to reduce the State's obligation to increase overall funding of the pension, not to reduce the unfunded liability.
• Teachers' Health Insurance Fund that active and retired teachers pay into is facing insolvency this year. The Fund was instituted to help lower insurance costs for teacher retirees.
• State failed to contribute its promised 33 1/2% contribution over the years.
• State funding is flat for the biennium at $14 million per year. This amounts to 12% of the medical plan costs in year 1 and 10% of the plan cost in year 2. Retired teachers pay all their Medicare premiums and the bulk of their supplemental costs.
• Because the State has short funded the Health Fund by well over $190 million over the last few years the TRB was forced into a Medicare Advantage Plan. This is a temporary fix. The TRB health insurance consultant estimates the 2019 deficit will be an additional 8 million dollars.
• Coverage and premiums for all retired teachers will change as of July 1, 2018.
• State postponed the 50% income tax exclusion for retired teachers. Because teachers do not have Social Security, this is a fairness issue. There is also an economic issue since 26% of retired teachers, more than 9,000, are choosing to leave the state upon retirement.

Retired Teachers do not have a union. We do not have a contract with the State. We rely on the Legislature to hear our voices and to keep the State's promise.