|Meanwhile, some towns are engaging in a whole separate effort to change the rules and unfairly force teachers off their municipal plans, but I'll cover that growing problem under a separate post.
In any case, for good or for bad, the present system has been functioning fairly well.
And then to balance the state budget in Fiscal year 2010 and 2011, Governor Rell and the Democrats decided to insert language that allowed the state to forgo any contribution for two years. The lack of funding created a situation that began to derail the financial stability of the Retired Teachers Health Insurance Fund.
When Governor Malloy was sworn in, rather than recommit the state to the appropriate level of funding, he proposed shifting the burden onto the backs of the retired teachers. The Legislature rightfully rejected the move, but "compromised" by agreeing to only allocate 25% of the value of a Medicare supplement plan rather than the 33% required by the law.
While the state did deposit $35 million in Fiscal Year 2012 and $18 million in Fiscal Year 2013, by refusing to deposit the appropriate amount the Fund was, yet again, undermined.
And then came this year...
Malloy went for broke and proposed simply making no payments what-so-ever into the fund.
This Governor, who ran on a platform of fiscal responsibility, proposing that the state simply forgo putting $70 million into the Retired Teachers Health Insurance Fund.
Here are the facts;
In 2012 the Teacher Retirement Board health plan was serving 18,804 retired teachers
In 2012, the Teacher Retirement Board was also paying the town subsidy on behalf of 16,725 retired teachers.
The average age of the retired teacher on the Teacher Retirement Board's plan is 75 years old.
These teachers received a $0 cost of living adjustment in their pensions in 2010 and 2011.
The Governor's plan is simply outrageous.
Oh, and by the way, the General Assembly's Appropriations Committee is holding a public hearing today on Malloy's Teachers Retirement Health Care proposal.
Appropriations Committee Public Hearing
Thursday, February 21
Elementary & Secondary Education (Room 2D)
2:00- 2:30 PM Teachers' Retirement Board
2:30- 3:00 State Library
3:00- 4:30 Department of Education
Public Budget Hearings (Room 2C) 6:00 PM