The State of Connecticut finally has a budget after a lengthy delay. The result is not good news for retired teachers. The promised 50% reduction in our State income tax has been delayed for at least 2 years. The rate, however, will remain at 25% for 2017 and 2018. If you retired and were receiving a social security pension, 75% of that pension is excluded from state income tax, so what we have been promised is not outrageous.
In addition, the State will once again not fund our Health Insurance Premium Account (HIPA) at the required 33% rate and will actually contribute less than the 25% it has indicated it will contribute. This will result in a $25 million deficit for the next two years. This is in addition to the $140 million it has not contributed from 2010 – 2016. The HIPA account is in trouble and projections indicate it could run out of money as early as August or September of 2018. This would mean that retired and working teachers would be forced to increase their contributions to keep it solvent.
The budget also increases working teachers’ contribution to the pension fund by 1% (from 6 to 7 %). Clearly, educators are doing more than their fair share to help Connecticut out of its financial difficulties.
On a more positive note, the cost of living increase to our pensions has been announced at 2% for next year.
ARTC lobbyist, Kevin Graff, has advised that our elected officials need to know that we are upset, and are monitoring the situation. We have already met with three Republican members of the legislature who represent some of our districts. We are in the process of setting up a meeting with a high ranking Democratic senator to express our concerns regarding the new budget and the lack of commitment to retired teachers, especially HIPA.
We will also be attending the ARTC Lobby Day on April 4th in the State Capitol where we will remind our legislators of the sacrifices retired and working teachers are making to help the State remedy its financial crisis. Retired teachers of Connecticut represent a large and active voting bloc, and our primary concerns center on the financial security of our pension and health insurance benefits.
Please also see the enclosed fact sheet on possible changes to the TRB health plan, which the TRB voted to put out to bid on November 1, 2017. It is important for you to read this carefully and to note that, if you are happy with Stirling Benefits, you will be able to keep it. Many of our members have voiced strong satisfaction with the Stirling administration of our plan. We need for the TRB to make continuing with Stirling Benefits as easy as possible. Stay With Stirling should be an easy option for those who choose to do so. Stay tuned!
Save the date — Spring Lucheon
May 9th at the Norwalk Inn
Our guest speakers will be: AARP Associate State Director Community Outreach, Erica Michalowski, M.S.W. and Detective Mark D. Solomon of the Greenwich Police Department and CT Financial Crimes Task Force addressing the topic of Senior Frauds and Scams.
Many of us continue to be troubled by what we see going on around us these days. The following quote offers something positive to keep in mind to turn the situation around.
“The majority of us lead quiet, unheralded lives as we pass through this world. There will most likely be no ticker-tape parades for us, no monuments created in our honor. But that does not lessen our possible impact, for there are scores of people waiting for someone just like us to come along; people who will appreciate our compassion, our unique talents. Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have a potential to turn a life around.” Leo Buscaglia
“You don’t stop laughing because you grow old. You grow old because you stop laughing.” Michael Pritchard
Respectfully,
Frank Cooper, President