ISSUES
INSURANCE
- Group Rates (the negotiated insurance coverage of the system’s active teachers) for retired educators began in 1987.
- State subsidized $36.70/month. This amount has not changed in twenty four years.
- The Group Rate continues to go up but the subsidy doesn’t.
- Working teachers pay 1.25% of their gross income. This year $47,000,000 is collected. Only $32,000,000 is used to pay our premium share.
- Tens of millions in surplus dollars are in the Health Insurance Account but not used and is not used to lower our group rate.
COST OF LIVING
- Teachers gave $1,691,000,000 from our C.O.L.A. to our pension fund which was going bankrupt in 1995. C.O.L.A. was to be paid from pension.
- The C.O.L.A. was made to equal the Social Security rate.
- We who must purchase the Group Rate do not belong to Social Security.
- Our cost continues to grow but we have not received a Cost of Living increase for three years.
YOU BORROWED FROM US
- Our Health Insurance Premium Account grew to a surplus of over $100,000,000.
- Funds in this account are provided from working teachers only.
- When the State Legislature needed money to cover its subsidy to retired educators’ insurance subsidy, you borrowed $60,000,000.
- You promised to pay our monies back plus interest, but like everything else we received nothing.
SOLUTIONS
COST OF LIVING
- Drop Cost of Living from control of Social Security
- Our C.O.L.A. should come from our Pension Fund
- Return the borrowed funds
- Establish amount each year
INSURANCE
The Legislature should:
- Take $20,000,000 from the Health Insurance Premium Account for each of two years.
- Have the T.R.B. apply $2,000 to reduce the Group Rate for each “Group Rate” payer. Rate $7,000 to $5,000.
- Pay $2,000 directly to local board of education to avoid the retirees increase in taxes.
- Provide the same amount of subsidy ($47,000,000) that is provided by employed educators.
- Provide a study for two years to create a percentage formula and establish an amount from state and local governments, employed educators and retirees, allowing reduced premiums.
AND DID YOU KNOW?
- Teachers in CT receive only 31% of their Social Security funds.
- We have lost our Vested Rights.
- That we pay income tax twice as retired educators. We are one of only five states in the U.S.A. that does that.