With more than half of the legislative session now complete, the pace of the 2010 General Assembly is quickening. The House is expected to pass the budget bill (HB 290) out and send it to the Senate by Wednesday, March 10. One item we are watching closely is the proposed redesign of public employee health insurance options. At the moment this information is being held very close to the vest.
To-date no bill was introduced that would have a negative impact on KTRS. The “Shared Responsibility” plan for funding KTRS retiree health care was filed last Friday (HB 540). HB 540 cleared the House Education committee unanimously with bipartisan support. There is a chance HB 540 could clear the House and be sent to the Senate by end of next week.
HB 540 provides a long-term, sustainable method for funding medical insurance for retired teachers. This plan was developed with much study, deliberation and input from all of Kentucky’s education community within the KTRS field of membership.
What Does HB 540 do for stakeholders?
For active teachers who want some day to be able to retire:
A funding method to provide that medical insurance will be available when they retire
Average teacher will experience net takeout from paycheck of less than $10/month in first year
Teacher contribution is matched by school district and state
Helps the financial stability of the pension plan
Is the difference between having retirement security when they retire or not having it
For retired teachers:
Retired teachers age 65 and over experience no change
Retired teachers under age 65 step in to paying Medicare Part B Premium by paying 33% in 2010, 67% in 2011 and 100% in 2012
Retirees under age 65 will pay only $37/month in 2010 toward the $589/month cost of their individual policy
For school districts:
Maintains one of the strongest teacher recruitment and retention tools available to districts
Allows teachers to continue to retire when ready (average retirement age is 57)
Average payroll savings to districts of $22,000 per year for each longer-tenured, higher paid teacher who retires and is replaced by a new teacher
For the Commonwealth:
Gets away from further borrowing to fund retiree medical insurance
Commonwealth would only pay the net medical insurance costs for persons under age 65 who retire on or after July 1, 2010. Currently, the Commonwealth pays for all of medical insurance costs for retirees not Medicare eligible, plus a portion of the costs of those retirees age 65 and older.
For everyone:
Moves toward pre-funding medical insurance benefit under which investment income, not contributions, pays for approximately 70% of benefit
Reduces unfunded liability from current $6.2 billion to $3.4 billion
To move HB 540 forward, now is the time for all of us to contact our representative. The easiest way to do this is by calling the Message Center at 1-800-372-7181 and leaving a message for your legislator. The message is simple: "Please support HB 540.”
FOLLOWING LEGISLATION
To check on bills that are filed and to follow legislation, go online to www.krta.org. Then click on “Links.” Then click on “Legislative Research Commission (LRC).” Then click on “Legislation and Legislative Record.” Then click on “2010 Regular Session.” You can check the status of any bill or resolution.
KRTA LEGISLATIVE REPORT
To check on bills that KRTA is following, go online to www.krta.org. You will see a “special link” where you can check the KRTA Legislative Report
KENTUCKY GENERAL ASSEMBLY TOLL FREE NUMBERS
Legislative Message Line - 800-372-7181
Bill Status Line - 866-840-2835
Calendar Line – 800-633-9650
TTY Message Line – 800-896-0305
KRTA advocates are in the Capitol every day during the session. If you have specific questions or need more information, please call the KRTA office toll-free at 1-800-551-7979 or email us at KRTA98@aol.com.
Due to current security measures, the most efficient way to contact our federal legislators about these issues is by fax. The fax numbers for Kentucky’s federal legislators are as follows: Jim Bunning (202-228-1373); Ben Chandler (202-225-2122); Geoff Davis (202-225-0003); Brett Guthrie (202-225-3501); Mitch McConnell (202-224-2499); John Yarmuth (202-225-5401); Hal Rogers (202-225-0940) and Ed Whitfield (202-225-3547).
