Issues

ISSUES

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.

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.

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.

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.

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.