Dennis Leone on HB 272

November 28, 2005

Regarding HB 272 (which is sponsored by State Rep Michelle Schneider), it will prohibit retirees of STRS, SERS and PERS from using their pension system's health insurance plan IF they are re-employed at a place (public or private) that would otherwise offer them health insurance. If adopted, it would go into effect immediately for SERS and PERS, but STRS has asked for a friendly amendment that would provide a 3-year waiting period for current rehired retired educators.

It is my belief that the law will not be adopted until 2006 which means that it would go into effect for STRS retirees in 2009. This law would not apply to rehired retirees who work part time and are not eligible to receive health insurance from the place of re-employment. Such people would be able to use their pension system's health insurance plan. The STRS Board voted 9-1 in favor of us being part of the bill with the 3-year stipulation. Board Member Mary Ann Flannagan voted no because she wanted the waiting period to be at least 4 years. Board Member Geof Myers had an excused absence and was not present for the vote.

Dennis Leone