Molly asks Dennis re: rumor that retiree HC will be eliminated

From: Dennis Leone
To: Molly Janczyk
Date: Thu, 19 Jan 2006

I have heard no discussion of absolutely eliminating health care since I have been on the Board. It has often been said, however, that absent a new source of revenue for the health care stabilization fund, it will be completely empty by 2018 -- which means that as of that year, there would be no health insurance.

In recent months, there has been quite a bit of talk about whether, on a long term basis, the pension fund will remain solvent for those who have not yet retired. Some board members have said that pension solvency must remain our No. 1 priority, and it may mean that at some unknown point in the future, we won't be able to have an STRS health care plan. I hope things never get that bad. Reducing the 55-year unfunded liability is a major, major problem.

Dennis Leone

From: Molly Janczyk

To: Dennis Leone
Sent: Thursday, January 19, 2006

HAS THE BOARD EVEN CONSIDERED DROPPING HC BENEFITS FOR CURRENT RETIREES?