Dennis Leone to Cathy Burner re: Health Care Insurance for the Rehired Retiree

Dennis Leone to Cathy Burner, September 26, 2006

Subject: Re: Health Care Insurance for the Rehired Retiree

Hi Cathy --

The decision of the Board did not turn out quite the way I hoped it would. My original motion was for full-time rehired retirees of STRS employers only to be denied STRS health insurance beginning 1-1-09. That motion was on the table, but died for lack of a second. (John Lazares was not present for this vote.) The only motion I could get through was the language that was previously in Michelle Schneider's bill. I stated my reservations publicly (the same as yours below) regarding the difficulty of tracking the health insurance of retirees working in the private sector.

I also asked, and my question fell on deaf ears, about what happens if a rehired retiree's health insurance plan in the private sector is WORSE than what he/she could have with the STRS plan. Conversely, not a single public school district or university will have a worse health insurance plan than STRS. I suspect that prior to 1-1-09, the staff at STRS will have to bring back some recommendations to the Board pertaining to how the new policy will be administered.

I can foresee a legal challenge coming from a retiree who is working at Bill's TV Repair Shop -- who is denied STRS insurance because this employer provides an insurance plan. I did my best to warn the Board. What I do not believe my fellow board members fully appreciate is the fact that a public school district that re-employs a retiree will still contribute 14% to STRS. Bill's TV Repair Shop contributes zero. It is SO hard to get my fellow board members to listen to these types of things

Dennis Leone

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From Cathy Burner, September 26, 2006

Subject: Health Care Insurance for the Rehired Retiree

Dennis,

Before I left the ORTA staff the board had an open discussion regarding the policy of permitting the rehired, retired teachers continuing to receiving their health insurance with STRS. I want to emphasize that the retired teacher was hired by a school employer in this scenario.

I reported to the ORTA Board that I had attended an Ohio PERS meeting where the Executive Director explained the PERS policy relating to health care for the re-employed PERS retiree. Again I want to emphasis that the PERS retiree was rehired by a PERS employer. At the meeting PERS staff indicated this is easy to track as the records flow through the PERS administration. I was in favor of the PERS policy to be adopted by STRS.

As I understand the new policy at STRS which will go into effect in 2009 will no longer permit access to the STRS health care program for any rehired, retiree. I want to emphasize the rehired, retiree will be those working in schools as well as those in the private sector, assuming I understand the new policy. I believe the 2009 STRS policy will be hard to track. What will be the means test to indicate a full time employee? How does STRS plan to track the working retiree who is employed in the private sector and does this policy apply to the self employed?

I will look for your reply.

I appreciate all that you do for the retired teachers of Ohio.

Cathy Burner