Sandy Knoesel responds to Shirlee Zerkel's 10/19/06 letter

Sandy Knoesel to Shirlee Zerkel, October 25, 2006

Subject: RE: Observations by a retiree of the Oct 19 board meeting

Thank you for your e-mail. The Retirement Board will discuss the Medicare Part B reimbursement at its November 2006 meeting. I would like to explain the Board's action last year so that incorrect assumptions can be avoided. Each year, the Retirement Board sets the Medicare reimbursement percentage for the following year. Last year, the Board passed the following motion on Nov. 18, 2005: "To set the Medicare Part B premium reimbursement percentage at 2.349% per year of service credit up to 30 years for calendar year 2006 with the reimbursement cap returning to the 2003 level thereafter." This information was communicated to retirees in the STRS Ohio newsletter and on the Web site. Based on the Board's action in 2006, the Medicare Part B reimbursement percentage for 2003 would be effective in 2007 unless the Board acts next month to change the reimbursement percentage. Information on the Board's November decision will once again be communicated to retirees in the newsletter and on the Web site.