Dayton Daily News on HB 707

From State Teachers Retirement System: Young, old teachers willing to help pay

January 02, 2007

The following is an edited excerpt from the State Teachers Retirement System in support of House Bill 707:
This member-driven initiative calls for increasing public teachers' contributions to the State Teachers Retirement System in Ohio by 2.5 percent and their employers' contributions by 2.5 percent of teacher payroll to create an ongoing, dedicated revenue stream for the pension system's Ohio Health Care Program.

These increases would be phased in over a five-year period, in 0.5 percent increments. Legislative action is needed because both member and employer contributions are already at the maximum levels allowed by law — 10 percent and 14 percent, respectively.

This legislation:

• Has the majority support of Ohio's public educators — even among those who are 15 years or more away from retirement.

• Is endorsed by the Health Care Advocates for the pension system — a coalition of management, professional and retiree organizations representing Ohio's public K–12 and higher education teachers.

• Provides an ongoing, dedicated revenue stream for the pension system's Ohio Health Care Program, which currently serves more than 114,000 retired educators and their family members.

• Continues to provide health-care coverage for disabled teachers and retirees with pre-existing conditions who would otherwise be uninsured.

• Pre-funds the Health Care Program, ensuring its long-term solvency on a 30-year funding basis.

• Helps employers recruit and retain quality educators.

• Proactively involves employers in managing their workforce and accompanying payroll and health-care costs. Without affordable health care in retirement, teachers will work longer. This translates into higher medical costs and higher wages — increased costs that will have to be paid by their employers, public schools, colleges and universities.

• Provides for a gradual phase-in that will generate approximately $94 million in the first year and about $500 million for the health-care fund at the end of five years on an annual, ongoing basis.

• Provides a member-driven solution at the statewide level for a national problem — the ever increasing number of uninsured Americans.