Lima News: Retired teachers pushing for health plan

From John Curry, March 7, 2008
Subject: Retired teachers pushing for health plan

Retired teachers pushing for health plan

Heather Rutz - Mar. 6th, 2008
Lima News

WAPAKONETA - After a 30-year teaching career, John Curry now works as a security officer.

He doesn't need the money, but he and his wife do need health insurance. Curry, 60, could get the insurance through the State Teachers Retirement System, but the monthly premium would be $850.

"I had to go back to work," Curry said. "I'm working just to afford insurance. Health care costs are crippling retirees."

Curry is one of the retired teachers STRS is trying to help by seeking a change in state law that would increase contributions from public teachers, school districts and public universities by 2.5 percent each, creating a dedicated revenue stream for affordable health care for retired teachers.

Opponents of the plan say it could result in school districts raising property taxes and that STRS is looking for a bail-out after previous boards mismanaged funds.

Local retired teachers, responding to a previous Lima News story, acknowledge the mismanagement, but say those responsible for it were convicted and reforms are now in place.

They also say, with STRS spending $1.3 million a day on health care, the issue, and the amount of money needed to make the health care fund solvent, is greater than past problems.

"Retired teachers are in quite a predicament," said George Doyle, president of Allen County Retired Teachers Association. "We don't want the public thinking we caused this. We can't do anything about the past, but we can change the future."

STRS has provided health care for retirees since the 1970s. None of the five public retirement systems in Ohio is required to provide health care, but they all do.

If STRS no longer provides health insurance for retirees, proponents say, the costs of their care won't go away, and the public would ultimately pay for the uninsured.

Doyle has received his insurance through STRS but in January must switch his coverage to his employer, the Lima-Allen County Chamber of Commerce. STRS is attempting to save money in its plan by making retirees who work, either at another job or in a school district through a retire-rehire program, take that insurance.

Currently, teachers' pensions are funded with 10 percent of teachers' pay and a 14 percent contribution from employers. The health care fund has three sources of income: 1 percent of the 14 percent, premiums and investment earnings on the fund, which stands at about $4 billion.

Kenneth Clemens, an opponent of the bill who became aware of it through his work on a local college board of trustees, believes taxpayers should not be funding teachers' health care. While teachers say taxpayers it is their employers and their own checks pre-funding health care, Clemens points out that it is public money funding schools and teacher salaries.

Tim Myers, an Elida Middle School teacher, is part of a team of teachers across the state advocating the plan and explaining it to school boards and teachers.

The 2.5 percent increase from employers and teachers would be ramped up in 0.5 percent increments over five years, Myers said.

"Districts will save money because older teachers won't stay teaching, at higher salaries, for insurance," Myers said. "The idea that schools are going to go broke because of this doesn't make any sense."

Note from John.....No, I didn't state to this Lima News reporter that, "He (I) doesn't(don't) need the money," (what retiree doesn't?) but the rest of her story covering what I said to her is accurate. In this case it would have been better if both Heather and I would have recorded our five minute conversation over the telephone!