That miserable 1% and.......will STRS listen to this finding?
From John Curry, July 21, 2012
The latest report sent to the Ohio Retirement Study Council had this to say about STRS's healthcare funding. It is a miserable 1% (as compared to the 4% currently contributed to the OPERS healthcare fund). Why can OPERS afford to pay 4% into their healthcare fund and STRS only 1%? Well.....OPERS (like all the "other" state retirement systems) only pays out 77% for 35 years AND STRS pays out 88 and 1/2% of the Final Average Salary, that's why! Here is what the most recent report had to say about the STRS meager 1% healthcare fund contribution. I like their use of the term "meaningful" health care benefits. That's opposed to the "token" healthcare coverage that STRS will offer in the future, isn't it? You know....the kind that offers a Band-Aid when surgery is needed? But, that's OK, STRS can still say they offer "healthcare" coverage, can't they? And....the active educators will be forever grateful.....that is, until they retire and find out what they really DON'T have, won't they? Cut the 88, we can't afford to wait!
Page 142:
"A health care program funded by merely 1% of pay contributions is destined to produce only a modest level of benefits. STRS has a difficult challenge with trying to provide meaningful health care benefits with such a low contribution. STRS may wish to improve health care funding; either through further reducing retirement benefits, facilitating voluntary employee spending accounts, or increasing health care funding should actuarial experience improve."
posted by Kathie Bracy at 9:52 PM
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