Dan MacDonald addresses the STRS Board 5/19/22 re: the 27th check and more

PUBLIC PARTICIPATION STRS May 2022 Board Meeting

Good morning, I am Dan MacDonald, an STRS retiree with 38 years of service and I am also the Executive Director of Local 279-R, NEO AFT AFL-CIO retirees. 

Last month the FY2023 Budget was presented with a 3% merit-based raise, which, when questioned by the Board, basically is received by all STRS staff. Additionally, this year happens to have 27 paychecks, not the normal 26. Because of the 27th check, an additional $2.1 million appears to be added to the budget. To be more exact, “27th pay accounts for $2.1 million of the $2.6 million increase.” The majority of the STRS staff is SALARIED. Salary covers the salaried year, be it 26 or 27 checks. The 27th check should be overall cost neutral. Instead of dividing salary by 26, payroll divides by 27. Is this STRS Board really giving the staff an extra full paycheck which would include the three percent raise? I would also point out that the STRS staff does get automatic pay raises. When was the last time a 3% raise was not issued?  Ask these questions during public session. Elected Board members, go back to your districts and ask your district treasurer how a 27th check is determined for your district’s salaried employees.  Appointed Board members, do some research. Board members, do not vote for this budget without a public airing of the $2.1 million added for the 27th check. 

Last month I addressed an issue regarding an STRS retiree in a rehab facility, who now you should know, has paid $30,000 because she is not making progress and can’t be sent home. I mentioned the costs Medicare covers for rehab and its coverage for up to 100 days. I guess I was confusing. Our STRS health plan is way better than just Medicare coverage. If progress is being made, the STRS plan has unlimited coverage, as many days as need. So, the Health Committee should inquire who surpasses 100 days?  AETNA rules on progress being made, ask for a summary of the benefits paid for retirees staying over 100 days. This is not a HIPAA violation, you are paying the bills and have a right to get a summary of services of the plan, not by name but by descriptive code. Over 100 days  of rehab is extremely rare because the goal is to get the patient home and rehab to be at the home. It is only the stuck patient, the one not making progress, who is usually single, without family who can’t go home because of no viable exit plan, who remains and is paying from their life’s savings. 

My point though, wasn’t the plan or Medicare, my point is to have the Benefit Department develop workshops for actives and retirees about the ins & outs of health plans, the strengths and weaknesses of options, and preparing for the future which could contain a possible financial catastrophe when the health plan doesn’t pay.  

As always, actives need their benefits enhanced and retirees need a permanent COLA.