Fix for teacher health plan clears House panel
By Linda B. Blackford – lblackford@herald-leader.com
FRANKFORT — A plan to shore up medical benefits for retired teachers passed the House Appropriations and Revenue Committee Tuesday.
House Bill 540 would require more money from school boards and active and retired teachers to help reduce the unfunded liability in the retired teachers health insurance fund from $6.2 billion to $3.4 billion over time.
Currently, only active teachers, retired teachers over the age of 65 and the state pay into the system. The health fund has had to borrow from the teachers’ pension fund to pay for health benefits for several years.
The plan, which was crafted by groups representing teachers, school boards and administrators, would require teachers, retired teachers under 65 and local school districts to pay increasing health insurance premiums until 2016, when the contribution would be 3.75 percent of a teacher’s salary.
Gary Harbin, executive secretary of the Kentucky Teachers Retirement System, said the plan would not hurt school districts because more teachers would retire if they knew their health benefits were intact. about 15,000 teachers are eligible for retirement.
“We have two choices,” said Rep. Carl Rollins, D-Versailles, the bill’s sponsor. “We can do this, which will keep health insurance for our teachers, or health insurance for our retired teachers will go away.”
There was very little discussion of the bill, which was praised by lawmakers. It passed with 22 yes votes and one abstention from Rep. Jesse Crenshaw, D-Lexington, who is part of the teacher retirement system.
“We’ve got to fix this problem,” said Rep. Keith Hall, D-Pikeville. “I’m happy to see this legislation.”
Filed Under: Education • KY General Assembly • State Government
About the Author: John Stamper is the accountability editor for the Lexington Herald-Leader. A native of Monticello, Ky., he has been with the Herald-Leader in a variety of roles since graduating from Western Kentucky University in 2000. Reach him at jstamper@herald-leader.com
Proposed 28th Amendment to the United States Constitution:
Congress shall make no law that applies to the citizens of the United
States that does not apply equally to the Senators and Representatives.
Congress shall make no law that applies to the Senators and Representatives that does not apply equally to the citizens of the United States.
“unfunded liability” — that’s all you need to know. We need people who are responsible leaders, not these professional politicians F&%^ing around with our country. Our politicians have been willing to sell out our future for some short term gain or short term avoidance of pain.
Chickens coming home to roost!…..
It is unfair for only teachers and state employees to get worse insurance while UK and other colleges keep their superior insurance. They are all paid by tax payers.