AUSTIN More than 200,000 retired educators and their dependents in Texas might have to pay higher premiums for health care. <\/p>\n
Texas legislators are trying to shore up a nearly insolvent health care plan for the Teacher Retirement System of Texas, according to the Austin American-Statesman. <\/p>\n
System officials told a Texas Senate panel last Wednesday that the plan for retired public education employees could become insolvent during fiscal 2016 and faces a $768 million shortfall by the end of fiscal 2017 if no new money is received. <\/p>\n
Its not sustainable, Teacher Retirement System Executive Director Brian Guthrie told the panel. <\/p>\n
Health care costs have outpaced growth in the payroll of active public educators, a sum on which plan contributions are based. Texas currently has to give an amount equal to 1 percent of payroll, or $495 million, in 2014 and 2015. <\/p>\n
Initial budget proposals from the House and Senate include $562 million to cover the states statutory obligation. <\/p>\n
The plan is funded primarily by contributions from the state, active teachers and school districts, plus retiree premiums. <\/p>\n
Both two-year spending plans include contingency clauses for the Teacher Retirement System Board of Trustees to not increase retiree health insurance premiums. Retirement system officials want Texas to pay the shortfall, while either cutting benefits or upping contributions from the state, active public educators and school districts. <\/p>\n
Retirees that served our schoolchildren for their careers need quality health care thats affordable for their fixed incomes, said Louis Malfaro, president of the Texas chapter of the American Federation of Teachers. <\/p>\n
The budget board staff has recommended divvying up the projected shortfall, with the state paying 50 percent, retirees paying 25 percent, and active teachers and school districts splitting the rest. <\/p>\n
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Thousands of retired Texas teachers could face higher health care costs<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" AUSTIN More than 200,000 retired educators and their dependents in Texas might have to pay higher premiums for health care. Texas legislators are trying to shore up a nearly insolvent health care plan for the Teacher Retirement System of Texas, according to the Austin American-Statesman Continue reading