Dear KRTA Members,
First, I hope this finds you safe and well during these trying times. I thank those of you who have been reaching out to our membership base for wellness checks and to offer support. It is moments like these that I’m proudest to work with this caring group of retired educators.
I would also like to thank those of you who having been reaching out to legislators to stop the dangerous legislation that has been proposed regarding our earned benefits. We’re making progress, but there is still reason for concern. Here’s an update on where we stand and a call to action.
Members of House and Senate Leadership, along with a few other key House and Senate members, met yesterday in conference committee to discuss the differences between the proposed budgets from their respective chambers.
We want to thank several key House members for holding their ground on fully funding the Actuarial Required Contribution to TRS. It appears, yet still not certain, that this ill-conceived plan by the Senate A&R to withhold $1.13 billion from TRS will not progress into the final budget. We will continue to monitor the situation.
However, funding for the TRS medical insurance fund still remains in doubt. Several members of the conference committee commented that the funding level of medical insurance fund at TRS is ahead of schedule. This is true because the plan is actually working, and taking it off-course is dangerous and fiscally irresponsible.
Since its inception in 2010 with the passage of the Shared Responsibility Plan, the medical insurance fund at TRS has grown faster than expected. The fund was designed to be funded at levels higher than its actuarially required contribution (ARC) so it could grow. The fund’s faster than expected growth also is the result of the millions of dollars the experienced staff at TRS has saved with its Medicare Eligible Health Insurance Program. And lastly, it is ahead of schedule because of the shared sacrifice active teachers, school districts, and retired teachers who are not yet Medicare eligible have made by always making their contributions to the fund.
While it is being proposed by the Senate members of the Conference Committee that the fund can withstand no funding for the next two years, we should remember back to the early 2000s when similar statements were made by members of the General Assembly relating to public pensions. Let’s not repeat the mistakes of the past. Lawmakers must meet our obligations to Kentucky’s teachers and fund retiree health insurance to avoid a future crisis with retiree health insurance.
We ask that you call your elected officials today to remind our legislative leaders to not repeat the mistakes of the past and fully fund retired teacher health insurance.
Again, my sincere thanks for advocacy. You’re making a difference. And please don’t hesitate to reach out to me, our staff, or your district leader if we can support you in any way as we battle the coronavirus.
Tim Abrams
Executive Director
Kentucky Retired Teachers Association