Uncertain Health Coverage Spells an Uncertain Retirement
by Dana Dillon, Teachers’ Retirement Board Chair
Over the course of more than two decades as an educator, activist, and Board member, I have seen the state of health care benefits for teachers erode. Many educators are concerned, but as fewer and fewer districts are providing post retirement benefits, it has become especially worrisome for our retired members.
Although the core business of CalSTRS is to pay retirement benefits every month, our mission is much broader. It is not only our duty, but our desire to create a secure tomorrow for you. After all, most members retire at age 61 after devoting 28 years to their teaching careers. Once there, you’ve earned a little peace of mind.
How can teachers enjoy retirement if they don’t know how they’ll pay for health care down the road? In a 2005 CalSTRS Web poll, 21 percent of active members told us they are most concerned about the cost of health care in retirement. You have good reason for your concern. A 2006 CalSTRS survey of school districts revealed that 62 percent of our members age 65 and older do not receive health care assistance from their employers. It is a trend that is continuing and getting worse.
Survey data and poll results provide us with numbers that help us understand the situation. But you and your retired colleagues must actually cope with this issue. That is why finding solutions is among the Board’s top priorities. And we’ve already taken action.
CalSTRS has been participating throughout the year in the Governor’s Public Employee Post-Employment Commission to provide their members with testimony and information about your pension system, specifically, about your health care issues. For more information, see Shaping the Future of Public Pensions.
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