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 teachers' health care benefits erode. The issue has become especially worrisome for our retired members as fewer and fewer districts provide post-retirement health benefits.

Although CalSTRS' core business is to pay retirement benefits every month, our mission is much broader. It's not only our duty, but our desire to create a secure tomorrow for all educators. After all, most of you retire at age 61 or older after devoting at least 26 years to teaching. Once there, you deserve a little peace of mind.

That peace can be hard to find if you don't receive health care assistance from your employer. A 2006 CalSTRS survey of school districts revealed that 62 percent of our retired members age 65 and older fall into that category. It's a continuing trend — and it's getting worse.

While survey data and poll results provide us with numbers that help us understand this situation, you and your retired colleagues must actually cope with it day to day. That's why finding solutions is among the board's top priorities. And we've already taken action.

Throughout 2007, CalSTRS participated in the Governor's Public Employee Post-Employment Commission hearings. We provided commission members with testimony and information about your pension system, with a focus on your health care issues.

At the July 2007 commission meeting, Board Vice-Chair Jerilyn Harris shared real stories of two retired members who struggle every day to pay for health care. One spent 35 years in the classroom and receives a $2,500 monthly benefit. She picked up the cost of her health premium when she turned 65 because the insurance helps pay for prescription drugs she needs for a chronic pain condition and diabetes. Another retired in 2000, but continues to work full time as an online professor and insurance company sales representative to pay for his family's medical insurance and medical bills.

The board also convened a Public Education Health Benefit Task Force in 2006 to discuss this issue in more depth and make recommendations that will benefit school districts, school employees and their retired workers.

In addition, last summer the board voted to extend for five years the payment of Medicare Part A premiums (hospital) for eligible Defined Benefit Program members. We also continue to cooperate with the state Legislature in studying the possibility of an employer health benefit pool. It's critical for decision-makers to understand your health care realities.

Though CalSTRS doesn't provide health care for active or retired members, we must continue to show active leadership as we work to find solutions to this growing problem.

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