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Preserve Retiree Health Care
In September 2008, Rep. Scott Oelslager (R-Canton) introduced HB 315. The bill calls for increasing public teachers’ contributions to STRS Ohio by 2.5 percent and their employers’ contributions by 2.5. percent of teacher payroll to create an ongoing, dedicated revenue stream for the STRS Ohio Health Care Program. These increases would be phased in over a five-year period, in .5% increments. This gradual phase-in that will generate approximately $94 million in the first year and about $500 million for the health care fund at the end of five years on an annual, ongoing basis.
For a teacher earning $40,000 a year, the proposed contribution increase means an additional deduction of about $8 per paycheck during the first year. By the end of the five years, the total deduction per paycheck will be about $40. And, by requiring employers to contribute an additional 2.5 percent, money for salary increases will move off the bargaining table.
The bill is designed to address a pending problem of a bankrupt funding mechanism for education retirees’ health care coverage. The looming shortfall is expected to start in 2010 with funding being fully depleted by 2020 if the problem is not addressed. Rep. Oelslager introduced a similar bill in the 126th General Assembly.
| Sample Letter for Campaign |
Subject: Protect health care for retirees
Dear [ Decision Maker ] ,
I am writing to urge you to support House Bill 315, sponsored by Representative Scott Oelslager. As a member of STRS, I am very concerned about having access to affordable health care in retirement. The State Teachers Retirement System (STRS) health care fund is projected to run out of money in 2021. This bill would create a dedicated revenue stream for continuing to provide affordable health care coverage to current and future retired teachers.
House Bill 315 is a balanced solution to an important problem. Under the proposal, contributions from active teachers would increase by 2.5 percent of salary and employer contributions would increase by 2.5 percent of payroll. The increases would be phased in over a five-year period, rather than implemented all at once. The additional dollars that these increases would generate will be placed in STRS Ohio's health care fund to help ensure that affordable health care coverage continues for current and future retired teachers. This is an equitable plan that shares the responsibility for health care coverage among retirees, active teachers and employers.
As an active member of STRS, I would rather pay a manageable amount towards my future health care benefits while I'm working than be saddled with the full cost of health care in retirement.
If I am willing to pay more now then I hope you will support House Bill 315.
Sincerely,
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Campaign Launched:
October 21, 2007
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Failure to provide retirees health care will result in teachers having to work longer because they can afford health care insurance once they retire.
The proposal is endorsed by the State Teachers Retirement System of Ohio (STRS Ohio) and the Health Care Advocates for STRS which includes: American Association of University Professors (AAUP), Buckeye Association of School Administrators (BASA), Inter-University Council of Ohio (IUC), Ohio Association of Community Colleges (OACC), Ohio Association of Elementary School Administrators (OAESA), Ohio Association of Secondary School Administrators (OASSA), Ohio Council of Higher Education Retirees (OCHER), Ohio Education Association (OEA), Ohio Education Association- Retired (OEA-R), Ohio Federation of Teachers (OFT), and the Ohio Retired Teachers Association (ORTA).
Fourteen state representatives have signed on as cosponsors: Matthew Barrett (D-Amherst), Barbara Boyd (D-Cleveland Heights), Edna Brown (D-Toledo), Kathleen Chandler (D-Kent), Steve Dyer (D-Green), Clyde Evans (R-Rio Grande), William Healy (D-Canton), Jim Hughes (R-Columbus), Matt Lundy (D-Elyria), Mark Okey (D-Carrolton), Bill Seitz (R-Cincinnati), Matthew Szollosi (D-Oregon), Brian Williams (D-Akron), and Kenny Yuko (D-Richmond Heights).
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