We are Working to Secure Your Pension and Retiree Health Benefits
The state has maintained its funding obligation to the pension component of the Teachers Retirement System for seven consecutive years, a remarkable record in light of its track record during the prior 15 and in light of events in any number of other states. The problem is that the cost of the health benefit – not the pension – has been paid out of the system’s investment fund. That has led to lower investment earnings for the system and a larger amount needed each year from taxpayers. The overall long-term financial stability of the entire system is truly in jeopardy as a result.
What we’ve been working on with the Treasurer and others for more than a half-year is a planned approach to getting the health benefit paid from sources other than the pension fund. While the ultimate outcome of those talks has to be a path that ensures the pension’s long-term future, the details are still elusive. What we do know is that money from multiple sources will be tapped, and it may include money from teachers. We’ll keep you posted on this important issue, and rest assured that our – and the state’s – commitment to a secure and stable pension is unwavering.