On July 10, 2014 the House Pensions Committee and the House Appropriations Subcommittee on Article III met in a joint hearing to study the affordability of health care for active public school employees. The committee also discussed the fiscal impact of the Teacher Retirement System health care plan, TRS-Care.
Pattie Featherston with the Legislative Budget Board testified that the TRS-Care fund balance is expected to be depleted by 2016 due to rising health care costs and a reduction of state contributions in previous years. The legislature took steps last session to mitigate the effect of diminishing fund balances but effects of the legislative action aren’t expected to be seen until the year 2020. Retirees currently pay 37.8% of program costs and the state pays around 23%. Brian Guthrie, Executive Director of the Teacher Retirement System discussed options the legislature could take in future sessions to help the system including prefunding the long-term liability of the fund or requiring retirees to pay the full cost for optional coverage plans. The committee also received testimony from various teachers’ associations who are looking forward to working with the legislature next session to find solutions to the problem.
Pensions and Appropriations Committees Discuss Teachers Health Plan Funds
