Retirees Hoping for Relief in Budget

ALBANY, NY (01/16/2014)(readMedia)-- Retirees Hoping for Relief in Budget

With tax cuts on the table, and a rosier fiscal picture being painted, the Retired Public Employees Association (RPEA) is hopeful that Governor Cuomo will rescind the additional health insurance premiums that were forced upon state retirees pursuant to the state contract agreement with CSEA in 2011.

Edward C. Farrell, RPEA Executive Director, stated "Now that additional resources are available, it is time to 'right the wrong' that was done to retirees. People who work a career and subsequently retire expect that commitments made will be kept. There is a moral contract to do that".

Since 1983 state retirees have contributed toward the cost of their health insurance, with the percent set in the state Civil Service Law. While the cost of health insurance increased regularly, so did the employee contribution, but the percent of premium remained the same. In 2011 when the state and CSEA signed a new contract, in exchange for a no layoff provision, CSEA agreed to an increase in the percent paid toward health insurance premiums by its members. The state then, administratively, imposed that percent increase on current retirees.

Farrell concluded "Retirees had no role in bargaining for that contract and it makes no sense to extend its provisions on us. When the prior increase in the contribution percent for health insurance was enacted, it was prospective in nature and applied only to workers who retired after it became effective. It is like a new tier in the retirement system – it applies only to new employees".

In December, RPEA made a formal request to Governor Cuomo that the increase be rescinded and that retirees be made whole. The added annual costs amount to $150 for individual coverage and $280 for family coverage. When spread over the retiree population, the annual cumulative cost is $30 million. The average pension for a state employee is $20,000.

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