Copyright© 2000 by School Services of California, Inc.
Ask SSC . . .
Who is Eligible for STRS-Paid Medicare Premiums?
Q. We understand that Senate Bill 1435 (Chapter 1032/2000) certified money to provide medi-care premiums for retired teachers. Does this provision pay for only current retired teachers or for those who will be retiring in the future, like in June? There seems to be confusion on this issue.
A. SB 1435 (Johnston, D-Stockton) established what is known as the Teachers Health Benefit Fund. This is a special trust set up in the State Treasury for which a continuous appropriation will provide the money to fund the premiums associated with medi-care Part A for members of the defined benefit program who retired prior to January 1, 2001. For a member to be eligible for this health care financing, they must have 1) retired prior to January 1, 2001 2) not be eligible for medi-care Part A without the payment of a premium 3) be at least 65 years of age and 4) they must have enrolled in medi-care Parts A and B at the age of 65 or as of July 1, 2001 whichever is later. So currently, the funds are specified for those persons who have already retired and are in retirement status no later than January 1, 2001.
There are provisions within the statute however, that give the STRS Board the power to extend eligibility for these payments to other candidates who retire on or after January 1, 2001 or within a calendar year that the Board later identifies. The statute only allows this provision to be implemented if the costs of the payments for members retiring during that year can be paid within the anticipated resources available in the fund. The extension of eligibility to members who retire on or after January 1 would be provided equally to any STRS member who meets the requirements identified by the Board.
Once an additional calendar year or years becomes a possibility, the eligible candidates would be limited to members of the defined benefit program who retire from the school district during that specific time period. The employer must have either provided opportunity to select Medi-Care coverage prior to January 2001 or must conduct that selection opportunity after January 1. The eligible member must be less than 58 years of age at the time of the election, and the member must elect to be covered by medi-care.
Keep in mind that these additional provisions will not be implemented for several years. The money has been transferred from the teachers health benefits fund to the teachers' retirement board for administration of provisions for current retirees only and that total allocation is $500,000. For future retirees, their eligibility will be dependent on the health of this newly created fund.
--Carol Berg