MI-SERA

Chair Talk

August 2007

By Bob Kopasz

Alvin Whitfield and I attended the Health Care Reform Committee on August 2, 2007. This was the second of the series of committee meetings to address the issue of Retiree Health Care. We did not get notice of the first meeting held by this committee on July 19. At the first meeting, presentations were made by Phil Stoddard (ORS), Jan Winters (Civil Service) and a representative from the Legislative Retirement Services. I have a copy of the presentation made by Jan Winters detailing some history of the of the State Retiree Health Plan Benefits. Copies of Jan Winters’ presentation will be available at the August CC meeting and will be sent to Chapters that are not present at the meeting. I believe that Jan’s presentation was very well put together and gave a factual assessment of retiree benefits. I will get a copy of the ORS presentation in the near future.

Currently, the State has an unfunded health care liability of about $26.5 billion in the State Retirement system (school personnel, state employees, judicial and state police). This unfunded liability is a result of the State’s pay-as-you-go policy of providing health care benefits for retirees. This unfunded liability is a huge budgetary problem for the State and this committee is attempting to find solutions. One of the ways to reduce this liability is to raise co-pays and deductibles. I am afraid that may be one of the answers that this committee will resort to. Although, we have not officially received notice of this type of increase, it would not surprise me if that were to happen. The State and Employee Unions are starting negotiations this month and those negotiations may well translate into changes in health care benefits.

A tentative schedule of meeting dates of the Retiree Health Care Reform Committee will be distributed at the CC meeting and send to Chapters that are not represented. Alvin and I will attend as many meetings as possible and will probably be giving a SERA presentation to the Committee at a later date.

Editor’s note: Bob Kopasz is Chair of the Michigan SERA Council. He may be reached at P.O. Box 692, Mt. Morris, MI 48458; phone 810/240-8380

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August 2007 By Bob Kopasz Alvin Whitfield and I attended the Health Care Reform Committee on August 2, 2007. This was the second of the series of committee meetings to address the issue of Retiree Health Care. We did not get notice of the first meeting held by this committee on July 19. At the first meeting, presentations were made by Phil Stoddard (ORS), Jan Winters (Civil Service) and a representative from the Legislative Retirement Services. I have a copy of the presentation made by Jan Winters detailing some history of the of the State Retiree Health Plan Benefits. Copies of Jan Winters’ presentation will be available at the August CC meeting and will be sent to Chapters that are not present at the meeting. I believe that Jan’s presentation was very well put together and gave a factual assessment of retiree benefits. I will get a copy of the ORS presentation in the near future. Currently, the State has an unfunded health care liability of about $26.5 billion in the State Retirement system (school personnel, state employees, judicial and state police). This unfunded liability is a result of the State’s pay-as-you-go policy of providing health care benefits for retirees. This unfunded liability is a huge budgetary problem for the State and this committee is attempting to find solutions. One of the ways to reduce this liability is to raise co-pays and deductibles. I am afraid that may be one of the answers that this committee will resort to. Although, we have not officially received notice of this type of increase, it would not surprise me if that were to happen. The State and Employee Unions are starting negotiations this month and those negotiations may well translate into changes in health care benefits. A tentative schedule of meeting dates of the Retiree Health Care Reform Committee will be distributed at the CC meeting and send to Chapters that are not represented. Alvin and I will attend as many meetings as possible and will probably be giving a SERA presentation to the Committee at a later date. Editor’s note: Bob Kopasz is Chair of the Michigan SERA Council. He may be reached at P.O. Box 692, Mt. Morris, MI 48458; phone 810/240-8380 Return to top of page
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