May 16, 2020, Legislative Update
- AERA promoted two bills – Education Retirees’ Trust Fund and a Retiree Bonus Check – for its members during the 2020 Alabama Legislative Session.
- Due to COVID-19 restrictions, the Alabama Legislature decided to pass only the Education Trust Fund budget, the General Fund budget and local legislation.
- Even with a possible financial crisis looming, the largest education budget passed in this state’s history ($7.2 billion) awaits the governor’s signature.
- The FY21 Education Trust Fund budget includes full funding of the amount that RSA requested to fully fund TRS pensions and PEEHIP/Humana/VIVA health insurance programs.
- Both budgets excluded pay raises for teachers and state workers, as well as bonus checks for retired public education employees and state retirees.
- The governor plans to sign both budget bills into law in the upcoming days. The governor is also expected to call a special session in 2020 to consider additional legislation.
- Gov. Ivey sent SB161 back to the Legislature with an executive amendment that contains appropriations of the COVID-19 $1.8 billion federal dollars of the CARES Act.
TRS/PEEHIP held its quarterly board meeting on May 14 in a live-streamed setting.
- PEEHIP staff have projected that there will be no health insurance premium increases for 2020, 2021 and 2022 for retirees who are on the Medicare Humana health insurance program.
- For retirees who are not yet 65 and Medicare eligible, the PEEHIP BCBS health insurance will increase according to the “sliding scale” law (SB419) implemented in 2011. CFO Diane Scott projected this increase to be about $40.00 or less a month for retirees who fall into this category.
- As of the meeting date, there have been 551 confirmed total cases of COVID-19 in active and retired members under PEEHIP BCBS/Humana. Out of the 551 cases, there are 15 known deaths from COVID-19.
- There has been a temporary increase in retirees’ COVID-19 health-related policy benefits.
- Deputy Director Don Yancey reported that “PEEHIP is in great financial shape.”
RSA investments were down 15.73 percent according to the March 31 quarterly balance sheet figures. Some of those financial losses were recovered as of the May 12 financial reporting.
- CIO Marc Green stated that “RSA has been proactively navigating the financial crisis since October 2019.”
- CEO Dr. David Bronner reported that “RSA will do the best they can” with the current financial climate and that “we don’t know the ending point to this yet.”
- As of March 31, there are currently 98,000 TRS retirees.
During the 2020 Legislative Session, we will keep you informed and aware of what’s going on in Montgomery. Please help us make the TUARA megaphone as big as possible during the session. Be visible. Contact your representative – through calls, visits, emails, etc.
Be an active advocate for your retiree benefits!
What You Need to Know About the 2020 State Legislative Session
Dates of Session: Feb. 4 – May 18, 2020
Platform
The Alabama Education Retirees Association endorses:
- All measures that promote the assured stability of earned benefits of public education retirees
- The Alabama Legislature fully funding the requested amount of the Teachers’ Retirement Systems (TRS), keeping the retirement system funded, stable and with sound investment growth
- The Alabama Legislature fully funding the requested amount of the PEEHIP/UHC health insurance premium requests from the Teachers’ Retirement Systems
- Cost of Living Adjustments (COLA) as awarded for retired public education employees
- Ad hoc bonus payments/checks as awarded for retired public education employees
- Keeping the TRS benefit structure ONLY as a defined benefit plan
- Electing and supporting board members to the PEEHIP/TRS Board of Controls who will vote favorably for financially sound decisions that keep solid retirement funding and affordable health care costs for its retired members
- Electing State legislators who are “friends” of public education and our platform issues
- Using money from the Education Trust Fund to provide for public education-related expenses ONLY
- Any and all measures that promote public education, public education employees and public education retirees
The Alabama Education Retirees Association opposes:
- Any and all measures that diminish an earned benefit of public education retirees
- Converting any TRS employee contributions from a defined benefit plan to another different plan or conversion
- State legislation that uses Education Trust Fund monies for expenses other than public education-related expenses.