Retiree benefits were a discussion at Wednesday meetings

Pamela Winn, a teacher at Charles A. Brown Elementary School in Birmingham, Alabama, uses a science experiment as a method of teaching reading on Wednesday March 1, 2023. Brown Elementary was named a Turnaround School after being on the failing schools list for many years. (Andi Rice for Alabama Reflector)

The Public Education Employees Health Insurance Board and Alabama Teachers Retirement Board of Control discussed the ongoing legislative interest in doing more for retirees during their meeting Wednesday.

Neah Scott, legislative counsel for the Retirement Services of Alabama, said in an email Thursday that the federal changes would deal the federal funding of Medicare plans, which could impact how health insurance for Medicare eligible retirees is funded, so PEEHIP, members or both could pay more for health insurance of the retirees. The PEEHIP Board will make a decision at their September meeting

Board member state schools Superintendent Eric Mackey said he thinks that they need to educate lawmakers and members as an investment for more money for members.

“But it’s hard to educate people how we’re spending more money, but your checks not actually changing,” he said.

Messages were left with Senate Finance and Taxation Education Chair Arthur Orr, R-Decatur, and House Ways and Means Education Chair Danny Garrett, R-Trussville, Wednesday.

Later, in the Alabama Teachers Retirement Board of Control, Scott said that there had been more interest in teachers’ retirement this year than in previous years.

“There was more conversation about retiree benefit increases this session than in the past 10 years,” she said.

Scott cited different goals and particular bills for retiree benefits in her legislative update, including a bill that could have increased benefits for retirees. The bill was amended throughout the process and was passed by both chambers, but the differences were never fixed in conference committees. Disputes between senators over the best way to address retiree needs led to a lengthy filibuster on the Senate floor.

The Senate adopted a substitute that included appropriations and benefits, but the House of Representatives rejected the change, which sent it to a conference committee.

Sponsor Rep. Steve Clouse, R-Ozark, said that he was planning to refile the bill next year in the same form as his original legislation.

“Just basically says that if you grant a cost of living increase to state employees and retired educated employees that you just have to have it line itemed in the budget every year, so the funds are available,” he said.

“There had also been some money, kind of as that was moving in the budgets to go to the retiree trust fund that was ultimately removed because the bill did not pass,” Scott said. “So a lot of discussion and a lot of different ideas and things kind of thrown around.”

She also said that Sen. Greg Albritton, R-Atmore, had introduced a resolution that created a study commission to look into merging the Public Education Employees Health Insurance and Alabama State Employees Insurance Board.

In response to a question from a board member, Scott said “we’re not pushing for consolidation.”

Albritton, in a Wednesday phone call, said they were also not pushing for consolidation.

“But really and truly what I’m trying to figure out is, why is there such a difference between the two?” he said.

He said they wanted to look at making the programs more even.

“We will pull that committee and deal with the comparisons, if you will, of PEEHIP and state employees, both the insurance plans and that type thing, to try to find methodology so that we can make sure that we keep an even keel for all of our folks,” he said.

He said that he had a bill that would have allowed funding for a plan already in place during discussions but it didn’t pass.

“So we were left with nothing in that regard,” he said.

Albritton said he wasn’t sure he agreed with there being more discussion this year than in previous years.

“The difficulty is trying to make sure that we don’t create a gulf so great between the two that one cannibalizes the other,” he said.

This story was updated with further information from Neah Scott to clarify previous information.

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