Issues in Retirement

Medical coverage varies for retirees from district to district. Some districts will allow their retirees to remain in a district plan for a certain period of time, often until they reach the age of 65 and become eligible for Medicare. The extent to which districts pay the costs or shares the costs with the individuals varies widely. In most districts, though, the retiree is on their own at age 65 to acquire insurance coverage from another source. Read the Health Insurance Options in Retirement insert located in this packet for more information on this.

Currently, school districts are under great pressure to reduce costs and will likely press for reductions in health benefits for both active and retired employees. There is a developing trend for health benefits to be cut back or eliminated for retirees in contract negotiations. Individuals need to review carefully the provisions of the contract under which they retiree. Are the benefits guaranteed for as long as you may need them, or are they only guaranteed for the life of that contract? Once you retire, you may need to monitor what is happening at the collective bargaining table and watch for attempts to negotiate away your benefits!

As a group of retirees in Somerset County found out, the active employee unions and/or district officials could reduce or eliminate the health benefits of retirees, even when the contract appears to guarantee those benefits for a definite period of time extending beyond the life of the contact. Belonging to a strong, independent organization like PASR could prove most helpful if such a situation should happen to you. With PASR’s backing, the retirees in Somerset were able to fight for their rights in court—filing suit against both the district and the local union.

Another area to be aware of is your dental and vision coverage. It is recommended that you have everything taken care of while still in active service. Some districts allow retirees to remain in the plans they were enrolled in while actively employed at cost, including dental and vision insurance plans. An increasing number of districts are not permitting retirees to maintain the additional coverage for dental and vision needs, however. Voluntary group dental and vision programs are rare. The PSERS High Options Health Plan contains a limited discount vision program. PASR offers dental and vision insurance plans to its members but very few, if any, of the other organizations offer such plans. If you are not able to continue in your school district dental and vision plans, your should check with the organization that represented you when your were working to see if they have something for retired members and compare it with what is offered by PASR.