AMEA Immediate Past President Pat Stegall
Another $30 increase will take place every January 1 from 2013 until 2016. At this time, no one is able to project how much more insurance premiums will rise after that period, but there is no guarantee that this will be the end of the increases.
How long do you plan to teach? This is a very important question for all of Alabama’s teachers. Whether you are a young teacher or a more experienced teacher…keep reading. As the state legislature continues to ramp up its efforts to help our state’s economic woes, teachers all across Alabama need to be vigilant at following the changes that are taking place. Let me encourage you to make contact with the RSA and inquire about the future…your future.
I find myself at a major crossroad much sooner than I thought I would. First, I have had to consider how the changes in health insurance costs will affect my family. On January 1, 2012, there will be a $30 per month increase in my premium, which is for single coverage.
When you do the math, it really adds up. For example: $360, $720, $1080, $1440, and $1800 add up to a total increase over the next five years of $5400. This, along with increased retirement costs, will dramatically reduce every teacher’s actual take home pay.
There are no
foreseeable pay raises, so you really do need to take a look at how it affects you and your family.
According to one source, there are 10,800 public school employees that are eligible to retire from now until December 1, 2011.
That’s right…
December 1, 2011 is the last day you can retire under the old system. In order to avoid the insurance increase you will need to file your paperwork with the retirement system no later than November 1, 2011. After that, the new
Legislative Issues
insurance rates will take effect along with the retirement rate increase, and you will pay more out of your pocket book if you retire past that date.
Also, in the next legislative regular session, legislators are discussing making changes to the retirement benefit calculator. The bottom line is that the legislature plans to make you pay more into the system, but receive less in retirement benefits. There are several points up for discussion that will directly affect anyone that teaches past January 1, 2012, including only paying retirement benefits for eleven years; forcing everyone in the system to place their RSA money into a 401K retirement account; increasing insurance premiums; and doing away with RSA and taking it over with an appointed board, which will be under the Governor’s control. We can only expect things to get worse before they get better. You need to stay in touch with your legislators and keep up with the drastic changes that are going to affect us all financially.
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October/November 2011
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