2011 pension cuts make it all the more necessary for State cover Medicare Part B premiums for retired state workers and teachers

MSEA-SEIU Retiree Director Robyn Egan on March 5 asks members of the Maine Legislature’s Labor Committee to support LD 328, which would require the State to pick up the Medicare Part B premiums for retired state workers and teachers beginning in 2026 as a way to help address the ongoing harm caused by the 2011 LePage Pension Cuts.

Retired MSEA-SEIU members and educators today called on the Maine Legislature’s Labor Committee to once again support legislation known as LD 328 requiring the State to pick up their Medicare Part B premiums beginning in 2026. The 131^st Maine Legislature had passed similar legislation but it wasn’t funded by the Appropriations Committee. Many of those who testified explained how the 2011 LePage Pension Cuts have left them falling further and further behind the cost of living in retirement.

“Given that my being on Medicare saves the state a boatload of money, I think it’s only fair that the state pick up the cost of my Medicare premium,” MSEA-SEIU Retiree Member Hal Booth told the committee in support of LD 328, which is sponsored by his state representative, Representative Dan Shagoury . “I urge this committee to pass these bills in effort to make good on the State’s broken promise to retired state employees like me.”

MSEA-SEIU Retiree Director Robyn Egan shared her personal story with the committee.

“I began my career with the State of Maine at the Maine Correctional Center in 1982. I believed a state job would provide me with stable wages and good benefits. One benefit was full medical coverage after 25 years of state service. This meant I would not have to pay any medical premiums when I retired. This benefit was very important to me, as I was looking forward to getting married and having a family,” Robyn said. “After 37 years of faithful service, I retired from the Department of Corrections. I was eligible for Medicare due to my marital status, but I did not qualify for Social Security benefits. My retirement plan was my MEPERS pension. Since I was under 65 when I retired, the State continued to pay my medical coverage.  Prior to my 65th birthday I signed up for my Medicare Aetna Plan. It was at that time I learned I would have to pay out of pocket for my Medicare part B coverage. This monthly cost of $185 was not one I had budgeted for in my retirement planning. I had understood I earned the benefit of paid health insurance which included the cost of the premiums.”

Continuing, Robyn said,” As I understand this bill if passed would mean the State would pay my Medicare premium. This would allow me to use these funds for other needs. I have retired friends and co-workers who are having difficulty paying for food, medical and fuel costs. They could really benefit from this change.”

In our organizational testimony in support of LD 328, MSEA-SEIU Director of Politics and Legislation Beth White explained that retired state workers and teachers “have had the rug pulled out from under them many times by the Legislature, and have watched as the retirement benefits they planned on have been frozen and slashed. For those who dedicated their careers to the well-being of our state, these unexpected changes & cuts have led to more Maine seniors struggling to make ends meet.

“It is clear that many involved in the pension cuts of 2011 recognized they went too far,” Beth told the Labor Committee. “We respectfully ask that you build upon the bipartisan work of 131^st Maine Legislature in strengthening retirement security for participants in the retirement plan. Together, let’s keep fighting to undo and buffer the damage caused by the 2011 pension cuts. As all of you may know, ever since 2011, when taxes for the wealthy were cut at the expense of Maine Public Employees Retirement System (MainePERS) participants, many retired state employees and teachers have struggled to keep up with the cost of living.”

The 2011 cuts included:

• A freeze on retirees’ cost-of-living adjustments (COLAs) for 2011, 2012, and 2013;
• A 3% cap on all future cost-of-living adjustments;
• A permanent limit on cost-of-living adjustments so they only apply to the first $20,000 of pension income, indexed to inflation.

MSEA-SEIU Retiree Member Cynthia Rau highlighted the 2011 pension cuts in calling on the Labor Committee to support LD 328.

“I began my career in 1983 with the State of Maine as a Public Health Nurse. It was a position that I spent 22 years at, and then 3 years at Riverview Psychiatric Hospital, retiring after 25 years of Service, Cynthia explained in her testimony. “After my retirement, I have and still continue to work as a Registered Nurse. I do receive small Social Security and the monthly payment for Medicare Part B is stressful on my fixed income. It would be a great financial relief to have this Medicare premium paid. This is especially important to me because while I pay for the expense, which was not anticipated for myself and other retired State workers, the State of Maine has failed to restore the full COLA on my MainePERS pension.”Those testifying encouraged the Labor Committee to establish that the State will uphold its agreement with retirees to provide the same level of insurance coverage as when they are active.

MSEA-SEIU Retiree Hal Booth testifies in support of LD 328, sponsored by his state representative, Representative Dan Shagoury, seated at left.