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Wednesday, May 31, 2006

Ind. Gov't. - Senate democrats reject retirement benefits

The Indianapolis Star's Mary Beth Schneider reports in a story just posted:

Indiana Senate Democrats said today they will not accept the current generous health care benefits for lawmakers, and will push for legislation that would provide health care insurance for all Hoosiers.

"Our caucus firmly believes that senators should receive no benefits greater than what other state employees receive," Senate Minority Leader Richard D. Young Jr., D-Milltown, wrote in a letter to the Senate secretary.

Senate Democrats held a news conference this morning to announce their support for universal health care coverage, saying there is a health care crisis that is not being addressed by the federal government. But they gave few details of how to pay for such coverage, saying only it would take a shift in existing resources.

Deanna Martin of the AP has filed a similar report:
INDIANAPOLIS (AP) -- Democrats returning to the Senate have agreed not to accept state health care retirement benefits, their leaders said Wednesday.

Senate Minority Leader Richard Young, D-Milltown, made the request in a letter dated May 25 to the secretary of the Indiana Senate.

"Our caucus firmly believes that senators should receive no benefits greater than what other state employees receive," Young wrote.

Under the plan offered since 2002, state lawmakers who served a day more than six years and then retired or were not re-elected were allowed to receive lifetime state health insurance for themselves and their families. Premiums were locked in, even if health care costs rose.

Most state employees are required to pay the full cost of their state health insurance upon retirement.

Mike Smith of the AP, in a column earlier this week, asked:
There's no doubt that taxpayer-subsidized health care retirement benefits for lawmakers have been a major campaign issue in some legislative races over the past two years.

But should it remain one as Republicans and Democrats head toward November fighting for control of the narrowly divided House, now that chamber leaders from both parties have pledged not to restore the perk if either wields the gavel after the election?

My thoughts. Well, yes ...!

The law authorizing the plan is still in effect.

Speaker Bosma "suspended" the law authorizing special health care benefits for legislators, their families, and staff, insofar as House members elected or reelected at the upcoming November 2006 election are concerned, but it still covers those eligible who retire before, or are defeated in, the November 2006 election.

I've seen no recent comprehensive list, but a May 14, 2005 Indianapolis Star story by Kevin Cocoran ends with a list of the then 22 former legislators receiving taxpayer-subsidized health insurance (presumably there are more now), with their ages and current occupations.

The majority of the former Representatives listed as receiving the benefit are in their 40s and 50s, including former Representatives Mark Kruzan (mayor of Bloomington), John Gregg (attorney), Michael Smith (casino lobbyist).

Bob Garton in the Senate finally made some grudging changes to the Senate plan, but did not go even as far as the House.

Will the necessary changes be made if the health care issue is put on the back burner? And what about the 4:1 taxpayer funded legislative pension plan?

(See this May 24th ILB entry for more.)

Posted by Marcia Oddi on May 31, 2006 12:39 PM
Posted to Indiana Government | Indiana Law | Legislative Benefits