« Ind. Law - Barnes & Thornburg ERISA lawyer featured | Main | Ind. Decisions - "Court decisions ignite plea appeals" »

Sunday, November 19, 2006

Ind. Gov't. - "Senators’ perk appropriately terminated"

From the Fort Wayne Journal Gazette editorial this Sunday:

One of David Long’s first acts as the new state Senate leader was to rightly undo a self-serving act of his predecessor: He ended the lifetime health-insurance perk for retired state senators. ***

[M]aking law in Indiana is still a part-time job for legislators, whose base salary is just $11,600 – less than Fort Wayne City Council members – though per diem reimbursements bring that closer to $45,000 a year.

Few part-time jobs offer the kind of benefit former Senate President Pro Tem Robert Garton granted to his colleagues on the taxpayers’ dime: Lifetime health insurance on the state’s plan, with individual senators paying the same percentage of the premium they pay now. Based on the plan, lawmakers pay up to 25 percent of the premium. And state senators needed only six years of service to qualify.

The perk represented a wide gulf not only between lawmakers and constituents but lawmakers and full-time, career state employees – they [state employees] can participate in the state insurance program after retirement, but they have to pay 100 percent of the premium. * * *

The policy began in 2002, so only about 10 senators took advantage of it – including, ironically, Garton. Long’s action ends the benefit for senators when they leave the chamber in the future, but will not retroactively cut off the benefits for Garton and the others already signed up.

It remains mind-boggling that a single person could enact a policy that affects taxpayers without forcing a legislative vote. And Hoosiers should question why even the current lawmakers should receive such a good health insurance plan for a part-time job when so many Hoosiers lack any health insurance.

Still, Long’s decision was a step in the right direction.

Re "Long’s action ends the benefit for senators when they leave the chamber in the future" -- not exactly. According to Niki Kelly's story last week:
Under Long’s order, the modified plan terminates July 31, 2007. This gives current senators and employees who might be eligible – depending on age and years of service – about eight months to decide whether to retire and keep the benefit.
See this earlier ILB entry.

Posted by Marcia Oddi on November 19, 2006 10:24 AM
Posted to Indiana Government | Indiana Law | Legislative Benefits