STATE EMPLOYEES FACE LOSS OF RETIREMENT HEALTH INSURANCE AFTER 2010

(06/01/2009)

State employees, including teachers, could be denied health benefits during retirement if they are hired after 2010. The problem is related to the inability of companies, government agencies and families to afford health coverage. West Virginia could join a handful of states if its Public Employees Insurance Agency stopped subsidizing retiree health care costs. PEIA's finance board is meeting Thursday to reconsider its May vote to end retiree subsidies starting with those hired in 2010. "That will be a logical, financially responsible course of action," said Administration Secretary Rob Ferguson. Inflation of insurance costs have been eroding what the retirees' portion covers. West Virginia's subsidy now equals around 72 percent of health-care costs. Opponents of the PEIA decision say it will have a critical effect on recruiting quality employees. The American Federation of Teachers-West Virginia vowed to sue after the board's vote. "The states that we're competing with not only have better salaries, but if they go through with this, they will have better benefits," said president, Judy Hale. "Even if the board doesn't go through with this, they have better benefits. Where are we going to get teachers for our classrooms?"

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