BART NEWSLETTER August, 2012
2012-2013 : A YEAR OF CHANGE
Retirees covered by the TRS-Care program should have received information from TRS and Aetna regarding the changes to their health benefits with some beginning on September 1,2012.
EXPRESS SCRIPTS will replace Caremark as the TRS-Care Prescription Drug Administrator on September 1, 2012. You should have received your new ID card and other information from Express Scripts in August.
EXPRESS SCRIPTS MEDICARE (PDP) will automatically be your prescription drug plan if you are Medicare eligible beginning January 1, 2013. This plan for TRS-Care 2 & 3 will have co-pays that are $5 lower, have no penalty for a brand drug if a generic is available, provide help with premiums and copays for those who qualify, and typically see a decrease in co-payments for those who reach “catastrophic” levels of prescription expenditures.
THE AETNA MEDICARE ADVANTAGE TRS-CARE 2 & 3 plans will be available January 1, 2013. All TRS Care 2 & 3 members will automatically be moved to this plan (if you are Medicare eligible) UNLESS you individually opt out beginning in November. Advantages include: a $15 per month lower premium, $500 lower deductible for TRS Care 2 and $150 for TRS Care 3; a 16 month deductible and out-of-pocket maximum period to transition you into the Medicare Advantage PDP. Benefits will be easier to understand because they are in ONE plan. In the past, Medicare was considered your primary plan with AETNA serving as a supplement plan. TRS strongly encourages eligible participants to remain enrolled in these plans. Those who opt out will miss out on the lower costs and the richer benefits that these plans offer.
NO CHANGE FOR TRS-CARE I-Retirees on TRS-Care 1 will not see a change under these plans. However, TRS-Care 1 members who are eligible for Medicare, can avail themselves of private Mdicare Advantage Plans (MAP) that are listed in the back of your Annual Medicare Handbook.
EXPRESS SCRIPTS HOTLINE: 800-367-3636
TRS-CARE MAP HOTLINE: 866-217-2409
AETNA LISTS THE FOLLOWING ADVANTAGES TO THE MEDICARE ADVANTAGE PLAN:
-A lower deductible
-Lower premiums
-Co-pays apply to annual out-of-pocket maximum
-A free Health Club membership
-Programs to help you stay healthy
-Healthy Lifestyle coaching
-Access2Care non-emergency medical transportation
BART OFFICERS FOR 2012-2013:
Dr. J. B. Berryhill, President
Tom Patterson, First Vice-President
Frances Tyler, Second Vice-President
Carolyn Eddleman, Secretary
Ann Brown, Treasurer
CHANGES YOU DON’T WANT!
The Texas Legislature will be receiving a report on a study implemented in the last legislative session. This study was to determine if a Defined Contribution Plan would be better for the State of Texas than the current Defined Benefit (DB) Plan. What is the difference? A Defined Benefit Plan (like our current TRS Plan) sets up parameters for benefits to be received by retirees. A Defined Contribution Plan establishes how much you would receive during your active years and would necessitate you finding a plan (like a 401-K) in which to place your Defined Contribution as your Retirement Plan. It is easy to see who would benefit by such a move,
Some members have contacted us claiming they have been told that TRS is broke. TRS IS A FISCALLY HEALTHY FUND! A National and prominent accounting guidelines for measuring a fund’s health is a funding level of 80% or higher. TRS is well funded at 83.9%. TRS provides a much higher costs savings for participants in the current structure than would a defined contribution plan.
The reason for such cost savings is threefold: First, because defined benefit plans pool the longevity risks of many individuals, they only need to accumulate enough funds to provide benefits for the average life expectancy of the group; Second, DB plans are able to take advantage of the enhanced investment returns that come from a balanced portfolio over long periods of time; Third, DB plans achieve greater investment returns than define contribution plans.
Proponents of defined contribution plans may try to sell the idea that “No one can manage your money better than you.” Ask some of your friends how their 401-K’s are doing and you will see this is blatantlyfalse!
TRS IS ONE OF THE BEST PUBLIC PENSION PLANS IN THE UNITED STATES.
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CHANGES YOU DON’T WANT (Cont’d)
REDUCE TRS CONTRIBUTION
The last legislature reduced the state contribution to the retirement fund and to TRS-Care. Our state organization, TRTA, with the assistance of tens of thousands e-mails and phone calls from TRTA members, was able to keep the cuts much smaller than originally proposed by members of the legislature. However, it is anticipated that the TRS-Care balance will be expended by the start of the next legislative session.
The introduction of the TRS Medicare Advantage Plan will keep the fund from going into the red. And the reduction in premiums for those TRS-Care 2 & 3 members has caught the eye of some legislators. They will be looking to make further cuts to the state contribution to TRS-Care. TRTA members will need to watch for proposals that will reduce the state contribution to both TRS-Care and the Defined Benefit Plan.
CHANGES YOU DO WANT-
REPEAL OF GPO & WEP
The Government Pension Offset (GPO) and Windfall Elimination Provision (WEP) impact more than 1.5 million public pensioners around the country. These Social Security provisions were enacted more than 25 years ago and can mean the loss of hundreds of dollars a month in much needed Social Security Benefits. TRTA has long held that these two provisions must be repealed. The GAO has indicated the cost to repeal would be approximately $9 Billion annually (about the cost of one of our modern military jets).
COST OF LIVING INCREASE
12 Years. That’s how long it has been since any public education retiree in Texas has received a permanent cost of living increase to our benefits.
To get a benefit increase requires the fund to be actuarially sound (amortization of the funding obligations over a 31 year period). The Texas Legislature needs to fix this. Anyone wanting your vote MUST have or support a plan to make the system actuarially sound and help retirees get a pension increase.
YOU AFFECT CHANGE
BART e-mailed information from our Representative Dennis Bonnen. He is depending on his constituents to provide him with information concerning legislative bills he will be voting for or against. Sign up for his Insider’s Report at: to receive his report on line. Numbers count! That is why we urge you to be a member. Even if you do not attend all BART meetings, as a member you increase the voice of BART and retired teachers. Most of all YOU ARE SUPPORTING YOURSELF!
FINAL COMMENTS:
You can see we have a big job this year! Together we can make a difference that will help us, active education employees and future retirees. It is OUR mission.
TRS CONFERENCES SCHEDULED
AETNA Medicare Advantage Plan
August 27 & 28 10:00 A.M.-2:00 P.M.
StaffordCenter, 10500 Cash Road
Stafford, Texas
August 29 & 30 10:00 A.M. – 2:00 P.M.
HiltonHobbyAirport 8181 Airport Blvd.
Houston, Texas
September 6 10:00 A.M. –2:00 P.M> PasadenaConvention Center
7902 Fairmont Parkway
Pasadena, Texas
BRAZOSPORT ASSOCIATION OF RETIRED TEACHERS