Sept. 2002 This Active Life -- Letters

Pension Parity

I am a retired teacher with forty years of experience. Are there any pension/labor laws that protect a retiree from receiving less in benefits than another retiree who has had a shorter period of service? In California, new benefits are not given equally to every retiree, which hurts parity.

Jim Maraccini, Monterey, California

Editor--The California legislature made changes to teacher retirement benefits, generally effective in 2001, that affected certain retirees more favorably than others. Teacher retirement benefits are a product of the legislative process. In general, state legislatures have the authority to improve retirement benefits. In some states, legislatures increase both retirees' benefits and the future benefits of active teachers. In other states, legislatures make a change for one group, but not the other. Yet in other states, increases do not always equally affect every retiree. (Note: this variety of approaches does not apply to reductions in benefits. Most states have strict laws, including constitutional protections, which make it very difficult to reduce retirement benefits for current retirees.)

Both active and retired teachers should monitor legislative activity in their states and work with their respective organizations to ensure that both groups receive equivalent benefits when increases are provided. They also need to ensure that any increases affecting those already retired provide proportionately equivalent benefits among all retirees.

Remembering With a Smile

I taught from 1949 to 1984, working with hundreds of students. One day I was in our village bakery. A nice looking young man came in and we greeted each other. When he walked out I said to my friend, "I think that was the father of one of my children." It didn't occur to me until later why the other customers looked at me so strangely.

Mary Picchietti, Lake Geneva, Wisconsin

Contributions

This Active Life is geared to your interests, so we'd like to see more of you in the magazine. Please contact us if you'd like to talk with us about the following stories we're planning for future issues. We're looking for members whose experiences powerfully illustrate the ins and outs of the topic:

Prescription Drugs. Out-of-control drug costs have created financial burdens on many retirees--and may even hinder effective treatment of medical problems. Tell us specifically how you may be affected by this crisis, or what you're doing to fight the problem.

Contributing Through Service. The Peace Corps, Americorps, and numerous other service organizations include substantial contingents of seniors. Please tell us what kind of volunteering you're doing, and what motivates you to lend a helping hand.

Getting Your Finances in Order. What tips can you offer on getting your financial life in order? What ways have you found to cut expenses and stick to your budget?

Also, we're always interested in hearing from you about the interesting and hard-working NEA-Retired members we can profile in the "People" column and other features. Write to John O'Neil, Editor, This Active Life Magazine, NEA Communications, 1201 16th St., NW, Washington, DC 20036. You also can phone (202) 822-7223, fax (202) 822-7206, or E-mail joneil@nea.org.

NewsFlashes

Drug Costs Soaring
Spending on prescription drugs rose 17 percent in 2001--the fourth straight year of double-digit increases, according to a study by the National Institute for Health Care Management. Spending in 2001 totaled $175.2 billion, and the average cost of a prescription rose 10 percent to $49.84. Among drug classes, antidepressants accounted for the greatest overall expense, with $12.5 billion in retail sales.

Social Security Help for Women
The Social Security Administration just launched a new Web Site to help women with retirement. The new site www.ssa.gov/women offers help with retirement planning, information on social security and Medicare benefits, and finding your local SSA office. Gentlemen, you can access the primary Social Security Web Site at www.ssa.gov

Retiree Concerns at the RA
At the NEA Representative Assembly in Dallas, Texas, delegates approved several new business items of particular interest to retirees. They called on NEA to:

• Train a cadre from each state to organize the effort to repeal the Government Pension Offset and Windfall Elimination Provision. NEA will work with police, fire, and other public service unions to implement a unified campaign for repeal.
• Work with state affiliates to develop a procedure for automatic transition from "Active" to "Retired" status.
• Conduct research on cost-of-living formulas that correlate to the actual costs for retirees.
• Study how retirement systems or states are dealing with return-to-work provisions for retirees.
• Investigate the feasibility of working with senior organizations to promote the issue of support groups for grandparents who are caregivers for school-age children.

Go to http://www.nea.org/ra/ for a complete rundown on RA action.