Cut lawmakers' benefit?

Axing his colleagues' health-care aid is only fair, legislator says

Published: Monday, Sept. 5, 2005 11:05 p.m. MDT
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The state legislator who led the fight to cut back retired state employees' health-care benefits is now saying legislators themselves should get no state health-care benefits upon retirement.

Rep. Dave Clark, R-Santa Clara, says tightening up lawmakers' own health-care retirement benefits is only fair, considering what the Legislature had to do to state workers in the 2005 general session. He'll introduce a bill in the 2006 Legislature to do away with health-care retirement benefits for legislators and governors.

"Sounds like this is Dave Clark's own (legislative) term limits bill," said Senate Minority Leader Mike Dmitrich, D-Price.

At 68, Dmitrich said, "I'd seriously have to consider retiring" from the Legislature in order to continue getting health-care benefits in the future.

Clark's HB213, passed last session, changed the formula by which soon-to-retire state employees can convert their unused sick leave into post-retirement health-care premiums paid for by the state.

State retirement board officials say HB213 could cut from 10 years to two years the time in which a longtime employee's health-care premiums would be paid for by the state — the employee having to pay those premiums after his or her sick leave conversion time runs out.

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In 1998 the Legislature voted to pay the health-care premiums for retired legislators for the lifetime of the legislator and for the lifetime of his or her spouse. Any minor children of a retired legislator are covered until they reach 18. So that current legislative benefit is even more generous than what had been provided to state employees.

For fiscal year 2004-05, the state paid for 28 retired legislative health-care plans costing $120,231, the Deseret Morning News reported this spring.

The state had to cut future state employee health-care benefits, HB213 supporters said, because rising health-care costs could mean the state would have to pick up more than half a billion dollars in future retirees' health-care benefits, an amount that would "break the taxpayer bank."

HB213 gave state employees a year grace period under the old retirement formula, and it appears that a number of veteran state workers will be retiring — many of them taking early retirement — before January 2006.

Clark says his bill, should it pass, will give the same one-year grace period to legislators — they can leave before January 2007 and get health insurance for life for themselves and their spouses.

"That would be a big financial hit" to have to pick up his own health insurance payments when he finally leaves office, said Dmitrich, who was first elected to the part-time Legislature in 1968.

"For 32 years I didn't take the state health insurance; the coal mine (where he worked as a government affairs director) paid my insurance. So I've saved the state a lot of money on insurance over the years. But I need it now," Dmitrich said.

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Dave Clark
Dave Clark