Common use of Retiree Insurance Benefits Clause in Contracts

Retiree Insurance Benefits. The provision of retiree insurance benefits funded in part by the School District was negotiated by the USCEA, assisted by the PaFT, in 1986. Prior to 1986, retirees could continue insurance coverage only by paying the full cost of the coverage. In 1986, the teacher bargaining unit represented by the USCEA urged the USCEA to bargain with the School District for the continuation of insurance benefits until the teacher became eligible for Medicare. The contract was intentionally bargained in this way by the USCEA, at the bargaining units’ request, to give teachers the ability to avail themselves of early retirement opportunities under PSERS, because teachers would be unable to take early retirement unless the USCEA could persuade the School District to provide health insurance coverage until they became eligible for Medicare and because Medicare provided sufficient coverage after age 65. The USCEA, at the bargaining unit’s request, purposefully negotiated a provision that granted insurance coverage prior to Medicare eligibility, but not after Medicare eligibility. Accordingly, the USCEA and the AFT Pennsylvania do not believe that there is any legal, moral or ethical basis upon which the School District could be required to continue benefits after Medicare eligibility and will fully and vigorously support the School District, as set forth in this paragraph, if any such claim is made in the future.