While Gov. Dannel P. Malloy is proposing in this year's budget that retired teachers pay less state income tax on their pensions, he is also seeking to reduce the state's funding for their health insurance.

The reduction would affect both those covered by local school boards' plans and participants in the Teachers' Retirement Board Medicare supplement program. Some fear it could start depleting the health insurance fund by fiscal year 2017.

The Teachers' Retirement Board administrator, Darlene Perez, said last week that if the state continues to contribute less than is legally required, teachers could have to put more toward their benefits, the state could have to fill a funding gap or the insurance plans might have to be changed.

Malloy's biennial budget proposal in 2013 included zero funding for the teachers' Health Insurance Premium Account this year and next, but the legislature raised it to 25 percent of the retiree health insurance costs, still less than the statutory requirement of 33 percent.

http://www.theday.com/article/20140223/NWS12/302239908/1017