Extend post-retirement health insurance coverage to COBRA participants
March 25, 2018

Resolution

Whereas, currently, retiring teachers and college faculty (and their spouse) enrolled in a district’s health benefit plan who are not eligible for district-paid, post-retirement benefits, have the right under California Education Code, Section 7000 (sometimes known as AB 528), to buy into a district medical and dental insurance plan once retired under CalSTRS; and

Whereas, this section of the California Education Code does not specifically include those currently on the district’s COBRA plan; and

Whereas, some teachers and faculty members may suddenly lose medical and dental coverage due to a medical or personal leave, loss of full employment status, program discontinuance, or displacement by a full-time hire, which would require them to choose COBRA coverage; and

Whereas, these employees may subsequently, while on COBRA, choose to retire from CalSTRS so as to be eligible for an AB 528 transition to self-paid district group coverage; and

Whereas, currently, AB 528 benefits are not uniformly implemented across the state. Some school districts, including Los Angeles Unified School District, offer the ability to transition from COBRA to AB 258 coverage to their certificated employees upon retirement while other districts do not; and,

Whereas, the California Education Code is silent on whether COBRA coverage qualifies such a retiree to continue as a paying enrollee in a district’s health benefit plan; and

Whereas, this coverage is fully paid for by the retiree (including any administration costs) and does not incur any cost to the district;

Therefore, be it resolved, that the California Federation of Teachers sponsor legislation to amend California Education Code, Section 7000, to allow retiring teachers and faculty members (and their eligible spouse) who are enrolled in their district’s COBRA plan, to subsequently enroll in a district’s AB 528 medical and dental care plan upon retirement.
 

  • Passed as Resolution 19 on March 25, 2018
  • Submitted by the Retirement Policy Committee and the Los Angeles College Faculty Guild, Local 1521