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Retirees group urges lawmakers to protect pensions, warns against Medicare Advantage shift
Summary
The Vermont Retired State Employees Association told the Senate Government Operations Committee it wants promised pensions and state health benefits preserved, outlined membership and outreach plans, and flagged barriers for retirees who want to return to work.
The Vermont Retired State Employees Association told the Senate Government Operations Committee on Jan. 17 that retirees rely on promised pensions and state health benefits and urged lawmakers not to change those commitments.
Shelley Martin, president of the Vermont Retired State Employees Association, told the committee, "All we ask is that what was promised to us when we were employed is given to us and not taken away." Martin said the association had about 23,100 dues-paying members at the end of its fiscal year in September and that its newsletter reaches more than 8,000 recipients.
The association emphasized that pensions and state-administered health insurance are both a financial guarantee to retirees and an economic driver for Vermont. Martin and other witnesses warned that proposals to replace the current retiree coverage with Medicare Advantage plans sparked anxiety among members because, they said, such plans can limit access to tests and reimbursements for people with chronic conditions. "Medicare Advantage is great for young people if they're healthy," Martin said. "But not seniors, especially. It doesn't work."
Committee members pressed the association on items lawmakers could consider. Senator Villescaz asked whether the group had figures on how much pension dollars are spent in-state; Martin said she did not have that number on hand but pointed to regular state HR reports as a source. The committee also discussed return-to-work barriers for retirees. Jerry Schwartz, vice president of the association, noted a federal Social Security rule that can limit earnings for people who take benefits early: "When you retire at your regular Social Security age or before... you're limited the amount of hours you can work without having an offset on your Social Security benefits," Schwartz said, adding an estimate that the annual earnings limit in his experience was about $9,000 to $10,000 before penalties applied for those ages 62–65.
On tax policy proposals, the association highlighted two priorities voiced by its members: a veteran's income tax exemption and removal of Social Security income from Vermont taxable income. Committee members said legislation on veterans' exemptions had broad sponsorship in both chambers and appeared in the governor's budget this year; Martin and senators characterized the measure as advancing through the senate finance committee.
Martin outlined outreach and member services the association is pursuing, including park-based social events, assistance reconnecting retired colleagues, partnerships for legal and investment guidance (the Vermont Ethics Network and Empower were named), and efforts to regain some business discounts retirees lose after leaving state employment (Aflac was cited as an example). The association also said it operates only on dues and does not receive grants.
Committee members and Martin agreed to keep channels open: the association will publish committee-provided materials in its newsletter and the group offered to help with outreach functions at public events.
No formal action or votes on legislation occurred during the presentation. The committee moved on to scheduling and other agenda items after the association's remarks.
