Truth be told, the check was to refund extra monies that were withheld by the GIC from the member's pension check. Under the Medicare Part B reimbursement system that had been established by the GIC, an extra amount had been withheld from the pension check along with the premium charged for the state's supplemental insurance.

Despite repeated requests for clarification, GIC officials have never offered a clear reasoning for the extra withholding. The total amount withheld equals 10% or 15% of the Medicare Part B premium, depending upon the contribution rate of the retiree. Therefore, the refunded amounts are $67.62 for those retirees, who pay 10% of the premium, and $101.46 for retirees at 15%.

"This refund did not return any of the Part B premium paid to the federal government out of members' Social Security checks (direct payment for retirees not receiving a Social Security check)," explains Association Legislative Liaison Shawn Duhamel. "What we have here is a refund of money withheld from your Massachusetts pension during the last ('03) fiscal year.

"Any impression that the GIC was refunding a Medicare Part B premium is misleading and completely untrue. Since the Commission voted to end the refund, they were forced to return the extra funds that had been withheld. These monies are not state tax dollars, but rather the direct contributions of retirees that legally had to be refunded."

Again, the only members who are impacted are those who are enrolled in Medicare Part B and are also insured under the state insurance plan. As we have previously reported, each municipality has the local option of requiring Medicare enrollment. It is then up to that individual city or town as to how to address refunding the Part B premium.

"The GIC is craftfully creating a mindset whereby over time retirees will actually feel that the Commission has no obligation to pay the state's share of the Medicare Part B, just as it pays its share (90% or 85%) of a straight indemnity plan," said Association President Ralph White.

"The GIC's letter to retirees says, 'It is not advisable to anticipate a Medicare reimbursement in future years.'" Interpretation: The GIC does not intend to pay its share of Medicare, the retiree's primary insurer.

"Regardless of a strong future economy, once an entitlement is lost it becomes a Herculean task to regain. The GIC never defended the retirees when Acting Governor Swift first cut the payment, saying it was a "sacred cow benefit". The GIC knew Swift was wrong, but said nothing. It has been an uphill battle for us ever since."

In light of the decision made by the eleven member GIC, at the bequest of Governor Romney, to discontinue the Medicare refund, the Association has turned its attention to the Legislature in an attempt to compel the GIC to reinstate the program.

"The GIC has unilaterally made the decision to stop paying for a major portion of the retiree's insurance. Since the governor backs this change, we are not going to have much luck in getting the Commission to reverse its course," continued White. "Therefore, we have made the decision to work with the Legislature to make a change in the law that would require the refund to be paid.

"Many members have called on the Association to take our battle to court. While a legal case may exist, a court battle could take years with no promise of a successful ending. I believe that retirees are better served in working with Legislative leaders, who understand the problems we are facing."

On Thursday September 4, the Joint Committee on Public Service held a public hearing on the Association's bill to restore the Part B refund. HB 239 mandates that the GIC continue to refund the Part B premium, which has now climbed to $58.70 a month ($704.40 a year). The Committee's House Chairman, Rep Robert Koczera (D-New Bedford), has taken a strong interest in advancing a bill that will address the problem.

Despite the high cost of restoring the refund ($30 million a year), HB 239 enjoys strong bipartisan support. The bill was filed by Reps. Paul Kujawski (D-Webster) and Vinny deMacedo (R-Plymouth) along with Senators Michael Knapik (R-Westfield) and Harriett Chandler (D-Worcester).

"We are doing everything possible to get this benefit restored. Due to the high cost, it is not going to be an easy task, but as members are well aware this Association never backs down from a challenge," continued White.

In addition, other Legislative leaders, who have taken an interest in the issue, are working towards a resolution. For instance, the House Chairman of the Joint Committee on Health Care, Rep. Peter Koutoujian (D-Waltham) has pressured the GIC to revisit the issue. Koutoujian has grown concerned as to the manner in which the refund was unilaterally ended by the GIC.

"Our members have done a great job in making sure their voices are heard on this issue. They are upset and rightly so. Legislative leaders are hearing these concerns and are looking for ways to resolve the situation," said Duhamel. "Unfortunately, we still have a poor economy standing in our way, but we will find a solution."