In 1985, the Association succeeded in having the basic life insurance benefit increased to $5,000 for all state retirees and active employees. For the past several years, the Association has filed legislation that would increase the benefit to $10,000 for retired, as well as active employees (H320), a benefit that a number of city and town retirees already have.

Over the winter, the state's Group Insurance Commission (GIC) began to investigate and discuss a plan to increase the benefit to a higher level. GIC officials, to their credit, acknowledged that after twenty-one years, the time has come to increase the base benefit.

All retirees and employees are automatically enrolled in the basic life plan (if they are enrolled in the GIC health plans), while as many as 130,000 retired and active employees participate in the optional life insurance plan. According to the GIC report, 22% of retirees carry the optional insurance, with an average benefit of $30,000. Most retirees drop the optional insurance, which becomes increasingly cost prohibitive.

Since the beginning, the basic life benefit has been viewed as a "death benefit", utilized to cover burial costs. Now, with the cost of a funeral ranging from $6,500 to as much as $10,000, the outdated $5,000 policy is not covering its intended purpose.

What has Association officials incensed is the position reportedly taken by aides to Governor Mitt Romney, that would block retirees from receiving the $10,000 benefit, opting instead to maintain the current $5,000 policy. Peter Schwarzenbach, who represents the Administration on the GIC, has openly suggested that retirees do not need the increased coverage, hinting that they have already received "enough" benefits.

"I'm shocked that the Administration would take such a negative attitude toward retirees, who, I must add, deserve a higher life insurance benefit," said Representative Tom O'Brien, who is the lead sponsor of H320. "We are not talking about a significant cost and this is certainly not a partisan issue. Common sense says that after twenty-one years, the benefit should be increased for everyone."

In their report, GIC officials say that increasing the benefit to $10,000 for all retirees and employees would nearly double the total monthly premium from $6.85 to roughly $13.00 a month. The monthly cost for a retiree would be almost $1.60 for members retired after July 1, 1994, and $1.05 for those retired prior to that date. Annual costs to the Commonwealth are estimated to come in at $9.4 million or $70 per enrollee.

The report, which was issued to commissioners at their March meeting, was not discussed in depth or voted on because of the absence of Peter Schwarzenbach. It is expected to be discussed at the Commission's April 28 meeting.

Editor's Note: In 1986, the Association was successful in passing legislation allowing municipalities to increase the amount of the life insurance for their retirees to any amount they so choose. No further legislation is required.