While GIC officials have been reluctant to publicly state the size of the surplus, reliable sources indicate it may top $25 million. With Romney Administration officials already eyeing the money for tax cuts, the race is on to put it to use for the plan's beneficiaries.

The surplus has largely been generated by changes made in the prescription drug formulary in January, which, along with the Generics Preferred program, have passed on millions of dollars in new out-of-pocket costs to retirees. It has also been stated that the GIC overestimated the insurance usage for FY06, thus it set the rates higher than needed.

These increased costs have come at a time when many members remain bitterly aware of the Medicare Part B reimbursement that was taken from them four years ago during the recession. In October 2002, Acting Governor Jane Swift used her 9C powers to remove some $28 million dollars from the GIC budget, money that would have funded that year's Part B refund.

Currently, retirees pay $88.50 per month for Medicare Part B, in which they are required to enroll under state law. Annual costs for the federal insurance plan run $1,062 for an individual or $2,124 for a couple. The Medicare premium comes on top of the cost of supplemental insurance (Medigap) coverage, which runs $500-$700 annually per person, depending on the date of retirement.

Power to reimburse state insured retirees for the annual cost of Medicare Part B rests entirely with the eleven member Commission, which is directly appointed by Governor Mitt Romney. Since taking office, not only has Romney opposed reinstating the Medicare Refund, but he has also advocated raising insurance premiums and out-of-pocket expenses.

"How this savings came to be is clear, it is the result of increased costs on retirees. Instead of pandering to his conservative base, Governor Romney should do the right thing and call on the GIC to refund the state's share of the Medicare B premium," said Association President Ralph White.

"Retirees are forced to enroll in Medicare at a cost of thousands of dollars a year. The state should honor the promise it made in 1965 and reinstate the Medicare Refund. For the governor and his appointees to do differently is breaking a promise and an insult to retirees.

"We would also expect GIC Director Dolores Mitchell to step up to the plate on this one. She is the single most powerful and highly respected authority on group health insurance in the state. We lost the refund under Mitchell's watch, but she's still in a position to correct this injustice."