The average retirement age for teachers is 58 years and six months. Most state employees, on the other hand, retire at age 55 with at least 25 years of service. An extension of teachers' increment pay to 35 years has been suggested as a way to keep them from retiring. Retirees pay 30 percent of their cost. Susman said people who retired before July 1988, can get one month of free premiums for three days of unused sick leave for family coverage.
Single coverage requires two days.
After that date, PEIA picks up only 50 percent of the cost. State agencies have to pay their share of the premiums for employees and retirees to PEIA, but the agencies' budgets have to be allocated by the Legislature. Plymale said 21 percent of active employees' premiums cover retirees' insurance costs. Susman said 35 percent of retirees convert unused sick leave for insurance premiums, while 20 percent don't have any unused days and the remainder apply their unused days to extend their service credit in state retirement plans to increase their annuity. Because of the high PEIA subsidy, more employees are applying their unused days to increase their retirement benefits.