Could a Connecticut school board charge retired teachers an extra health plan administrative fee?

Plain-English summary

In 2005, the Teachers' Retirement Board asked whether a school board could add an administrative fee to the premium paid by a retired teacher who stayed in the last employing board's health plan. The AG answered no unless active teachers paid that same fee too. The statute barred a retiree premium greater than the charge for the same coverage for active teachers.

The AG also rejected the idea that a fee permitted under COBRA supplied authority for this separate state retirement arrangement. He said the legislature would need to amend the state statute to permit an additional charge.

Currency note

This opinion was issued in 2005. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

School boards at the time

The opinion treated an extra retiree only administrative fee as exceeding the school board's statutory authority. Matching an active teacher charge was the condition in the AG's answer.

Retired teachers at the time

A retiree who chose coverage through the last employing board could participate upon paying the premium specified by statute. The AG said the board could not add a separate charge that increased the retiree's cost beyond the comparable active teacher amount.

Common questions

Q: Could a board add a health plan administration fee only for retirees?
A: The AG said no. Such a charge would exceed the 2005 statutory limit unless active teachers were charged the same fee.

Q: Did federal COBRA fee rules allow the extra state retiree fee?
A: The AG said COBRA's separate allowance did not appear in the Connecticut teacher retirement provision he interpreted.

Background and statutory framework

The opinion centered on § 10-183t(b), which allowed a retired teacher to join the last employing board's active teacher health plan and capped the premium at the active teacher amount for the same coverage. The AG found no separate statutory authority for a retiree only administrative fee.

Citations and references

Statute cited in the opinion: § 10-183t(b).

Source

• Landing page: https://portal.ct.gov/AG/Opinions
• Opinion page: https://portal.ct.gov/ag/opinions/2005-formal-opinions/ms-darlene-perez-administrator-teachers-retirement-board-2005011-formal-opinion-attorney-general-of

Original opinion text

Ms. Darlene Perez, Administrator, Teachers' Retirement Board, 2005-011 Formal Opinion, Attorney General of Connecticut

Attorney General's Opinion

Attorney General, Richard Blumenthal

May 11, 2005

Ms. Darlene Perez

Administrator

Teachers' Retirement Board

21 Grand Street, 2nd Floor

Hartford, CT 06106

Dear Ms. Perez:

This is to respond to your request for advice of December 15, 2004 which asks if a participating board of education may charge an administrative fee in addition to the insurance premium charged for coverage selected by a retired teacher. This retiree receives a pension from the State Teachers' Retirement System, but is also covered by health insurance through the retiree's last employing board of education. The answer to your question is no, unless the same fee is also imposed on active teachers.

The State Teachers Retirement Act, (Act) Chapter 167a of the General Statutes, provides a comprehensive retirement system to qualified public school teachers. Herzig v. Town of West Hartford Board of Education, 152 Conn. 144, 151, 204 A.2d 827 (1964). Specifically, Conn. Gen. Stat. Sec. 10-183t governs an important facet of one's pension benefit, health insurance. Therein lies the answer to your question.

(b) Any member who is receiving retirement benefits . . . may fully participate in any or all group health insurance plans maintained for active teachers by such members' last employing board of education, or by the state in the case of a member who was employed by the state, upon payment to such board of education or to the state, as applicable, by such member, spouse or surviving spouse, or disabled dependent, of the premium charged for this form of coverage. Such premium shall be no greater than that charged for the same form of coverage for active teachers.
(Emphasis added).

A state agency only has such authority as the legislature expressly provides by way of statute. State v. White, 204 Conn. 410, 419, 528 A.2d 811 (1987). An administrative agency "must act within its statutory authority." Page v. Welfare Commissioner, 170 Conn. 258, 262, 365 A.2d 1118 (1976). In order to assess an administrative fee there must be statutory authority to do so. Since the controlling statute expressly limits the health premium to" that charged for the same form of coverage for active teachers," an additional administrative charge would violate this express condition unless it is also imposed to the same extent on active teachers.

In 1988 this office was asked to interpret § 10-183t(b) in the context of whether the Act entitles a retired teacher to subsidized health insurance premiums. Op. Atty. Gen. No. 88-38, attached. We analyzed the statutory language and specifically interpreted the word "premium" found in that section. In so doing, we emphasized the legislative history underlying the amendment which clarified the meaning of the term "premium."

In 1987, Section 10-183t(b) was amended by 1987 Conn. Pub. Acts No. 87-10 which added to the statute the key phrase, "[s]uch premium shall be no greater than that charged for the same form of coverage for active teachers." The statement of purpose accompanying the bill was "to give retired teachers the option to choose which health insurance plans they would like to be covered by, and to require that they pay no more for such coverage than is paid for active teachers." H.B. 5719 (1987 Reg. Session).
Id. (Emphasis added). Had the legislature intended for a local board to add an administrative charge to the cost beyond what is charged for active teachers it would have done so.

Although COBRA (Consolidated Omni-Bus Reconciliation Act of 1986) does provide for the assessment of an administrative fee, Section 10-183t(b) of the Act does not contain a similar provision. Accordingly, it would be necessary for the General Assembly to amend the Act to expressly provide for the assessment of an administrative fee by a local school board.

I trust this answers your question. Please feel free to contact me if I may of additional assistance.

Very truly yours,

RICHARD BLUMENTHAL

ATTORNEY GENERAL

Thomas P. Clifford, III

Assistant Attorney General

RB/TPC,III/gr

Enclosure

cc: William R. Connon, Esquire, (Plainfield Board of Education)