Those Retired Teachers Have a Surprise Coming

Just a bit of schadenfreude here.

MPS is subsidizing health-insurance policies for its retirees. This will be a problem, as the liability is unfunded. But what is of interest is the dollar-amount of the subsidy.

Part of the reason for the size of the liability is that retiring MPS staff who qualify for the program are ensured a lifetime subsidy to pay for health insurance. In 2008, the subsidy was up to $1,882 monthly for family coverage or $851 monthly for single coverage.

Multiply $1882.00 by 12 and you get $22584.00.

That's just a touch under the "luxury tax" limit found in ObamaCare, Senate Version, and if the plan actually costs $23K:

The 40 percent tax would be levied on family plans worth more than $23,000 and individual plans worth more than $8,500, starting in 2013. As those thresholds rise with inflation, more and more plans would be subject to the tax.

This will be interesting to watch.

By the way, a $23,584.00 family plan is very expensive, indeed.