PEEHIP requesting permission to pay refunds to teachers

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A lawsuit filed in 2016 accuses the PEEHIP board of holding an illegal closed meeting where they voted to raise insurance premiums. (Source: {WBRC})

By WSFA Staff

MONTGOMERY, Ala. (WSFA) – Alabama teachers are one step closer to seeing a refund a state Supreme Court ruling says they are entitled to.

The Public Education Employees Health Insurance Plan, better known as PEEHIP, is requesting permission from the Montgomery County Circuit Court to pay all refunds to active and retired members by July 31. Earlier in 2019, the courts ruled in favor of an Alabama Education Association’s lawsuit, which said PEEHIP’s board did not follow the state’s open meeting law back in 2016, when it increased premiums and spousal surcharges.

According to PEEHIP, under the proposal retirees would receive refunds directly from the RSA, and active members would receive refunds through their employers because their PEEHIP premiums were paid on a pre-tax basis. PEEHIP said this means refunds for actives are subject to applicable income and FICA taxes.

Officials say PEEHIP needs permission granted by early July, or they won’t be able to process the refunds by July 31. If they are given permission, PEEHIP said they will send each member a letter informing them of the gross refund amount they are entitled to.

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