Now, if we cut their health insurance, we make more money quicker

How would you feel if your employer took out a life insurance policy on you as a tax dodge? As you probably know, proceeds from life insurance policies are tax free. So this is just a tax dodge. Unless they cut the retired teachers health benefits and start collecting quicker.

HoustonChronicle.com - Top Democrat urges Perry to abandon 'death business'
Copyright 2003 Houston Chronicle Austin Bureau

AUSTIN -- The chairman of the Texas Democratic Party on Friday called on Gov. Rick Perry to terminate discussions to have the state purchase life insurance policies on thousands of retired teachers in order to earn the death benefits.

'It is outrageous that Rick Perry would try to put the state of Texas into the death business,' said Charles Soechting.

'You don't fund state government by taking out life insurance policies on retired teachers and cashing in upon their death.'

Perry has been in discussions with the Teacher Retirement System, which could use the proceeds to help make up for lost investment income.

The plan is being promoted by former U.S. Sen. Phil Gramm on behalf of his current employer, UBS Investment Bank in New York.

Gene Acuna, a spokesman for Perry, said the discussions will continue.

'Questions are being asked and answered. Discussions are taking place with various parties, including representatives of the retired teachers association,' said Acuna.