SENATE FISCAL AGENCY ANALYSIS
In very short form: This bill proposes that -
- Basic Members pay 5% of their income to the state to insure a 1.5% multiplier to figure your retirement amount.
- MIP Members pay a flat 8% of their income to the state to insure a 1.5% multiplier to figure your retirement amount.
- You can choose NOT to pay these percents, but then they will use a 1.25% multiplier (The current multiplier is 1.5%)
- The bill requires the continuation of the 3% payment toward health care.
- The bill requires only an 80% subsidy of retiree insurance....even for those who are already retired. This will double the payment retirees have to make a fixed income.
- The bill proposes that people not be able to get insurance until they are 60. So, all MIP members who have the provision to retire earlier, may not get insurance. For ONLY one year there will be a "phase in" for MIP members.
- There will be a cap of $100,000 for your FAC - Final Average Compensation
- After this year, any money put into investments, merit pay, and longevity pay can not be figures into your FAC. How many have you are contributing the MAX of $15,000 of your salary as allowed by the IRS? None of this can count toward your FAC!
These laws are said to be proposed to save the school districts money (only 3.5%) AND to rescue the retirement fund that is purportedly underfunded.
However these proposals have huge financial implications for your futures. Promises that you were made for your retirement, especially those of you in MIP, are undone by this legislation. Your ability to count even your entire salary is being thwarted by these proposals.
Please WRITE YOUR REPRESENATIVE or CALL. USE THIS LINK TO CONTACT YOUR REPRESENTATIVE IN THE MICHIGAN SENATE & WRITE!Click this link! http://capwiz.com/nea/mi/directory/statedir.tt?state=MI&lvl=state
- Tell your senator and representative that these laws are punitive and they break the promises made to you by the State of Michigan regarding your retirement.
- Tell your senator and representative that charging employees from 8 to 11% of their salaries, as well as paying 20% toward your insurance, while inhibiting what can be counted toward your Final Average Compensation is punitive and serves no other purpose.
- Tell you senator and representative that charging employees from 8 to 11 % of their salaries, as well as paying 20% toward their insurace costs, will seriously inhibity your ability to provide for your families and save your own money toward future retirement.
- Tell your senator and representative they are punishing your families and inhibiting your ability to provide a college education to allow them to become productive adult citizens of Michigan.
- TELL THEM NO!!! STOP THE ATTACKS ON EDUCATORS!!!!!
