Tuesday, June 12, 2012

If this post looks familiar....it is. The same problems continue to hold true for the retirement proposals made by the House and Senate. Please read and then continue to the bottom to find suggested points you can use to write your representative! Also, there is an easy "click" connection that will take you to site to email your representative. All you have to know is where you live and the site will direct you to the correct rep.

The state is still breaking the promises they made to everyone regarding their retirement and what they would have to count on.Future school employees will not be contributing substantially to the plan, thus at some point the retirement fund will run out of money again (unless there is some gigantic gain on the stock market).We should be very cautious of 401K plans and would advise anyone who is considering that avenue to consult with their financial planner.It may work for you, or it may not.There are a few problems with it.

First, it further depletes monies being paid into the retirement fund, thus creating a future financial problem for retirees, school districts, and the school state aid fund which might be held liable for deficits in the future.

Secondly, I believe the state is setting the stage for education to be “business friendly” businesses. By thrusting retirement costs onto the employees, businesses don’t have to pay the costs of pension plans which have strict prepayment requirements.It makes education cheaper to take over.

Thirdly, the state is proposing a 4% employer contribution rate for the 401K type plans.However, they are capping the employer’s retirement fund charge at 24.46%.That is good for the districts, but if you pull out of the retirement fund to get 4% from the district, they are saving 20.46% on you!!!!You deserve more!Also, if the payment to the state exceeds 24.46%, the state will require the excess to come from the State Aid Fund, which means less money being given to the school districts.

The House is also planning to change the way they assess the districts the charge for pension and health care, which could ultimately cost the districts more depending on how many employee groups they have privatized.While this will help cover some of the retirement fund costs for school employees who have been privatized and no longer pay into the fund, it really isn’t providing much relief for the districts considering the increase in contributions members of MPSERS are making.

WRITE YOUR HOUSE REPRESENTATIVE AND TELL THEM these things.Do they really understand what they are doing?It is worth a shot to see if they listen.

Click on the following link for an EASY way to email your House Representative -

TALKING POINTS -Use the references above or your own!