Retirement bill to be heard in House committee TODAY!

The latest version of SB 1040—legislation that attacks school employee retirement benefits—will be taken up TODAY by the House Appropriations Committee at 9 am this morning (MONDAY). According to sources in the House, their goal is to pass it WITH CHANGES and send it back to the Senate by FRIDAY!!!

Here are the elements of the SB 1040 passed by the Senate last week:

· New public school employees hired after July 1, 2012 sill be forced into a 401K
contribution plan, effectively stripping them of a pension.

· Current employees who are in the basic plan will be paying 5 percent to maintain the
1.5% multiplier.

· Current employees who are in the MIP plan will see their payments increase to 8 percent
(from 3.8 or 4.2) to retain the 1.5% multiplier.

· To avoid the higher costs in the future, employees can take a smaller multiplier (1.25%)
or move into a 401K plan.

· Final average compensation will be capped at $100,000 (probably more of a worry for
administrators).

· The bill puts “merit pay” back into the final average compensation figures.

· TheSenate set a new effective date to be July 31, 2012.

· They eliminated the graded premium for health care and eliminated the requirement of
being 60 years old to receive health care.

· CURRENT and FUTURE retirees will see their health insurance premiums double since SB
1040 burdens them with a 20 percent cost, an increase from the current 10
percent.

Please WRITE or CALL your REPRESENTATIVE in the HOUSE.

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

TALKING POINTS - USE ALL OR PICK THE ONES YOU WANT TO USE!!!!

• Tell your House representative that these laws are punitive and they break the promises made to you by the State of Michigan regarding your retirement.
• This bill does NOT solve the funding problem for MPSERS! These bills only kick the problem down the road. When future employees no longer contribute to the fund, the state will have an even larger funding problem!
  

• Tell your House 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 your House representative that charging employees from 8 to 11 % of their salaries, as well as paying 20% toward their insurance costs, will seriously inhibit your ability to provide for your families and save your own money toward future retirement.

• Tell your House 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.
• Students considering future careers have no reason to pick teaching - the constant attacks have made the profession unattractive. There is no hope for earning a wage that will allow them to leave comfortably or have adequate funds for their retirement and health care!
  

From MEA President Steve Cook -

We’ve just received word that the Senate Reforms, Restructuring and Reinventing
Committee will take up HB 4059 (prohibits public employer contracts that pay
union officials for conducting union business) 8:30 am tomorrow morning in rooms
402 and 403 in the Capitol located at 100 S. Capitol Avenue.4059 passed
the House in April 2011

PLEASE CALL YOUR SENATOR OR WRITE! (use home emails or cell phones, please!)

Click on the following link for an EASY way to email your Senator - CLICK HERE

Here is what to tell your senator!

HB 4059 Talking Points

· HB 4059 is another attack on unions. There are only 12 large school districts that allow for a full-time release president to take care of union business. And in most cases, the union reimburses the district for any costs.

· This is a local control issue. If the school district and the union determine that it’s helpful for the district to pay union officials to conduct union business, the issue can be negotiated at the
bargaining table.

· Many times, union business is school business. When problems arise, they can be resolved quickly during the day. The school district and the union benefits.

· In the long run, solving problems before they become more serious and sharing in decision making saves the district money. This is just good business practice.

· This legislation does nothing to create jobs. Michigan’s economy would be better served if lawmakers focused on creating the jobs it promised instead of further undermining the middle class.

The Latest news on the RETIREMENT Bill

The latest version of SB 1040—legislation that attacks school employee retirement benefits—will be taken up TODAY by the Senate Appropriations Committee. Despite the fact that there is no specific language yet for the bill, and there is talk that a REPLACEMENT bill will be proposed today. THIS BILL IS PREDICTED TO HIT THE SENATE FLOOR on WEDNESDAY, 5/16.

Of the currently known proposals, one of the most significant changes is the move to pre-fund health care and guaranteeing a member’s right to receive health care upon retirement. The current legislature is quick to claim that the current system is suffering from a $47 billion unfunded liability, but they are slow to remember their predecessor’s (Gov. Engler) decision to stop supporting it. It is also unclear how they plan to fund this "pre-funding!" However, you can bet that it will be on the back of current employees.

Another change to SB 1040 reduces the contribution rate from 5 percent to 4 percent for members in the Basic Plan and from 8 percent to 7 percent for those enrolled in MIP. This is a bit of good news!

Other changes to SB 1040 were announced last week. Public school employees hired before June 30, 2008 will still qualify for full health care coverage once they’ve been employed for 10 years. And employees won’t have to wait until they reach 60 years of age to qualify for retiree health care coverage. This is good news for those of you who thought you might have to retire by May 31st.

More changes are expected, so don’t rush to make any retirement decisions.

Continue to call or email your senator! (Please use cells or home email carriers!)

Click on the following link for an EASY way to email your Senator - CLICK HERE

Here is what you should tell your senator -

1) While the 1% reduction in the percentage of contribution for retirement for school employees is going in the right direction, the 3 to 4% loss of income, on top of the current 3% deduction for health care puts a strangle hold on your family's finances. Funding college, paying for homes, and providing a quality life for your family is endangered!

2) You are already paying 10% of your current insurance rates and will pay 20% or anything over the hard cap set by them next year. You can not also pay for your future health care when your present health care costs are soaring!

3) THAT IT IS FLAT OUT WRONG for them to be diminishing your income when they have given a $1.8 BILLION dollar tax refund to the businesses of Michigan! There is very little to show for that $1.8 Billion dollar refund given to businesses at the cost of our schools.

4) THAT IT IS FLAT OUT WRONG for them to give businesses yet another tax break through changes to the Personal Property Tax while reducing the income of educators and state workers.

PLEASE WRITE OR CALL TODAY!

Here is the easy to use website to contact your senators! CLICK HERE

Lobby TODAY regarding the Retirement Proposals

This morning the Michigan Senate will be holding a committee hearing on SB 1040, the retirement bill, at 10am in Lansing. The MEA will have many members at the hearing and obviously, teaching school, you are in most likelihood unable to attend. BUT LET YOUR SENATOR KNOW VIRTUALLY what your feelings are!

Please WRITE YOUR REPRESENTATIVE 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 insurance costs, will seriously inhibit 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!!!!!

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

HB 4929 (collection of dues) is being challenged by teacher unions and House Democrats!

AS REPORTED BY the MICHIGAN INDEPENDENT RESEARCH SERVICE on Wednesday, April 4, 2012 at 1PM

Four Michigan school employee unions today filed a lawsuit today in federal court challenging a
recently signed law that bans the automatic deduction of union dues from public school employees' paychecks, HB 4929. The suit, filed in Michigan's Eastern District federal court,
asserts that the law violates the First Amendment and 14th Amendment of the U.S. Constitution by "discriminating against school employees as retribution for political speech and treating school employees differently than other classifications of workers without reason."

The Michigan Education Association (MEA), American Federation of Teachers (AFT) Michigan, AFSCME Council 25 and SEIU Local 517M are plaintiffs in the suit, which seeks injunctive and declaratory relief. The three commissioners on the Michigan Employment Relations Commission (MERC) are named as defendants in the case, since they are the public officials responsible for enforcing PA 53.

AFT Michigan President David HECKER said in a letter to Gov. Rick SNYDER the day he signed the bill that there were constitutional problems with it. Hecker has said, "By signing this bill, he clearly ignored the fact that there is no rational reason for this to be law, the House Fiscal Agency says this won't save money -- in fact, it may cost some districts money to enact the change. It's just another attack on collective bargaining rights for one group of Michigan workers."

ALSO REPORTED IN THE LAST 24 hours:

The bill is also under fire as part of a House Democrats lawsuit against the House Republicans, alleging they used the "fast gavel" on HB 4929 and two other bills to give them Immediate
Effect (See "House Dems Win Restraining Order On IE Squabble," 4/2/12). A court injunction has been imposed that means that this bill can NOT take immediate effect! In fact, if the court injunction is upheld in future challenges, this practice can not legally begin until March of 2013.

"Reformed" Retirement Bill - SB1040

The Michigan Senate has proposed a total revamping of the Public School Employee's Retirement plan. It is outlined in the Senate Fiscal Agency's Analysis. Click on the link below to read the agency's point by point analysis.

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!!!!!

Senate Bill 1040 – Retirement Reform Introduced Today (3/22/12)

Senate Bill 1040 – Retirement Reform Introduced Today (3/22/12)
This bill was introduced today from a committee that has been "working" on this for several weeks. This information is from the AFT report sent out this afternoon.

Pension Side:
Allows current school employees not in the hybrid plan to choose one of the following going forward:

1)An increased contribution rate (to 5% or 8% - see below), to retain the current multiplier of 1.5% for future years of service in the calculation of a pension

2)Same existing contributions, but a reduced multiplier for future years of service (used to calculate their pension; from the current 1.5% of final average compensation (FAC) to 1.25% of FAC).

3)Freezing their benefits under the defined benefit system and going to defined contribution, with a 4% employer contribution to a 401K.

Those in the basic system (hired before 1990, who did not choose to go into MIP) would pay 5% of salary if they choose the increased contributions to retain the existing 1.5% multiplier.

Those who are in the MIP system (but not in the recently created hybrid system) would pay 8% of salary if they choose the increased contributions to retain existing 1.5% multiplier.

Hybrid employees (those hired after July 1, 2010) remain in the hybrid plan at current contribution levels.

Caps the salary amount this is used for calculating pension benefits for new employees at $100,000.

Prohibits some types of compensation from counting toward calculating pension amounts going forward. Those types are: Tax-sheltered annuities, longevity pay and merit pay.

Health Care Side:
The system would pay no more than 80% of the retiree health care premium for those who have a premium subsidy (current retirees and current employees hired before July 1, 2012).

Requires most current employees to be at least 60 years old before they can receive retiree health care benefits. However, there would be a phase-in period for current employees; up until June 30, 2013, those who are not yet 60 could qualify if their age and years of service add up to 85 by that date.

Retroactively applies a graded premium retiree subsidy coverage for all employees. Under current law, only employees hired since July 1, 2008, are in graded retiree health care premium coverage, but his bill retroactively applies graded premiums to all employees

Creates a 2% retiree 401k account for new employees – they would have no retirement health care premium subsidy. Employees could contribute up to 2% of their salary to the account and have up to that amount matched. Note: since employers are presently paying for current retirees’ health care on a cash basis (meaning it is not pre-funded), this is actually an additional cost to employers for the next 30 years, but after that, health care costs will begin to decline significantly.

Maintains the 3% employee contribution for health care for current employees only. (As described above, new employees would instead pay the 2% into the health reimbursement account.)

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