The Walled Lake Transportation and ParaPro MEA Groups have invited WLEA members to the following event:

 

MEA & AFT File lawsuits against SB1040

As report by ART PRZYBYLOWICZ, MEA General Counsel (9:05 PM, Tuesday, 9/11/12)-

After a hearing that concluded at approximately 6 p.m., Michigan Court of Claims Judge Rosemarie Aquilina issued two temporary restraining orders affecting the election period under Senate Bill 1040, which was signed into law by Governor Snyder this afternoon. AFT/Michigan filed a lawsuit challenging the length of the election period and the constitutionality of the changes to pension benefits made by SB 1040. Judge Aquilina agreed that the election period beginning today and ending on October 26 was unreasonably short. MEA filed a lawsuit challenging the constitutionality of the changes to both the pension benefits and retiree health benefits of its members. Judge Aquilina issued a temporary restraining order in the MEA case declaring that any elections that are made may be rescinded or changed, if the court ultimately finds either the pension portion or retiree health portion or both of SB 1040 unconstitutional.

In addition, Judge Aquilina scheduled a process for rendering a decision on the constitutionality of the changes in the retirement law. She has consolidated the AFT and MEA lawsuits and they will be considered and decided together. The parties will be given opportunities to file briefs with the court on the constitutionality of SB 1040 and oral argument has been scheduled before Judge Aquilina for November 28 at 1:30 p.m.

The net effect of the two orders is that the election period is allowed to begin, but a specific ending date will be determined by the court. In the meantime, for those choosing to make elections, they will have the right to reconsider those elections should they involve unconstitutional provisions of SB 1040.

Now that Judge Aquilina has consolidated the cases for further proceedings, all issues raised by either lawsuit will be decided by Judge Aquilina.

Further information on the election process and the impact of these court orders will be provided as the legal process continues.

Collective bargaining ordered onto ballot by Court of Appeals

AS REPORTED IN MEA's "Capital Comments" this afternoon -

Today, the Michigan Court of Appeals decided 2-1 to let the constitutional amendment protecting collective bargaining and working families go before the voters on Nov. 6. The Michigan Supreme Court gave the Appeals Court until today to make a decision. It's still not certain what position the issue will have on the ballot, but it is certain critics of the amendment will appeal to the Supreme Court.

It may be last week's Supreme Court ruling to put the casino ballot proposal on the Nov. 6 ballot that paved the way for today's Court of Appeals' decision. The lower court rejected the casino proposal on the grounds that it would create sweeping changes to the Constitution--the same argument being used to reject the collective bargaining amendment. When the Supreme Court overturned the lower court's ruling on casinos, it seemed inevitable that the nearly 700,000 voters who signed the collective bargaining petitions would have a chance to decide the issue on Nov. 6.

However, today, the Board of Canvassers still couldn't come up with the needed votes to certify the casino proposal, so that issue is probably going back to the courts.

While the opponents of working families will likely appeal today's decision to the Supreme Court, a significant legal hurdle has been cleared for MEA leaders, members and staff to make sure collective bargaining rights and working families are protected.

Also reported by MIRS News Agency tonight, quotes from POJ Advocates:

POJ swiftly issued a press release moments after the decision, saying, "There was no legal reason to deny people the opportunity to vote on the proposal." The statement banged on Attorney General Bill SCHUETTE for his "faulty and politically motivated" opinion that drove the Board of State Canvassers for denying certification to begin with.

The group also ripped Gov. Rick SNYDER for filing a brief in support of Schuette's decision, saying, "No Michigan governor or attorney general has ever taken such drastic action to prevent citizens from exercising their right to vote."

"It's a major victory for working people," said Karen Kuciel, a Warren Consolidated Schools teacher. "Collective bargaining will be on the ballot for a vote. Now we must overcome the corporate special interests at the ballot box to ensure we have a voice for fair wages, benefits and safe working conditions for all of us."

TWO PIECES OF GOOD NEWS from Art Przybylowicz, MEA GENERAL COUNSEL

1) Regarding the 3% deduction from your checks over the last two years – the supposed “Retiree Healthcare Contribution (now being held in escrow)

This afternoon, the Michigan Court of Appeals by a 2 to 1 majority has found the 3% retiree health contribution to be unconstitutional under both state and federal constitutions. The
majority holds that the exaction of the 3% unconstitutionally impairs a contract between the state and MPSERS members, constitutes an unconstitutional taking of property without just compensation, and violates substantive due process of law. There is a dissenting opinion by Judge Saad.

Of course, the state, through the Attorney General, no doubt will appeal to the Michigan Supreme Court. The state has 42 days to file an Application for Leave to Appeal with the Supreme Court. In the meantime, the escrow will continue until a final decision is reached.

Once MEA Legal Services has had an opportunity to carefully analyze the Court’s opinion, we will advise what impact it has on the legislation just passed by the Legislature yesterday.

2) Regarding the "Protect Our Jobs" Petition Lawsuit Against the State Board of Canvassers

The Michigan Court of Appeals has wasted no time in scheduling arguments in the POJ lawsuit
against the State Board of Canvassers. The Court of Appeals has just issued an order requiring a response from the Board of Canvassers to the arguments made on the POJ brief by the close of business next Monday, August 20; any reply from POJ must be filed by the close of business on Tuesday, August 21; and oral arguments will be heard by the Court of Appeals next Wednesday, August 22, at 10 a.m. in Lansing. POJ also filed a request with the Michigan Supreme Court yesterday to bypass the Court of Appeals due to the time constraints to obtain a decision in time for the proposal to appear on the November ballot. The Court of Appeals process will continue until and unless the Supreme Court decides to grant the motion to bypass.

SB 1040 passes House, Senate; SOJ denied ballot place

A REPRINT OF MEA’s “Capital Comments” from August 15, 2012

There's little good news in the Senate and House finally voting out SB 1040 today. On a 21-6 Senate vote and a 57-48 House vote, they increased current employee contributions to their pensions, increased retirees' share of their health insurance, and ended retiree health insurance for new hires.

Under SB 1040, new hires will not be moved to a defined contribution retirement benefit. They will stay in the current hybrid system which combines a defined benefit and defined contribution mix. New to the bill, is the call for a study of the financial impact moving new hires to the defined contribution would cause. The study will be done by Nov. 15.

Current employees will be paying either 4 percent or 7 percent to their retirement pension, depending on what plan they are in. Current employees will also continue to make the 3 percent contribution to their retiree health insurance, but now the money will be used to prefund the retirement system. Employees could end their 3 percent contribution if they move to a 401(k) plan which will include an employer match up to 2 percent.

Retirees will see their share of their health insurance premiums jump from the current 10 percent to 20 percent if they are 64 or younger on Jan. 1, 2013. Retirees 65 or older on that date will remain at the 10 percent share.

Employees first hired on or after Sept. 4, 2012 won't be receiving retiree health insurance. Instead they'll be placed in a 401(k) plan that includes an employer match of up to 2 percent. When new hires end their employment, they'll get a lump sum deposit.

The Senate also voted to keep the current calculation for a school district's MPSERS contribution based on payroll. The House had proposed basing the calculation on current operating expenditures.

Republican Senators Jones, Nofs, Pavlov, and Proos voted with Democrats in opposing the bill.

ME (Terese): The MEA and the WLEA will be presenting more information regarding 1040, as all school employees will need to make decisions regarding the deductions by the state for their retirement by October 26^th.

• · Eliminates retiree health insurance for new hires

• · Increases current retirees’ premium share from 10% to 20% (only for those 64 or younger on 1/1/13)

• · Increases pension contributions for current employees

• · Gives current employees not already in the “hybrid plan” a choice whether to contribute 3% to maintain their retiree health insurance or give up their retiree insurance and get a 2% contribution to a 401k

POJ Constitutional Amendment NOT on the ballot--for now

As expected, the Board of Canvassers split 2-2 on whether to put the constitutional amendment to protect collective bargaining on the November ballot. For now, the proposal is off the ballot. The Protect Our Jobs campaign will now take the fight for working families to the Michigan Supreme Court for a decision, bypassing the state Court of Appeals.

Opponents to the ballot proposal want the effect of the constitutional amendment and the list of laws impacted written into the language--and keep it to 100 words. Supporters maintain that the proposal met all legal requirements even before the petition drive began.

Two weeks ago, at the request of Gov. Snyder, Attorney General Bill Scheutte issued an opinion that the collective bargaining proposal should be kept off the ballot. He claims that the proposal does not specifically list the parts of the constitution that will be impacted by the amendment. His opinion, however, is based on faulty legal reasoning and is not legally binding.

The whole action seems politically motivated since in 2004, Schuette had a totally different opinion. As a Court of Appeals judge, he rejected his current argument when it came time to put the proposal banning affirmative action on the ballot.

It's unfortunate that political motivation is working to silence the voices of nearly 700,000 voters who signed the Protect Our Jobs petitions. Those voters know the importance of collective bargaining when it comes to school employees and student success; to firefighters when it comes to saving lives; and to nurses when it comes to patient care. Too bad some politicians don't.

Retirement Reform FAILS to get needed votes!

AS REPORTED BY MIRS NEWS AGENCY this morning:

The Senate today failed to get the votes needed to pass a version of school employee retirement reform the House and Governor had wanted to address $45 billion in unfunded liability to the system, pushing into August the last remaining piece to the state budget.

The 16-22 defeat on SB 1040 stalls, for at least another month, $330 million in savings Gov. Rick SNYDER and lawmakers had planned to save in the upcoming Fiscal Year (FY) 2013 budget for schools.

Gov. Rick SNYDER and House Republican leadership don't want to move to a defined contribution system immediately, however, until an independent study has been conducted on the costs of the move and the effectiveness of current hybrid pension system.

Senate Republicans caucused twice on the issue, but it became apparent that there were not 20 votes for either the Jansen/Pavlov "compromise".

The Senate Majority opted to run the House version on the floor and despite some attempts to get the 20 votes needed for passage, leadership could only get 16. No Democrats came over to vote in support since they see the bill as taking more money out of the pockets of school employees.

The next step is for Senate Majority Leader Randy RICHARDVILLE (R-Monroe) and House Speaker Jase BOLGER (R-Marshall) to appoint members to a six-member conference committee. Both Richardville and Bolger said today they would name those conferees soon.

The House and Senate will return for an Aug. 15 session and Richardville said MPSERS will be on the agenda.
A Review of the Plan:

Snyder and Republican lawmakers have come to agreement on most of what MPSERS reform will look like. It would require school employees to increase their contributions 4 or 7 percent to their retirement or risk a drop in the multiplier from 1.5 to 1.25. The other option is to freeze their pension benefit and go to a DC system.

It also increases retiree health insurance premium contribution of both current and future retirees to at least 20 percent, capping the MPSERS premium share at 80 percent, unless the retiree is 65 or older by Jan. 1. In that case, he or she will be asked to pay 10 percent.

It eliminates retiree health insurance for new hires and replaces it with an employee match program or money that would go into a health reimbursement account.

It caps the amount schools will pay for the retirement system at the current rate of 24.46 percent of payroll. If these changes to MPSERS aren't finished by Oct. 1, the rate will go to 27 percent, which school administrators fear will put them in a financial bind.

Kurt WEISS, spokesman for Budget Director John NIXON, said the administration would continue to work with lawmakers to get a deal done. Nixon and the Governor's chief lobbyist, Dick POSTHUMUS, were in and out of the Senate and House chambers all day.

The Governor wants to pre-fund school employee health care. That's in SB 1040. The House wants stability to the school districts through the 24.46 percent cap freeze. That's in SB 1040.

But over in the House, Rep. Rick OLSON (R-Saline) said there was resistance to closing down the hybrid teacher retirement system because of concerns about stranded costs. He said until there's a study that looks at whether a move to that system makes sense, he has trouble supporting it.

"I am just reluctant to make that decision on incomplete and biased information," he said.

Sen. Rick JONES (R-Grand Ledge) said he continues to be a no vote until lawmakers vote to start paying 20 percent of their retirement premium like state employees and potentially school employees. Until that's done through passage of his SB 0026, he's a no.

Ten Republicans joined the entire Democratic caucus in voting against the reform to teacher retirement -- Sens. Jack BRANDENBURG (R-Harrison Twp.), Pat COLBECK (R-Canton), Joe HUNE (R-Fowlerville), Jansen, Jones, Arlan MEEKHOF (R-Olive Twp.), Mike NOFS (R-Battle Creek), John PAPPAGEORGE (R-Troy), Pavlov and John PROOS (R-St. Joseph).

WRITE YOUR SENATOR TODAY!!!!!

The Senate and the House will have a one day session on Wednesday, July 18^th.

The Senate is expected to take up the teacher retirement system reform bill that was passed by the House just prior to their last break. As reported by the MIRS NEWS SERVICE, “On the last day of session before summer break, the House passed a version of SB 1040 that kept the hybrid retirement system and prefunds health care, something backed by the Gov. Rick SNYDER administration. But the Senate, which passed legislation establishing a defined contribution system and closing MPSERS, adjourned before taking action after a controversial day ( 6/14/12).”

Today, Senator Mark Jansen (Gaines Township) is telling news sources that he has been working on a proposal that he thinks everyone would “love”. I am not sure it is something teachers would love. Unless you are a newly hired teacher (who is in the hybrid plan), we are all now part of a “defined-benefit plan” or a pension. The Senate wants to shut down MPSERS and move everyone to a “defined contribution plan”’; this is the 407 or similar savings plan that is then invested. This is a much more volatile form of retirement planning to have, as evidenced by the stock market crash in 2008 that wiped out over 50% of many people’s retirement funds.

Senate Appropriations Chair Roger KAHN (R-Saginaw) said, “.... it's important to reform MPSERS and he said his bill will be a "substantial improvement in security" for teacher pension plans. He said the savings can go to the foundation allowances for lower-funded districts, programs like physical education, smaller class sizes and recess monitors.” The state would also freeze the amount contributed by districts to the MPSERS fund to 24 % if reform is passed. However, the officials from the Waterford district have already announced on TV that they would use any dollars saved to plump up their savings accounts. This is a travesty for students and teachers.

Despite the many draw backs of either plan, the Senate’s intent to close down MPSERS is even more dangerous as it stops the funding source for the MPSERS fund. Where will the money come from to fund current retirees or even your own pension fund? Between the dramatic loss of support personnel who were paying into the fund and this future proposed closing of the MPSERS fund, our future retirements are dim.

Please note that none of these reforms is good for our retirements. It breaks promises that all of us have used to plan for our old age. It is also going to increase our contributions from our pay checks by 3 to 5% depending on the final outcome of the vote. 3% of $80,000 dollars is $2400 more per year that you will need to pay to the state. You are already paying this much into that “State Health Care Fund” that is being held in escrow. That means that if you are in a BASIC Retirement plan, you will be sending nearly $5000 from your paycheck to the state per year. It will be more for those who are in the MIP plans.

PLEASE WRITE YOUR SENATOR AND TELL THEM TO LOOK MORE CLOSELY AT APPROVING THE HOUSE’S VERSION OF SB1040. TELL THEM THIS IS THE MOST SECURE WAY TO REFORM MPSERS WITHOUT BREAKING PROMISES AND POTENTIALLY BREAKING THE ENTIRE SYSTEM. But ultimately, they should NOT BE BREAKING promises made to you for your retirement. Doing this after your start date is a huge impediment to your current livelihood and to your ability to fund your retirement.

Also tell your Senator to require districts to use money saved for children’s education and not to fatten their savings accounts.

CLICK HERE FOR AN EASY-TO-USE SOURCE FOR YOUR SENATOR’S EMAIL OR PHONE NUMBER. CLICK HERE