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Dear David,
Thank you for reading your December 2016 MEA-Retired Tribune Newsletter, edited by President Judy Foster. Find more information at our website, www.mea-retired.org, and on our Facebook page, www.facebook.com/mearetired.
The MEA-Retired Leadership Team
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December 2016 MEA-Retired Tribune Newsletter
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ACT NOW!
Senate Schedules Hearing For Pension Bills
Senate leaders have now publicly stated they plan to pass damaging pension changes during the lame duck session, with hearings in that chamber starting Wednesday morning. It's urgent that all members mobilize around the issue - and stay on message about the huge costs these changes would mean for taxpayers.
According to the state's own budget experts, the plan to gut school employee pensions would cost taxpayers billions of extra dollars while providing a less secure retirement to new school employees - while threatening the solvency of the defined benefit system that active school employees and retirees rely on. Everyone has a stake in this fight.
SB 102 is scheduled for a 9 a.m. Wednesday hearing in the Senate Appropriations Committee. It would move all new school hires into a defined contribution, 401(k)-style retirement plan, even though the changes already made to the pension system in 2012 are working.
Experts in the Department of Technology, Management and Budget peg the increased costs at $1.2 billion next year alone - with a 30-year price tag of $24 billion.
The question we have to ask in phone calls, emails, and letters to lawmakers: Who will pay those enormous costs? Will taxes go up? Or will lawmakers slash school spending again? To cover that $1.2 billion first-year cost, funding would need to be cut $820 per pupil!
Also up for hearing are SBs 1177 and 1178 - bills that would spread out the state's pension costs over 50 years, instead of the current 22 years. This is an attempt to make the increased costs of closing the pension system appear smaller by spreading them out until 2067 - long after every current employee has retired and passing the buck on to future legislators and taxpayers.
Such drastic "fixes" to the school employee pension system are not necessary, because recent changes are working. The hybrid system created in 2012 is fully funded and investments are rebounding from the economic downturn of 2008.
For his part, Gov. Rick Snyder has been opposed to making further changes, and reaction in the House has been mixed. Your efforts matter-besides phone calls, emails, and letters to lawmakers, consider writing a letter to the editor of your local newspaper or getting involved in other efforts locally to get the word out. Look for ways to rally your MEA colleagues and bring parents, administrators, and business leaders into the fight!
And stay in touch with Capitol Comments and MEA's Facebook page for updates on rapidly changing developments in this lame duck session.
THE PENSION SYSTEM IS NOT BROKEN!
- Ten years ago, MPSERS was fully funded. Now we have an unfunded liability (which has been improving) as the result of the devastating economic downturn of 2008, combined with decisions made in Lansing to balance the budget with unrealistic projected rates of return. Like any investment, it simply needs time to rebound-and is on track to do so.
- Recent changes have dramatically increased employee contributions into MPSERS.
- PA 300 of 2012 also placed school employees hired after its effective date into a "hybrid" system, combining elements of a traditional pension and a 401(k)-style defined contribution plan. The savings to the state stemming from this change will not be fully realized for several years.
- The hybrid system is fully funded. Why would we eliminate a system that's working?
- The 2012 law also eliminated retirement healthcare benefits for new hires.
- The changes made in 2012 need time to continue to work. As with any investment, if left alone the system will heal itself.
PENSIONS PROVIDE IMPORTANT ECONOMIC BENEFITS
- Pension income is spent in Michigan and supports more than 77,000 Michigan jobs.
- Retirees' spending from pensions supports $11.1 billion in economic output in Michigan.
- 45 percent of public school employees receive a pension of less than $14,500 per year.
- Hedge fund managers and other Wall Street corporations are the real winners in eliminating traditional pension plans and moving money to their 401(k).
- A pension system distributes both the risk and reward evenly-vs. the winners/losers system of the 401(k). We don't need a competitive system that creates winners at the expense of others; we need retirement security for all.
- Numerous studies have shown that, in addition to being much less secure than a traditional pension, any savings to the state for making such a change would not be realized for more than 30 years - and the immediate cost to close MPSERS would run into the hundreds of millions of dollars per year.
Calendar
December 15, 2016 - Last day for nominations for MEA RA and NEA RA
January 11, 2017 - MEA-Retired Board Meeting
February 23, 2017 - Deadline for MEA scholarship applications
March 13-17, 2017 - MEA scholarship reading April 4, 2017 - MEA-Retired Annual Meeting
Updates to your 2017 BCBS retirement system medical plan
The following updates to your retirement system medical coverage, administered by Blue Cross Blue Shield, will go into effect on Jan. 1, 2017:
Annual deductible - 2016-$700 - 2017-$800
Annual coinsurance maximum - 2016-$850 - 2017-$900
Medicare members are automatically enrolled in the LivingWell program and have an $800 deductible in 2017, compared to $1000 for members not on Medicare who do not enroll in LivingWell. If you have questions about your retirement system medical coverage, call Blue Cross Blue Shield of Michigan Customer Service at 1-800-422-9146. 8:30 am to 5 pm Eastern time. TTY users should call 711.
Continue LivingWell in 2017 for Non-medicare Enrolled in Blue Cross
Keep making healthy lifestyle choices in 2017 by following the steps below:
1. Choose a primary care physician.
A primary care physician will keep track of your health conditions and help you focus on wellness and prevention. By choosing a doctor within the PPO network, you can save money on out-of-pocket costs. To locate network doctors, use the Find a Doctor tool at bcbsm.com.
2. Visit your doctor for an annual wellness exam.
Visiting your doctor for an annual wellness exam can save your life by catching health problems early. It can also help you maintain your relationship with your doctor. Your retirement system medical plan covers a wellness visit once a year at no cost to you. However, you may be responsible for out-of-pocket costs for additional preventive services your doctor recommends during your visit.
3. Choose a patient-centered medical home doctor.
Working with a primary care physician who is also a patient-centered medical home doctor provides many advantages, including 24-hour access to your medical team, personalized strategies for managing your health and a central location for your medical history.
Privatizing Medicare??
You may be reading news reports about how some members of Congress want to privatize Medicare. By no means is this new news, but the election results brought about renewed interest in these plans.
In years past, proposals to privatize Medicare- commonly known as premium support-relied on vouchers that people with Medicare would receive from the federal government to purchase private health plans. Past proposals had important differences: some introduce vouchers for future beneficiaries, some preserve Traditional Medicare as an option, some include defined benefits and consumer protections, etc.
While premium support proposals differ in their details, nearly all share a common and troubling theme-increased costs and diminished access to needed care for people with Medicare. Half of all people with Medicare live on $24,150 per year, and already they pay nearly three times as much on health care as non-Medicare households. Most older adults and people with disabilities simply cannot afford to pay more for health care.
Read Medicare Rights' fact sheet on past proposals to privatize Medicare: Paying More for Less: Premium Support. As new proposals emerge, Medicare Rights will evaluate them and weigh in with Congress and the new Administration, working to ensure they keep in mind what's best for the health and well-being of people with Medicare above all else.
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Recipe for Christmas All Year Long
Take a heap of child-like wonder That opens up our eyes To the unexpected gifts in life- Each day a sweet surprise.
Mix in fond appreciation For the people whom we know; Like festive Christmas candles, Each one has a special glow.
Add some giggles and some laughter, A dash of Christmas food, (Amazing how a piece of pie Improves our attitude!)
Stir it all with human kindness; Wrap it up in love and peace, Decorate with optimism, and Our joy will never cease.
If we use this healthy recipe, We know we will remember To be in the Christmas spirit, Even when it's not December.
By Joanna Fuchs
Thank you for your continued support of MEA-Retired!
from MEA-Retired leadership
Pres. Judy Foster, VP Kay Walker, Sec/Treas. Dan Rudd, & MEA's Lisa Andros
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