Watch for Bills That Might Destroy Health Care and Retirement in 2017
THANK YOU to all of you who contacted Michigan legislators during the Lame Duck session!
Legislators finally got the message -the issues of pension reform and retiree healthcare are too important and complicated to take up in the lame duck session. Plus, Republican Senators and Representatives could not gather enough votes to get their pension reform bills through to a final vote in the lame duck session. The bills died in lame duck but probably will be resurrected in the 2017 session.
SB 102, 1177, and 1178
SB 102 would have closed down the Michigan Public School Employees Retirement System (MPSERS) current hybrid pension system to new school employees hired after July 1, 2017 and put them into a 401(k)-style defined contribution plan. Employees currently in the hybrid plan-a combination of a defined benefit plan and a 401(k)-could remain in MPSERS, but those school employees who chose the defined contribution plan in 2012 would be moved into the new plan.
Under that plan, school districts would deposit 4 percent of the new employee's salary into a 401(k) and match the employee's contribution up to another 3 percent of salary-or a possible employer contribution of 7 percent. The cost of the match would be borne by the School Aid Fund.
Employees in the new 401(k) plan would be immediately vested in their own contributions; 50 percent vested in their employer's contributions after two years; 75 percent vested after three years; and 100 percent vested after four years of service.
SB 1177 and SB 1178 dealt with the amortization period to pay off MPSERS' unfunded liability.
It seemed that once the bills passed the Committee and moved to the full Senate, immediate passage would be inevitable since MPSERS pension reform was at the top of the Republican's agenda. But the bills stalled because of discrepancies in the cost of transitioning to a new system and couldn't get the necessary votes to get them passed.
The Senate Fiscal Agency estimates the additional cost of closing down MPSERS and moving new employees to a 401(k) to be $591 million in the first year to $3.8 billion in five years. In contrast, the Office of Retirement Services (ORS) estimates the cost to be $500 million in the first year and more than $24 billion in costs over 30 years-more than any unfunded liabilities. ORS didn't support the Senate's pension reform.
HB 6074-6086
HB 6074 was the main bill which created the Local Unit of Government Retirement Act. Starting in May 2017, new municipal employees would get 2 percent of their base pay annually for retiree health care to be paid into a tax-deferred savings account like a 401(k) or a health savings account (HSA) according to the Act. .
Retiree healthcare benefits would be a prohibited subject of bargaining, and retirement plans and HSAs would be excluded from arbitration awards for police and fire. Retirees who went to work somewhere else could not get municipal health insurance if coverage was available with their new employer.
MEA Acting on School Closure Threats
MEA is moving forward with a multi-pronged response to state threats of school closures in a number of Michigan communities - mostly in high-poverty areas - which have prompted fear and outrage among school employees and parents.
Our lobbyists will be actively supporting a bill to repeal the so-called "failing schools law" that is driving potential building closures. Sen. Phil Pavlov (R-St. Clair) introduced Senate Bill 27 to eliminate a "chaotic" and "deeply flawed" process that has not improved academic achievement.
"In the six years this law has existed, it has produced more questions than answers and more controversy than solutions," Pavlov said in a statement. "The initial goal was laudable: improvement of the state's worst academically performing schools. Yet the evidence raises serious doubts about whether that has been accomplished."
MEA members can help by contacting local legislators to encourage their support of Pavlov's bill, and by asking parents and other community leaders to get involved.
Adopted in 2010 to compete for federal grant money, the current law requires the Michigan Department of Education to issue an annual top-to-bottom ranking of schools based on test scores. Schools listed in the bottom 5 percent for three consecutive years are at risk of closure.
"It begs the question whether there isn't a better accountability system, one that does more than simply flag high poverty schools," Kalamazoo Public Schools Superintendent Michael Rice told reporters after the list came out with two KPS schools included on it.
Under the looming threat of school closures since last summer, MEA has been working with a number of organizations and stakeholders to fight back against ill-conceived policies that do nothing to serve the needs of children in struggling communities.
The group's strategies will include legal action if school closures are ordered.
"MEA supports adequately funded, high-quality public schools and respect for community control," said MEA General Counsel Mike Shoudy. "Closing neighborhood schools is bad for children, families, and the employees who serve them.
"MEA will take any and all appropriate legal action to protect the educational opportunities of our students and the employment rights of our members." CLICK HERE to read more at mea.org.
Wear Red for Public Ed on Tuesday 1/31/17 to Oppose DeVos
On Tuesday, a U.S. Senate Committee will decide if the full chamber should vote to confirm Betsy DeVos as Education Secretary despite being unqualified and unfit for the job. Join MEA and AFT Michigan members in demonstrating opposition that day-Wear Red for Public Ed on Tuesday, Jan. 31.
DeVos is no stranger to Michigan educators and students who have suffered under policies pushed by her and her billionaire family's contributions to Republican politicians for years. Her support of unaccountable for-profit charter schools in Michigan has harmed children and communities.
Both of Michigan's U.S. Senators, Debbie Stabenow and Gary Peters, have announced plans to vote against her.
"Betsy DeVos and her family have a long record of pushing policies that I believe have seriously undermined public education in Michigan and failed our children," Stabenow said. "Therefore, I cannot support (her)."
In a speech on the Senate floor, Peters pointed out DeVos' only education experience has involved lobbying for the transfer of taxpayer money to private schools and the rapid expansion of charter schools without sufficient accountability to parents and students.
Most charter schools - about 65 percent - fail to significantly outperform traditional public schools in reading outcomes. In Detroit, 70 percent of charter schools are in the bottom quartile of Michigan's schools-not the results we want to replicate at the national level, Peters said.
"I stand with the many educators and parents in Michigan and across this nation when I say: Mrs. DeVos lacks the experience, qualifications and the right vision to oversee our nation's education system," Peters said. "Simply put, our children deserve better."
Wear Red for Public Ed on Tuesday to show we remain united by our common belief in great public schools for all of our students!
STAY UP TO DATE WITH MEA'S ADVOCACY ON THE BEHALF OF PUBLIC EDUCATION AND RETIREES.
CLICK HERE TO SIGN UP TO RECEIVE MEA VOICE AND CAPITOL COMMENTS IN YOUR INBOX.
IT IS MEA-RETIRED ELECTION TIME
If you are one of the over 34,000 Lifetime Members of MEA/NEA-Retired, you have the opportunity to have your voice heard in February by exercising your right and responsibility to vote for delegates to represent you for three years at the MEA and NEA Representative Assemblies. Short biographies of candidates are available online during the voting process.
Short biographies of candidates are available to download - CLICK HERE.
You are welcome to contact me. and if I can do so, I will be happy to answer any questions you may have about candidates. I urge you to be part of this democratic process and vote for those you feel will best serve you as a delegate of this dynamic and important organization.
Dan Rudd, MEA-Retired Secretary/Treasurer, drudd@mea.org, 248-408-9071
VOTING BY PAPER BALLOT: If you are one of the over 200 members who submitted an application for a paper ballot, remember that it must be postmarked by Friday, February 17 in order to be counted.
VOTING ONLINE: Although the window during which you may vote online begins February 6 and runs through February 17, I urge you to vote in the early days of the voting period in case you run into "glitches" in the voting process and need to be issued a paper ballot.
VOTING IN REGIONS 3 AND 13:
Region 3 members will also be electing their representative to the MEA-Retired Board of Directors. Candidates for that position are Elias Chapa and Pamela Schultz.
Region 13 members will also be electing their alternate representative to the MEA-Retired Board of Directors. Candidates for that position are Robin Aslakson and Alice Cunningham.
DIRECTIONS FOR VOTING ONLINE FEB. 6-17
Beginning February 6, 2017, MEA-Retired members may cast their ballots for MEA-Retired delegates to the MEA Representative Assembly, the NEA Representative Assembly, and the NEA-Retired Annual Meeting as well as Region Directors, if needed.
On-line voting will begin at 8 a.m. EST on February 6, 2017 and will continue until 4 p.m.February 17, 2017.
HERE'S HOW: You can use any computer with internet access-your own computer, your neighbor's, your grandchildren's or one at your local library.
2. Follow the Login instructions: first name, last name, last 4 digits of your SS #.
3. Click the "login" button.
4. If your record is found and the polls are open, your ballot will be displayed.
5. Select the people for whom you wish to vote. Clicking the "additional INfo" link next to a ballot item will allow you to read biographical information on the candidate if it has been submitted.
6. Once you have made your selections, click the "Confirm Ballot" button.
7. A preview of your ballot selections will be shown. To modify any of your selections, click the "Modify Ballot" button.
8. To cast your ballot, click the "Cast Ballot" button. Once your ballot is cast, you will see a confirmation page. Click the "Sign Out" link to log out of the system.
If you have any problems using the MEA Online Voting application, please contact the MEA IT Department at 517-337-5440 from 8 a.m.-4 p.m., Monday through Friday. If you call after hours, please leave a voicemail and personnel will return your message as soon as possible.
Download the January 17, 2017 Friday Alert from the Alliance for Retired Americans, including photos and reports of retirees speaking out and standing up for seniors - CLICK HERE.
Calendar
February 13-24, 2017 - Electronic voting for MEA-Retired delegates to the MEA Representative Assembly & delegates to the NEA-Retired Annual Meeting and NEA Representative Assembly
February 23, 2017 - Deadline for MEA scholarship applications
March 13-17, 2017 - MEA scholarship reading
April 4, 2017 - MEA-Retired Annual Meeting
Within your
HEART
keep one, still,
secret spot
where dreams
may go.
-L, Driscoll
HAPPY VALENTINE'S DAY
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