House passes, Senate rejects MEA-supported pension reforms

SB 1227 goes to conference committee next -- make your voice heard in support of House version

April 27, 2010 -- On Tuesday, the state House passed its version of pension reform legislation that would offer an early retirement incentive without any of Gov. Granholm’s penalties for continuing to work. As reported by MEA last week, the House version of SB 1227 also would ensure that remaining school employees who pay an additional 3 percent into the retirement system get value for their contributions in the form of secure retirement health benefits.

MEA supported this version of SB 1227, which passed on a vote of 59-45.  Shortly after the House’s action, the Senate voted to reject the changes to the bill -- that vote started the conference committee process, wherein representatives from the two chambers meet to iron out the significant differences in the House and Senate versions of the bill.

Members of the conference committee include Rep. Mark Meadows (D-East Lansing), Rep. Martin Griffin (D-Jackson), Rep. James Bolger (R-Marshall), Sen. Mark Jansen (R-Grand Rapids), Sen. Judson Gilbert (R-Algonac), and Sen. Deborah Cherry (D-Burton).  At this time, there is not a meeting scheduled for this conference committee,  but MEA will keep you informed of any developments.

MEA members are urged to contact these legislators (as well as their own state representative and senator) and urge them to adopt the House version of SB 1227.

The House’s changes won’t force anyone to retire who isn’t ready, but will open up thousands of jobs for unemployed educators and new college graduates. 

It also removes significant penalties for future retirees, including the loss of dental and vision insurance and artificial limits on accrual of service credit. 

And, while it does call for school employees to pay an additional 3 percent of their salary into the retirement system, those funds would go directly to pay the costs of retiree health benefits, ensuring those benefits are there for those employees when they retire.

Please note: MEA members who are eligible for retirement are advised to wait to submit any paperwork until the Legislature and Gov. Jennifer Granholm pass a final bill.

April 27, 2010