Retirement bill passes despite intense opposition

Time to stand up and say “Enough is Enough!”

Despite intense opposition from MEA members across the state, lawmakers passed legislation early this morning to push thousands of school employees to retire this year with a meager incentive, while those who remain working will be subject to a new tax on school employees.

All public school employees who remain on the job will be forced to pay 3 percent more of their salary into retirement – specifically, the money will go into a trust created by legislation to pay for retirement health benefits.  However, the bill actually states that NO ONE is guaranteed those health benefits in retirement.

What’s more, the ill-conceived plan may not generate projected savings because the incentive – using a 1.6 percent multiplier for those who retire this year, instead of the usual 1.5 percent multiplier – is so small.

“Unfortunately, because of the Legislature’s shortsightedness, school districts across Michigan will still face massive cuts and student learning environments will continue to suffer layoffs, larger class sizes and the elimination of key programs that generate proven results,” said MEA President Iris K. Salters.

Here’s quick overview of the conference committee report on Senate Bill 1227 and House Bill 4073, which both the House and Senate passed:

• Those currently eligible to retire will receive a 1.6 percent multiplier, if they apply to retire by June 11.
• Those who are not currently eligible but whose age plus years of service total 80 will receive a 1.55 percent multiplier, if they retire this summer.
• All who continue working will pay 3 percent more of their salary toward retirement. This money will go into a trust established by House Bill 4073.
• Employees hired after July 1 will be placed in an inferior “hybrid” pension, which will provide a combined defined benefit and defined contribution plan.

These changes do not guarantee any savings for schools, nor do they guarantee that the state will not further cut state aid to districts.

“Because our lawmakers cannot focus on finding balanced solutions to the school funding crisis, the Michigan Education Association is calling on citizens to rise up and demand real changes, including closing tax loopholes that do not produce jobs, eliminating inefficiencies in government contracts and ensuring stable, adequate and equitable resources for all public schools,” Salters said. “It’s time for all of us to say Enough is Enough.”

MEA members are urged to contact their lawmakers and to plan on attending upcoming rallies on May 24 (in local communities) and June 24 (at the Capitol).

If your representative or senate voted against Senate Bill 1227, thank him/her for opposing efforts to try to balance the budget on the backs of school employees.

If your legislator voted for SB 1227, contact him/her and tell them what this legislation will mean for you and your family.  Tell them exactly how much that 3 percent will cost you.  And, if they’re seeking election later this year, remind them that you will not forget this vote when you go to the polls.

The vote on SB 1227 was as follows:

SENATE:
YES (21) - Allen, Birkholz, Bishop, Cassis, Cropsey, Garcia, George, Gilbert, Jelinek, Kahn, Kuipers, McManus, Nofs, Pappageorge, Richardville, Sanborn, Stamas, Switalski (D), Thomas (D), & VanWoerkom.

NO (14) - Anderson, Barcia, Brater, Cherry, Clark-Coleman, Clarke, Gleason, Hardiman (R), Jacobs, Jansen (R), Olshove, Prusi, Scott, Whitmer.

NOT VOTING (3) - Basham, Hunter, Patterson

HOUSE:
YES (56) - Agema, Amash, Angerer (D), Ball, Bolger, Booher, Byrnes (D), Calley, Caul, Clemente (D), Constan (D), Corriveau (D), Crawford, Daley, Denby, DeShazor, Dillon (D), Elesenhiemer,  Espinoza (D), Genetski, Griffin (D), Green, Haines, Hansen, Haveman, Hildenbrand, Horn, Johnson (D), Jones Rick, Knollenberg, Kowall, Kurtz, Lori, Lund, Marleau, McMillan, Meedhoff, Melton (D), Meltzer, Moss, Nathan (D), Nerat (D), Opsommer, Pavlov,  Proos, Rogers, Schmidt Wayne, Schuitmaker, Scott Paul, Scripps (D), Sheltrown (D), Slezak (D), Spade (D), Stamas, Tyler, Walsh.

NO (45) - Barnett, Bauer, Bennett, Bledsoe, Brown Lisa, Brown Terry, Byrum, Dean, Donigan, Durhall, Ebli, Geiss, Gonzales, Gregory, Haase, Hammel, Haugh, Huckleberry, Jackson, Jones Robert, Kandrevas, Kennedy, Lahti, LeBlanc, Lindberg, Lipton, Liss, Mayes, McDowell, Meadows, Polidori, Roberts, Rocca (R), Schmidt Roy, Scott Betti, Segal, Slavens, Smith, Stanley, Switalski, Tlaib, Valentine, Warren, Womack, Young.

NOT VOTING (7) - Cushingberry, Leland, Lemmons, Miller, Moore, Neumann, Pearce