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MEA has compiled list of frequently asked questions MEA members have posed related to the legislative action on May 13 regarding an early retirement incentive and school employee pension changes. The answers below are meant to provide you with what MEA believes to be the latest and most accurate information; however, for your specific situation, you should seek guidance from the Office of Retirement Services (ORS) directly.

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

May 14, 2010 - 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.

May 14, 2010: The following statement can be attributed to MEA President Iris K. Salters:

“The retirement legislation passed this morning by Michigan Senate and House lawmakers is an ill-conceived plan that will not deliver savings to cash-strapped school districts. The meager ‘incentive’ included in the bill will fail to entice anyone not already planning to retire to do so. In fact, it will cost school districts far more money than any estimated savings because the numbers of potential retirees who might take advantage is grossly exaggerated. Read more.

CALL YOUR LEGISLATORS NOW – TELL THEM TO VOTE NO

May 13, 2010 - Lawmakers have apparently reached a deal on a retirement plan that would hurt thousands of school employees.

At this time, MEA members are urged to IMMEDIATELY contact their state legislators to urge them to vote NO on Senate Bill 1227. Please also tell them to vote NO on House Bill 4073, legislation that would create an insurance trust.

A vote is expected late tonight or during the night, according to legislative sources and media reports.

The “compromise” includes:

A 1.6 percent multiplier (up from the standard 1.5 percent) for those currently eligible to retire, if they retire this summer.
A 1.55 percent multiplier for those who are not currently eligible but who meet the rule of 80 – that is, their age and years of service total 80 – if they retire this summer.
All who do not retire will pay an extra 3 percent of salary above what they currently pay toward retirement and this money will be put in a trust set up by House Bill 4073.
House Bill 4073 will be amended to indicate that NO ONE IS GUARANTEED HEALTH BENEFITS IN RETIREMENT.
Employees hired after July 1 will be placed in an inferior “hybrid” retirement plan proposed by Gov. Jennifer Granholm.

Here’s why your legislators should vote NO on the conference report for Senate Bill 1227 and on House Bill 4073:

This plan will balance the school aid budget on the backs of employees. There will still be massive cuts in state aid to schools next year.
The continued erosion of the number of employees participating in the system because of outsourcing and privatization and the exclusion of charter school employees will continue to drive up the contribution rate in future years.
The proposal places future employees in a vastly inferior retirement plan and forces them to pay almost 10 percent of their salary to that plan.
All school employees will be required to pay a tax of 3 percent, which totals almost $2,600 a year for experienced teachers

PLEASE ACT NOW! Don’t wait! Your legislators need to hear from you.

Reminder: Many school districts have policies about communicating with legislators on school time and equipment, so wait until you are away from school to contact your legislators or use your personal cell phone when you are off duty.

Prospective retirees should wait to notify district, if possible

May 10, 2010 - Even as work continues in Lansing to secure a reasonable compromise on Senate Bill 1227, the clock is ticking for thousands of public school employees mulling retirement.

Negotiations continue on Senate Bill 1227, which would provide a small early retirement incentive while ensuring that employees who continue working get a fair deal. If you're considering retiring this year, you may want to wait to see whether lawmakers muster enough support for the retirement bill. If you haven't done so already, check with your local union president or supervisor to find out what the deadline is for you to notify your district of retirement.

Please contact your senator and urge him/her to work toward real solutions that offer schools long-term savings and stability. Urge them to pass the House version of SB 1227 supported by MEA.

May 6, 2010 - Work continues in Lansing to secure a reasonable compromise on Senate Bill 1227, legislation that would provide a small early retirement incentive while ensuring that employees who continue working get a fair deal.

As of late Wednesday, Senate negotiators seemed to be pursuing a take-it-or-leave-it strategy that would jeopardize billions of dollars in proposed savings to the system over the next 10 years that the House version of the bill offers.

Please contact your senator and urge him/her to work toward real solutions that offer schools long-term savings and stability. Urge them to pass the MEA-supported House version of Senate Bill 1227.

Keep calling senators to urge passage of House version of SB 1227

May 5, 2010 - Contrary to the previously reported Tuesday “deadline” for a deal on the pending retirement legislation, talks are continuing today between the House and Senate about their differing versions of SB 1227. Major obstacles still stand in the way of any agreement. Please continue calling and emailing your state senators – urge them to pass the MEA-supported House version of SB 1227, which provides a reasonable early retirement incentive while ensuring that employees who continue working get a fair deal.

Granholm says tomorrow is deadline on SB 1227

Gov. Granholm has said she will "pull the plug" on any school employee retirement legislation if it is not completed by tomorrow (Tuesday, May 4). The House and Senate are continuing to negotiate in conference committee about their differing versions of Senate Bill 1227 -- MEA remains in support of the House version, which provides a reasonable early retirement incentive while ensuring that employees who continue working get a fair deal. Now is the time to contact your state senators and urge them to approve the House version of SB 1227.

Negotiations between the House and Senate continue on their differing versions of SB 1227. Neither chamber took any formal action today before they adjourned until Tuesday – that is the earliest that any new action might take place.

Continue calling your legislators and urging them to approve the House version of SB 1227.

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

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.

MEA members are urged to contact members of the conference committee and their own legislators to urge adoption of the House version of SB 1227.

Bill will NOT solve Michigan’s budget crisis

April 14, 2010 - Legislation to compel thousands of public employees -- including those who work in education -- to retire by Oct. 1 is headed for the state House following a Wednesday vote in the Senate.

The Senate passed Senate Bill 1227, which would require those who don't retire by October to pay as much as 3 percent more of their salary toward the pension system.

Senate Bill 1227 does not include an increased multiplier, as originally proposed by Gov. Jennifer Granholm. The bill passed with 21 Republican votes and a lone Democratic vote -- one Republican voted against the bill, along with the rest of the Democrats.

This legislation will not solve Michigan's budget crisis. In fact, lawmakers are considering several additional measures -- including proposals to require competitive bids for custodial and food services in schools and legislation dealing with health insurance -- because they know that forcing school employees to pay more toward retirement will not balance the state budget. (Note: None of those other bills saw any movement today in the Senate, so continue contacting your senators urging their opposition to SBs 1074, 1046 and 1047.)

Enough is enough!

Call your state representative and tell him or her to vote NO on Senate Bill 1227.

Support staff jobs, health insurance also under attack
Meanwhile, the Senate is considering Senate Bill 1074, which would require competitive bids for custodial and food services, and Senate Bill 1046, which would require public employees to pay 20 percent of the cost of their health plan. The Senate could yet vote on these bills this week, so please contact your senator now to urge a NO vote on these proposals!

A thank you message from President Salters

March 31, 2010 - Last week, our leaders in Lansing got a taste of what it's like when thousands of school employees stand together to fight for what's right in public education.

MEA is being widely credited for stalling the retirement legislation that would have forced thousands of school employees to retire without any positive incentives, while leaving thousands more with lesser retirement benefits for their future.

None of us--leaders or staff--can take credit for this victory alone--your efforts and those of your colleagues across the state are what won the day last week. You stood up and acted collectively, telling your legislators to stop this legislation from becoming law. You showed the political power of MEA's 155,000 members. We stood with one voice and told them, "Enough is Enough!"

But we are not done. We've fought this attack off for now--but when the Legislature comes back in two weeks, legislators will be back to their old tricks.

We must continue to work together through our Enough is Enough campaign to ensure that the attacks on school employees stop--and that we secure adequate, equitable, stable funding for public education.

Thank you for your efforts last week--and thank you in advance for your continued commitment to the cause.

Sincerely,

Iris

Calls are having impact – keep the pressure on

March 25, 2010 - A vote is expected today by the full Senate on an amended version of SB 1227, which would enact Gov. Granholm’s retirement proposals WITHOUT any increase in the multiplier to encourage school employees to retire.

Thousands of calls from MEA members yesterday are helping to influence opinions downtown – while the bill passed out of a Republican-controlled committee, the new SB 1227’s fate on the Senate floor is very much in doubt as five senators remain on the fence.

Read the bills – Senate Bill 1226, Senate Bill 1227, House Bill 5953, House Bill 5954

March 12, 2010 - Yesterday afternoon, Gov. Granholm's retirement proposals were introduced as bills, the first step in the legislative process that could lead to them becoming law. Read more.

Call your state senator and representative & the Governor today

On Jan. 29, Gov. Jennifer Granholm announced yet another attack on public workers, this time calling on school employees to pay even more out of pocket for retirement and pushing veteran teachers and other educators to retire before they're ready. This "reform" is really just another gimmick that won't actually fix the state's antiquated tax structure and broken school funding system.

Updated: June 10, 2010 5:43 PM

2009-10 State Budget crisis quick links:

A Better Michigan Future budget campaign site

Make your voice heard on the MEA Votes Blog or MEA's Facebook page

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