The House passed their version of SB 1040 on June 14—the last day of session—and it was expected that the Senate would do the same. But they didn’t. They adjourned without having taken any action because they didn’t have the votes to pass it. Some Senators still oppose the House’s move to keep new hires in a hybrid pension plan. They would prefer new hires be stripped of any pension and be put into a defined contribution 401(k) plan.
Until July 18, legislators are back in their home district talking to constituents and campaigning to save their seats. It’s a good time to make face-to-face contacts with your legislators and let them know how financially destructive SB 1040 is to current school employees, retirees and future education employees. Tell them using school employees to fix a systemic problem with the retirement system—one they didn’t create—is not fair.
The Senate and House will convene on July 18 and presumably take up SB 1040(H3). The attached highlights the changes adopted by the House and hopefully will provide some clarity around the issues that may be in play once the legislature convenes in July.
School districts may be faced with financial uncertainty because the Senate didn’t pass SB 1040—an unprecedented attack on school employee retirement. When they failed to get the necessary votes, they simply walked away. Now, the supposed savings gained by shifting costs to employees and retirees won’t materialize before the June 30 budget-setting deadline for school districts.
The Legislature reconvenes Tuesday for what could be its final week before their summer break and indications are that SB 1040 – the unprecedented assault on school employee retirement – will be on the agenda.
Many State Representatives are still unsure how they will vote on this bill that attacks the retirement security of future, current and retired school employees across the state. Contact them today! Urge them to vote NO on SB 1040. It’s not a fix for a long-term problem—one that school employees didn’t create. It merely shifts the financial burden from school districts to current and retired school employees who are already paying more than their share. Let them know that taxes on pensions, salary cuts and increased costs for health insurance are robbing you of the ability to support yourself and your family.
SB 1040 saw no action in the House yesterday, but Representatives are meeting at noon today--probably to complete the budget. Regardless, we need to keep the pressure on Representatives to vote NO on the bill that puts the burden of paying for retirement on the backs of current, future and retired school employees.
Contact your Representative today. Let them know that taxes on pensions, salary cuts and increased costs for health insurance and retirement are robbing you of the ability to support yourself and your family.
We've gotten information that the House may be taking up SB 1040 today--the plan to gut school employee retirement. The House made several changes to the Senate version, but some of the most damaging portions are still in place, such as forcing retirees to pay 20 percent of their health care.
It's critical that you contact your Representativesand urge them to voteNOon SB 1040. It's not a fix for a long-term problem--a problem that school employees didn't create. It merely shifts the financial burden from school districts to current and retired school employees who are already paying more than their share.
SB 1040 is on its way to the full House after the House Appropriations Committee reported it out on a party-line vote of 17-10 with some important changes. The H-2 substitute approved today revised the previous H-1 substitute that was discussed by Committee members yesterday.
At today’s House Appropriations Committee meeting, Committee members had their chance to ask questions of representatives from the House Fiscal Agency and Phil Stoddard, Director of Michigan’s Office of Retirement (ORS) about SB 1040 and the H-1 amendment .
Last week, the Senate passed SB 1040 with changes, and this morning the House Appropriations Committee took up the legislation in an “emergency” Monday meeting. After making their own modifications to the bill, the Committee heard testimony from retirees and current and future school employees who described the devastating financial impact SB 1040 would have.