Read the MEA Newsletter about your pension by following this link:
Lies About Your Pension - MEA
Showing posts with label retirement. Show all posts
Showing posts with label retirement. Show all posts
Tuesday, April 5, 2011
Monday, April 4, 2011
Update on retirement and health insurance
From Cheryl Lunde, UniServ Director District 2
Hi folks,
Yesterday I received a legislative update on the retirement and health insurance issues. These are the priority issues for MEA this legislative session and the goal of the topics for the meetings/discussions with legislators. I have copied it into this message for your information:
The Pension
There are no changes to the pension yet. The Governor’s proposed changes to the pension are sitting on the Appropriations Committee’s table. They have taken no action and will not until they can come up with an entire budget that addresses this issue and all the others.
Most observers are predicting late May as the timeframe for the budget to move forward. While the Appropriations and Financial Affairs Committee works on other parts of the budget, it will be important to keep this issue fresh in legislators’ minds. Contacting and re-contacting legislators will be important over the next 6 weeks or so.
Health Insurance
LD 404 and LD 619 have had a hearing are headed to work session on April 1. There is no schedule available for when it will come to the floor.
LD 404 will force the MEA Benefits trust to collect experience rates by district rather than by the whole plan and share it with school districts. Healthier districts can then go shopping for a deal.
The downside – When a healthy district leaves the plan the remaining participants will be charged more because, as a group they are less healthy with the missing district. A catastrophic illness in the small group that leaves will cause huge spikes in rates in subsequent years.
LD 619 will give school districts the option of joining the state plan – subject to negotiations.
The downside – The state plan is currently much more expensive (almost $190.00 per month for a single plan). There would be no control over benefit design and coverage could be reduced to lower costs (like a very high deductible plan).
LD 844 and LD 877 are scheduled for hearing on April 5.
LD 844 will force competitive bidding by districts and could force the breakup of the large MEA Benefits trust pool of participants. It will also allow school districts and municipalities to join the state plan.
The downside – When a healthy district leaves the plan the remaining participants will be charged more because, as a group they are less healthy with the missing district. A catastrophic illness in the small group that leaves will cause huge spikes in rates in subsequent years.
LD 857 will force all school employees into the state plan.
The downside – The state plan is currently much more expensive (almost $190.00 per month for a single plan). There would be no control over benefit design and coverage could be reduced to lower costs (like a very high deductible plan).
Bottom line – The MEA Benefits Trust plans are cost effective, well managed, and are important to our members.
Monday, March 14, 2011
Governor LePage Will Not Take A Pay Cut Under His Proposed Pension Plan
SEA Members -
Below is an article from the Kennebec Journal stating the reality of Governor LePage's plan. Governor LePage will not take a cut in his pension under his new plan, but we will.
This is information I plan on presenting to Amy Volk, State House Representative today at our meeting.
Please send your letters into the Appropriations Committee to defend our pensions and our bargaining unit's right to a good healthcare plan!
Here the email address:
the emails will be forwarded to the 13 Appropriations Committee members who will determine the future of our retirement.
Or real mail your comments to:
Or real mail your comments to:
AFA Committee c/o 5 Statehouse Station, Augusta, ME 04333-0005
Under Gov. Paul LePage's proposed budget, teachers and other state employees will be required to increase their contributions to the pension system, from 7.65 percent of their salary to 9.65 percent.
One public employee currently paying 7.65 percent, however, won't see an increase.
The governor has exempted himself.
While public employees and teachers face this increase, as well as a raise in the retirement age, a freeze on cost-of-living adjustments for current retirees and a 2 percent cap on future cost of living increases, LePage's personal contribution rate to the retirement system will remain the same, which means he'll be paying $21,420 over four years.
If LePage faced the same increase as state employees, it would cost him $5,880 over his term.
Unlike teachers and state employees, however, the size of the governor's pension doesn't depend on how long he pays into the system. As soon as he leaves office, he'll begin receiving a three-eighths of his salary, which works out to $26,600 annually.
For comparison, a Maine teacher would have to work for more than 25 years to receive this level of benefits.
Confidential employees, those that are not represented under union collective bargaining, also are not seeing their salary contributions increased to the same rate. They'll continue to pay just 3.65 percent of their salary to the pension fund.
At the same time that most employees are to be forced to increase their contributions, the state will reduce the amount it pays into the retirement fund.
Maine currently contributes 5.5 percent of an employee's salary, less than the 6.2 percent it would have to pay if these workers were enrolled in Social Security rather than the more efficient state pension system.
It is difficult, then, to take LePage seriously when he says, "I know some teachers and retirees are struggling, but we need honest and shared solutions to solve our pension problem," as he did last week, or when his spokesperson talked about "shared sacrifices" as they announced the budget.
LePage's budget shows the same lack of fairness on a larger scale as well. Last week, LePage's commissioner of the Department of Administrative and Financial Services, Sawin Millett, explained that the money raised from these payment increases on teachers and public employees isn't targeted to shore up the state's pension system, but will instead pay for other budget priorities, including $203 million in tax cuts.
Maine's wealthiest residents will benefit the most from these cuts. One percent of households, those earning more than $360,000, will see their income taxes go down by $2,700. The budget also would double the size of estates that are exempt from the estate tax from $1 million to $2 million, a provision that would benefit only about 550 Maine families and cost the rest of us $30 million.
Overall, about half of the benefits of LePage's proposed tax cuts would go to Maine's richest 10 percent.
Amplifying this vast shift in money toward those who need it the least, LePage's budget also would cut funding for the Maine's property tax refund program, which helps families keep their homes, and roll back prescription drug coverage for seniors and health coverage for working families.
Compared to the size and scope of these misplaced priorities, LePage exempting himself from having to pay the same increase as other public employees doesn't seem like that big of a deal.
It does show, however, just how deaf the governor is on this issue. He could have made political hay by trumpeting the fact that he will be suffering right along with the teachers of Maine. That kind of anecdote might have helped people to ignore the larger unfairness of his budget.
And, in the end, it really is a question of fundamental fairness. These public employees have made contracts to serve the people of Maine in exchange for compensation and benefits that all parties agreed on. State employees earn less than their private-sector counterparts earn, and part of the way Maine is still able to attract dedicated public servants is by letting them know that their retirement savings will be kept safe and will guarantee them a reasonable retirement.
Over the past eight years, Maine's teachers and public employees already have been subject to more than $150 million in takebacks to their wages and benefits.
For LePage to go after their pensions again in order to fund tax cuts for the wealthy isn't right, and for him to exempt himself from the same cuts is both bad politics and bad policy.
Mike Tipping is a political junkie. He writes the Tipping Point blog on Maine politics at DownEast.com, his own blog at MainePolitics.net and works for the Maine People's Alliance and the Maine People's Resource Center. He's @miketipping on Twitter.
Send your email today, don't wait another minute!
Thank you!
Crystal Goodrich
President SEA
Beginning of article..................................................................................
MIKE TIPPING: LePage exempts own pension from budget cutbacks
Mike Tipping
Under Gov. Paul LePage's proposed budget, teachers and other state employees will be required to increase their contributions to the pension system, from 7.65 percent of their salary to 9.65 percent.
One public employee currently paying 7.65 percent, however, won't see an increase.
The governor has exempted himself.
While public employees and teachers face this increase, as well as a raise in the retirement age, a freeze on cost-of-living adjustments for current retirees and a 2 percent cap on future cost of living increases, LePage's personal contribution rate to the retirement system will remain the same, which means he'll be paying $21,420 over four years.
If LePage faced the same increase as state employees, it would cost him $5,880 over his term.
Unlike teachers and state employees, however, the size of the governor's pension doesn't depend on how long he pays into the system. As soon as he leaves office, he'll begin receiving a three-eighths of his salary, which works out to $26,600 annually.
For comparison, a Maine teacher would have to work for more than 25 years to receive this level of benefits.
Confidential employees, those that are not represented under union collective bargaining, also are not seeing their salary contributions increased to the same rate. They'll continue to pay just 3.65 percent of their salary to the pension fund.
At the same time that most employees are to be forced to increase their contributions, the state will reduce the amount it pays into the retirement fund.
Maine currently contributes 5.5 percent of an employee's salary, less than the 6.2 percent it would have to pay if these workers were enrolled in Social Security rather than the more efficient state pension system.
It is difficult, then, to take LePage seriously when he says, "I know some teachers and retirees are struggling, but we need honest and shared solutions to solve our pension problem," as he did last week, or when his spokesperson talked about "shared sacrifices" as they announced the budget.
LePage's budget shows the same lack of fairness on a larger scale as well. Last week, LePage's commissioner of the Department of Administrative and Financial Services, Sawin Millett, explained that the money raised from these payment increases on teachers and public employees isn't targeted to shore up the state's pension system, but will instead pay for other budget priorities, including $203 million in tax cuts.
Maine's wealthiest residents will benefit the most from these cuts. One percent of households, those earning more than $360,000, will see their income taxes go down by $2,700. The budget also would double the size of estates that are exempt from the estate tax from $1 million to $2 million, a provision that would benefit only about 550 Maine families and cost the rest of us $30 million.
Overall, about half of the benefits of LePage's proposed tax cuts would go to Maine's richest 10 percent.
Amplifying this vast shift in money toward those who need it the least, LePage's budget also would cut funding for the Maine's property tax refund program, which helps families keep their homes, and roll back prescription drug coverage for seniors and health coverage for working families.
Compared to the size and scope of these misplaced priorities, LePage exempting himself from having to pay the same increase as other public employees doesn't seem like that big of a deal.
It does show, however, just how deaf the governor is on this issue. He could have made political hay by trumpeting the fact that he will be suffering right along with the teachers of Maine. That kind of anecdote might have helped people to ignore the larger unfairness of his budget.
And, in the end, it really is a question of fundamental fairness. These public employees have made contracts to serve the people of Maine in exchange for compensation and benefits that all parties agreed on. State employees earn less than their private-sector counterparts earn, and part of the way Maine is still able to attract dedicated public servants is by letting them know that their retirement savings will be kept safe and will guarantee them a reasonable retirement.
Over the past eight years, Maine's teachers and public employees already have been subject to more than $150 million in takebacks to their wages and benefits.
For LePage to go after their pensions again in order to fund tax cuts for the wealthy isn't right, and for him to exempt himself from the same cuts is both bad politics and bad policy.
Mike Tipping is a political junkie. He writes the Tipping Point blog on Maine politics at DownEast.com, his own blog at MainePolitics.net and works for the Maine People's Alliance and the Maine People's Resource Center. He's @miketipping on Twitter.
Sunday, March 13, 2011
Who Contributes To State Employee Pensions?
Below is a link to an article, a very compelling argument for keeping State Retirement for retirees. It is written by a small online news non-profit called Common Dreams.org.
http://www.commondreams.org/view/2011/03/09-9
SEA Members will be meeting with Amy Volk (House Representative for a portion of Scarborough) on Monday, March 14 to discuss our views and ask her about her views on the proposed cuts of Maine State Retirement benefits. We will be discussing the impact these cuts would have on our income as State Employees and on our retirement benefits. I will blog following our conversation to keep you informed.
- Crystal Goodrich
SEA President
http://www.commondreams.org/view/2011/03/09-9
SEA Members will be meeting with Amy Volk (House Representative for a portion of Scarborough) on Monday, March 14 to discuss our views and ask her about her views on the proposed cuts of Maine State Retirement benefits. We will be discussing the impact these cuts would have on our income as State Employees and on our retirement benefits. I will blog following our conversation to keep you informed.
- Crystal Goodrich
SEA President
Monday, March 7, 2011
MEA Report: Retirment Hearing Packed
Please follow this link to read the MEA report regarding the Maine State Retirement hearing in Augusta on Friday 3/4/2011.
Thursday, March 3, 2011
Retirement Raid March 4th, 2011
Hello SEA Members,
Many of us want to express our opinions about the proposed retirement cuts, but we cannot be at the hearing in Augusta on Friday, March 4.
Here is what you can do!
Send an e-mail to:
Carol.Tompkins@legislature.maine.gov and she will forward your comments to the 13 committee members.
Or mail your comments to: AFA Committee c/o 5 Statehouse Station, Augusta, ME 04333-0005
Thank you for making your voice heard. SEA is organizing a committee to handle the communications related to the retirement issue. If you would like to help this committee please e-mail seamaine@gmail.com and I will get you connected to the other people involved.
Thank you!
Crystal Goodrich, SEA President
Many of us want to express our opinions about the proposed retirement cuts, but we cannot be at the hearing in Augusta on Friday, March 4.
Here is what you can do!
Send an e-mail to:
Carol.Tompkins@legislature.maine.gov and she will forward your comments to the 13 committee members.
Or mail your comments to: AFA Committee c/o 5 Statehouse Station, Augusta, ME 04333-0005
Thank you for making your voice heard. SEA is organizing a committee to handle the communications related to the retirement issue. If you would like to help this committee please e-mail seamaine@gmail.com and I will get you connected to the other people involved.
Thank you!
Crystal Goodrich, SEA President
Monday, February 14, 2011
Governor Proposes Rollbacks in Retirement
For a complete newsletter report from MEA regarding the proposed rollbacks in retirement benefits please
The following is from MEA Communications 2/14/2011
"While it would be easy to engage in debate over Governor LePage's proposed budget, MEA is taking a more measured approach at the moment. Here's where we are and why …
1.) The details of the governor's draft budget are under review.We need to know the full extent of what is actually being proposed before we offer a detailed reaction.
2.) We also know that any governor's budget is just that; it's the governor's proposed budget. The Legislature's Appropriations Committee will have a great deal of influence in shaping the final budget that is voted on by the full legislature and sent to the governor for his signature. While the governor's budget does contain his priorities and views on important public policy issues, the final budget will ultimately contain a series of compromises that will be worked out after hearing from many different constituencies…including MEA members from across the state!
3.) Here is what we can say at this point in the process:
a. MEA believes that the Governor's proposed changes to the Maine Public Employee Retirement System are unfair and unacceptable. Teachers and state employees who retire under the Maine Public Employee Retirement System receive only a very modest retirement income and are not eligible for Social Security benefits.b. MEA is ready to be part of the solution to address MePERS's unfunded actuarial liability (UAL). But before we jump to solutions, we want to hear from the experts at the MePERS who have been closely studying this important issue for the past several months and have prepared a report that will be presented to the legislature's Appropriations Committee later this month.c. Once we have solid information concerning the various alternatives that are available to address the UAL, then MEA will engage in a dialogue regarding solutions that are fair for taxpayers and educators.
In the meantime, members and local affiliates should contact local legislators and begin a discussion about the issues we face.
From MEA Communications.
Follow the link at the beginning of this blog to find out how to contact your local legislators.
Crystal Goodrich, SEA President
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