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LANSING UPDATE

From: Ellen Hoekstra
Legislative Update
April 6, 2012

RETIREE ALERT

SB 1040 PROPOSES STEEP HIKE YOUR PREMIUM COSTS

If you are a retiree who receives health care benefits from MPSERS, you have every right to be alarmed. SB 1040 proposes a substantial increase in what you currently pay for your retiree health benefits. In some cases, it nearly doubles it. For pre-Medicare retirees, the amount that will be deducted from your pension every month would increase as follows depending on your coverage:

• JUST YOURSELF: DEDUCTION WOULD INCREASE FROM $99.90 TO $129.04
  
• SELF AND SPOUSE: DEDUCTION WOULD INCREASE FROM $155.25 TO $239.74
  
• SELF AND CHILD(REN): DECUTION WOULD INCREASE FROM $124.25 TO $177.38
• SELF, SPOUSE & CHILD: DEDUCTION WOULD INCREASE FROM $179.59 TO $288.43

These amounts do not even include the additional $12 per month that those in the Master Health Care Plan pay for prescription drug coverage. And they fail to reflect the increases in costs that have happened nearly annually, such as the $100 annual increases this year in both your medical coinsurance maximums and your deductibles! It is unprecedented for legislators to change laws regarding retirement benefits in ways that affect people who have already retired and are on fixed incomes. Yet, that is what SB 1040 does. If it passes as introduced, your monthly pensions will see a big bite taken out of them.

If this proposal concerns you, come to Lansing on Wednesday, April 11, where the Senate Appropriations Subcommittee on Retirement is taking testimony on SB 1040, a bill that would make this and many changes that will negatively affect school employees who have yet to retire. The Subcommittee meets from 10-12:00 and from 1:00 onwards in the Senate Hearing Room of the Boji Tower, 124 West Allegan Street, Lansing - just across the street from the State Capitol.

At this hearing, we expect much of the morning will be taken up with staff overview and questions from the Subcommittee to the Office of Retirement Services. Then testimony is opened up to the public. Anyone can testify - all you have to do is fill out a card with your name and address on it. In general, people who testify are asked to keep their comments under 5 minutes. If you would like to tell the subcommittee how SB 1040 will affect you and your family, all you have to do is show up and request a chance to talk. Or, just show up and help AFT Michigan fill the room with active members and retirees, all having the same message: IT'S NOT FAIR!

And...don't forget to let your state senator and state representative know how you feel about SB 1040. Remind them that your pensions are now subject to state income tax, so increasing what you have to pay for health benefits is NOT FAIR!

Not sure of how to contact your state legislators? Go to the "Get Active" section of the AFT Michigan website and click on 'Find your Elected Officials', or go to www.legislature.mi.gov

Ellen Hoekstra
Capitol Services, Inc.
January 26, 2012