Home
News
  AFT Michigan Forum
Retirement Planning
Legislative
  Lansing Update
Retiree Benefits
Links
  AFT Featured Sites
Contact us
Join

Governor Granholm's Pension Reform Proposal

AFT Michigan and other public education groups are reviewing and discussing the governor's proposed pension and retirement reforms. The major components of the plan include:

1. A 3% increase in the amount that all school employees including Basic Plan members contribute to MPSERS. Employees hired after Sept. 2008 will have a .9% increase.
   
   
2. After Oct. 1, 2010 a 30 year cap on service time used to calculate Pensions for all employees who currently have fewer than 30 years of service time, excluding purchased service time. Employees would receive benefits from a defined contribution plan for years beyond 30.
   
   
3. Eliminate MPSERS subsidy for dental and vision coverage for all who retire after Oct. 1, 2010.
   
   
4. New hires would have a hybrid pension system that includes:
       a. A defined benefit plan which increases the final compensation average
           from 3 years to 9 years.
       b. A defined contribution plan based on employer/employee Contributions
       c. Raising the minimum retirement age to 65
   
   
5. A retirement incentive for all eligible employees who retire before a date specified in the bill which would increase the pension multiplier from 1.5 to 1.6.

The Governor's proposed deadline for the effective implementation of the proposal is April l. As soon as these proposed "reforms" are put into a formal bill and introduced into the legislature, school employees and retirees will be asked to express their concerns to their state representatives and senators.

Please remember that at this time, the Governor's proposal is just that, a proposal that must be passed by both houses of the legislature and can be amended along the way.

Mary Ellen Riordan

Medicare Advantage is phased out by end of 2009 and original Medicare returns.

This means that you will need to return to the two card system; your healthcare card and your Medicare card. The good news is that the Social Security Administration has agreed to send new Medicare cards to all MPSERS retirees that qualify. The cards are expected to be sent out in December. I you do not receive one and can not locate your old card you may call 1.800.772.1213.

Medicare Part D remains in place for all Medicare members. There are no changes to dental, vision or hearing aid benefits. And, there will be no Social Security cost of living adjustment in 2010.

The following impact Blue Cross Blue Shield of Michigan PPO subscribers ONLY. HMO contracts (Blue Cross Network, Health Alliance Plan and Priority Health plans) are not included.

$10 prescription drug premium added per month per contract

Non-formulary drugs NOT covered.
Retiree pays 100% of cost for non-formulary drug when generic is available. Only about 2% will be affected and each will be personally notified. Medical exceptions may apply.

Annual deductible and copayment maximums:
Deductible $400 ($250 in 2009)
Medical coinsurance maximum $700 ($500 in 2009)
Pharmacy coinsurance maximum $1,000 ($800 in 2009)

Emergency Room Copayment
$50 per visit, fee waived if admitted directly

Mental Health Benefit
90% coverage for outpatient and physician visits (50% in 2009)

Hospice benefit
Expanded to 12 months verses 6 months in 2009

New prescription drug benefits provider.
Catalyst replaces MEDCO for mail order and BCBSM for local pharmacies. The transition is expected to be seamless as programs are similar. You will be getting a new card before January 1, 2010

"Healthy Living" program to lower out-of-pocket costs.
Non-Medicare retirees complete a Health Risk Assessment form and return it to BCBSM by December 1, 2009 (NO EXCEPTIONS) which qualify them for $100 off maximum deductible, medical coinsurance and pharmacy coinsurance.

This is an annual requirement. Medicare members will be required to complete the form in 2011. It will be mailed or made available online in September of each year here after.

To avoid additional cost
Consider an HMO option. Visit the plan comparison chart at:
http://www.michigan.gov/documents/R379C_135126_7.pdf

You may qualify for Medicare assistance premiums for low income members. If your income is 135% above the federal poverty level you may qualify depending on your other assets. Call 800.772.1213 for further information.
(Based on 2008 guidelines, 135% for one person is an annual income of $14,040.00 and $18,900.00 for a family of two. 2009 guidelines will likely not be available until Mid to late January 2010.)

From MPSERS - Lansing

• Letters were sent to all retirees concerning the BCBSM Living Well Initiative. You will soon be receiving a second letter which will provide information about the new prescription drugs provider, Catalyst.
  
  
• Medicare participants will be receiving a new Medicare card by January 1, 2010 or before.
  
  
• There are no changes to the current HMO plans, however, word has it there could be an additional three more options soon. By mid-December an updated summary of benefits letter will be sent to all members and available on the MPSERS web site.
  
  
• The Social Security Administration will not be issuing a cost of living allowance for 2010. However the good news is that the SSA's new ruling can not allow your check to be less than this year, meaning those in Medicare will not pay more for insurance, new Medicare members will.

NEW COALITION: SENIORS TO SENIORS

ORS TO CONDUCT HEARINGS ON HEALTH CARE CHANGES

BCBS SENDS SECOND VERIFICATION LETTERS

ORS OFFICE IMPACTED BY GOVERNOR'S FURLOUGH ORDER