Attack on School Employees

House Launches Attack on School Employee Pensions and Health Care
Education Committee Approves House Bill 4947

The House Committee on Education has approved House Bill 4947, introduced by Representative Brian Palmer (R-Romeo), that would drastically change retiree pension and health care benefits for Michigan's school and community college employees.

It's clear that the pension and retiree health benefits under HB 4947 would be substantially less than current benefits for school employees and their families.

Please send this letter to your state representative today and ask them to vote "NO" on this attack on school employees.

Sample Letter for Campaign

Subject: Please vote "NO" on House Bill 4947

Dear [ Decision Maker ] ,

I am asking you to vote "NO" on House Bill 4947 when it comes up for a vote. This bill is an attack on the pension and retiree health care benefits for school and community college employees.

These workers deserve to retire with dignity after years of service to their communities. Under the provisions of HB 4947, the quality of their retirement will depend on the ups and downs of the stock market. Many retired school employees would also loose their health care benefits under the provisions of HB 4947. Others would no longer be able to afford their share of the premiums.

Without a strong defined benefit plans, our schools and community colleges will have a more difficult time recruiting new hires, especially in fields such as teaching math, science and special education where there are already difficulties.

For these reasons, I ask you to vote "NO" on House Bill 4947.

Thank you.

Sincerely,

Campaign Launched:
July 06, 2005

Background Information

House Launches Attack on School Employee Pensions and Health Care
Education Committee Approves House Bill 4947

The House Committee on Education has approved House Bill 4947, introduced by Representative Brian Palmer (R-Romeo), that would place all newly hired employees of public schools and community colleges into a defined contribution retirement system instead of the traditional defined benefit system that is enjoyed by current school employees.

In addition, HB 4947 would require that an employee work full-time for 20 years before receiving health care, dental, vision, and hearing benefits in retirement. At 20 years, the system would pay for about 60% of the cost of the health care plan with the employee picking up the rest of the cost. An employee would have to work 30 years before the system would pay the maximum of 90% of the cost.

The current defined benefit retirement system pays school employees a guaranteed monthly pension for as long as they live. Under the proposed system, school employees will be vulnerable to the ups and downs of the stock market. If the market goes through a bad spell, a retiree may not have enough money to live in dignity during their retirement years. Someone who is fortunate to live a long time could outlive their money.

The changes to the health care benefits would make it very difficult for part-time school support staff, such as bus drivers, cafeteria workers or maintenance employees to qualify for health care benefits in retirement. Others may qualify for benefits but may not be able to afford to pay their share of the premium.

Clearly the pension and retiree health benefits under HB 4947 would be substantially less than current benefits for school employees and their families.

The full House could act on this bill sometime during the summer. If it doesn’t act during the summer, it will definitely take up the bill when the House returns to full time session in September.