PENSIONS UNDER ATTACK!

Nov 29

Attention CAEA Members:  Your Urgent Help is Needed.  The Michigan Legislature wants rush pension reform that would drastically ruin your pensions during the lame duck session of the Legislature.

The following message was sent to all Local Presidents this afternoon:

While the House and Governor’s intentions on pension reform in lame duck are less clear, Senate leaders have now publicly stated they’re going to attempt to pass SB 102 before year’s end, which would move all new school hires into a defined contribution, 401(k)-style retirement plan. 

Not only would this have a huge impact on new hires, but cutting off funding into the pension threatens to destabilize the system for current employees and retirees as well – everyone has a stake in this fight.

For his part, Gov. Snyder and his administration have been opposed to this change thus far, with a PowerPoint presentation making the rounds with lawmakers and superintendents saying that the total extra cost of this change will be $24 billion dollars over 30 years – MEA did a story about that last week via Capitol Comments, the website and Facebook.

That PowerPoint provides us our message with lawmakers that members and the public can share: State budget experts are saying this bill will cost taxpayers an extra $24 billion — where will that money come from? Tax increases? Or cuts to my child’s education?

For 2017 alone, closing the pension system would cost an extra $1.2 billion – that equates to a cut of $820 per student!

We need members to start contacting lawmakers in both the Senate and House, ask those questions, and urge them to vote NO on SB 102 or any other changes to school employee pensions. Lansing made significant changes to educator pensions in 2012 that are working and, as with any investment, need more time to recover from the economic crash of 2008.

Please click the link below to contact Legislators and tell them to oppose Senate Bill 102:

https://actionnetwork.org/letters/pensions-not-broken-dont-fix-it

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