Reply #60: MEA endorses Mi House Dems 3% retirement tax on teachers- VOTE THEM OUT

[n.michigan]

MadForidian- Check it out- www.mea.org. Teachers are paying membership in the hundreds of dollars for a union that endorses this crap legislation and then sells it as a win-no kidding. We are talking 3% tax ABOVE what teachers are now paying.. lets see... 3,000.? What! Yes. They agree that the House version of Senate Bill 1227 just passed by the Dems ( NO MORE INCUMBENTS period) is a WINNNNNNNNNER. MEA says make that call to the legislature in support. No- the anger at this injustice is that the MEA is wrong- this misrepresentation will take teachers hard earned money.

Its interesting the way this political game is played with two bad guys, or rather three- including the MEA. The result is just what Granholm (D) wanted one would think. The politicians who so mismanage our state creating disaster after disaster- want to use the teachers retirement to cover their asses.

Back to MEA- they now (read always) support this less offensive bill (really?) because the money goes to an IRS irrevocable trust-a big step forward to insuring that health type benefits will be there for retirees in the future. Rational is that employees will be paying a significant part of the cost, sooooo it will make it harder to "take" the benefits away in the future. Huge gain for all current and future retirees.
The bill would expand MPSERS to third party and contracted (nooooo, not the professionals) and this would spread the "unfunded" liabilities over a larger bunch of employees which should reduce the amount districts have to pay for the retirement contribution! Sleight of hand. Take from the teachers, give to the district. Watch for it next week in the legislative calendar.
http://www.legislature.mi.gov/(S(1caeytm5rkzz4e45xgffjxn4))/mileg.aspx?page=GetObject&objectname=2010-SB-1227

THIS IS YOUR MEA UNION ENDORSING NOT REJECTING, TEACHERS. THESE ARE THE DEMOCRATS. FIRE THEM ALL.

Here is legislative analysis from http://www.legislature.mi.gov/documents/2009-2010/billanalysis/House/pdf/2009-HLA-1227-4.pdf

3% Contribution into Irrevocable Trusts for Retiree Health Care

Requiring an employee contribution of 3% for MPSERS employees toward retirement
health care would allow for a reduction in the employer contribution. Estimated savings
would be between $270 and $291 million depending on the number of retirements for FY
2010-11 and could total between $2.7 billion and $2.9 billion over ten years. This
provision would create savings only if the increased employee contributions are used to
reduce the employer contribution rate as opposed to being saved to pay for future retiree
health costs.