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Alert to All State Retirees
I am sending this e-mail to alert all retirees to recently introduced House Bill 5545 that may have a negative impact on State retiree health, dental and vision benefits. (House Bill 5546 has the same content as House Bill 5545, but applies to the Judges Retirement System.) HB 5545 would move the authorization, implementation and administration of our health benefits from Civil Service/Employee Benefits to the Office of Retirement Services. SERA representatives (Alvin Whitfield and Duane Marlan) testified in opposition to this bill on December 13, 2007. The two House Bills were introduced on December 6, 2007, referred to the Committee on Retiree Health Care Reforms and voted out of that Committee on December 13, 2007 the same day of the hearing. It appears that these bills are on a fast track for passage.
Health benefits for state retirees have pretty much “mirrored” the health benefits of active state employees for over 25 years. The process of authorizing and administering health benefits has been handled by Civil Service and the Employee Benefits staff in that area. This process has worked well for both active and retired state employees and we see no compelling reason to change. If HB 5545 were to pass in its current form our health, dental and vision benefits would be in the hands of the Office of Retirement Services and subject to change on July 1, 2008. The bill does not indicate who specifically would make decisions regarding our retiree health care benefits. Under the current system, SERA has had representatives on the Joint Evaluation Committees that choose what vendors will administer our health, dental and vision benefits. We also have a good working relationship with Civil Service, Employee Benefits and OSE. I don’t believe that we would have the same input and relationships if our benefits were turned over to ORS. There seems to be no valid reason to change the currents system of administering health benefits.
UAW Local 6000 is hosting a town hall meeting on Wednesday, January 9, 2008 (4-6 p.m.) at 3350 N.Grand River Ave. in Lansing. Representatives sitting on the Retiree Health Care Reform Committee have been invited to attend.
I am requesting that you contact your area Representatives and Senators to voice your opposition to HB 5545.
Bob Kopasz, Chair
SERA CC