Chair Talk
June 2007
What's next?
If you have been keeping up with the latest “wrinkles” in the ongoing economic problems in the State of Michiagn the question above is more than appropriate. There is currently legislatiation (HB 4801 and 4802) that would tax state pensions over an indexed amount. I am sure that you can read about this legislation and others in Alvin Whitfield’s Legislative Report.
You have probably heard/read about the Governor abolishing the Civil Service Department and placing some of those duties in the Department of Management and Budget. How this may affect us is still not clear. We will be meeting with various people in the State in an attempt to find out what is in store for us in the future.
I have not been informed of any changes in the current year. The State will be negotiating with the state employee union this summer and no one is sure how that will come out. Historically, our benefits have pretty much fallen in line with active non-represented employees.
I asked for and received the following information on health care costs (these amounts include prescription premiums/costs) for retirees in FY 2006:
| 1. | FY 06 State Health Plan PPO premium contributions | |
| Retirees: $11,562,300 | State: $328,302,533 | |
| 2. | FY 06 HMO Premiums | |
| Retirees: $1,212,087 | State: $15,196,561 | |
| 3. | FY 06 Total Retiree Health Claims paid: $353,479,593 | |
| Service/Admin. Fees: $12,986,093 | ||
Using simple math I figured, based on about 46,000 retirees, health care costs for FY 06 were a little less than $8,000 per person on average.
You can see why the State wants to figure out how to save money on health care. The current economic climate in Michigan will affect our benefits somehow. I would like to believe that we will not be negatively affected by the budget problems of this state. There are no guarantees that we will not be affected. As always, SERA representatives will do all we can to preserve our benefits.
We should all contact our state representatives and senators and voice our concerns.
Editor’s note: Bob Kopasz is Chair of the Michigan SERA Council. He may be reached at P.O. Box 692, Mt. Morris, MI 48458; phone 810/240-8380
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