Chair Talk
February 2010
We have received copies of a notice given to active state employees from Bob Emerson the Budget Director. This notice is part of a 4-step plan for government reform. The notice details several steps the administration is proposing for state employees to reduce some of the budget shortfalls the State is facing. Among those plans are the following:
- Increased multiplier of 1.6 percent for eligible employees who retire between July 1 and October 1, 2010.
- Elimination of state-subsidized retiree vision and dental coverage for employees that retire after October 1, 2010. Retirees will be able to purchase this coverage for a monthly fee.
- Effective October 1, 2010 a 3% employee contribution for retirement.
- Earned service credit capped at 30 years. Employees who work beyond 30 years will be moved to a defined contribution plan for any additional years.
- Phased retirement option for retiring employees age 60 or older. Phased in retirement will be allowed for up to three years. This would enable employees to collect retirement with a workload of no more that 20 hours per week. This option is available at management discretion.
A similar plan has been proposed for Public School Employees.
The above changes in retirement benefits do not apply to current retirees.
The above proposals require legislative action. We will monitor the flow of this legislation as it goes through the process. We will also meet with representatives of the Administration to determine if there are any changes proposed for current retirees.
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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