Chair Talk

August 2010

Now that the Primary elections are over we need to be vigilant about Speaker Andy Dillon’s Public Employee Health Plan (HB 5345 and Substitute H-1). Now that Speaker Dillon has lost the Primary to Virg Bernero he will put pressure on his fellow Democrats to support his misguided Public Employee Health Plan. I believe that the Speaker will “twist arms” so that he can use his health plan as his “legacy”. We all know that his “success” with the “timely” budgets the past couple of years is nothing to point to so he has to have something for people to remember him by. I would suggest that retirees call or e-mail their State Representative/State Senator and voice your opposition to the Public Employee Health Plan. Alvin and I will continue to monitor this legislation and attend coalition meetings as they are scheduled.

I have been informed by Employee Benefits Director (Susan Kant) that there will be no changes (except premium rate increases for non-Medicare retirees) in the State Health Plans effective October 1, 2010.

There have been many e-mails around that claim that the value of our health plan will be included on our W-2s and added to our gross pay and therefore taxable. These e-mails are not completely true and is misleading. The Federal Health Care Law provides that the value of your health care plan will appear on your W-2 form in 2011, but it won’t be considered taxable income. The value is purely for informational purposes, according to the fact-finding sources (FactCheck.org and PolitiFact.com) and various other media outlets.

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