Chair Talk
September 2011
We have been made aware that ING sent the State of Michigan cash rebate last year on behalf of all 401(k) and 457 Plan participants resulting from lower expenses that the State anticipated. We had been notified by some Plan participants that those rebates were not distributed to the plan participants. Apparently, the distributions to plan participants were supposed to have taken place in October of 2010 according to the State of Michigan/ING newsletter. After contacting staff in Treasury I was directed to ORS who handles these plans. I was informed that there would also be an expected rebate for 2011. Plan participants should expect a distribution from both years credited to their individual accounts starting in October of 2011.
Mary Pollock and I had a telephone conference with Steve Crippen (ORS) about the plans in the works for withholding for State Income Tax on pensions. The Income Tax on Pensions will go into effect on January 1, 2012 (unless ruled as unconstitutional by the Michigan Supreme Court). ORS will be sending out information starting with their October statements/mailings. We raised several issues/problems that had not been addressed until we had brought them out. I have asked Steve to check into coming to the September or October Ex. Comm. Meeting to explain what changes we might expect. As we get more information/details we will pass them on to the Chapters.
We are getting closer to the date for oral argument on the constitutionality of the recently passed pension tax. Please read Mary Pollock’s reports to get up to the minute details.
On Wednesday, August 31st, I visited the offices of America’s Professional Services Association (APSA) in Warren Michigan and Voluntary Benefits Solutions’ (a division of Gallagher Benefit Services, Inc.) office in Troy Michigan. At APSA’s offices I met their Director and various Department heads that make up APSA. SERA has teamed up with APSA and Voluntary Benefits Solutions to bring members/retirees new services geared specifically to the retiree population. I was invited down to tour these facilities by Tim Easterwood the Area President of Voluntary Benefit Solutions. Tim had given a short program at the August CC meeting and is making arrangements to hold seminars/programs at SERA Chapter meetings. I was quite impressed with the people I met yesterday and the facilities I toured. Most of the staff I met were very professional and had been in this type of business for many years. This appears to be an exciting new program that may benefit many of our members (and potential members). I would encourage all Chapters to invite Tim to their meetings to get more details on this new program. Teaming up with APSA and Voluntary Benefits Solutions may be another way in which we can recruit more retirees into our SERA organization.
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.