MI-SERA

Chair Talk

October 2011

By Bob Kopasz

The Employee Benefits division of Civil Service recently mailed the Retiree Benefits Bulletin (effective October 1, 2011). This mailing contained the rates (unchanged) for the State Health Plan and rates for the Dental and Vision Plans. Rates for HMO’s have increased again for fiscal year 2011/12. The bulletin also contains contact numbers for the health, dental, vision and HMO providers. Included with the bulletin is a Creditable Prescription Drug Coverage letter.

The October 25th pension checks/deposits will include the 3% annual increase state retirees see every year (not a COLA). The maximum amount a retiree will get is $25 per month or $300 per year.

On Wednesday morning (10/5/11), Mary Pollock and I attended the Senate Reform, Restructuring and Reinvention Committee chaired by Senator Jansen. Our purpose for being there was to testify in opposition to HB 4087. HB 4087 is a bill that would eliminate retiree health care benefits for legislators. We thought that in keeping with our belief that pensions/benefits are basically contracts — we should follow that belief by testifying in opposition. We suggested that they should treat legislative health benefits the same as they do state employees that were hired after 1997. Employees that have been hired after 1997 “earn” 3% of their health care benefits per year worked. Several of the committee members commented about our testimony, but the bill was then passed and sent to the Senate Floor.

I plan on having representatives from Treasury and ORS to present a program at the November CC meeting to discuss the recently passed pension tax. We are hoping to have them at the meeting to answer any questions/concerns you have about the tax and withholding involved. You can go to the Michigan Department of Treasury website and read/download information about the new income tax changes that will be effective for the 2012 tax year.

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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October 2011 By Bob Kopasz The Employee Benefits division of Civil Service recently mailed the Retiree Benefits Bulletin (effective October 1, 2011). This mailing contained the rates (unchanged) for the State Health Plan and rates for the Dental and Vision Plans. Rates for HMO’s have increased again for fiscal year 2011/12. The bulletin also contains contact numbers for the health, dental, vision and HMO providers. Included with the bulletin is a Creditable Prescription Drug Coverage letter. The October 25th pension checks/deposits will include the 3% annual increase state retirees see every year (not a COLA). The maximum amount a retiree will get is $25 per month or $300 per year. On Wednesday morning (10/5/11), Mary Pollock and I attended the Senate Reform, Restructuring and Reinvention Committee chaired by Senator Jansen. Our purpose for being there was to testify in opposition to HB 4087. HB 4087 is a bill that would eliminate retiree health care benefits for legislators. We thought that in keeping with our belief that pensions/benefits are basically contracts — we should follow that belief by testifying in opposition. We suggested that they should treat legislative health benefits the same as they do state employees that were hired after 1997. Employees that have been hired after 1997 “earn” 3% of their health care benefits per year worked. Several of the committee members commented about our testimony, but the bill was then passed and sent to the Senate Floor. I plan on having representatives from Treasury and ORS to present a program at the November CC meeting to discuss the recently passed pension tax. We are hoping to have them at the meeting to answer any questions/concerns you have about the tax and withholding involved. You can go to the Michigan Department of Treasury website and read/download information about the new income tax changes that will be effective for the 2012 tax year. 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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