PROPOSED CHANGES TO MPSERS WEAKEN RETIREMENT PROGRAM

The Michigan Public Schools Employees Retirement System (MPSERS) Board has forwarded to the Legislature recommendations to implement (1) a graded premium for retirees' healthcare insurance and (2) a highly questionable mechanism for advanced funding of retirees' healthcare coverages.

Currently MPSERS covers 90% of a retiree's health insurance premium. Under the first MPSERS Board proposal, a retiree would pay an additional 3% of the premium for every year short of 30 years of service. This would apply to all new retirees and all current employees not vested as of passage of the legislation. In addition, purchased service time (e.g. universal time, military time, etc.) would not count as years of service toward this graded healthcare premium. The consequences to part-time employees, mid-life/mid-career hires, and women who have postponed or interrupted their careers to raise families are very serious.

The second MPSERS Board proposal does not amount to actual prefunding of retiree healthcare. It establishes rather a "set aside" or "rainy day" fund, which may never sufficiently accrue to prefund retirees' healthcare. These "set aside" or "rainy day" monies would derive from the return on pension fund investments in excess of those needed to prefund 100% of the system's pension obligations. In theory these excess earnings would accrue to a point where they could one day prefund retirees' healthcare coverage, after such is diminished by the graded premium proposal. Should, however, the return on the MPSERS investment portfolio not provide 100% prefunding of pensions in any one year, the "set aside" or "rainy day" monies would be expended for that purpose.

There are three problems regarding this proposal. First, it is not a guaranteed prefunding mechanism. Second, the "set aside" funds may never accumulate to a point where they might prefund retirees' healthcare coverage. Third, this proposed funding mechanism is subsidized in large part by cutting retirees' healthcare coverage under the graded premium scenario.

Please contact your State Senator and State Representative today in opposition to these MPSERS Board proposals. Legislators' postal and e-mail addresses and their FAX numbers can be found on the Local 1650 website: www.hfccft1650.org. Click on Legislation, then HFCC-FT Legislative Action, and scroll to bottom of page.

Three Dearborn School employee unions, Local 1650, Local 71 (HFCC administrators), and DFSE (district-wide support staff), have endorsed James Schoolmaster, Jerry Stockwell, and Pam Wandless for the HFCC Board of Trustees/Dearborn Board of Education. Eight candidates are running for the three seats in the November 6 election. Stockwell and Wandless, incumbents, are running for reelection to four-year seats. Schoolmaster, a new-comer, is vying for a one-year seat.

Volunteers are needed to work the polls on election day, November 6, for 2-3 hour shifts. Finally, Dearborn residents are requested to place lawn signs in their yards. If you can assist in any of these efforts, call John McDonald's office (x9666).

To date, 46% of the Union membership have responded to the Union's request for PAF contributions, giving a total of $6,825 to Local 1650's Political Action Fund and an additional $1,425 to the Michigan Federation of Teachers' COPE fund. Local 1650's Executive Board had recommended that each teacher contribute $75 to our local PAF and $20 to the COPE fund.

As in the past, Local 1650 operates two PAF funds. The first, a restricted fund, is used only for local millage/bond elections, Board of Trustees' campaigns, and the campaigns of municipal and/or State Legislative candidates whose decisions impact directly on HFCC revenues. The Local is using this fund to support three candidates for the HFCC Board of Trustees, James Schoolmaster, Gerald Stockwell and Pam Wandless, as well as the district bond campaign this coming spring. The Local uses the "unrestricted" fund to engage in political activity and to support candidates not so directly involved with the revenues of HFCC, but whose decisions definitely affect Local 1650's ability to represent the interests of its members. Gubernatorial, State Supreme Court, and Federal legislative campaigns as well as the political action efforts of the Michigan Federation of Teachers fall into this category.

The Executive Board thanks those who have already contributed for their support of Local 1650's political efforts to protect their bargaining rights and secure the local and State funding necessary to operate HFCC and compensate its employees. Additional checks should be made out to HFCC-FT - PAF and to MFT&SRP COPE and forwarded to your Area Representative.

In addition, two retirees contributed a total of $175 to the unrestricted fund.

Monies remain unexpended from the Professional Improvement Fund (PIF) for the 2000-01 contractual year. If you were a full-time member of the Bargaining Unit during the 2000-01 contractual year and have NOT already submitted for the entire $750 PIF reimbursement, you have until October 30 to apply for the $750 reimbursement or the difference between $750 and the PIF reimbursement already received for 2000-01.

Article XV.D. (p. 24) of the Local 1650 contract lists the types of professional expenses covered by the PIF. Receipts up to $750 must be dated 8-16-99 through 8-15-01 to be eligible. Submit your itemized receipts and a cover memorandum to the College Controller's Office.

Local 1650's three-year contract ends this year, so preparations for negotiating its successor are now underway. Two contract committees, one focusing on insurance issues and the other on everything else, have received the recommendations for contract changes submitted by the membership. The insurance committee, chaired by Marsha Steele, will meet next month. The economic/non-economic, under the direction of Jeff Morford, will begin a review of suggested changes at 3:30 PM on October 30 in the CTEI (room A-01). Do consider joining one of these exciting (and short-lived) committees. Membership offers an excellent opportunity to learn more about your contract.

For many years members of Local 1650 have had the option of establishing a Flexible Spending Account (FSA) through payroll deductions. These pre-tax dollars can be used to cover medical expenses not covered by insurance (such as deductibles and co-pays) and child care costs. To set up such an account, however, teachers must file a payroll deduction form with Human Resources Offices each year. The filing deadline for a 2002 FSA is December 1.

Payroll deduction forms are available from John McDonald's office. Send completed forms to Dani Thornfelt in the Human Resources Office by December 1.

Tom Maxey from Consolidated Financial Corporation, which administers the FSA program, will be present at the November 19 General Membership meeting. Mr. Maxey will answer any questions about the FSA program and will also discuss changes in federal tax law as well as the TSA (tax-sheltered annuity) opportunities also available through payroll deductions.

Five members of Local 1650 answered phones during the WDET fundraising campaign held earlier this month. The Local was a "pledge partner" during the "All Things Considered" news show on October 16 and received on-air recognition for providing volunteers to take the pledges.

The following people assisted at the WDET studios: Ed Fryzel, Lynne Hensel, Peter Kearly, Jerry Klein, and Dorothy Rothgery. This is the eleventh year that members of Local 1650 have volunteered for the WDET pledge drive.

In response to the tragic events of September 11, the American Federation of Teachers has established the AFT Recovery Fund. Contributions to this fund will be used to assist the families of 40 AFT public sector members who perished at the World Trade Center, three Washington DC AFT teachers who perished with three of their students on the plane that struck the Pentagon, other victims of the tragedy, and rescue personnel.

Local 1650 has contributed $2,500 to the AFT Recovery Fund and $1,000 to the efforts of the Dearborn Firefighters and Police to assist their fallen brothers and sisters in New York City. Also, nine members of Local 1650 have individually contributed $775 to the AFT Recovery Fund. Addition individual contributions to the AFT fund can be forwarded to the Local 1650 office, A-201, or mailed directly to AFT Recovery Fund, 555 New Jersey Avenue, N.W., Washington DC 2001.

In a couple of years, a glistening new work of art, created by Michigan artists, will soar over downtown Detroit's riverfront, honoring the women and men who built our city. This gift to the people from the labor movement will be a place to celebrate labor's rich past and strong presence, while projecting our vision for a better future. It will be a place for learning, a place of inspiration.

An independent jury drawn from the arts and labor communities chose a design in a national open competition. The winning design features a 59-foot high steel arch, engraved with words that capture labor's spirit. It will be complemented by 14 six-foot high natural boulders that carry scenes from labor's past and depict its vision for the future. This landmark will be the only one of its kind in the nation. Site development and construction will begin by 2002.

The bulk of the funding for this project will come from unions and rank-and-file members. Contributions of $25 or more will be recognized with a certificate. Gifts of $100 or more will receive permanent recognition at the landmark site. Donors of $250 will also get a commemorative tile depicting the landmark. Finally, anyone donating $500 or more will receive a commemorative tile personalized for the donor.