NEW OPPORTUNITIES FOR SHELTERING INCOME

As a result of th Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), Local 1650 members have new opportunities for sheltering income from federal and state taxes through payroll deductions. For many years teachers have been able to set-up 403(b) accounts. EGTRRA increases the maximum amount a teacher can contribute each year to $11,000 in 2002, with the maximum allowed incrementing by $1,000 each year to $15,000 in 2006. Also, teachers over 50 years of age can set-aside an additional $1,000 per year; catch-up provisions no longer apply.

Besides the extended limits on 403(b) contributions, a whole new tax sheltered option, 457(b) deferred compensation plan, is now also available. 457(b) plans operate very similarly to the familiar 403(b) plans. Employees can opt through payroll deduction to fund 457(b) plan. The employee does not pay taxes on this income until the money is drawn from the account. The penalties for early withdrawal and minimum distribution requirements are similar for both the 403(b) and the 457(b) plans. Also, the same maximum contributions per year and the additional $1000 for the over 50 crowd apply.

This new 457(b) option essentially means that each year HFCC teachers can double the amount of money they currently shelter from federal and state taxes. Because of slightly different requirements, there are somewhat fewer investment options for the 457(b) plans. The Business Office has approved five companies, Consolidated Financial, Lincoln Financial, Morgan Stanley, TIAA-CREF, and VALIC, for payroll deductions to 457(b) plans. Teachers are advised to consult with their financial advisors to determine which investment options are best for them.

CONTRACT NEGOTIATIONS UPDATE

Formal negotiations for the Local 1650 contract commenced on April 4. Representing Local 1650 are John McDonald, chief negotiator, Betsy Cohn, Mike Davis, Lynne Hensel, Jeff Morford, Marsha Steele, and Nancy Widman. Attorney John Holmquist is the chief negotiator for the Board of Trustees, supported by Sally Barnett, Mike Meade, and Marge Swan. The freeze on state aid for the 2002-03 school year provide a somber backdrop for the talks.

John McDonald will report on the status of both the Union’s and Administrations demands at the April membership meeting, which has been postponed to 3:10 PM on Monday, April 22. If agreement on a contract is reached before the end of the semester, the tentative agreement will be presented at a special membership meeting following the College Organization meeting on Monday, May 6. Failing agreement, McDonald will provide complete progress report at that time.

SPRING GALA

Members and retirees of Local 1650 and their invited guests gathered April 5 at Park Place for the biennial Spring Gala. Besides engaging in the expected eating, drinking and socializing, attendees were entertained by Diane Mancinelli’s Full Circle dance troupe and the HFCC Big Band under the direction of Rick Goward.

Many Local 1650 members contributed to the success of the evening. Lois Hassan, Deb Carmichael and Linda Purrington spent many hours designing and creating the decorations for the evening. Joan Hemker and Elaine Saneske put together nametags, and Jeannine Dawson, Maggie Thornburg, and Maureen Webster provided ushering. JoAnne Dalton, Local 1650 secretary, worked on the reservations and business details. And, of course, particular thanks are owed to Ed Fryzel who master-minded the evening.

HIGHER EDUCATION ISSUES CONFERENCE

The American Federation of Teachers held its annual Higher Education Issues Conference in Chicago on April 12-14. The conference featured a series of workshops aimed at strengthening the academic workforce and the union and advancing the academy. Politics and educational policy in 2002 was also a topic of discussion. John McDonald led a presentation on "Education for the "Real World – Protecting the Liberal Arts." Elliott Sclar, Director of Urban Planning Programs at Columbia University, delivered the Irwin Polishook Lecture on "The Economics of Privatization: You Don’t Always Get What You Pay For."

Attending the conference from HFCC were: Sam Bazzi, Cindy Bida, Todd Browning, Ed Fryzel, Pete Kearly, Tom Kelly, Tony Mazurek, John McDonald, Paul Rodgers, and Nancy Widman.

ELECTION RESULTS