MCCA to New CC Hires - Drop Dead!
To all Local 1650 Members:
Local Members,
What follows is my earlier email to the Local 1650 membership regarding SB
1450, which would allow community colleges to opt out of MPSERS forcing new
community college employees to rely on stock market investments for their
retirement pension and health coverage.
Attached are sample letters to State legislators opposing SB1450 from 1650
Legislative Committee member Pete Kearly and our State
Legislative Agent Ellen Hoekstra.
Sample letter 1 (Microsoft Word file)
Sample letter 2 (Microsoft Word file)
Please write your legislators today. Legislator contact information can be
found on the Legislative page of the 1650 website:
www.hfccft1650.org.
TO: Local 1650 Membership
FROM: John McDonald
RE: MCCA to New CC Hires - Drop Dead!
DATE: September 24, 2008
With an appalling and callous lack of sensitivity, befitting an unreformed
Charles Dickens character, the Michigan Community College Association (MCCA) is
supporting SB 1450, sponsored by Senator Wayne Kuipers (R). This bill would
deny new community college employees the opportunity to participate in the
Michigan Public School Employees Retirement System (MPSERS), a defined benefit
system which guarantees a pension based upon years of service and earnings.
At the very moment that millions of Americans are seeing the 401k, 403b, and
457b funds, upon which they rely for retirement income, devastated by
unregulated fast buck executives wreaking havoc with the financial markets, the
MCCA actively supports a plan to push new community college employees into
defined contribution retirement plans and thereby expose them to the losses that
have befallen those already dependent upon such plans.
1650 members are urged to contact their legislators urging opposition to SB
1450 for the following reasons:
1. Over the decades, community college faculty, support staff, and
administrative unions have negotiated wage settlements which took into account
the obligations of community colleges to the State Retirement System. Had these
MPSERS obligations not existed and had they not been taken into account in
setting wage standards, more institutional revenue would have been available
for improvement. Community College MPSERS pension and health coverage costs
have been covered by reduced wage settlements over many years - and that will
continue to be the case in the future.
2. MPSERS’ pension and insurance benefits are increasingly important in
competing with the private sector in the recruitment and retention of highly
qualified community college faculty, staff, and administrators, particularly in
high demand fields.
3. Recent studies show that absent retiree health benefits, employees are
delaying their retirements. Such delayed retirements will have serious budget
implications for community colleges in terms of salary and health insurance
costs in the long term, and these should be taken into consideration.
4. Were the MCCA position to prevail, College employees and
retirees currently in MPSERS would eventually suffer. With fewer participants
in MPSERS, there will be diminished political influence to protect the benefits
of a smaller and aging pool of MPSERS participants.
5. In last year’s resolution of Michigan’s budget deficit, a
graded health coverage premium and an employee contribution increase from 4.3%
to 6.4% of earnings were enacted, generating considerable savings for MPSERS.
6. Given the losses in 401k, 403b, 457b holdings due to lax
regulation of financial markets, the MCCA call to move community college
employees into defined contribution systems and expose them to these markets is
appalling and unconscionable.
Legislator contact information is available on the Legislative Page of the Local
1650 website: hfccft1650.org.
John McDonald, President
HFCC Federation of Teachers
5101 Evergreen Road
Dearborn, MI 48128