December 2011
Restoring the Middle Class Opinion Article
A CNN Opinion article about restoring the Middle Class.
http://www.cnn.com/2011/12/28/opinion/osterman-jobs-inequality/index.html?hpt=hp_t3
School Employees Retirement Lawsuit Still Unresolved
The Michigan Supreme Court has not ruled in the case of the 3 percent retirement contribution for school employees. The Court has ruled only in the case of SEIU Local 517M v. State Employees’ Retirement System (SC docket No. 143829), dealing with the state employee retirement contribution. The refund mentioned in that ruling ONLY APPLIES TO STATE EMPLOYEES.
There is a separate lawsuit filed on behalf of school employees since they are in a different retirement system and there are different arguments in the case. The final outcome of that litigation has not been determined. Until that happens, the 3% contribution will continue to be placed in an escrow account as per a lower court ruling.
We will keep you updated when final resolution of the matter has been determined.
State Employee 3% Retirement Contribution to be Returned
On December 14, 2011 the Michigan Supreme Court upheld the ruling by the Michigan Court of Claims that the State of Michigan violated the Michigan Constitution when it started deducting 3 percent towards state employee retirement healthcare. The Governor has stated that the collection of the 3 percent pension contribution will end with the pay period ending December 24, 2011. The courts had ordered that the contributions be held in escrow pending the final outcome of the lawsuits filed by SEIU and the other state employee unions. This order does not apply to school employees who are under a separate lawsuit. There has been no decision in that case.
In SEIU Local 517M v. State Employees’ Retirement System (SC docket No. 143829), the Supreme Court issued a standard order rejecting the request to hear the state’s appeal, saying, “(W)e are not persuaded the question presented should be reviewed by this court.”
The refund of the funds, with accumulated interest, will appear in the January 19, 2012 paychecks.
We have included a link to a Question and Answer chart on the refund: http://www.michigan.gov/documents/mdcs/FAQ_for_HCC_Refund_371284_7.pdf
Also read the Governor’s Press Release concerning the refund of the 3 percent and his December 15th signing of HB 4701 and HB 4702 dealing with state employee retirement changes: http://www.michigan.gov/snyder/0,4668,7-277-57577_57657-267518–,00.html
New Solutions for Michigan Update
As you know, during the course of this year’s contract negotiations, Governor Snyder requested that Civil Service provide his office with a comprehensive review of the management to staffing ratios throughout state government after our Coalition of Unions released their New Solutions for Michigan report. This report made quite a media stir throughout the summer, and many of the findings in the report were endorsed by several Michigan newspapers and editorials. The Governor has requested that Civil Service complete its report in January, 2012.
Earlier this week, Civil Service contacted SEIU Local 517M to see who they could contact at SEIU International that could provide background information on our “New Solutions” report which highlighted current ratio at one manager’ supervisor for every 5.8 staff workers in Michigan state departments.
A copy of the Civil Service report on be posted on the SEIU Local 517M website as soon as it is made available.
Rally: Saginaw Kids Before Corporations
Tell Michigan politicians to protect Children, not CEO’s! Local families, activists and community leaders will be gathering on Tuesday, December 13th from 4 p.m. to 5 p.m. at the Saginaw County DHS/State Building (411 E. Genesee, Saginaw, MI 48605).
This rally and “roaming” display will draw attention to recent changes in Michigan placing Corporations and Banks ahead of our children. We Are The People – Saginaw is calling on Michigan politicians to support children and their families before big business and political donors. Children are affected both at home and school by cuts and reductions to programs like WIC, Cash Assistance, Head Start and early education, and K-12 funding. Children are our future, representing a great portion of the population who can’t simply “pull themselves up by their bootstraps.” Instead of giving $2 Billion in handouts to big corporations and banks, we need our leaders to stop the power struggles and focus on protecting kids, our most valuable assets.
Questions, comments, and concerns, please contact: Chad Young at cyoungssm@gmail.com, 989-751-7210, or Jim Moreno at santiago@winntel.net, 989-444-8015
99% Arrive in DC to Take Back the Capitol
This week, unemployed and underemployed people, students, community activists, union members, healthcare advocates, and occupiers from coast-to-coast are joining together to“Take Back the Capitol.” By day we’ll show up at Congressional hearings and the offices of K Street lobbyists, and by night we’ll crash in church auditoriums, union halls, and in tents around the Capitol.
The situation for the 99 percent is dire. Nearly 14 million workers in the U.S. are without jobs and income inequality is at its worst since the 1920s. Unless Congress acts swiftly, federal unemployment insurance programs will expire December 31–cutting off benefits to nearly 2 million jobless Americans in January alone, with more than 6 million cut off during the coming year. And while the middle class and working people are suffering, taxes for the 1% are at an all-time low.
If you can’t be in DC, you can still make an impact.
- Click here to send Congress a message as members of Congress deliberate the extension of unemployment insurance benefits for more than 2 million people and decides on deficit reduction recommendations. We’ll be stopping in on Congressional offices to remind members of Congress that the Capitol is the People’s House.
Update on State Employee Retirement Bills
BREAKING UPDATE 12-15-11: HB 4701 (S-1) and HB 4702 signed by Governor Snyder.
The legislation refunds the 3 percent that state employees have been contributing to cover health care expenses. This issue is now moot due to the Supreme Court ordering it returned on December 14, 2011, the day before the legislation was signed into law. The new legislation imposes a requirement that all state workers under the Defined Benefit pension plan pay 4 percent of their salary towards the retirement plan or switch to the Defined Contribution retirement plan and not pay the 4 percent.
Workers in the defined contribution (401k) retirement plan would be given the option of switching to a new system for their health care beginning in January, 2012. Under the new system, employees will be allowed to contribute up to 2 percent into a 401k retirement health care plan, with the state matching another 2 percent.
State employees hired after January 1, 2012, will be placed into the new 2 percent healthcare match system with no access to any of the current retirement health care plans.
A great information resource is the Senate Fiscal Agency analysis of the bills which can be found at: http://www.seiu517m.org/files/2011/12/2011-SFA-4701-C.pdf
A complete record of the language and current status of the bills can be found at: http://www.legislature.mi.gov/(S(vfxwsz5501za5k32klwuwm45))/mileg.aspx?page=getObject&objectName=2011-HB-4701
SEIU Local 517M Members Ratify New State Contracts
SEIU Local 517M announces that the recently negotiated Tentative Agreement with the State of Michigan has been approved by the voting membership. The votes were counted on December 1, 2011 and passed by a margin of 80 percent YES to 20 percent NO for the approximately 4,000 state employee members in the Human Services Support, Scientific and Engineering, and Technical bargaining units.
The agreements now go before the Civil Service Commission at their December 6th meeting for formal approval.