Retirement bill passes despite intense opposition

Time to stand up and say “Enough is Enough!”

Despite intense opposition from MEA members across the state, lawmakers passed legislation early this morning to push thousands of school employees to retire this year with a meager incentive, while those who remain working will be subject to a new tax on school employees.

All public school employees who remain on the job will be forced to pay 3 percent more of their salary into retirement – specifically, the money will go into a trust created by legislation to pay for retirement health benefits. However, the bill actually states that NO ONE is guaranteed those health benefits in retirement.

What’s more, the ill-conceived plan may not generate projected savings because the incentive – using a 1.6 percent multiplier for those who retire this year, instead of the usual 1.5 percent multiplier – is so small.

“Unfortunately, because of the Legislature’s shortsightedness, school districts across Michigan will still face massive cuts and student learning environments will continue to suffer layoffs, larger class sizes and the elimination of key programs that generate proven results,” said MEA President Iris K. Salters.