Legislative Report #08-07

Report 08-07
June 20, 2008

SENATE ADOPTS BUDGET PROPOSAL

The Senate version of the amended state budget for 2008-09 received final approval on Thursday. The Senate proposal (Senate Committee Substitute for HB 2436) was returned to the House of Representatives which voted not to concur in the amended bill. Conferees have been appointed by both chambers and the conference committee is expected to begin work immediately to resolve differences.

There is very little difference between the House and Senate regarding benefits for retired teachers and state employees. Both chambers provide a 2.2% COLA for state retirees effective July 1. This includes retired teachers, state employees, legislators, and members of the judicial system.

The annual COLA for retired local government employees is not addressed in either version of the budget since the 2.17% local COLA approved by the Board of Trustees of the Retirement Systems does not require any increase in the local government employer contribution rate. The local COLA also will be effective July 1.

The Senate budget includes an increase in the monthly pension amount for retired firemen and rescue squad workers from the current $167 to $170. The House did not include a similar provision.

The budget conferees are expected to produce a final budget before July 1. The General Assembly still is expected to adjourn in early July.

BAD BILL MAY EMERGE – ACT NOW!

Last year, our Association opposed a House bill that would have stripped the elected State Treasurer of the authority to direct the investment of retirement system funds and transfer this authority to the Retirement System Board of Trustees. We opposed the bill because we believe that the current system has worked well and the members of the Board of Trustees do not have the expertise to direct multi-billion dollar pension investments.

This bad bill was introduced again this year as House Bill 2758 (short title: Investment Authority to Retirement Board). Once again, we strongly oppose this bill. We ask you to contact your House members and urge them to vote against House Bill 2758 if it emerges from the House Pensions and Retirement Committee. We hope that the Committee will not schedule the bill for consideration. However, the state employees’ labor union is making a push to have the bill considered next week.

Please call your representatives in the House as soon as possible. Ask them to vote against HB 2758!

STATE HEALTH PLAN: CUSTOMER SURVEY

Usually, this weekly Report deals only with legislative issues. However, we have been asked by the staff of the State Health Plan to make our members aware of a customer survey questionnaire that is available on line until June 26. The Plan is seeking feedback from members on Plan benefits,options, and programs.

Please take a moment to go to the web site listed below and respond to this survey.

www.surveymonkey.com/s.aspx?sm=ayBpc40zTPOHb1tmYYaobQ_3d_3d