I just checked out SB 1226 as modified by Substitute H-38 approved by the House and Senate on 9-23-10. I see an increase in factor from 1.5% to 1.6% for those already elgible to retire without penalty, and 1.55% for those with 80 years of age and service or just 30 years of service. For an employee earning $40,000 and having 30 years in, as an example, that would be an annual increase of about $1,200 retiring under 1.6% and about $600 for those retiring under 1.55%.
Oh wow....GREAT......ah.....wait a minute....OH NO!!!!!!!!!!!! Check out this section of the approved bill as follows:
3) Notwithstanding any other provision of this act, a member Retiring under this section agrees that any amount that he or she would otherwise be entitled to receive at retirement on account of accumulated annual leave, sick leave, and other deferred leave hours shall not be paid to the member and shall be forfeited. The value of accrued annual leave up to 240 hours and the value of voluntary and involuntary pay reduction plan B for services rendered on or before October 1, 1981, forfeited under this subsection by a member shall be included in the calculation for the purposes of determining "final average compensation" for that member under this section. This subsection does not apply to banked leave time.
WHAT??????? FORFEIT SICK AND ANNUAL LEAVE PAYOFF??????
FOR THE LEGISLATURE'S NEXT TRICK, THERE'S MORE:
Sec. 20i. Upon his or her retirement as provided for in section 19j, beginning January 1, 2011, a member shall receive a supplement for 60 months to his or her retirement allowance payments equal to 1/60 of the amount forfeited in section 19j(3).
WHAT??????? TAKE THE EMPLOYEE'S FORFEITED SICK AND ANNUAL LEAVE TOTAL AND INSTEAD PAY IT TO THEM IN INSTALLMENTS OVER 60 MONTHS AS AN INCREASED SUPPLEMENT TO THEIR PENSION??????? ALL OTHER INCENTIVISED RETIREMENTS BEFORE THIS HAVE PAID THE SICK AND ANNUAL LEAVE PAYOFFS TO THE EMPLOYEE AS WAGES EACH MONTH OVER 60 MONTHS. WELL....OKAY....WE HAVE JOE SCHMOE WHO HAS WORKED DUTIFULLY FOR THE STATE OF MICHIGAN FOR THOSE 30 YEARS....HOW DOES IT WORK OUT FOR HIM??? LET'S SEE....THE INCREASED PENSION SUPPLEMENT IS NOT WAGES....SO THE RETIREE, WHO COULD HAVE CONTRIBUTED $2,000 TO A RETIREMENT ACCOUNT, NOW LOSES THE FEDERAL $1,000 PER YEAR RETIREMENT SAVER'S CREDIT. IF YOU THINK THAT'LL TICK OFF (TRYING TO BE POLITE HERE) JOE SCHMOE WHO ONLY GOT A $1,200 PER YEAR INCENTIVE TO RETIRE UNDER THE NEW AND IMPROVED SB 1226, THINK HOW JOSEPHINE SCHMOE FEELS WHO ONLY GOT THE $600 PER YEAR INCENTIVE TO RETIRE UNDER THE NEW AND IMPROVED SB 1226. BY NOT RETIRING BY OCTOBER 1ST 2010, JOE AND JOSEPHINE EACH LOSE THE $300 ANNUAL RAISE THE SCHOOL EMPLOYEE RETIREES WILL GET ON OCTOBER 1ST 2011. IN ACTUALITY, BY OCTOBER 1ST 2011, JOE IS SKIRUED $100 ANNUALLY TO RETIRE UNDER THE NEW AND IMPROVED SB 1226 AND JOSEPHINE IS SKIRUED $700 ANNUALLY TO RETIRE INSTEAD OF RECEIVING AN INCENTIVE.
THANKS FOR YOUR SERVICE!!!!!!!! HAVE WE GOT A DEAL FOR YOU!!!!!!!! SIGN UP TODAY!!!!!!!!! NO, NO, THAT'S JUST A RUMOR YOUR LEGISLATURE RESPECTS THE SCHOOL EMPLOYEES MORE THAN YOU!!!!!!!! IF YOU WOULD HAVE GIVEN US ANOTHER 9 MONTHS, WE COULD HAVE COME UP WITH SOMETHING EVEN BETTER!!!!!!!! WHO'S YOUR DADDY!!!!!!!!
WELL, THE LONG SERVING STATE EMPLOYEES HAVE BEEN SERVICED ALL RIGHT. ONLY THING IS, THE OLE DOCTOR WAS RAISED IN FARM COUNTRY OUT BY HOWELL, AND THE THING IS, WE ALL KNEW WHAT BOSSIE REALLY GOT WHEN FARMER SMITH LED HER OVER TO FARMER BROWN'S PLACE FOR SERVICE. AND SERVICED IS THE ONLY POLITE WAY TO DESCRIBE WHAT LONG SERVING STATE EMPLOYEES ARE GETTING IF RETIRING UNDER THE NEW AND IMPROVED SB 1226. IT CERTAINLY HAS NO RESEMBLENCE TO WHAT THE GOVERNOR, SENATOR BISHOP, OR SPEAKER DILLON ASKED FOR.
GOVERNOR, TEAR DOWN THIS BILL....DO NOT SIGN IT....LONG SERVING STATE EMPLOYEES DESERVE BETTER. RETURN IT TO THE LEGISLATURE REQUESTING SICK AND ANNUAL LEAVE PAYOUTS BE PAID IN 60 MONTHLY INSTALLMENTS AS EVERY OTHER INCENTIVISED RETIREMENTS IN THIS STATE HAVE BEEN CONDUCTED.
IF ACTUALLY SIGNED BY THE GOVERNOR, STATE EMPLOYEES THAT DON'T WANT TO BE TREATED DISRESPECTFULLY, JUST DON'T SIGN UP. LET THE LEGISLATURE BALANCE THE BUDGET THE OLD FASHIONED WAY. THAT WOULD ALSO BE WITH OPM (OTHER PEOPLE'S MONEY) BUT NOT YOURS!!!!!!!!!!!!!!!!!!
THE DOCTOR IS OUTTA HERE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!