Filing deadline approaching on State Retirement/Pension Plans
Monday is the deadline to introduce legislation affecting state retirement/pension plans. I've been in discussions with several local teachers regarding the state contribution towards the Arkansas Teacher Retirement System vs. what the state contributes to other state employees in the Arkansas State Health Plan.
The two plans have roughly the same premium for retirees and the numbers are as follows:
Total Monthly Premium: $589.00
The state contribution for state employees is $419.17 for a monthly cost for the retiree being roughly $169.00.
The state contribution for public teachers is $157.70 for a monthly cost for the retiree being roughly $430.00.
I have a fiscal impact study in the works to see what the cost to the state would be to equalize the state contibution for teacher retirees to that of the state health plan. Unfortunately, I don't have time to wait on the numbers and need to file a shell bill -- we can debate the numbers and the merit later, but if this issue is going to be considered, legislation must be filed by Monday. I understand SB78 was filed by Joint Budget over in the Senate for the ATRS appropriation for the next biennium, and I haven't had time to review that (or the other two Senate bills related to teacher retirement) as of yet.
posted by Steve Harrelson @ 1/18/2007 07:59:00 AM | Permalink |
4 Comments:
There is much to what you say, but what are the underlying assumptions and the resulting consequences? That you want to make all public school personnel state employees? Wouldn't that put an end to the Walton-Hussman scheme to use pay disparity as a wedge to bust the AEA? Wouldn't that put a crimp in local school boards being able to hire their relatives? Couldn't that lead to having academic rather than coaching credentials to be an administrator?
That you are opposed to "local control," including the stingy retirement contributions by local districts? That you want to use state funds in an atheoretical way to compensate for local decisions to keep teachers down? Please think these through and share their implications with us, your eager readers.
BTW, thanks for doing this blog. It is a great addition to the public conversation.
Jimmie: Thanks for posting these questions. It'll give my local teachers back home a glance at the argument.
Here's an excerpt from the typical e-mail and phone call I've been receiving:
"I find it truly disheartening to know that as I teach the young children of the State of Arkansas I can not expect as much help with my insurance premiums as the state employees receive when I retire. What makes us second class? What part of our job is not as important as other state employees? If we have the same plan and benefits, why does the state contribute more to state retirees than teacher retirees?"
By the way, I'm still learning to respond to comments within the comment itself (a la Max). Haven't figured it out yet.
Something that should not be ignored in this discussion is the fact that according to the respective retirement systems, the average state retiree receives around $9000 annually. The average retired teacher receives around $18000 annually.
Thanks, Anon. This is the type of info that helps. I wish we didn't have a deadline on this legislation a mere two weeks after convening.
As it is, we'll be able to debate the issue, but the pre-filing informal talks don't exist unless you have the bill pre-filed prior to session.
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