A Call to Action from IRTA

Dear Members:

We are asking you to contact House of Representative legislators immediately. This is a short session and bills will move through committees very quickly. The Defined Contribution Only Plan is in House Bill 1004 and has been placed in the House Education Committee. Rep. Behning is the author and chairman of the committee so we know it will be heard in committee. We want to keep ahead on this issue and debate. I have spoken with many superintendents, principals, and new teachers about the advantages of a DB benefit over the DC Only Benefit. No one sees the advantage or reason that a DC Only Benefit would entice people to enter the teaching profession. The reasons, or Talking Points, on why we do not need a Defined Contribution Plan Only;

• Indiana Educators have both a DB and DC component to their retirement plan, the pension and ASA account

• Individuals can decide how aggressive or conservative they want to invest in their DC/ASA account and make changes quarterly

• If a person leaves the profession, they can roll over or use the DC/ASA money at their discretion

• The amount educators would have to save is at least 10 percent of their salary from day one.

• In today’s dollars an individual would need to save a minimum of $650,000 dollars to replace just the pension portion of the retirement plan

• It may cost the state more money to manage another fund

• Letting people take the money and run in a few years doesn’t solve the teacher shortage in the long term or promote longevity in the profession

• The DC Only option would have less people putting money into the pension to pay off pre-1996 retirement fund debt

House Bill 1161 the (“13th Check” Bill) has passed unanimously through the Employment, Labor, and Pensions Committee. An increase is also on our wish list and we are working for an amendment to this bill that will increase the amount of the “13th Check” as it goes to the House Ways and Means Committee. Please ask your legislator and members of the House Ways and Means Committee to increase the “13th Check” amount. Their contact information is at the end of this bulletin. The “13th Check” has never increased since its inception. It will be a struggle to get an increase this session since it is not a budget year. We feel we have support and momentum to get an increase in the House. The true test will be in the Senate. The first step is to get it through the House. Our Talking Points for the need of an increase for the “13th Check” are the following:

• No Social Security increase this year

• 8 years since last COLA in 2008

• Grocery prices have increased over 32% since 2008

• Electric Bills have increased over 15% since 2008

• Health care cost continue to escalate

• Over 14,000 retired teachers receive less than $1,000/month in their pensions

• Over 6,000 retired teachers receive less than $650/month in their pensions

• Indiana has had a surplus from their yearly budget the past few years that would more than fund a “13th Check” each year

• “13th Check” amount has never increased since its inception

Please contact your representative along with your family members and friends. Here is the link to get your legislator’s contact information http://www.in.gov/legislative. In addition to contacting your own legislators, we are adding the committee contact information. Please thank the Employment, Labor and Pension Committee for their support on the “13th Check”. Refer to the attached Word document for contact information.

Thank you for your continued support. You are the ones that make the difference in the legislature. This short legislative session is intense and quick moving as the bills pass through multiple committees. Friend us on Facebook, Twitter and watch our website http://www.retiredteachers.org for the most recent information throughout the session.

Thank you for your support of our legislative efforts.

Tom Mellish
Steve Beebe