2015 Legislative Bulletin #3

LEGISLATIVE BULLETIN NUMBER 3, 2015

IMPORTANT:

Today we testified about SB 492 in the Senate Pensions and Labor Committee. It is a large bill with many parts to it. We testified that we were favorable to most of them, but we were against the part that will make new state hires to PERF automatically default to a Defined Contribution plan instead of the Defined Benefit unless they choose the DB.

(Why does this matter to us? Historically, when the Legislature votes on language that affects PERF, they eventually make it apply to TRF also.)

I know this may sound confusing. IT IS. I felt that some of the committee members probably didn’t understand its implications. But as you have heard from us over the past many months, we must take a stand against a Defined Contribution that takes away the safety of a secure pension in retirement and may, in certain circumstances, leave much less money available for retirement.

To do immediately:

Write to the list below, and in your own words, tell them that our position is that a Defined Benefit is less costly and better for retirees then a Defined Contribution. Then ask them to amend SB 492 by taking out the language that puts new state hires into the DC unless they choose the DB.

Second, tell them that the you feel that the Legislature should instruct INPRS to do an in-depth actuarial study to determine the total cost to the state if they were to move from the DB to the DC as the default option for the newly hired PERF and TRF employees.

I am attaching a page of talking points that you can look at if this still seems confusing. We also have a list of talking points on our website under Legislative Resources.

If you can’t write to all, please use the first group the Republican members.

Senate Appropriations Committee:

Republicans

Chair Luke Kenley s20@in.gov
Ryan Mishler s9@in.gov
Phillip Boots s23@in.gov
Ed Charbonneau s5@in.gov
Douglas Eckerty s26@in.gov
Brandt Hershman s7@in.gov
Pat Miller s32@in.gov
Brent Waltz s36@in.gov
Carlin Yoder s12@in.gov

Democrats

Karen Tallian s4@in.gov
Earline Rogers s3@in.gov
Mark Stoops s40@in.gov
Greg Taylor s33@in.gov

Why the Indiana Retired Teachers Association must oppose a move from Defined Benefits to Defined Contributions (DB vs. DC.)

1. With a 401 k, benefits cease when the balance is depleted, leaving a possibility of many needing state welfare assistance to live.

2. Without a retirement benefit, many will leave for higher paying jobs in the private sector. As teachers, we are concerned, as are you, in having the best and brightest people in the classrooms of Indiana.

3. There will still be a need for continued maintenance of the original DB plan. Also, a need for administration of both plans—more costly than managing one plan.

4. The cost of DB plan would climb since no new members would be entering the plan.

5. Taking it out of the hands of experts and giving it to the amateur means less money earned. This would have an impact on the community because there is the strong possibility of less money spent there.

6. Leakage—the loss of money into the plan through borrowing and not being paid back, or just the loss of interest money, even when a loan is repaid. Again, this would lead to people depending more on welfare programs or living with hardship.

7. DB assists employers in promoting an orderly turnover.

8. Timing is critical. An employee who retires just at a down-turn could lose much of his or her retirement income.

9. Stability for the community and the state! In a down-turn, the public pension is a stabilizing influence. If everyone has lost his or her income, the resulting comeback could be much worse. In an economic down-turn, those with a pension still get the monthly check to spend in the community, thus making it less dangerous for the local businesses to stay open.

10. Those who spend their careers in service to their communities and to their state deserve the chance to Retire with Dignity with the expectation that their retirement will last their lifetime.

Excerpts from:
House Committee on Pensions and Investments. Texas House of Representatives, Interim Report 2000: A report to the House of Representatives 77th Texas Legislature
Legislator’s Guide to Nebraska Retirement Systems, December, 1998
Opdyke, Jeff, The Wall Street Journal, “State Worker’s Pension Plans Spark Debate,” May 5, 2000

2015 Legislative Bulletin #2

Legislative Bulletin Number Two, 2015

• First, I want share with you that we have formed a coalition of stakeholders who receive public pensions. Our board voted to join this coalition, and we are working together on the pension bills for this legislative session. Some of the members are AFSCME, ISTA, AFT and your association. We have held several meetings to decide how we would combat the push in this session to move newly hired public employees (including teachers) from the Defined Benefit (pension) to the Defined Contribution (401K) method of providing retirement income.

• Second, we have also had meetings with some of the ISTAR officers to find ways in which we could work together to finally get a COLA for our retirees. I attended a second meeting with the ISTAR president and a staff member today. We are united in looking for any way that we can find to persuade the leaders in the legislature that it is time for a COLA!

• In numbers there is strength, and we are estimating that among these groups, we may have as many as 200,000 voices. That number includes you. SEE OUR LEGISLATIVE TAB ON THE WEB SITE FOR TALKING POINTS ABOUT THE DB/DC ISSUE. www.retiredteachers.org

• I testified at the House Employment, Pension and Labor Committee Wednesday on two of the bills that will affect our pensions.

• Bill 1493 is authored by Representative Cherry. The summary from the General Assembly web site follows:

• House bill 1481 had language in it that made it difficult for us to support. However, it was amended twice during the committee meeting, and we now support it. I am not going to put the summary here because the amendments that changed it have not yet been published. They may go on later today, but since they change the bill, we won’t have the correct summary at this time.

• Both bills passed out of this committee and will be sent to the House Ways and Means Committee.

Things to do immediately:

1. Send thank you notes to the author and co-authors of HB 1493 at 200 W. Washington Street, Indianapolis, IN 46204
2. This time the hand-written note is preferable to the email.

Representative Robert Cherry-author
Representative Woody Burton
Representative Martin Carbaugh
Representative David Niezgodski

3. Send thank you notes to the author and co-authors of HB 1481
at the same address.

Representative Woody Burton-author
Representative Martin Carbaugh
Representative Timothy Harman

And to those who added amendments:
Representative Martin Carbaugh
Representative David Niezgodski

4. Send a thank you to Chairman Douglas Gutwein who heard our bills.

Address envelopes as
The Honorable ____________

Correct greeting:
Dear Representative ___________:

We will soon be asking you to contact the House Ways and Means committee members. Here are their email contacts for future reference.

Chairman Tim Brown h41@iga.in.gov
Robert Cherry h53@iga.in.gov
Michael Karickhoff h30@iga.in.gov
James Baird h44@iga.in.gov
Randy Truitt h26@iga.in.gov
Jeffrey Thompson h28@iga.in.gov
Daniel Leonard h50@iga.in.gov
Mike Braun h63@iga.in.gov
Steven Davisson h73@iga.in.gov
Todd Huston h37@iga.in.gov
Peggy Mayfield h60@iga.in.gov
Sharon Negele h13@iga.in.gov
David Ober h82@iga.in.gov
Harold Slager h15@iga.in.gov
Holli Sullivan h78@iga.in.gov
Matthew Ubelhor h62@iga.in.gov
Greg Porter h96@iga.in.gov
Ed Delaney h86@iga.in.gov
Terry Goodin h66@iga.in.gov
Sheila Klinker h27@iga.in.gov
David Niezgodski h7@iga.in.gov
Cherrish Pryor h94@iga.in.gov
Gail Riecken h77@iga.in.gov
Steve Stemler h71@iga.in.gov

Thank you for your support!
Nancy, Steve, and Tom

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2015 Legislative Bulletin #1

INDIANA RETIRED TEACHERS ASSOCIATION LEGISLATIVE BULLETIN # 1

January 8, 2015

The Legislature met on Tuesday, January 6, to convene the 2015 session. Incoming ED, Tom Mellish and I were there about 9:30 to meet with Senator Crider. Throughout the day, we talked to many senators and representatives.

On that first day, our main purpose was to introduce Tom to as many as possible so they could begin to recognize him, and he could continue to become acquainted with more legislators. Even so, we were able to have some good conversations about upcoming legislation that affects our members, all retired educators who also benefit from anything that we achieve, and our active colleagues.

It is too early to know which of the many bill that are being proposed we will support and ask legislators to support. Within a couple of weeks, it will be much clearer, and we will have bill numbers to give you. Right now, the ones we are watching are just drafts of bills, which means they haven’t been filed and given a number. This situation changes each day, so stay tuned.

I want to continue telling you about the positive encounters on Tuesday. After our talk with Senator Crider, we were able to talk to Senators Becker, Tallian, and Waltz, as well as a few other quick introductions.

We also had some very good meetings with Representatives Gutwein, Carbaugh, Burton, Thompson, and Chairman Brown, and were able to spend a few minutes with Representative Klinker and newly elected Representative Wright. There were several quick introductions to other representatives. We were warmly received by everyone we met, and came away feeling that it was a positive day.

On the negative side, we heard that there may be a bill to do away with defined benefits in the future and move to defined contribution for newly hired teachers. Those of you who have attended our workshops this past year have heard why we are totally against this idea. We will have to be vocal about this if the bill is filed, but for now, we are waiting to see how the bills evolve.

Comments from Tom Mellish, incoming executive director:

Call it rookie optimism, but I was very pleased on the House side with our conversations with Reps. Carbaugh, Gutwein, Klinker, and Wright. Sens.Crider, Becker, Tallian, and Waltz were also positive conversations and seem very willing to support. I think we were extremely fortunate when we sat with Rep.Thompson and Chairman Brown joined us and asked questions about our bill.
I’m very impressed with Steve Beebe’s demeanor and knowledge of the legislative workings. He will be very helpful to this rookie and works extremely well with Nancy. At our coalition meeting at AFSCME the next day, members all seemed to lean to Steve to get his insight and thoughts of the legislature this year. He will be a key member in the coalition for us and helping lead the group which will be to our advantage. After day one at legislature I feel very positive we will get a bill through the House side; the battle will be the Senate side. I hope it’s more than just rookie optimism.

Things to do now:

1. Thank any of your legislators who are mentioned above for their kind support of retired educators. If you want to write a note to Representative Gutwein, Representative Carbaugh, Representative Cherry (He will author one of the bills that we would support), Chairman Brown, Senator Crider, and Senator Becker, you can send a note to any legislator at:

200 W. Washington Street
Indianapolis, IN 46204

Envelopes should be addressed as “The Honorable (1st name, last name)”
Greeting should be “Dear Representative (last name)”
Or “Dear Senator ___:”

2. To find your legislators, go to web site: “Indiana General Assembly Home.” At the bottom of the screen, click on the tab “Find Your Legislator” and put in your address.

3. If possible, go to any Town Hall, Cracker Barrel, 3rd House meeting that may be held in your area. (These are some of the many names that are used to give a forum for the legislators to meet and hear from their constituents.) If you attend, introduce yourself as an interested retired educator. We hope you have heard our talking points: We haven’t had a COLA in six years and have lost purchasing power that would have been spent in local businesses (if you are specific, it is the best way to get people’s attention). Money spent in local businesses comes back to the state in more tax money.

To find out about these meetings, you can sign up at web site: http://www.iauw.org/
Also check your local paper and your legislator’s web site if there is one.

4. We are getting much support, so please start by thanking them for the “13th check,” and it is always good to listen as well as talk in polite and reasonable ways.

5. Let us know what replies, discussion comes from contacting your legislator.

With appreciation for your support,
Nancy Tolson, Executive Director