Legislative Bulletin # 1

January 25, 2016

As this short session of the legislature quickly rolls along, IRTA has closely monitored the progress of three bills. The first one is HB 1325 which proposed moving the early retirement age back from the “Rule of 85” to “Rule of 95”. We were pretty sure from the start that this bill would not be heard as that was the opinion of most of the State Representatives to whom we talked. It was reassigned from the Employment, Labor and Pensions to the House Rules Committee, which is the grave yard for legislation each session, effectively ending our concern for this session.

The next bill of interest is HB 1161 “13th Check Bill” and we felt that this bill would be pushed through the House since Labor and Pensions Chairman Doug Gutwein authored the bill and Rep. Burton joined him as co-author. We are working with House members to get an increase in the check since it has not happened since the inception of the “13th Check”. There is still an outside chance we might see a slight increase in the check amount.

HB 1161 went unanimously through Employment, Labor, and Pensions Committee and during the Ways and Means Committee, Chairman Brown offered an amendment that funds the “13th Check” from the proceeds of the recent “tax amnesty” program. This passed the House Ways and Means Committee unanimously. This is a big step because the bill usually passes through the House, but without funding established. This should help us greatly as it passes over to the Senate side.

HB 1004 is being promoted as a tool to help with Teacher Shortage. I do not find much in this bill that would inspire me to become a teacher. The biggest problem that we have with the bill is that it has the “Defined Contribution Only” component in it for future educators as an option. I testified against it, but it still passed out of committee 9-3. I do not see how it can benefit future educators. If this bill passes through the senate, it opens the door for further expansion of the DC down the road. Legislators argue that it gives educators more freedom and choices. Our pension plan gives us all of the same options, plus the Defined Benefit, which is our best retirement tool. Having teachers vested in 5 years would give our teachers better options, especially those that come to us as second career teachers. We appreciate all of you who contacted the House Education Committee. We have work to do as this bill moves over to the Senate in a couple of weeks.

Rep. Cherry was going to author our COLA bill this year. It was in draft form and just days prior to the session beginning, Rep. Cherry had a medical emergency. We were told that his bills would be carried forward. Just prior to the bill filing deadline, we checked on the bill again and were told this time that leadership decided not to move that bill forward through the House, but would have stalled in the Senate. We wish Rep. Cherry a speedy recovery.

Please attend our Legislative Brunch and remember our free bus service from the IRTA office that leaves at 8:30 and returns at 12.

As I have observed last year and with my involvement in the legislature this year I feel very confident that the House members understand our plight and are supportive. The Employment, Labor and Pensions Committee and the House Ways and Means are especially supportive and understanding. Please write, or call, to thank them at:

200 W. Washington Street

Indianapolis, IN 46204

Or

1. To find your legislators, go to “Indiana General Assembly Home” (www.in.gov/legislative) At the bottom of the screen, click on the tab “Find Your Legislator” and put in your address.

2. Go to any Town Hall, Cracker Barrel, meetings that may be held in your area. We want to introduce ourselves or make ourselves known as interested retired educators, and they hear our message.

3. We are getting much support, so please start by thanking House Members for the “13th check” and hope the Senate will do the same. Listen as well as talk in polite and reasonable ways.

IRTA Legislative Brunch

ATTENTION! INDIANA RETIRED TEACHERS LEGISLATIVE BRUNCH

Tuesday, February 23, 2016 at the Indiana Statehouse, Indianapolis - 9:00am to 11:00am

Go with your officers that morning and help us get our message personally to our IN legislators. We will be leaving very early to get to the IRTA offices in Indy. They are chartering buses to take us to the statehouse. The deadline for reserving a seat on those buses is: THURSDAY, JANUARY 22nd

Check your calendars and let Barb Kanning know by that deadline if you are available to go with us. I guarantee it will be an interesting morning. I will be driving, and we should get back to Fort Wayne by mid-afternoon. Call or e-mail Barb at: 432-5228 or kanning4@frontier.com

Also, I hope you have communicated with our IN legislative committees (or will very soon) as requested by Tom Mellish, our IRTA Executive Director. That's the best way to let them know we NEED an increase in that September stipend --- I can't seem to call it a "13th check"!!!

Thanks for helping our AREA retired teachers,

Barb Kanning, AREA President

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