Legislative Visit This Morning

I visited with several of our legislators today. Retirement, of course, was the main subject. Susan Kuziak and Kory Holdaway, our main lobbyists, stressed the need to keep the system as is. One part of the Liljenquist bill would also do away with is the 1.5% 401k contribution that we all receive from our employers. I spoke with Sen. Greiner, Rep. Wilcox, Rep. Gibson, Rep. Greenwood and Rep. Froerer.

Remember the Retirement Rally, Feb. 6, @ 11:00 AM at the capitol. We need everyone there to support our current system.

Rick

Retirement Rally-Saturday, Feb. 6, 11:00 AM at the Capitol

We are asking all UEA members to attend the Retirement Rally at the State Capitol, Feb. 6 at 11 AM. Why Rally? Our employee retirement system is under attack. We need to fight back and let the Utah Legislature know how we feel.
The purpose of the rally is to:

• Show unity among public employees.
• Show how many organizations will be affected by reduced retirement benefits.
• Show our knowledge about the importance of investing in educators and public employees.
• Garner support for our retirement benefits and educate the public.

Participating organizations include: UEA, Utah School Employees Association, Utah Public Employees Association, and the Fraternal Order of Police.

We will be sending out talking points for our members. See you there.

Rick

Retirement Rally Planned-Feb. 6 at the Capitol

Sen. Liljenquist also wants to combine the two state retirements (Public Employees and Public Safety) into one retirement system. The new hires would have the option of a defined contribution (401k) of 8% or a hybrid plan with 1% for each service yer, 35 year minimum retirement and a 3-5% contribution to a 401K.

UEA is planning a Retirement Rally, Feb. 6, Saturday at the State Capitol (11:00 AM). You will receive more information from your local leaders. We need members, nonmembers, classified employees and administrators at this rally to show support for our retirement system.

Rick

Proposed Changes for Rehires

Sen. Liljenquist also wants to make some changes on what our retirees who are rehired receive in compensation. His bill would take away the 401k contribution that our rehirees receive in place of a retirement contribution. (this would affect current employees) For newly rehired retirees hired after July 1, 2010 the employee would earn additional service years, but their pension payments would be suspended.

This is just another case of the legislature overreacting.

Rick

Legislator Proposes Changes to State Retirement

Sen. Liljenquist (Davis County) is filing bills that will make major changes to our state retirement system. This is one example of a change for all new employees hired after July 1, 2011.

• All employee groups would be in one retirement system. Public employees, Public safety, Fire Fighters and judges would be together in one plan.
• Employees would be given the opportunity, upon hire, to choose between two different plans. (hired after July 1,2011). They would choose either Plan A or Plan B.

• Plan A: Defined Contribution Plan (8% retirement contribution into a 401(a) plan that would be administered by the Utah Retirement System)

• Plan B: A Hybrid Defined Benefit/Defined Contribution Plan with a 35 year minimum service requirement, 1% per year service credit, 2.5% COLA based on the Consumer Price Index, and based on highest five years of salary. The Hybrid plan would also have a contribution to a 401(a) plan.

UEA opposes any changes to our retirement plan. Our future teachers need us to fight for them.

Go to www.utea.org for more information. Stay tuned to this blog for more ugly bills.

Rick

Rick

Defined Benefit VS. Defined Contribution

Our current Utah Retirement System is a Defined Benefit system in that you are assured of a monthly benefit upon retirement. It is based on an average of your three highest salaries, you receive 2% for each full year of service and it is a lifetime benefit. You have several options at retirement such as a Lump-Sum payout that, of course, would reduce your monthly benefit. You can also choose to lower your monthly benefit to allow for a death benefit for a spouse.

A defined contribution is usually thought of as a 401-K contribution that hopefully earns for you through the investments the URS makes. It is portable, in that, you can roll it over into an IRA or other tax-deferred area. The benefit is not guaranteed as it is in the Defined Benefit system.

We want to preserve our current system without changes.

Stay tuned for more information as we approach the opening of the Leg session Monday, Jan. 25.
Go to the UEA website at www.utea.org for more retirement information.

Rick

10 Minute Meetings on Retirement

We are asking our building reps to hold a 10 minute meeting with their staff to talk about retirement issues. We have talking points that include proposals for the upcoming leg session, the difference between Defined Benefit and Defined Contribution, and the need for all employees to get involved. Ask your building rep to contact us for more information if needed. The session starts Monday, January 25th.

Rick