February 19, 2011. Wisconsin citizens stand up for public employee rights, SB1130 admits FRS faces no crisis, New state employees to be given 401K-type “defined contribution” plan, Please call your legislators!
Interim Committee Edition
February 18, 2011
Today protesters from all over Wisconsin are holding the biggest rally yet, with tens of thousands of people expected to come. But the national media is not giving the story the coverage it deserves, and without more attention, the Republicans may push the bill through.
We need to show that millions of Americans are standing with the protesters and help draw the nation’s eyes to Madison today. Can you take a moment right now to change your Facebook status to this:
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- “Today I stand with the teachers, nurses, and all public employees of Wisconsin who are fighting for their rights. If you do too, change this to your status for the rest of the day.”
Click here to go to your Facebook profile and change your status.
Three ‘Ring’ circus — emotions run high at pension reform public hearing
The Senate Governmental Oversight and Accountability committee, chaired by Jeremy Ring (D-Margate) held a four-hour public hearing today (Friday, February 18) on SB 1128 and SB 1130—pension reform. After hearing 3 1/2 hours of emotional testimony on the local pension bill – SB 1128– from firefighters and police officers, tensions and blood pressures were running high…but some comfort was taken in the fact that first responders were near in case of medical emergencies!
This circus went on without the clowns and cotton candy, but several big elephants that some senators did not want talked about were lurking in the room. What they all soon realized was this was not an issue folks take lightly, as one citizen put it, “I have made life decisions based upon this plan.”
With 30 minutes left on the clock, Ring began taking testimony on SB 1130 – the FRS reform bill. Frustration from the audience was palatable – folks had driven and waited for hours to have their turn to speak before the committee only to be rushed along or skipped entirely. Sensing the rising rancor in the room, Ring promised that he will allow additional time for public comment on SB 1130 next Thursday, February 24.
Only one of the eleven FEA members who travelled from around the state to join us in Tallahassee was allowed to present testimony. Joining us in the big top were: Mark Castellano (Lee) Wendy Eyster (Ocala), Mike Felton and his wife (Ocala), Paige Campbell (Pinellas), Marshall Ogletree (Pinellas), Marion Cannon (Orange County), Nancy McDonnnell (Orange), Robert Moore (Pasco), Kevin Doyle (Columbia), Francine Hern (Leon). Much thanks to them all!
The biggest elephant in the room was the real reason behind SB 1130: the state budget shortfall. Ring admitted that there is not an FRS crisis now — but he said in out years there may be one. He then made it clear that the immediate reason behind the bill was to help the legislature fill the alleged $4 billion budget hole.
Ring emphasized that SB 1130 would not reduce the service accrual rate, does not eliminate DROP, does not freeze COLA (cost of living adjustments) and does not affect retirement age.
The crowd did not buy into the bill sponsor’s contention that “this isn’t going to impact you, only new employees.” What senators will hopefully understand after hearing from that room full of union folks is union people care deeply about their future colleagues and their professions. That is not quite the mentality of the “I want mine” caucus with which Senators are more accustomed!
SB 1130 reforms the Florida Retirement System (FRS):
· Closes defined benefit plan to new members, effective 7/1/11. New employees will be offered a 401K type plan called a defined contribution plan.
· Changes vesting for new members of the defined contribution plan on or after 7/1/11. They will vest in graded increments over a five-year period.
· Requires an unspecified employee contribution for all members, effective 7/1/11. Ring stated that the contribution rate will be decided in Senator Alexander’s Budget Committee.
· Changes the definitions of “compensation” and “average final compensation” to exclude overtime and lump sum annual leave for all members, effective 7/1/11.
· Allows reenrollment in the defined contribution plan.
· Sets the employer contribution rates (which will be subject to change depending on other economic and policy issues).
· The bill includes an actuarial study that will look at how DROP is funded
Ring announced that on Monday a strike all amendment would be filed for both SB 1128 and for SB 1130. He stated that the strike all amendments would address technical errors in both bills (but did not point out which technical errors were being corrected). He also announced the meetings where further work on the bills would take place: Tuesday, 2/22/2011, 3:15 – 5:15, in 412 Knott Bldg for further work on SB 1128 and Thursday, 2/24/2011, 3:30 — 05:30, in 412 Knott Bldg for further public testimony and work on SB 1130.
You may read the current FRS bill at:
http://www.flsenate.gov/Session/Bill/2011/1130/BillText/Filed/PDF
What’s happening next week?
We have a juggling act to manage next week! First on the list of bills up in committee are CS 736— the teacher quality bill — and SJR 958 the TABOR bill will both up in the Senate Budget Committee on Wednesday, February 23 at 9 a.m. At about the same time on Wednesday, the House will begin discussing their proposed committee bill on teacher quality starting at 10:15 a.m.
SB 1130 the FRS reform bill before the Governmental Oversight will be meeting on Thursday.
Feel like some light reading this weekend?
You can read the Senate committee substitute 736 at: http://www.flsenate.gov/Session/Bill/2011/0736/BillText/c1/PDF
The House version (still a proposed committee bill with no number):
SJR 958 TABOR bill:
http://www.flsenate.gov/Session/Bill/2011/0958/BillText/c1/HTML
Don’t forget – take 5 minutes to call your legislator about all the bills we are facing in the next few weeks!
Teacher quality
· The new “teacher quality” bill, SB 736, is this year’s version of SB 6, and raises many of the same concerns.
· The legislation increases the number of tests that must be developed and given to every student every year – and shifts millions of scarce dollars to pay for these new tests. It will tie teacher salaries directly to the results.
· SB 736 allows all new teachers – regardless of rating – to be fired without just cause or any due process.
· The bill prohibits local districts from rewarding many teachers who earn advanced degrees. Knowledge isn’t valuable? It is in every other profession.
Your retirement
· The Governor and the Legislature want to take 5% out of the paychecks of teachers and school and public employees – not because the pension fund is in trouble, but so they can spend the money elsewhere.
· These proposed 5% pay cuts will harm local economies all over Florida. Teachers, school employees and all state workers will lose salary money, money they would have spent at local businesses.
· Regardless of what people hear from politicians in Tallahassee, pensions for teachers and education staff are very modest (and are subject to income tax). Teacher pensions average about $325 per week, and other school employees get much less – about $195 per week. Teachers and education employees earn these modest pensions through decades of public service.
· The Florida Retirement System (FRS) is NOT struggling or in trouble. FRS is fully funded and able to meet its obligations. The Governor and Legislature say money is needed for pensions, but this is simply a bailout for bad spending decisions by politicians, and is intended to fund tax cuts for corporations.
- Union gag bill
· Senate Bill 830, filed by state Sen. John Thrasher, would prohibit payroll deduction for any union dues, and would place huge restrictions on your advocacy for your profession and your students.
· Thrasher’s bill clearly intends to silence your voice in public life and end your right to speak out about issues that affect your job, your students and your community.
· This bill is “Thrasher’s Revenge” against you and tens of thousands of others who opposed his bill – SB6 – last year, and for opposing him in the election.
· Thrasher’s new bill aims at nothing less than using the government to silence his political opponents.
- That’s not how America works!
If you haven’t yet, call your legislators ASAP and ask them these questions:
On teacher quality
(1) Are there any provisions in the bill for professional development, mentoring or peer evaluation and review?
(2) Does the bill empower principals to evaluate teachers constructively, or just fire them if their students underperform?
On retirement and pensions
(1) Taking 5% out of the pockets of every teacher, custodian, school-bus driver, police officer, firefighter and state worker is going to have a huge impact on businesses in my community. Won’t this make the economic crisis in Florida worse?
(2) The Governor says state workers should contribute to their retirement because that’s how other states work. But shouldn’t we look at salary, benefits and retirement as a total package in determining fair compensation?
(3) Won’t requiring new workers to get only a 401(K) account weaken the existing state retirement fund in the future?
On silencing free speech
(1) Do you think it is right to try and silence political opponents in Florida just at the time when people around the world are facing down guns and secret police to demand liberty and democracy?
(2) The Supreme Court ruled that corporations and unions could not be restricted in how they spend on politics. So, isn’t this bill unconstitutional?
(3) Should important public policy be driven by one Senator’s personal anger?
Please forgive the probable typos in today’s report – many very annoying computer lock-ups and too much multi-tasking! TGIF!!
Thanks to Pat Dix for the circus theme!
Questions? Call FEA Public Policy Advocacy at 850.224.2078 (ask for Kevin!)