|
Why School Funding
is Important to ALL Public School Retirees
By Jim Kreider, Executive
Director, MRTA
Dear
Active Member,
You, the members of MRTA need to be
extremely concerned about school funding. Public schools took a 350 million
dollar cut last year; and a five million dollar cut the previous year. This
year who knows! It is predicted there will be a billion dollar shortfall in
Missouri this next year (2004-2005). Public school funding is extremely
important to the economy, the retiree, the active teacher, our children, hence
the future of Missouri,. The foundation formula for public schools must be fully
funded! I will start with reason number 1.
1. Public
School Retirees are directly affected by not funding the schools
a. Less
teachers hired means less contributions to PSRS
b. Flat
or reduced teacher/school personnel salaries mean less contributions to PSRS
c. Currently,
fewer dollars are going into the PSRS fund due to the poor returns on
investments. School personnel and school district contributions are predicted
to rise for 7 years at ˝ percent per year. If schools suffer budget cuts, where
will the school district get the funds to match employee contributions? Teacher
lay-offs?
Will there be a possibility of
reduction in benefits? A reduction of benefits for actives who are contributing
4% more of their salary? There will then be an outcry that everyone,
including you, the school retiree, take a reduction in benefits? Presently,
five states have reduced benefits this year. Who will be the voice of the
retiree? ANSWER: MRTA will be the only voice with the retiree as the #1
priority. The only priority!
2. Not
to say how the children are affected by larger class sizes which we all know is
negative.
3. Rural
schools are most affected by state cuts. They receive much more than ˝ of their
funding from state revenues on average. Therefore rural schools take the
biggest hit. Large city schools get very little in state funding. Question: Who
is the largest employer in small rural communities? Answer: The public school.
Closing the school would kill Rural Missouri communities.
4. The
constitution of the state of Missouri sets the priorities of spending in
Missouri.
For example:
House Bill # 1 is service to public
debt
House Bill # 2 is funding of public
schools. The Constitution also says that in Missouri every child shall
have an equal and adequate public education. House Spending Bills are numbered 1
though 15 in prioritizing tax dollar spending. Yes, schools should be funded
before anything else except the servicing of state debt. For example, this
means even before public safety and mental health.
Yes, school funding is very important
to the school retiree for many reasons. Yes, we need to let our voice be heard
by calling or writing our State Representative, Senator and Governor. Remind
them of the importance of funding public schools to the future of all of us,
remind them they took an oath of office to uphold the constitution of Missouri,
which states funding of public schools is second only to servicing the debt.
Look into the eyes of your grandchildren and go out and sign up new members to
MRTA as “There is Strength in Numbers”. Our collective voice will compel
our government to do the right thing and fund our schools. The future of your
grandchildren, as well as yourself depend on it.
MRTA 2003 Legislative Bulletin
Summary of recently passed legislation
has been signed by the Governor.
The Public School Retirement System (PSRS) had four major items they
worked on.
MRTA supported the PSRS bills and testified in favor of them. Through the
legislative process, the legislature combined the PSRS bills with other
retirement bill into
one major retirement bill (SCS HCS HB 346 &174). This was the bill that was
finally passed during the last week of session.
Summary of SCS HCS HB 346 &174:
Authorized the PSRS board to increase the
contribution rate no more than 0.5% (0.25% for the non-teacher) for the
employees and the School Board for a total of no more than 1% (0.5%) for any
one-year. This effectively takes off the cap of the contribution rate. This
legislation also prohibits any improvement in benefits unless the contribution
rate is decreased to 10.5% & 5.0% rate.
Extends the 25 & out provision until 2008. This
provision was due to expire this year. Teachers opting for this provision must
take a reduced factor in calculating their benefits. Since the 80 & out option
was enacted several years ago, not many teachers take advantage of this option
due to the reduction of benefits. There was a small cost for this provision, but
it is anticipated as usage decreases, the cost will be negligible.
Allows for a Partial Lump Sum Option (PLSO). If
a teacher agrees to teach from 1-3 years pas their eligible retirement date,
they have an option to receive a lump sum with an actuarially reduced monthly
benefit to reflect the amount paid out under the PLSO option. This is not cost
to the system for this option.
Work After Retirement (WAR). Permits a teacher
to teach full-time up to two years and to draw retirement benefits at the same
time. There are some restrictions/guidelines that districts have to abide by to
do this. The maximum number of teachers the district can employ under this
provision is the smaller of 5 or 10% of the faculty. The district would also
have to contribute the district’s retirement portion to PSRS. The teacher would
not contribute to PSRS nor would they receive any additional benefits.
Permits the PSRS to streamline the various buy
back provisions that are offered. This will make it simple and understandable
for the teachers purchasing credit. There is no cost to the system for this
provision.
Revises the health insurance benefits provision
by allowing employees one year from date of last employment to qualify for a
district’s insurance coverage. Current law permits access to insurance coverage
from one from date of retirement. This change is more in line with the original
intention of the bill.
Medicare Referendum: The Medicare Referendum
conducted by the PSRS for those teachers who are not currently paying into
Medicare FAILED. It is our understanding PSRS will not conduct another election.
The above bill was passed for both certified and non certified school
personnel.
|
