Biennial
budget
passes
both
House
and
Senate
with
a
two-thirds
vote;
budget
now
awaiting
Governor's
review
and
signature
MSEA-SEIU
members
made
their
voice
heard
in
the
proposed
$6.2
billion,
two-year
state
budget.
By
talking
with
legislators,
testifying
at
hearings,
signing
petitions,
attending
rallies
and
working
closer
than
ever
with
our
coalition
partners,
we
eliminated
Gov.
LePage's
proposed
2
percent
payroll
tax
on
public
workers
and
teachers.
We
also
rolled
back
Gov.
LePage's
proposal
to
cap
retiree
cost
of
living
adjustments
at
2
percent.
Below
are
key
elements
of
the
proposed
budget
as
they
relate
to
retired
state
workers
and
the
nearly
10,000
workers
whom
we
represent
in
all
three
branches
of
state
government.
Keep
in
mind
that
the
proposed
budget
is
not
yet
final;
it
awaits
Gov.
LePage's
review
and
signature.
Check
our
website
at
www.mseaseiu.org
for
the
latest
developments.
LAYOFFS
AND
ELIMINATION
OF
VACANT
POSITIONS
While
we
are
encouraged
that
layoffs
are
being
kept
to
a
minimum,
the
elimination
of
over
250
vacant
positions
in
state
government
will
worsen
the
impossible
workloads
that
many
MSEA-SEIU
members
are
experiencing.
MSEA-SEIU
stewards
stand
ready
to
ensure
that
everyone's
contractual
rights
are
protected
in
the
delivery
of
quality
public
services
to
Maine
people.
LONGEVITY
PAY
We
maintained
funding
for
longevity
pay
for
all
state
workers
who
currently
have
it.
New
longevity
steps
won't
be
awarded
in
the
next
two
fiscal
years,
but
those
state
workers
who
have
longevity
pay
will
keep
what
they
have
in
their
paychecks.
MERIT
PAY
The
proposed
budget
freezes
funding
for
merit
pay
for
the
next
two
fiscal
years.
PENSIONS
AND
RETIREE
HEALTHCARE
On
pensions
and
retiree
healthcare,
we
fought
back
hard
against
Gov.
LePage's
proposals
to
cause
substantial
harm
to
Maine's
public
workers,
teachers
and
retired
workers.
-
We
eliminated
Gov.
LePage's
proposed
2-percent
payroll
tax
on
state
workers
and
teachers.
This
ill-conceived
proposal
was
a
new
tax,
pure
and
simple,
on
thousands
of
Maine
workers.
Legislators
heard
us
when
we
told
them
it's
wrong
to
impose
a
new
tax
on
state
workers
and
teachers
to
pay
for
Gov.
LePage's
tax
giveaways
to
Maine's
wealthiest
residents.
-
We
rolled
back
Gov.
LePage's
proposal
to
make
everyone
retiring
after
Dec.
31,
2011,
reach
age
65
before
they
would
become
eligible
for
fully
paid
health
insurance.
Legislators
decided
that
state
contributions
toward
retiree
health
insurance
would
begin
at
the
normal
retirement
age
(60
or
62)
for
workers
vested
in
the
retirement
system
as
of
June
30,
2011;
however,
as
part
of
this
transition,
workers
who
have
not
yet
reached
their
normal
retirement
age
must
retire
by
Dec.
31,
2011,
in
order
to
have
fully
paid
health
insurance
immediately
upon
retiring.
Otherwise,
their
eligibility
for
fully
paid
retiree
health
insurance
wouldn't
kick
in
until
they
reach
their
normal
retirement
age.
-
For
workers
hired
on
or
after
July
1,
2011,
and
for
those
not
vested
in
the
retirement
system
by
that
date,
their
retirement
age
would
be
65
and
state
contributions
toward
their
retiree
health
insurance
would
begin
at
age
65.
-
For
workers
hired
on
or
after
July
1,
2011,
their
vesting
for
retiree
health
insurance
would
be
as
follows:
10
years,
state
pays
up
to
50
percent;
15
years,
state
pays
up
to
75
percent;
and
20
years,
state
pays
up
to
100
percent.
-
We
persuaded
legislators
to
eliminate
Gov.
LePage's
proposal
to
make
retirees
pay
five,
10
or
15
percent
of
their
retiree
health
insurance
premiums,
based
on
the
amount
of
their
pension
income.
Legislators
saw
this
proposal
as
yet
another
example
of
Gov.
LePage
trying
to
impose
a
new
special
tax
on
public
workers
and
retired
workers.
-
We
rolled
back
Gov.
LePage's
proposal
to
reduce,
from
4
percent
to
2
percent,
the
cap
on
cost
of
living
adjustments
to
pensions.
Legislators
accepted
our
proposal
for
a
3
percent
cap.
However,
the
proposed
state
budget
permanently
limits
COLAs
to
the
first
$20,000
of
pension
income,
indexed
to
include
future
COLAs.
We
opposed
the
$20,000
income
cap
and
all
income
caps
on
retiree
pensions.
A
more
moderate
proposal
of
a
$25,000
cap
was
discussed,
and
ultimately
rejected,
by
legislators.
-
In
addition
to
capping
COLAs
at
3
percent
and
limiting
them
to
the
first
$20,000
of
pension
income,
the
proposed
state
budget
also
freezes
cost
of
living
adjustments
to
pensions
for
three
years.
After
the
Appropriations
Committee
decided
on
a
three-year
freeze,
we
pushed
for,
and
secured,
language
providing
for
possible
"ad
hoc"
COLAs
of
up
to
3
percent
in
the
both
second
and
third
years
of
the
freeze,
based
on
available
revenues.
These
"ad
hoc"
COLAs
wouldn't
be
applied
to
the
pension
base,
but
they
could
put
some
money
into
the
pockets
of
retirees
depending
on
whether
the
General
Fund
has
surplus
revenues
in
those
years.
FUNDING
FOR
THE
STATE
EMPLOYEE
HEALTH
INSURANCE
PLAN
The
proposed
state
budget
freezes
funding
for
the
State
Employee
Health
Insurance
Plan
for
two
years.
RETIREMENT
INCENTIVE
The
proposed
state
budget
contains
a
retirement
incentive
for
retirement-age-eligible
employees
who
retire
on
or
before
Nov.
1,
2011.
Although
not
specified
in
statute,
the
amount
of
$5,000
has
been
proposed.
LATEST
DEVELOPMENTS
For
the
latest
developments,
check
back
at
our
website:
www.mseaseiu.org
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