November 2011

COLA PROPOSAL BRUTALLY ATTACKED

COLA PROPOSAL BRUTALLY ATTACKED

Senate Increases State & Teacher Base

NOVEMBER 2011 VOICE: Heeding our Association’s call to use “Pension Reform III” as an opportunity to address longstanding benefit inequities, the Senate passed a provision within their proposal (S2018) increasing the state & teacher retirees’ COLA base by $1,000 to a new $13,000.

FEDERAL DEFICIT AND SUPER COMMITTEE

Potential Targets: Social Security & Medicare

NOVEMBER 2011 VOICE: In early August, the US Congress and President Obama reached a compromise agreement to raise the Federal Debt Ceiling, as well as cut an immediate $900 billion in federal spending. The compromise also created a 12-member Congressional “Super Committee” tasked with cutting at least another $1.5 trillion in federal spending over 10 years.

SAVINGS MEANT TO HELP RETIREES

Local Insurance Mitigation Funds Essential

NOVEMBER 2011 VOICE: A major point of negotiation during the Municipal Health Insurance Reform debate was the issue of mitigation funds being set aside to help offset the increased costs to be borne by retirees, survivors and employees under the new Municipal Health Insurance Law (Chapter 69, Acts of 2011).

PENSION REFORM CLEARS SENATE

Phase III Targets New Hires

NOVEMBER 2011 VOICE: Citing the need to reign in pension costs in order to increase the Commonwealth’s bond rating, the Senate has passed a sweeping pension reform measure that serves as the third major overhaul of the state’s defined benefit pension law.

ARLINGTON FIRST TO JOIN GIC UNDER NEW LAW

Includes Part B Refund

Arlington has become the first municipality to join the state Group Insurance Commission (GIC) under the new municipal health insurance law (Section 23). Town officials have contacted the GIC before October 1, so that the transfer will be done on January 1, 2012.