Saturday, January 23, 2021
  • About
  • Advertise
  • Careers
  • Contact
Pension Changes
  • Home
  • Government Policy
  • Pension Changes
  • Pension Information
  • Pension Rights
  • Retirement Pension
No Result
View All Result
Pension Changes
Home Pension Changes

Teacher unions work to correct “huge failure,” push back against Lamont’s pension changes

March 9, 2020
in Pension Changes
Teacher unions work to correct “huge failure,” push back against Lamont’s pension changes
0
SHARES
5
VIEWS
Share on FacebookShare on Twitter

Labor



Marc E. Fitch

February 27, 2020

Ned Lamont campaigns at union rally hosted by AFSCME Council 4 and AFT CT

Connecticut’s teachers’ unions are angered over changes to how the state calculates teacher pension death benefit payments for spouses and are working behind the scenes to reverse the reforms, according to emails obtained by Yankee Institute.

Related posts

State pension changes to give hundreds of thousands huge boost in retirement savings | Personal Finance | Finance

State pension changes to give hundreds of thousands huge boost in retirement savings | Personal Finance | Finance

January 14, 2021
Biden touts gender parity and diversity of his Cabinet

Biden touts gender parity and diversity of his Cabinet

January 12, 2021

When a retired teacher passes away, the Connecticut Teachers Retirement Board cuts a lump-sum check to the late teacher’s spouse based on the teacher’s overall contribution to the pension fund, minus a percentage of benefits already received – known as Plan N. 

However, according to concerned teachers’ union officials, the formula to determine the survivor benefit was changed when Gov. Ned Lamont restructured the state’s teacher pension debt payments as part of the 2019 budget.

The change results in a teacher’s total account balance being drawn down at a faster rate, rising from 25 percent of their annual pension payment to 50 percent. This leaves less money in the teacher’s retirement account to calculate the death benefit package but keeps more money in the massively underfunded Teachers Retirement System.

The change affects teachers who retire after July 1, 2019 and have elected Plan N for their retirement plan. There are two other retirement plans available.

But the change is not sitting well with union officials in the American Federation of Teachers CT, a union that supported Lamont’s gubernatorial campaign.

These changes we believe are in violation of existing case law and we are exploring different legal options in the event that political options fail us.

Teri Merisotis, Legislative Advocate for AFT CT in February 21 email

In a February 21 email, former Vice President of AFT CT and New Haven school counselor, Thomas Burns, said the pension changes could cost him $150,000.

“I am sure that everyone on this email does not know that we have lost a bunch in our retirement money’s,” Burns wrote in an email to a number of union officials. “This hurts — a huge failure which was hidden from membership and if I knew personally I would have retired last year.” 

“Please ask the powers that be how this happened in secrecy,” Burns added.

Part of the February 21 email from Thomas Burns to union officials

The email was primarily addressed to Teri Merisotis, legislative advocate for AFT CT. 

Merisotis responded that AFT considers the change “illegal” and is “in conversation with the Governor’s office and the Treasurer’s office.”

“AFT Connecticut is on top of the issue and working with [Connecticut Education Association],” Merisotis wrote. “These changes we believe are in violation of existing case law and we are exploring different legal options in the event that political options fail us.”

Merisotis said OPM conceded the change “in part, impermissible” and intends to limit the change to teachers with less than 10 years on the job and not yet fully vested in the pension system. 

“Our position continues to be that it protects all members of the retirement system, not just those who are vested, and thus even as amended, the change is illegal,” Merisotis wrote.

“Sometimes in situations like this, a technical change to the bill will affect the desired outcome, with a behind the scenes effort in place of mass mobilization,” wrote David Hayes, AFT CT secretary-treasurer. “You are in contact with the legislators and Governor’s people in Hartford and can best advise us if we need to shift gears to take a different stance.” 

February 21 email from AFT Legislative Advocate Teri Merisotis

Burns labeled the change as “the biggest loss of all time for our members,” and “an embarrassment for our union.” He said teachers should be made aware of the changes.

As part of the 2019 budget, Gov. Ned Lamont and the State Treasurer’s Office did some financial wrangling to re-amortize teacher pension debt payments and avoid an unsupportable spike in payments, which could have ranged from $3 billion per year to $6 billion. 

The restructuring of the debt was included in the budget, setting aside $300 million to back teacher pension bonds taken out in 2008, along with the provision changing the death benefit payment under Plan N. 

The change in language apparently went unnoticed by teachers union officials, until now.

Budgetary language changing the benefit payment plan under Plan N

Unlike state employee retirement benefits which are set in contract, teacher pensions are set in statute and can be changed legislatively, as they were in the 2019 budget. Reversing those changes would likely require a vote by the General Assembly.

Connecticut’s Teachers Retirement System currently faces $16.7 billion in unfunded liabilities and requires an annual payment of $1.2 billion, according to the latest actuarial valuation. The annual payment is expected to increase to $1.6 billion by 2024, according to the Office of Fiscal Analysis.

Despite making the full annual payment for more than a decade, teacher pension debt has actually increased.  

Two years ago, the legislature increased teachers’ retirement contributions from 6 percent of pay to 7 percent, resulting in $38 million in additional pension payments.

Although Connecticut teachers’ pension contribution remained lower than similar states, like Massachusetts, the $38 million never went toward the underfunded teacher pension system because the state reduced its pension payment by the same amount.

According to the OFA, the average Connecticut teacher retires earning $93,909 per year and receives a pension of $60,777. 

OPM and the State Treasurer’s Office did not return request for comment by time of publication.

— to yankeeinstitute.org

Previous Post

Community employment supervisors strike over pension rights

Next Post

NEST: More than a pension | Country Report

Next Post
NEST: More than a pension | Country Report

NEST: More than a pension | Country Report

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED NEWS

The California Supreme Court Addresses the California Rule and Public Retirement System Governance | Nossaman LLP

The California Supreme Court Addresses the California Rule and Public Retirement System Governance | Nossaman LLP

6 months ago
Formal reversal of police pension changes recommended

Formal reversal of police pension changes recommended

8 months ago
10 things to consider when purchasing payroll software

10 things to consider when purchasing payroll software

6 months ago
EU Court to Consider if an Irish Pension can be Exempted from a UK Bankruptcy Estate

First-step analysis: pension & retirement plans in Canada

9 months ago

FOLLOW US

  • 79 Followers
  • 27.6k Followers
  • 40.7k Subscribers

BROWSE BY CATEGORIES

  • Government Pension Policy
  • Pension Changes
  • Pension Information
  • Pension Policy
  • Pension Rights
  • Retirement Pension
  • Uncategorized

BROWSE BY TOPICS

2021 2021 Pensions auto-enrolment age 18 auto enrolment pension contributions 2021/22 auto enrolment rates 2020/21 auto enrolment rates 2021/22 cashing in pension at 55 cashing in pension calculator cashing in small pension pots CCP retirement check my state pension Disabled pensions drawdown employer pension contributions 2021/22 government policy examples uk list of government policies uk minimum pension contributions 2021 minimum pension contributions 2022 new state pension Pension age pension issues pension ombudsman pension plan pension regulator Pensions Advisory Service Pensions Brexit pension scheme uk Pensions outlook retirement 2 million scams scheme funding Single mothers pensions State Pension State Pension age state pension changes state pension forecast State Pensions State triple lock taking pension at 55 the pensions regulator Therese Coffey uk pension age UK State Pension uk state pension age what is government policy uk

POPULAR NEWS

  • Multiemployer pension reform not happening this year

    Multiemployer pension reform not happening this year

    5 shares
    Share 0 Tweet 0
  • Exit payment cap: Implications for the LGPS

    0 shares
    Share 0 Tweet 0
  • Public Service Pensions Update | October 2020

    0 shares
    Share 0 Tweet 0
  • NEST: More than a pension | Country Report

    0 shares
    Share 0 Tweet 0
  • Builders were not self-employed, rules employment tribunal

    0 shares
    Share 0 Tweet 0

Follow us on social media:

Recent News

  • Jurisdiction issues were a part of our lives long before Brexit
  • Parkland families demand Marjorie Taylor Greene resign over conspiracy theory the shooting was faked
  • Brexit and Covid-19 Universal Credit changes in 2021, including to benefits and pensions

Category

  • Government Pension Policy
  • Pension Changes
  • Pension Information
  • Pension Policy
  • Pension Rights
  • Retirement Pension
  • Uncategorized

Recent News

EU Court to Consider if an Irish Pension can be Exempted from a UK Bankruptcy Estate

Jurisdiction issues were a part of our lives long before Brexit

January 23, 2021
Parkland families demand Marjorie Taylor Greene resign over conspiracy theory the shooting was faked

Parkland families demand Marjorie Taylor Greene resign over conspiracy theory the shooting was faked

January 23, 2021
  • About
  • Advertise
  • Careers
  • Contact

© 2020 Please contact us on partnership@pensionchanges.co.uk if you would like to reach our audience.

No Result
View All Result
  • Home

© 2020 Please contact us on partnership@pensionchanges.co.uk if you would like to reach our audience.