SB 1040 rears its ugly head again
When the Legislature returns for one day on July 18, it's expected the Senate will take up the unfinished business of SB 1040. While the House passed its version of the bill, the Senate adjourned on June 14 before taking any action.
The Senate will take up the House version which includes the prefunding of the retirement system, giving new hires the option of a defined contribution plan, and a freezing of the retirement rate for school districts. All along, there have been Senators interested in forcing all new hires into a defined contribution plan, but at issue is the cost of such a move. The House version calls for a study analyzing the cost benefit.
Even after a month of "review," the bill is still no better. SB 1040's push for a risky defined contribution system is not the way to fix the retirement system's funding problem. SB 1040 increases the contribution rate for current employees and retirees; it diminishes benefits; it robs new hires of any kind of secure retirement; and since more women than men are MEA members and retirees--it's another attack on women. This legislation forces school employees to bear the burden of solving the retirement system’s financial problem--a problem they had no part in creating. It's crucial that you contact your Senator today. Tell them to vote NO on SB 1040.