The Cliff Issue – educators who did not have ten years of service as of July 1, 1993 have reduced benefits compared to early generations — they are literally at the bottom of a cliff. An MEA bill sponsored by Senate President Beth Edmunds would reduce the current penalty for early retirement before age 62 from 6% per year to 3%. Given the actuarial costs of adjusting benefit programs under the Maine State Retirement System, MEA believes this is the absolute last chance to restore one of the benefits lost in the Retirement Raid of 1993.

Retiree Health Insurance – LD 201 sponsored by Representative Patsy Crockett would increase the state’s payment of health insurance premiums for retired educators from 45% to 50% and then to 55%. Most legislators understand the inequity between state workers who receive 100% payment for single coverage and educators, yet money rather than fairness may play an important factor in their final decision. Recent changes in accounting practices require the state to report the benefit commitment to health insurance as an unfunded liability with a cost approaching $3.2 billion. And, the bond houses on Wall Street will lower Maine’s credit rating unless money is dedicated to an investment fund that will eventually pay for the benefit.

Pension Tax – A bill sponsored by Senator Ethan Strimling removes the $6,000 offset applied to Social Security benefits, thereby reducing retiree taxes. Several other groups of retirees already have this exemption. And, a bill sponsored by Representative Ed Mazurek would increase the state income tax exemption for retired educators to the same level as retirees under the Social Security System.