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Dear PSEA member:
The summer is a time for most of you to decompress
from the intensive work of the school year. However, as September rolls around
it is time start a new year. It also is time to prepare for another intensive
round of advocacy to protect your PSERS pension system.
Our message to legislators: Keep the Promise
My message to you: Vote the Promise
Getting the pension issue settled once and for all
this fall is huge for PSEA members, the state, and school districts. It is time
to take the uncertainty out of the system, agree to a long-range plan, and get
on with other issues affecting public education.
Legislative update:
The pension
problem was exacerbated when the General Assembly rolled back the employer
contribution rate to 5.64 percent in 2010-11, rather than pay the actuarially
determined rate of 8.22 percent. While we could agree to some initial rate
relief as part of HB 2497 (the bill passed by the PA House this summer that
protects defined benefit pensions), this was only because the bill as presently
drafted maintains the defined benefit pension plan and commits employers to a
long-term payment plan that will eventually restore PSERS to financial health.
The roll back in the rate worsens the pension crisis, makes any final resolution
even more expensive for taxpayers, and increases the threat to our
benefits.
Unfortunately, delay may be the strategy of some
who want to significantly alter the pension system, cut public education
funding, and impose merit pay on teachers. They are prepared to let this
critical issue fester in hopes of November's election bringing in enough
anti-pension legislators to eliminate a defined pension benefit for education
employees.
Just look at what is happening in New
Jersey:
Far too many NJEA members voted for Governor Chris Christie,
who has attacked public education and NJEA member pensions since taking office
in January. They didn't believe their NJEA leaders. They wanted tax cuts. The
good news is that many of them are now paying less in taxes. The bad news is
that this is because they are unemployed. Those lucky enough to still have a job
have to do more with less. They have larger classes and less take-home pay now
that they are paying more for health insurance, and new employees are receiving
an inferior pension benefit.
PSEA staff and I have been meeting with key
legislators and their staffs over the past six weeks to ensure that we are
positioned for action when the Senate returns to session in September.
Unfortunately, given the short amount of time the Senate is expected to be in
session prior to the election, there are no guarantees that HB 2497 will pass,
or even be voted on by the Senate.
But, when the time is right, we will once again ask
you to ramp up the volume on this issue. Please be ready to answer the
call.
Sign up for pension alerts at www.psea.org/pensions.
My message to you: Vote the
Promise
These political dynamics make the outcome of the November
elections even more critical to the future of your pension fund. Next year
Pennsylvania will face even greater financial challenges. If the pension
situation is held over until next year, it will have to be dealt with in
conjunction with a multi-billion dollar deficit as federal stimulus dollars
expire. As a result, radical changes are more likely to occur. Currently, there
are dozens of candidates running for office in Pennsylvania who pledge to do
away with the pension system as we know it. One of them is gubernatorial candidate Tom Corbett.
How do we stop this from happening in
Pennsylvania?
We vote for people like Dan Onorato and Joe Sestak - and the
other candidates who your colleagues on the PSEA-PACE Board have
recommended. View your recommended candidates. We’ve interviewed these men and women. They are our best
shot to protect our jobs, our pensions, and to provide the power of a great
education to each of our students.
Dan Onorato is a man who believes in PSEA’s vision
for the future of public education, a man who has promised to Keep the Promise
of a secure pension for each of you, a man who we must stand up for in
November!
PSEA has gone to great lengths to interview and
screen candidates to ensure that we are recommending individuals for office who
will work to protect your pension. That is why it is important for you to vote
and to vote for PSEA Recommended candidates on November 2.
The safety, security, and solvency of your PSERS
pension system rest in your hands. I encourage you to use those hands to answer
the call when legislation moves in the Pennsylvania Senate, and encourage you to
use those hands to vote for the men and women who have pledged to Keep
the Promise.
In Solidarity,
Jim Testerman |