To file a grievance with the State of Ohio, click the following link: http://ocbgriev-efile.das.ohio.gov
State Employees Division
Thanks to the efforts of thousands of SEIU members contacting Congress, a Senate vote today cleared the way for passage of the much-needed extension of the enhanced Federal Medical Assistance Percentages (FMAP)
The extension provides critical funding to maintain jobs in the public sector, hospitals, nusing homes and other healthcare facilities. Ohio stands to receive about $513 million from the increased federal match through June 2011, while West Virginia will get $81 million and Kentucky will get $158 million.
"Today the Senate protected hundreds of thousands of American jobs," said SEIU President Mary Kay Henry. "Our economic recovery depends on putting people back to work in good jobs with decent wages and keeping the rest of us working. Thanks to today's bipartisan vote and the leadership of Senate Majority Leader Harry Reid, kids will keep their teachers and we can all still count on the cops, firefighters, and other public service workers who keep our communities safe and livable."
$450,000 in funds are now available in tuition reimbursements for members of SEIU District 1199 who work for the State of Ohio.
Senator Tim Grendell (R-18) and Senator Bill Seitz (R-8) have proposed a new bill in the Ohio Senate that would restructure state government and establish the State Correctional Institution Privatization Commission, which would:
- - Study the Ohio DRC operations and management
- - Study the operation and management of private institutions
- - Develop a plan for the transfer of the operation and management of at least one-half of Ohio's state managed correctional institutions to a undesignated private entity
The Arbitration Advocacy Training that was presented on April 1, 2010 can be viewed by clicking here. (You must use an Internet Explorer web browser to view the training, because it uses ActiveX controls.)
Recent contract negotiations resulted in agreement to permit 1199 members to receive credit for prior service with the State, the Ohio National Guard, or any political subdivision of the State for the purposes of computing vacation leave in accordance with Ohio Revised Code section 9.44. These provisions become effective July 1, 2010. The contractual language, article 10.01, also provides that the new vacation accrual rates shall take effect starting the pay period immediately following the pay period that includes the date the Department of Administrative Services processes and approves the employee's request.
So that these requests may be processed in an orderly and timely fashion, and so that both 1199 members and their former employers receive as much advance notice as possible prior to the July 1, 2010 effective date, the following is the procedure:
1. 1199 members may begin submitting documentation regarding prior service immediately. 1199 members should contact qualifying previous employers (i.e. the political subdivisions of the State**) as soon as possible in order to provide sufficient lead time to receive the required information.
2. 1199 members should submit the information directly to their Personnel Office, who shall attach the documentation to a personnel action and submit these materials the Bureau of Personnel.
For SEIU District 1199 members who already have prior service for longevity purposes, these members should copy and resubmit their prior service documentation, as this will require a separate personnel action (i.e. one PA for longevity, one PA for vacation).
Please be advised, for all personnel actions for prior service received by DAS HR Support prior to June 18, 2010, the effective date will be the pay period beginning June 20, 2010. For all personnel actions received on and after June 18, 2010, the effective date will be the pay period following the date in which the personnel action is processed and approved.
Proposed Legislation Changing Public Pension Benefits Not Yet Introduced
Legislation to address long-term stability of the public pension systems is still in draft form at this point. Even if the legislation is introduced in the near future, we expect the legislative process to be slow and deliberative in this crucial political year. It is likely any votes on such a proposal will come post-election this fall.
Still, the long-term challenges facing the public pension systems continue to be front-page news in Ohio. The historic downturn in the stock market has had a significant impact on all five public pension funds, including the Ohio Public Employees Retirement System (OPERS). The drop has caused the amortization for the OPERS pension fund (the number of years to pay off obligations) to increase from 14 years in 2007 to beyond 30 years today. The fund is required by law to have a plan to keep that number below 30.
The proposal that has been presented by OPERS to the Ohio legislature modifies several major elements of the pension plan to restore balance (outlined below).
| Current Pension Benefits | Proposed Reform Plan |
|---|---|
| Unreduced retirement at 65 (with at least 5 years service) or any age with 30 years. | Raises unreduced retirement age to 67 (with at least 5 years service). Raises retirement at any age to 32 years of service. |
| Reduced retirement at 60 (with at least 5 years service) or 55 with 25 years service. | Raises reduced retirement at 62 (with at least 5 years service) or 57 (with 25 years service). |
| Benefit formula: 2.2% for first 30 years of service, 2.5% thereafter. | Benefit formula: 2.2% for first 35 years of service, 2.5% thereafter. |
| Annual Cost of Living Adjustment (COLA) set at 3%. | COLA tied to Consumer Price Index (inflation) not to exceed 3%. |
| Final Average Salary determined by 3 highest years. | Final Average Salary determined by 5 highest years. |
In addition to other smaller changes, the proposal recommends a transition to the new structure. Those within 5 years of retirement eligibility would be grandfathered under the current structure, except for the COLA change. Those within 10 years of retirement eligibility would be grandfathered in most elements, except COLA and the reduced retirement benefit calculation for those who would retire early. The new structure would apply to all OPERS members more than 10 years from retirement.
It is important to remember that the legislature will likely make changes to the proposal as it moves through the legislative process, so nothing is set in stone. It will be important for SEIU members to advocate for common-sense reform at the appropriate time to stave off any efforts by those who would rather dismantle our public pensions. Stay tuned.
State Revenue Update: CAT and Personal Income Tax Revenue Weaker than Expected
Although total revenues coming into the state's General Revenue Fund are at one percent below expectations for the first seven months of the fiscal year, January's income tax receipts were a different story. Income taxes for January were 15.6% below expectations (or $139.5 million.) If shortfalls of this magnitude continue in the second half of the fiscal year, additional budget cuts may be necessary.
In addition, the Commercial Activities Tax (or CAT), which was phased-in beginning in 2005 as other business taxes were being phased-out, is coming up short of projections. Even before the recession, the CAT was not expected to generate enough revenue to replace the other eliminated business taxes. Those taxes were helping fund school districts and local government. Without adequate CAT revenue, additional general revenue funds will need to be diverted to fill the hole, adding to the projected $8 billion shortfall we could be facing in the next state budget. All of this points to the need to focus on having a serious debate about how we raise revenues to adequately fund the services provided through the state budget.
Decision Time for National Health Care Reform, Let's Get It Done!
President Obama has called on the Congress to take action on comprehensive health care reform. He also recently released his vision for health reform legislation. The President's plan starts with the Senate-approved bill as a foundation and includes several key changes. Major provisions include:
• It makes insurance more affordable by providing the largest middle-class tax cut for health care in history, reducing premium costs for tens of millions of families and small business owners.
• It sets up a new competitive health insurance market giving tens of millions of Americans the exact same insurance choices that members of Congress will have.
• It brings greater accountability to health care by laying out common-sense rules of the road.
• It will end discrimination against Americans with pre-existing conditions.
• It reduces the deficit by $100 billion over the next ten years by cutting government overspending and reining in waste, fraud and abuse.
• It eliminates "special deals" such as the arrangement made for Nebraska.
• It includes a new provision to prevent insurance companies from making arbitrary rate hikes.
President Obama hosted a televised bi-partisan summit in an effort to get both parties to come together on issues of common interest. Unfortunately, very little common ground was found. The current thinking is that in order to enact comprehensive health care reform, the House would pass the Senate bill, and the Senate would make improvements to the bill through a simple majority up-or-down vote. Votes are expected by the end of the month. We encourage all members to contact their members of Congress to ask them to support President Obama's comprehensive health care plan.
Prepared by SEIU District 1199 Public Affairs Division Staff
REMEMBER: POLITICAL ACTION TAKEN ON THESE ISSUES MADE POSSIBLE BY MEMBER CONTRIBUTIONS TO COPE/PAC
Yesterday, SEIU District 1199 President Becky Williams and other Union officers visited members at State of Ohio agencies in Columbus.
Our Union's "Tour de District" program of site visits is designed to encourage greater communication and rank-and-file input within SEIU 1199.
An evening reception at the SEIU 1199 Columbus office featured State Representatives Ted Celeste, Dan Stewart, John Patrick Carney and Tracy Maxwell Heard, as well as experts on the Ohio Public Employees Retirement System. The reception also offered attending members the chance to discuss various issues with Union officers, including how 1199's political relationships impact our plans to protect and improve members' gains.
Click here for more photos of the event. Previous cities visited have included Cleveland; Lorain; Toledo; Youngstown; Cincinnati; Canton; Huntington, W.V. and Prestonsburg, Ky.
