State Employees were shocked when they received an email from Bob Emerson, State Budget Directory, outlining propose changes in the retirement plans for state workers.

The proposed changes to the defined benefit plan (the old plan) would allow for a limited early out with a 1.6% multiplier.

Unfortunately, the plan “encourages” state employees with 30 years or more of service to retire by forcing them to contribute 3 percent of their salary toward retirement effective Oct. 1, capping retirement credit at 30 years of service, and eliminating their retirement vision and dental care if they refuse to step down. Those who remain in the defined benefit plan would face the same changes.

Any modifications to the employee’s retirement require a change in the States Constitution. Granholm is expected to present her plan for these changes to the Legislature within the coming weeks. During the legislative process, the proposed legislation can be amended or voted down. More specific details will emerge as this process moves forward. As members of Local 6000 may be confused about the history of our retirement plan here are facts about our retirement plans;

*The pension plan is not part of our contract. It cannot be negotiated*The pension is set by state law, written by the legislature.

* Michigan is one of just a few states that no longer have a defined benefit pension plan for new workers.

* The UAW International legal department is looking to see if the proposed changes that Granholm announced are legal.

“As this attack on our retirement continues, Local 6000 will mobilize our membership to fight to keep what we have been promised” stated Ed Mitchell, Local 6000 President. "We will be working with the membership to contact state legislators and make our opposition known."