Important message/COLA Update for all PASR members
The following is an e-mail sent out by Richard Rowland at 2:00 p.m. on June 30
Be advised that it remains unknown, at this time, whether the budget deal reached last evening includes a reduction in employer contributions to PSERS (the Retirement System) as advocated by the House Democrat leaders. There are indications that this issue is still being discussed and has yet to be resolved. I will issue an update/legislative alert via email as soon as I receive a definitive answer one way or another. Please stop calling the office to inquire about this as we do not know yet the final outcome of pending legislation. Our advise is to continue calling the legislators and urging them not to approve a budget containing a reduction in contributions to PSERS next year.
Some members have called to report receiving letters from their legislators on the House Appropriations Committee who voted to reduce the PSERS allocation. In these letters, they argue that the legislature is required to include in the budget the amount certified by the PSERS Board and that they were simply acting in accordance with the law. This is totally disingenuous. True, the legislature can not appropriate less than the amount certified by the PSERS Board, but they absolutely can and should appropriate more. The Governor included in his budget proposal the amount necessary to keep the PSERS contribution rate at its current level. The Senate included in its budget passed earlier this month the same amount. School districts were advised to include in their budgets the amounts necessary to continue contribution rates at current levels. If the legal argument advanced by the Democrats on the House Appropriations is correct, then the Governor, the Senate, and every school district in this state are in violation of the law. That is hardly the case.
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