Hybrid Hard Cap 80/20 Plan Passes

A compromise bill came out of committee that takes away public employees’ rights to bargain health care benefits and increases premium sharing costs to individuals by as much as $5,000 a year.   Senate Bill 7 won final passage in Michigan’s State Senate on Wednesday, August 24, 2011.

SB7 passed this morning with little input from those whom it affects, thereby forcing all local governments, including schools, to be subjected to a maximum spending threshold for their employee’s health insurance. Essentially, this caps employer contributions to health insurance at $15,000 for family coverage, $11,000 for couples and $5,500 for individuals.

From Gongwer News: “Public employers could cover any combination of health insurance premium, health savings account contribution, or prescription reimbursement under the hard cap, and locals with voluntary employee benefit association (VEBAs) would calculate the maximum contribution under the hard cap formula.”

Local governments are given the opportunity to implement an 80/20 split of the cost of health insurance with their employees.  This requires a majority vote of the local board and approval of the mayor or county executive. Municipalities  could also opt out of either requirement with a 2/3 vote by its governing body each time a medical plan year expires.

There is a little bit of good news for some civil service employees who are exempt due to being constitutionally protected. However, that could change when it comes up for a House vote.

In the meantime, the bill takes effect on January 1st of 2012–but doesn’t affect any labor contracts currently in place unless they are modified or expire. Furthermore, any contracts negotiated between September 15th and January 1st cannot contain provisions that run contrary to the bill.

Penalties for not complying include a 10% withholding of revenue sharing and School Aid payments.

We are asking all POAM members to realize that we are under attack!  Other important legislation is in the pipeline and you’d better become active and vocal on these issues or more benefits will be taken from you.

4 Responses to Hybrid Hard Cap 80/20 Plan Passes

  1. It seems to me that the POAM supported this Governor, ” What a misstake !!” When will we all learn, that we the members of the POAM must stand up and be heard. We must demand the board organize members and March on Lansing making it clear that no one in office today will get our support or vote again.

    My contracts with the city of New Baltimore over the past 5 years have been pathetic! No raises and continue to lose what we fought for, for years. And there seems to be no end in sight. With this new Law passed in Lansing where we now must pay 20% of are medical. What a disgrace to see us lose again.

    As for retiring, foget it! tThe way things are going there will be many officers working the road well into their fifties and sixties just to make ends meet. The days of old are gone and things need to change. Its time for the POAM membership to make a move and let Lansing know how strong we are. I sudgest we start with some recalls and we should start with the Governor.

  2. Robert Klieman Sergeant -Retired September 1, 2011 at 9:21 pm

    I was a Police Officer/Sergeant for 32 years 30 of which I was the Union steward. Having been born and raised in a Strong union household I can say I NEVER pulled the “R” lever. I was always amazed on how many Union Republicans there was on Police Departments. What amazed me more was the Blind unfettered support the Police Unions would give Republicans only because they are Republicans. Did they the Unions realy think the Democrats wanted their guns? The Officials at the POAM and the POLC owe its members active and retired an apology for their blind uneducated support of Snyder and his cronies.

    The Police Unions better quick realize that the current attacks on the teachers is also a sign of whats coming for the Police and Fire in this State.. After I retired from Police I worked as a Union crane Operator in Michigan for 10 years before health issues forced me to retire again. I have been in Lansing
    Several times in the last 5 months protesting the Governor and his attacks on Municipal workers. I have joined hands with Fireman, Construction workers, teachers, prison guards, all in Solidarity against the Republicans. Who wasn’t there? The POAM and the POLC.
    I collected signatures for the recall of Snyder. Who wouldnt sign it? Police Officers, I think they were afraid. What is wrong with the Police Officers of today? Are they job scared? I have been on construction jobs where 500 men would walk off a job to support one Union brother. How many Police Officers do you know that would do that?
    Next Monday, Labor Day I will be in Detroit marching in the Labor Day parade. I will be marching with all my Union brothers and Sisters from Metro-Detroit. I have even marched with the Nurses from Mt. Clemens Hospital when they were on strike and needed our help. In the past 15 years how many Police Officers have I marched with in the Labor Day Parade? ZERO.

    Why aren’t the Police Unions affiliated with the AFl-CIO? Ask your Business Agent and see if he will
    tell you the truth. If he won’t I will

  3. We are all highly upset with the endorsement of Rick Snyder. WHO VETTED THIS GUY? Why did so many police unions back him? It’s little consolation that Ken Grabowski serves on the advisory panel, (the article was pulled from the POAM website recently). POAM and it’s locals are really not getting the word out to the members in a timely and effective manner. Emergency action for this and other important legislation should be massed emailed to the members directly. We pay you to digest the legislation and gives us direction and advise on how these measures could or will affect us.

  4. My apologies, the article does appear in the legislative updates section.

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