MI-SERA

Chair Talk

November 2011

By Bob Kopasz

On Thursday, October 27, 2011 the Union Coalition and the State Employer came to a tentative agreement for the 2012/13 fiscal year. The unions are attempting to have the ratification process done by December 1, so that the Civil Service Commission could take action at its meeting scheduled for December 7. The details of the tentative agreement that we are aware of are:

The Unions and State Employer have agreed that on October 1, 2012 the Health Insurance premium split will be 80/20(80% of the premium paid by the Employer and 20% paid by the Employee). They have also agreed on an 85/15 split on HMO premiums. They have agreed that their will be no changes in the State Health Plan design (co-pays, deductibles, office calls, Rx co-pays etc.) for the next couple of years.
The agreement would also form a joint healthcare committee. The purpose of the Committee being the reduction of health care costs among other things that are healthcare related.
State employees would receive a 1% base pay increase effective October 1, 2012. They would receive a 1% lump sum payment of their base wages on October 1, 2012 and October 1, 2013.

What we are concerned about is what effect will this agreement have on retiree healthcare? Historically, retirees pay the same premium split as active employees — so we can expect that premiums for the State Health Plan will probably change to the same 80/20 split for actives that are effective on October 1, 2012. The HMO premium split of 85/15 will probably take effect that same date. What other healthcare changes might we expect? Again, historically, retirees have had the same plan design as active employees. If changes in our healthcare coverage are being discussed by the Administration, I am sure that we will be contacted and go through the same process we have in the past few years. I am pretty certain that SERA will be included in any discussions involving health care changes.

Editor’s note: Bob Kopasz is Chair of the Michigan SERA Council. He may be reached at P.O. Box 692, Mt. Morris, MI 48458; phone 810/240-8380.


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November 2011 By Bob Kopasz On Thursday, October 27, 2011 the Union Coalition and the State Employer came to a tentative agreement for the 2012/13 fiscal year. The unions are attempting to have the ratification process done by December 1, so that the Civil Service Commission could take action at its meeting scheduled for December 7. The details of the tentative agreement that we are aware of are: The Unions and State Employer have agreed that on October 1, 2012 the Health Insurance premium split will be 80/20(80% of the premium paid by the Employer and 20% paid by the Employee). They have also agreed on an 85/15 split on HMO premiums. They have agreed that their will be no changes in the State Health Plan design (co-pays, deductibles, office calls, Rx co-pays etc.) for the next couple of years. The agreement would also form a joint healthcare committee. The purpose of the Committee being the reduction of health care costs among other things that are healthcare related. State employees would receive a 1% base pay increase effective October 1, 2012. They would receive a 1% lump sum payment of their base wages on October 1, 2012 and October 1, 2013. What we are concerned about is what effect will this agreement have on retiree healthcare? Historically, retirees pay the same premium split as active employees — so we can expect that premiums for the State Health Plan will probably change to the same 80/20 split for actives that are effective on October 1, 2012. The HMO premium split of 85/15 will probably take effect that same date. What other healthcare changes might we expect? Again, historically, retirees have had the same plan design as active employees. If changes in our healthcare coverage are being discussed by the Administration, I am sure that we will be contacted and go through the same process we have in the past few years. I am pretty certain that SERA will be included in any discussions involving health care changes. Editor’s note: Bob Kopasz is Chair of the Michigan SERA Council. He may be reached at P.O. Box 692, Mt. Morris, MI 48458; phone 810/240-8380.
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