MPFFU
Who is “Gadsby” and why is he messing with my retiree health care benefits?
Updated On: Jan 15, 2017

 

Who is “Gadsby” and why is he messing with my retiree health care benefits?

“Gadsby” or “GASB” is an acronym for the Governmental Accounting Standards Board. GASB publishes rules that provide governments with accounting standards to use when completing their financial statements. The financial statements are called Comprehensive Annual Financial Report and are used for a number of things. In 2006 or 2007 (depending on community size) GASB started requiring local units of government to include statement 45. GASB 45 is a statement that looks at the liability that the local unit has for other post employment benefits (OPEB), most commonly, retiree healthcare.

A bit of comparison is in order. Most locals have a Defined Benefit Pension plan. The state constitution requires that local units of government fund the cost of pensions in the year that they are accrued. For example, an actuary calculates how much the contribution rate is for pension contribution and that payment is made to the pension plan in the year that you work. Through investment earnings and regular contributions, that annual contribution (normally made on a per paycheck basis) grows and when you retire the money is there to pay the benefit you have earned. This is called pre-funding. OPEB benefits do not have the same pre-funding requirement that pension benefits do, so most communities fund them on a “pay as you go” basis. That means they are not saving today for future payments, there is no investment income, and the full cost of OPEB is paid on a regular monthly basis. Some communities have started pre-funding their OPEB, and in some cases have made significant funding progress. This is reported on a percentage basis just like pension plans, some have done some prefunding and some have done other things; some communities have 100% funded OPEB plans. Most do not.

Here is where the problem comes in. GASB requires a community to account for the unfunded accrued liability that they have for OPEB benefits and report it. In many places this is a significant number and has led many communities to find ways to reduce that liability. With the tax limitations imposed by the state constitution, the significant cuts in state revenue sharing, and the housing market crash in 2008, most communities have much less revenue to operate today. This had brought us to where we are today. Many locals have had, through negotiated settlements or forced contract concessions, reduced or eliminated the retiree health care benefit in favor of some other plan (such as a monthly stipend into a health care savings account). This is partially why we see the action occurring at the state level such as the recent 80/20 retiree plan that we defeated this month. Likely the next two years will see the resurfacing of the state legislature trying to “fix” the OPEB liability “problem” instead of letting each community deal with it, as most are currently doing.  


<< August 2017 >>
S M T W T F S
1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31

Find Your State Rep or State Senator

Great Lakes Burn Camp

Free Training Opportunities!

These classes are being funded by the Bureau of Fire Services throught the fireworks training fund.  All firefighters are welcome to attend.  A Leadership class is being offered at Lansing Community College West Campus on Wednesday, August 23rd and the same class is being repeated on Thursday, August 24th at Wayne County Community College.  Click on links for more details.  

Another class titled Principles of Modern Fire Attack is being offered on two consective days(Thursday, August 24th and Friday, August 25th) at Detroit Metro Airport.  Click on link for more details.


Congratulations to the following Michigan Fire Departments that were awarded SAFER Grants recently for the purpose of hiring full time fire fighters:

City of Dearborn $1,795,092.00 8/11/2017
Sterling Heights $2,621,292.00 7/28/2017
Delta Township $916,115.00 7/21/2017


We encourage you to follow this link and sign up for the latest statewide firefighting news from the Bureau of Fire Services.

Welcome to Bureau of Fire Services banner



The MPFFU Mobile App is now available in your app stores. It's a work in progress but you can find a lot of information right now. Download on your phone today. It's FREE! 

After you download it, Log in as a member with your login and password from this website to see the members only items.  Make sure you check the box to receive push notifications so you can receive important real-time messages from MPFFU.


Legislative Update: July 10th-14th, 2017

Legislative Log as of June 23, 2017

JOIN OUR MPFFU MEMBERS ONLY FACEBOOK PAGE



 


Governor's Task Force Report On Municipal Retiree Benefits Has Been Released.

The task force created by Governor Rick Snyder to address the unfunded health care and pension liabilities associated with the 334 local governments that provide such benefits to their employees has completed its work.

“My goal for this task force was to have collaboration among legislators, state and local government officials, and employee representatives to ensure the financial stability and effective delivery of local government services for the coming decades,” Governor Snyder said in a statement announcing the Task Force. “As we discuss this growing financial problem across the state, it is imperative that we also keep retirees in mind who rely on these programs.”

MPFFU President Mark Docherty was appointed to the task force which was comprised of subject matter experts representing labor and management, investment managers, insurance financial professionals and legislators.  Governor Snyder tasked the group to provide recommendations on pension and health care reforms.


2017 FIRE OPS Event for Legislators

The Michigan Professional Fire Fighters Union held its annual Fire OPS event for members of the Michigan Legislature on April 17th.  This event gives elected officials an opportunity to get a hands-on glimpse into the the many facets of the every day duties and responsibilities of a firefighter/paramedic in Michigan.

This years participants included Representatives Tommy Brann, Tom Barrett, Brian Elder, Abdullah Hammond, Leslie Love, Jeff Noble, Jenell Jones, Terry Sabo, Tom Cochran, and Donna Lasinski as well as representatives for Kelley Cawthorne Consulting. 

The MPFFU would like to thank LCC for hosting the event and David Weisenberg and Melissa Yutzey for organizing the event.  In addition, several LCC instructors, Local 421 members, and members of the MPFFU Politicial Education Committee assisted and contributed to making the event a great sucess.  More pictures can be found here.


Recorded Webinar Training Sessions Now Available

Would you like to learn more about being a "Union Officer"?  The MPFFU recently offered a series of webinars to provide helpful information to current union officers and other union members that may want to become union officers in the future.  These webinars were recorded and now you can view them anytime!  Click on the tab labeled "Webinars to Watch Now" in the heading near the top of this page to see the list of available webinars.


First Responder Presumed Coverage Fund - Application for Benefits

Pursuant to Public Act 515 of 2014 the First Responder Presumed Coverage Fund was created.(AKA Cancer Presumption Law) The Director of the Workers' Compensation Agency is the administrator of the Fund.  The Department of Licensing and Regulatory Affairs (LARA) has created a webpage explaining the process to apply for benefits.

There are still many unanswered questions regarding how the funding is going to be distributed. According to the website, a list of potential claimants is being created and applications will be logged based on the date they are received by their office.

Anyone that meets the critera listed on this webpage should submit an application to get your name on the list.  We will provide more information when it becomes available.

If you have any questions on the administration of this fund, you may also contact the Claims Processing Division at 517-284-8912. 


MPFFU June 2017 Financial Report June 2017

Paused
New Law Makes MDA Fill the Boot Legal

It is with great pleasure that I can announce that at 10:20 this morning, July 27, 2017,  Governor Snyder signed HB 4160 into law. At 1:02 pm on July 27th it was filed with the Secretary of State and assigned as PA 112 of 2017 with immediate effect. Short version, it is now legal to collect in the streets for our Fill The Boot fundraising campaign for MDA.
Read More...

Responsible Retirement Reform for Local Government Task Force Report Released

Tuesday, July 18, 2017, 10:27 AM Task Force: Greater Monitoring, New Board Needed For Local Finances More reporting, overall transparency, a fiscal stress test for pension and benefit spending, as well as creation of a new Municipal Stability Board are needed to help local governments maintain ongoing financial stability, a local government task force recommended on Tuesday.
Read More...


American Addiction Center
American
Addiction
Centers
-
  • MPFFU

    Copyright © 2017. All Rights Reserved.

    Powered By UnionActive



  • Top of Page image