RFArea Newsletter December 2014

Who Paid for Our Pensions?                            

By Bernie Brohaugh, President

Every once in a while, someone, with bitter resentment, will say to me something like “Thanks to us taxpayers, you get a pretty nice pension.” The implication seems to be that I and others on my pension plan don’t deserve the amount we are getting--if we deserve anything at all. Whether the speaker of such a remark is simply uninformed, or is disgruntled that he himself receives little or no pension and therefore believes that everyone should be in the same boat, or is vexed about something else is usually unclear. One fact is certain, however: the speaker doesn’t know what he’s talking about.

An article I discovered not long ago—though it was published in 2011— clears up this fairly widespread misconception that some retired Wisconsinites are freeloading on other Wisconsinites.  Entitled “The Wisconsin Lie Exposed--Taxpayers Actually Contribute Nothing To Public Employee Pensions,” the article, based on an essay by Pulitzer winner David Cay Johnston, is authored by Rick Ungar and appears in Forbes’s eBook.

The key passage is this one: “The pension plan is the direct result of deferred compensation--money that employees would have been paid as cash salary but chose, instead, to have placed in the state operated pension fund where the money can be professionally invested (at a lower cost of management) for the future.”

According to Ungar, the mandate for this procedure is spelled out in section 13 of the Wisconsin Association of State Prosecutors collective bargaining agreement – “For the duration of this Agreement, the Employer will contribute on behalf of the employee five percent (5%) of the employee’s earnings paid by the State. ”

So let us say that an employee is earning a $40, 000 salary, the amount on which his taxes are based. In addition, the state of Wisconsin pays $2,000 into his pension account. This sum is now legally his, but he is not taxed on it until he starts drawing his pension. Whatever he draws then is from the state pension fund and not from state taxes, though the 5% paid to the wage earner as part of his salary came from tax dollars. This system is used by many people and is especially popular among big earners like sports stars.

When Governor Walker insisted that state employees, including unionized teachers, should “pick up a larger share” of their retirement contributions than they had been paying, he was speaking either from ignorance or from a sinister intention to denigrate union members—or both. Since the union members were already paying the entire amount, their agreement to have a certain percentage of their salaries deducted from their paychecks was actually an agreement to take a pay cut. So it goes.

Think Tanks Recommend Retirees Pay More

By Laura Zlogar

With election season behind us, we are now hearing familiar rumblings that threaten public employees’ retirement benefits.  As reported on the RFArea REA blog, on November 20, 2014, the Dallas-based National Center for Policy Analysis, whose new CEO is Tea Party favorite and former Florida congressman Allen West, and Wisconsin’s MacIver Institute (whose leadership includes those with ties to ALEC, the Koch-funded Americans for Prosperity, the Bradley Foundation, and other extremely conservative and libertarian causes) have taken aim at the Wisconsin pension system.  Although the system has been held up as a model for other states and Morningstar investment research company points to the system as the country’s strongest, these groups want state legislators to make serious changes to the pension system: raising the retirement age for state employees; requiring retirees to pay higher insurance premiums, co-pays, and deductibles; and changing the law so that current employees under age 45 can opt out of the pension program in favor of personal 401Ks and health savings accounts.

 We are all left to shake our heads at such recommendations.  When we have a pension system that is the envy of every other state in the nation, why would anyone want to make such changes?  The answer points to an ideological antagonism to public employees and to the drumbeat of privatization of every institution and service long supported by the social contract between government and its workers.

 Our state legislators must hear from their constituents on this matter.  The addresses and email addresses are available in the Directory recently sent to you.

Next Meeting—3 December 2014 at 11:00, West Wind

Brian Copp, Ruth Wood, Bernie Brohaugh, Jane Harred

Remember that to avoid conflicts with your holiday schedules, our December meeting varies from our usual third Wednesday schedule and will be held on December 3, 2014, at 11:00 a.m. at the West Wind.  Following in a tradition of the past several years, melodious members from our chapter will perform a selection of holiday music.  Members will also have an opportunity to share holiday stories and readings.  And, yes, we will undoubtedly hear Doug Johnson’s lutefisk tales!

NOTE ABOUT THE NEW MEETING SCHEDULE:  With our new monthly schedule, business meetings will be held in the months where the program for the day is a designated conversation topic. Alternating months, when there are formally scheduled speakers or presentations, there will be no business meeting. Business meetings will be held in the months where the program for the day is a designated conversation topic. Alternating months, when there are formally scheduled speakers or presentations, there will be no business meeting.  All of this information can be found on page 3 of your Directory.

We have had to make a change in the program for the March 18^th meeting.  Ruth Wood states that the focus of that meeting will be “Exploring Local History and Personal Histories.”  Area historical and genealogical experts will be invited.  Jane Harred also promises some stories about her own ancestry research, which includes murders, insane asylums, and other tantalizing stories. 

Bring in the New Year by Attending the Jan. 21, 2015 Meeting

Mark your calendars also for our meeting on January 21, 2015.  Todd Savage, UWRF Professor of School Psychology and President-Elect of the Association of School Psychologists, will discuss school diversity.  Todd’s professional interests include culturally-responsive education; culturally-responsive psychology; social justice issues; crisis prevention-intervention matters; and lesbian, gay, bisexual, and transgender issues as they relate to schools and counseling settings.  His publications include articles on crisis prevention and intervention in school settings and creating supportive schools for lesbian, gay, bisexual, and transgender youths.

News You Can Use

By Jane Harred

Walker Announces Intention to Push Education Reforms

Shortly after the November 4 elections, during a visit to Northeast Wisconsin Technical College, Scott Walker announced his intention to introduce an education reform package early during the next legislative session.

The reforms would include a repeal of Common Core standards.  Majority leader Scott Fitzgerald has said that the legislature will make changes to the Common Core next year.  Neither Walker nor Fitzgerald provided details about the process or the changes.  The Wisconsin DPI opposes changes to the Common Core.

Walker’s reforms would also include an expansion of taxpayer-subsidized private-school vouchers.  Under discussion also is a provision to allow voucher schools to administer separate tests, not the same test public school students take, that could be later aligned with public school scores.  Charter schools have long claimed that they are not subject to state standards—despite the fact that they are supported by taxpayer dollars—and should not, therefore, be required to administer state standardized tests.

Legislators also plan to reintroduce a school accountability bill, which failed last year but is expected to pass easily this year.  The result of such legislation would allow for the sanctioning of failing public schools as well as require charter school testing.  The legislation is being promoted in Madison by former Assembly Speaker Scott Jensen, who is now a lobbyist for the American Federation of Children (the pro-voucher organization chaired by Betsy DeVos of Michigan, billionaire wife of Amway heir Dick DeVos), which is also a major supporter of ALEC.  Another organization with close ties to the bill is School Choice Wisconsin, a nonprofit organization promoting school vouchers, charter schools, and education privatization.

State Budget Deficit Projected at $2.2 Billion

The Wisconsin State Journal reports the state of Wisconsin faces a projected $2.2 billion budget deficit in the 2015-17 budget cycle, thirteen times what was projected for the 2013-15 budget in November 2012. 

A Walker spokesperson has promised a balanced budget, and Speaker Robin Vos says that the deficit estimate is based on budget requests that in many cases will not be funded.

The state began this year with a positive balance of over $500 million in the general fund but is now projected to end with a negative balance of some $130 million, assuming a 5% increase in revenue for this fiscal year. For the first quarter, however, revenues are more than 2% below these levels.

Reasons cited by the Journal for the deficit include current year spending, which is expected to exceed revenues by about $650 million; some $500 million in lost federal Medicaid funding; and recent tax cuts totaling $2 billion.

Your Right to Place a Security Freeze on Your Credit Report

The Wisconsin Office of Privacy Protection, part of the Wisconsin Department of Agriculture, Trade, and Consumer Protection (DATCP), reminds consumers that they have a right to place a security freeze on their credit reports. A freeze can help protect you against some forms of identity theft.

A security freeze won’t stop thieves from making charges using your current accounts.  It will, however, prohibit the release of information on your credit report without your authorization, except to those with whom you have a current account or a collection agency acting on behalf of those with whom you have an existing account.  In other words, the security freeze greatly reduces the likelihood that a new account will be opened, or a loan taken out, in your name by someone else without your knowledge or consent.

A security freeze does cost money unless you have already been the victim of identity theft.  To initiate a security freeze, you must contact each of the three major credit bureaus and pay a $10 fee to each.  Temporary lifts of the freeze also cost $10.  Removing a freeze permanently is free, and fees are waived for victims of identity theft.

A freeze will not lower your credit score.

Addresses for the three credit reporting agencies (Experian, Equifax, and TransUnion), sample form letters you can use to request a freeze, and more detailed information can be found on DATCP’s website at http://datcp.wi.gov/uploads/Consumer/pdf/IDTheftCreditFreezeFAQ632.pdf.

Honored Members Recognized

Members of the RFArea REA have been recognized as Honored Members of the Wisconsin Retired Educators’ Association.  This status is conferred to those members who have belonged to the organization for at least twenty years.  Here is the complete list of RFAreaREA Honored Members.  Congratulations!

Anne Anderson (2014)

Retta Albert (2008)

Deloise Baker (2015)

Marguerite Barker (2014)

William Barker (2014)

Charlene Bretl (2015)

Vernon Ellefson (2015)

Nancy Ellefson (2015)

Lillian Gough (2004)

Ethel Johnson (2014)

Donald Kadidlo (2015)

Gene Kreibich (2014)

Ann Krupkat (2014)

Carol Miller (2010)

Ellen Nelson (2015)

Isabel O’Connell (2014)

William Romoser (2014)

Wolfram Schubert (2014)

Inez Schubert (2014)

Margaret Timmerman (2015)

Mary Ann Tuve (2014)

Norma Welty (2014)

Ronald Wilhelmson (2015)

Bernice Wolf (2010)

 Possible Activities for Our Unit

Board members agreed at its November 19, 2014, meeting that we would gather responses from the membership on possible activities, issues, and outreach that might be appropriate for us.  At the December meeting, we will ask you to rank activities according to interest. Many of these have been borrowed from other WREA units.  If you have other ideas, please let us know.

• In June, write a letter to the editor in area newspapers thanking teachers, administrators, and support staff for a successful year.
• During American Education Week (in November), email messages are sent to superintendents to be forward to their staffs—a message of thanks, encouragement, and support.
• Unit members watch area newspapers and school board meetings for outstanding performances of teachers, administrators, staff members, students, and send out postcards (to be supplied by the unit—with members paying for the postage) to congratulate or thank them.
• Collect school supplies from September to January and choose one school to which supplies are donated.
• Establish a Teacher Grant to support a program or a class.  Teachers apply in the fall and will do a presentation in May to report on how the money was used.
• “Ready, Set, Read” program helping kindergartners strengthen their reading preparation skills.  Retired educators work individually with children for 8 weeks for 20 minutes each day teaching letter and sound recognition as well as identifying and writing letters as well as reading stories to the child.
• Attend cultural events (arranging a bus, van, or cars to attend plays, movies, concerts, exhibits)
• Organize a bus tour of interest to members.
• Sponsor events to raise money for scholarships, e.g., a silent auction at the summer picnic of items and services from local vendors, artists, and members.
• Lobby our elected representatives for issues germane to our membership (services for the elderly, health care, etc.)
• Sponsor continuing education opportunities, e.g., creative writing, genealogy research, computer basics, etc.
• Book for a Buck:  Members bring in books no longer wanted, and other members can take a book they are interested in—for a $1 donation, which will go to the scholarship fund.

Reminder to Complete Your Volunteer Form

One of the ways that Wisconsin Retired Educators’ Association reminds the general public and all of its members of the continuing contribution of retired educators is to collect data from each of its members.  Gene Kreibich, chair of the Community Participation committee, reminds us that completed forms will be collected at December’s meeting.   Those forms were available at November’s meeting and will also be on hand at the December meeting.  The value of each volunteer hour is estimated at $21.79 per hour.  Your participation in the community has value, which for our unit last year amounted to $110,192.03.  Evelyn Johnson, last year’s RFArea REA Volunteer of the Year, will no doubt be hard to beat again this year.  But perhaps someone else has been particularly busy.  We will see when the completed volunteer forms are submitted.  Bring them with you in December.