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NH Politicians Continue Assault On State Retirees’ Health Benefits

Senator Gerald Little and Representative Ken Weyler
Lead Crusade against State Retirees’ Health Benefits

Earlier today, the NH Fiscal Committee voted to increase the monthly cost share (premium) of retirees who are under age 65. The amount is a 5% increase, which, when announced, caused an audible collective gasp from a room packed with State retirees.  These are the people who have served the State for decades and had planned their lives and retirement according to promises that had been made at the time of employment and are being broken today by state politicians.

The increase moves the monthly cost from 12.5% to 17.5% of the premium, which currently means retirees under age 65 will be paying an additional $46 per individual covered each month.

“This vote is a continuation of breaking promises that were made to people who spent their careers serving this state,” said Rich Gulla, president of SEA/SEIU Local 1984. “Today, a handful of politicians decided the fate of over 3,000 devoted, hard-working former employees and their dependents.  The committee kept talking about no other alternatives. There were plenty of alternative ways to fill the deficit in the retirees’ health benefit plan. They just took the easy way out today – on the backs of retirees.”

Committee members repeatedly attempted a blame game. They tried to blame the Governor, they tried to blame increasing medical costs; they tried to blame everything and everyone other than themselves. However, after all the grandstanding, they were the ones who voted for today’s state retiree’s health plan changes. They could have found another way to plug the budget hole including opening up the State budget and finding the dollars someplace else.

It was apparent to attendees that the outcome of the meeting was pre-determined prior to its convening. “They knew full well how they were going to vote, even before today’s meeting began. They had already made up their minds to put the screws to the retirees who are under age 65,” said Gulla.

Last month, the committee voted to increase the co-payment for prescriptions for all retirees. “In combination, these increases are going to present a significant hardship for our retirees. The average pension for a NH State retiree is about $13,000/year.  Our retirees will literally be deciding between paying their heating and grocery bills or paying for medical care. It just sickens me,” said Gulla.

“The only way to stop this assault on our retirees is to vote out those Representatives and Senators who voted for this atrocity today,” said Gulla.  Senator Little made the motion to accept today’s plan and Representative Weyler seconded the motion.

It is also important to know that Senators Lou D’Allesandro and Andy Sanborn and Representatives Daniel Eaton and Cindy Rosenwald voted against the increases and in favor and respect of our state retirees. “For that, we thank them,” said Gulla.  The remaining Fiscal Committee members voted against the retired workers.  “Our members will not forget this; you can be sure they will remember exactly who was with them and against them next fall as they cast their ballots.”

Buying (and Selling) the Future on Wall Street

Verizon as a case study of why our economy doesn’t work, part six

The “ah-ha!” moment came during a conversation with a friend. What we realized: the way we usually talk about the stock market doesn’t match the reality of our modern economy. Things we assume about stock ownership often aren’t really true.


New York Stock Exchange, 1963 (Photo by US News and World Report via Library of Congress)

Start with the basics: what is a share of stock? Most of us think “Investors give a business money and get back shares of stock that give them a fractional ownership of the company.”

But try applying that concept to Verizon, and it doesn’t fit. Verizon stockholders buy and sell shares on the open market – and none of that money goes back to the corporation. The money that investors pay when they buy stock… goes to the investors who sold the stock.

So buying stock isn’t “an investment in the company”… it’s an investment in the stock itself. If you later sell that stock for more than you paid for it, that profit is what’s known as a “capital gain.” If you sell it for less than you paid for it, that’s a “capital loss.”

Stock ownership does give shareholders a “fractional ownership of the company.” But what does that mean? There are more than 4 billion shares of Verizon stock outstanding.  If you own one of those shares, you don’t have rights to any particular network router or mile of transmission line.  Instead, you own slightly less than one-four-billionth of the corporation’s “stockholder’s equity.”  That means if the corporation were to be liquidated tomorrow, you – along with all the other stockholders – would share whatever remained after the corporation’s assets were sold and its other debts were paid.

And that’s probably when, if you were a stockholder, you would start remembering the $49 billion in long-term debt that Verizon acquired in 2013.

And that’s probably when you’d realize that Verizon’s corporate balance sheet shows less than $12.3 billion in “total stockholder equity.” And there are more than 4 billion shares of stock outstanding.

Which means each share of stock represents less than $3 in stockholder equity.

VZ stock chart

Verizon Share Price

Verizon has been trading above $40 a share since… April Fool’s Day 2012. (Back when there were less than 3 billion shares outstanding and the balance sheet showed stockholder’s equity of about $11.76 per share.)

That’s a huge difference between the per-share value of stockholder equity and the per-share price stockholders have been paying… for years now.

So… what else are stockholders buying? (in addition to that minuscule percentage of a relatively small amount of stockholder equity)

Each share also confers the right to receive a dividend, when and if the corporation issues dividends.  And – no surprise – Verizon has been issuing steadily-increasing dividends for more than a decade.  At this point, it’s issuing dividends that total more than $2.20 a year.  With shares trading between $40 and $45, that means stock purchasers can expect to make back – in dividends – about 5% a year on their investment. Which is way more than the rest of us can get in bank interest right now, if we put money into a savings account.

But although those dividends represent a whopping big “return on investment” – there’s still the risk that you could lose money on the stock itself.  Think about it: if you bought a share of Verizon stock last October, you paid about $49 a share. Since then, you’ve received about $2.20 in dividends. But the price of each share of stock has dropped to about $44. So even though you’ve received 5% in dividends… if you sold the stock now, you would still have “lost” about $2.80 per share.

So corporate executives pay a whole lot of attention to share prices.

VZ_Exec_Comp_Program_from_ProxyFor two reasons. First, because executives’ compensation is largely “pay for performance.” For Verizon executives, 90% of compensation is “incentive-based pay.” And what’s the objective? “Align executives’ and shareholders’ interests.”

Second reason: because most corporate executives own a lot of stock in their company.

VERIZON SHARES OWNED by executivesAs of this past February, when stock incentives were awarded, Verizon’s top 10 executives reported owning a total of more than 645,000 shares of corporate stock – worth, at the time, $49.31 per share… or, more than $31.8 million.

But Verizon stock is now trading at about $44 per share. That means those same executives’ shares are now worth only about $28.4 million.

So is it really a surprise that corporations spend trillions of dollars buying back their own stock, to bump up share prices?  Is it really a surprise that corporations borrow money to pay dividends and fund buybacks?

I don’t see anything here that provides an incentive for corporate executives to grow a company long-term.  Nothing that provides an incentive to pay employees a fair wage.  Nothing that provides any incentive to “create jobs” (no matter how low the tax rate goes).

The only incentives are: to keep stock prices high and to pay dividends. (And an incentive for corporate executives to take as much money as they can, however they can, while it’s still available.)

And so for the rest of us, the economy doesn’t work.

— — — — —

retirement eggWondering why you should find time to care about this, with everything else that’s going on right now?

Because of that huge difference between the per-share value of shareholder’s equity and the actual price per share.

And what happens during recessions.

And the fact that almost everybody’s retirement money is – in one way or another – invested in the stock market.

Here in the Granite State, the NH Retirement System lost 25% of its value in the last recession.

In June 2007, before the Wall Street meltdown, the NHRS had $5.9 billion in investments, including
•  $29.7 million of stock in Citigroup, Inc.
•  $23.5 million of stock in American International Group, Inc. (AIG)
•  $14.0 million of bonds issued by Federal Home Loan Mortgage Corp. (Freddie Mac)
•  $13 million of bonds issued by Federal National Mortgage Association (Fannie Mae)

Two years later, when the recession was in full force,
•  Citigroup stock had plunged to only about 6% of its former value
•  AIG stock was worth only about a penny on the dollar and
•  Freddie Mac and Fannie Mae had both been placed into federal conservatorship

That’s what happens to stock values, during recessions.

Remember hearing about the Detroit bankruptcy? Which supposedly was triggered by unsustainable public employee pension costs? The Detroit pension systems were fully funded, as of June 2008. Then the recession hit.

All those defined-contribution 401(k)s? Across the country, families lost an estimated $2 trillion (with a T) of their retirement savings when stock values plummeted during the last recession.

Artificially-high stock prices hurt almost everybody, in the long run.

— — — — —

Yes, there’s more.

Smashed Piggy Bank RetirementVerizon’s balance sheet includes $24.6 billion of “goodwill” and $81 billion of “intangible assets.” And if you factor those out, Verizon has “net tangible assets” of minus $93.4 billion. That’s what most of us would think of as a negative net worth… of about minus $23.35 per share. While investors are paying about $44 per share to buy the stock.

The good news, from the investors’ perspective: they’re not personally liable for that $116 billion in long-term corporate debt. If – and this is purely hypothetical – if Verizon were to declare bankruptcy and default on that debt, stockholders would not be expected to pitch in $23.35 per share to satisfy the corporations’ creditors.

The bad news is, somebody out there would take that loss… and retirement systems across America invest in corporate bonds. (At last report, the NH Retirement System owned more than $433 million worth of corporate bonds.  Can’t tell, from here, whether any of those include Verizon.)

— — — — —

Photo by Stand Up to Verizon via Flickr

Photo by Stand Up to Verizon via Flickr

If you want to support the 39,000 Verizon employees who have been working without a union contract since August 1st, you can sign the petition here.

Stand Up to Verizon is on Facebook here.

Part one of this “Verizon as a case study” series is here.  It focuses on Verizon’s $5 billion stock buyback last February, and the short-term bump in stock prices which followed.

Part two of the series, showing how Verizon executives benefited from that $5 billion buyback, is here.

Part three, looking at the disconnect between Verizon’s reported profits and the dividends it pays its stockholders, is here.

Part four, about phantom stock and how Verizon executives are avoiding taxes by investing in imaginary assets, is here.

Part five, about how Verizon is borrowing money to pay stockholders and executives while demanding givebacks from unions, is here.

This is part six.  And yes, there will be more.

Federal Protective Service Union Applauds Bill Extending Law Enforcement Retirement to Officers

AFGE Logo 2

Legislation by Rep. Carson also increases number of FPS officers, improves security at federal facilities

WASHINGTON The American Federation of Government Employees today applauded legislation introduced by Rep. André Carson of Indiana that would extend law enforcement retirement coverage to Federal Protective Service officers and make other improvements to the security at federal facilities.

“Yesterday, Americans marked the 20th anniversary of the terrorist attack on the Alfred P. Murrah Federal Building in Oklahoma City, which claimed the lives of 168 people,” said David Wright, president of AFGE Local 918, which represents more than 800 FPS officers. “Today, by introducing vital legislation to reform and expand the one federal agency charged with protecting federal buildings and their occupants, Rep. Carson has taken an important step in preventing a recurrence of this tragedy at another federal building in the U.S.”

Federal Protective Service officers are sworn law enforcement officers who protect federal workers and visitors at 9,000 federal facilities nationwide, yet they do not receive the law enforcement retirement benefits provided to all other law enforcement agents within the Department of Homeland Security.

“FPS officers carry guns, make arrests, perform investigations, and apprehend criminals,” Wright said. “They are law enforcement officers in every sense of the word, and they should be entitled to law enforcement retirement benefits.”

Wright said FPS has suffered from recruitment, retention and morale problems because officers aren’t under the same retirement system as other federal law enforcement officers, including special agents within FPS. Under law enforcement retirement rules, officers are subject to mandatory retirement at age 57 with at least 20 years of service, compared to age 60 with 20 years of service for other federal employees.

Rep. Carson’s bill, HR 1851, would apply only to FPS officers hired after the legislation is enacted.

A separate bill by Rep. Carson, HR 1850, would make a number of other reforms to FPS to security at federal buildings, including:

  • Increase the number of FPS employees to at least 1,870, including at least 1,318 in-service field staff, up from the current floor of 1,400 total employees;
  • Allow FPS to deploy more law enforcement officers in the field by excluding desk-bound managers from the definition of in-service field staff;
  • Clarify that FPS is the law enforcement agency responsible for protecting and policing all civilian, non-atomic federal facilities, not just those owned or controlled by the General Services Administration;
  • Mandate a training compliance tracking system for contracted security guards;
  • Require a report on the feasibility of converting all or part of the protective security officer workforce to federal employees;
  • Clarify the right of FPS officers to carry their firearms while off-duty;
  • Require agencies to install security countermeasures recommended by FPS.

“Security in and around federal buildings has been given short-shrift for too long,” AFGE National President J. David Cox Sr. said. “This legislation is long overdue and would provide FPS with the resources it needs to carry out its mission.”

The American Federation of Government Employees (AFGE) is the largest federal employee union, representing 670,000 workers in the federal government and the government of the District of Columbia.

Another WIN for Wall Street… and a huge LOSS for the middle class

Happy Hour

So, late last night… Congress decided that it was just fine to bailout Wall Street bankers again, if they should happen to get into trouble again. Gotta make sure the ol’ FDIC is there in times of trouble.

BUT… gosh… that old PBGC?

Oh… Congress doesn’t want to risk the possibility that taxpayers might have to bailout Middle Class pension funds. At last estimate, “the fund that backs multi-employer plans is about $42.4 billion short of the money needed to cover benefits” for pension plans that are expected to fail.

And what have private employers been doing, to keep those pension plans financially sound? Well… Hostess declared bankruptcy. Peabody Energy declared bankruptcy. Verizon “de-risked” itself of pension obligations. And that’s just what immediately comes to mind.  But I’m digressing.

So last night… LATE last night… Congress included in the “must-pass” budget bill something called the Kline amendment. The measure will allow multi-employer pension plans that are underfunded to significantly cut benefits to retirees under age 75.

Because… why would Congress want to risk having to have the PBGC bailout those middle-class pension funds? … when cutting benefits to retirees under 75 will accomplish the same thing.

Yep, what’s good for Wall Street… isn’t even a possibility for Main Street.

Want to know what I noticed?

One Federal Reserve economist put a number on how much that FDIC guarantee is worth to the Big Banks. He estimated it was worth $450 to $900 billion a year to the financial services industry.

OK, so this “government insurance policy” is coming to Wall Street through the efforts of the GOP-controlled House of Representatives.

And yes, those are the same Republicans who are such firm believers in the “free market economy” and “privatization” and “pull yourself up by your bootstraps.”  

And now they’re… giving a government benefit to the banks.

What happened to “the free market will take care of it”? Why can’t these banks buy their own insurance on the open market? From a private insurance company?

But I’m digressing again.

Here’s what I noticed: it looks to me like the annual “value” of what Congress gave away last night is about the same amount as what Congress spent on the infamous TARP program.

TARP, of course, was a one-time thing. (Or at least… hopefully… not a very frequent thing.)

The FDIC insurance is ongoing. Every year, the big banks are going to get that government-subsidized insurance policy. Underwriting their risky investments.

It’s like a TARP program, year after year after year.

While all those retirees… get their benefits cut.

Enough is enough!

Smashed Piggy Bank RetirementToday the Nashua Telegraph posted the article, “Pension tension: New research dispels old notion that public employees make less than private sector peers,” which highlights supposedly “new” research focused on public employee pensions.

There are many things wrong with this article and I feel obligated to correct some of these inaccuracies.

Let’s start with the fact that the “new research” they cite was written in 2012, hardly making it breaking news. It was based on surveys taken in 2004 and 2006. The report basically says that while public employees do make less per hour than their private sector counterparts, when you include their retirement benefits public employees make more.

Here are the facts.

1) Research from the National Institute on Retirement Security (NIRS) shows that public employees earn 11-12% less than their private sector counterparts. There is no denying that public workers have a better benefits package than private sector employees – however, even when you add in retirement benefits, public sector employees still fall behind private workers by 6-7% overall. Many people choose to work in the public sector for less pay because they want the better benefits and a real retirement plan.

Unfortunately the trend in the private sector is to take away defined benefit pension plans and force workers into 401(k) programs. This makes employees responsible for funding and managing their own retirement plans. Employers are able to reduce their contributions, reducing what they pay for the benefits they offer. This shifts the entire burden onto the employee. This is also why private sector worker are paid slightly better: because they are expected to save that extra pay for their retirement.

2) Public sector employees are better educated than private sector employees. NIRS found that only 23% of private sector employees have a college degree – compared to 48% of public sector employees with a college degree.

This is easy to understand when you think about some of the jobs in the public sector. You have thousands of literal rocket scientists at NASA and thousands of doctors and medical professionals at the Center for Disease Control. Every teacher is required have a college degree. The result is a highly educated public workforce.

3) It is an outright lie to blame public employees for underfunding of the NH Retirement System. The fact is that in 1999, the NHRS was 100% funded – until Wall Street shenanigans started cutting into its value.

As reported by Liz Iacobucci, “the Trust Fund lost 10% of its value in the recession of 2001.” The NHRS Trust Fund continued to decline and hit rock bottom during the 2008 economic meltdown. “It lost another 25% of its value in the 2008 recession,” said Iacobucci. In 2008, the NHRS had more than $5.9 Billion in investments – and when the stock market crashed, that created what many are calling an unfunded liability.

Think tanks often spin the numbers, calculating that if every employee retired today, the trust fund would be short by “X” amount of money. The fact is that new employees replace the retiring workers, and the new employees pay into the Trust Fund. Investment returns are hugely important to the Retirement System: about 75% of NHRS pension benefits are funded by investment returns. The employers’ contributions are – literally – just pennies of each dollar paid.

Wall Street has rebounded nicely from the 2007-08 crash. The stock market has been setting new records for almost 18 months now. The NHRS has recovered much of its lost ground – and as the market continues to grow, so will the NHRS Trust Fund.

I also can’t believe that Charles Arlinghaus, president of the Josiah Bartlett Center for Public Policy Studies, is suddenly so concerned about municipal budgets. His conversion is almost laughable. In the article, he says “Your town budget is higher than it would be because the pension system is more expensive than it should be. That’s money that’s not going to hospitals, to universities.”

But the Bartlett Center was one of the biggest proponents of “pension reform” bills during the 2011-12 legislative session – and back then, Arlinghaus didn’t talk about the impact those bills would have on municipalities. Cities and towns are paying more now for employee pensions thanks to the hard work of Arlinghaus and the JBC.

Enough is enough!

We need our elected leaders and these Koch-funded “think tanks” to stop lying to the people. The media pits worker against worker when these think tanks are given unwarranted publicity.

Blaming workers for the consequences of two stock market crashes isn’t “new research” – it’s political spin.

Calling retirement benefits unaffordable – without mentioning the fact that the Legislature underfunded the NHRS for years – isn’t honest “research,” it’s political spin.

And we as workers need to change the conversation away from “look at what he gets” – and start asking, “why am I not getting that?”   We as workers, both public and private need to stop blaming each other, and start demanding better from our employers.

AFT-NH Legislative Update: NH Retirement Lawsuits, and Finishing Up Education Bills

It is that time in the 2014 legislative session for Committees of Conference. Bills that were amended by either chamber will need a recommendation of concur, non-concur, or non-concur with a request for a Committee of Conference from the committee in which the bill originated.  At the moment, the following bills will be moving to Committees Of Conference, and both chambers have till June 4th to act on these bills.

HB 1128, establishing a committee to study issues related to students receiving special education services while attending a chartered public school. AFT-NH is in support of the bill’s intent.

Around 2011-2012 the state passed a bill which mandated that local districts must pay for support services for special education students enrolled in Charter schools. This means that a district must send someone to the Charter school, contract out the service, or pay the Charter school to provide the services. All of which can add up to tens of thousands of dollars. We need to have a clear picture on what it is costing districts to educate special education students enrolled in a Charter school in or out of their home district. Because this is a mandate from the State we also need to have the discussion on who should be paying for these services.

HB 1494-FN, relative to administration of the New Hampshire retirement system and authority of the board of trustees.We were originally opposed to this bill but when amended we came out in support.  This bill moves to a committee of conference, AFT-NH will monitor this process.

The original bill was a policy overreach by the NHRS, but Rep. Goley’s amended version ensures this is just a housekeeping bill that establishes a procedure for the determination of the costs of purchase of service credits, clarifies the ability to earn service credit while on a salary continuance plan, changes the date for the approval of the comprehensive annual financial report (CAFR), adds a penalty for employers who fail to timely remit data on compensation paid to retired members, and repeals obsolete provisions.


This past Thursday, May 15, 2014 the Supreme Court heard oral arguments on our Merrimack County I (rate case).

In this case, the Superior Court found that the recently imposed rate increases were substantial and were not justified by any particular public policy requirements.   The rate increases were, thus, improper for any employee vested in the Retirement System under the Contract Clause of the NH Constitution.  The Contract Clause prohibits the state from breaching its contracts.  The judge, however, found that employees do not become vested in the Retirement System until they complete ten (10) years of service.

The Retirement Coalition appealed because it believes employees become vested upon achieving permanent status, not at ten years.  The State appealed because it claims employees do not ever vest or do not vest until they actually retire.   The Retirement System also filed a brief in which they claim not to take any positions, but at the same time claim that the Retirement System should not be required to refund any monies that become due.  The NH Municipal Association and the NH School Boards Association filed a brief that essentially sides with the State.

It will be a few months until the Supreme Court issues its written decision; once it is out I will send out a summary as to their ruling.


Merrimack County II (COLA and Special Accounts).In this case, the Superior Court found that employees do not have vested rights in their COLAs and no right to challenge the defunding of special accounts.  The judge also repeated his findings about a ten (10) year vesting period for other aspects of the Retirement System.

The state’s brief are due May 20, 2014, our response is now due July 7, 2014, their response to us is now due August 5, 2014. The next step will be for the Supreme Court to schedule oral arguments.

Hillsborough County (Definition of Earnable Compensation, Benefit Structure).In this case, the Superior Court found that employees vest in the Retirement System upon achieving permanent status.   The judge ruled, however, that she cannot tell without a trial whether definitional changes made by the Legislature regarding factors such as what constitutes “earnable compensation” are substantial enough to have violated petitioners’ rights.   (Merrimack I and II were determined on an agreed statement of the facts, without a trial).

Case Status:  Over our objection, the Hillsborough County judge stayed proceedings in this case pending the outcome of the Supreme Court appeals.  As a result, there is not pending activity in this case.

If you have any questions or concerns please email me at lhainey@aft-nh.org.

Thank you!

In Solidarity,
Laura Hainey

Please visit www.aft-nh.org and AFT-NH Facebook page and clicked “Like Us”?
Late breaking news appears on our web site and on Facebook!



10:00 a.m. Interim study subcommittee work session on HB 1440-FN, including the writing, promoting, or distributing of model legislation to elected officials as lobbying and requiring disclosure of scholarship funds, money, or other financial support received from such lobbyists by elected officials.

10:00 a.m. Full committee work session on Revenue Updates.


10:00 a.m. Senate in Session


10:00 a.m. House in Session

Shea-Porter Listens to Seniors, Discusses Affordable Care Act and Importance of Social Security & Medicare in Manchester

image001MANCHESTER, NH – Today, Congresswoman Carol Shea-Porter (NH-01) joined 35 seniors in Manchester to discuss the Affordable Care Act and answer questions about Social Security, Medicare, and Medicaid. During the open forum with residents of Birch Hill Terrace, Congresswoman Shea-Porter answered questions about New Hampshire’s ACA Marketplace, how the Affordable Care Act is strengthening Medicare, and how Congress can work to improve the long-term outlook of Social Security.

“Granite State seniors have earned their Medicare and Social Security benefits through a lifetime of hard work,” Shea-Porter said. “These programs are vital to the retirement security of millions of Americans, and we must protect them for future generations.”

In Congress, Shea-Porter has led the fight against reckless schemes to balance the budget on the backs of New Hampshire seniors. Last February, she wrote to President Obama urging him to reject any proposals to cut benefits to Medicare, Medicaid, and Social Security. She has cosponsored the Strengthening Social Security Act of 2013, which would improve benefits for current and future Social Security recipients, extend the life of the Social Security trust fund, and ensure greater economic security for America’s seniors. And she has spoken out against chained CPI and other cuts to benefits that seniors have earned through a lifetime of hard work.

As of December 2012, the average monthly benefit for those receiving Social Security was $1,215. Over the course of a year, this averages out to $14,580. As Shea-Porter reiterated, the idea that we should balance the budget on the backs of seniors relying on less than $15,000 is simply wrong.

Shea-Porter was joined at the forum by Helen Mulligan from the Center for Medicare and Medicaid Services and Karol Dermon, from the Department of Health and Human Services Bureau of Elderly and Adult Services.


Senate Republicans Blaming Public Employees for State’s Revenue Shortfalls

NH Retirement Coalition

CONCORD – Yesterday, New Hampshire Senate Republicans were quick to attack their fellow legislators and public employees after Standard & Poor announced New Hampshire’s bond rating was adjusted following a court ruling on the Medicaid Enhancement Tax (MET).

In 2007, responsible and bipartisan retirement reforms were enacted. Instead of allowing these changes to work, in 2011 Sen. Jeb Bradley (R-Wolfeboro) and his fellow Senate Republican colleagues added to the unfunded liability (UAAL) by slashing employer contributions. Due to Senate Republicans’ so-called pension reforms in 2011, they increased the UAAL by 11.5% – adding over $400 million to the state’s underfunded status, exacerbating the problem. These failed policies were a contributing factor to New Hampshire’s lowered bond rating.

Embracing real pension reform for newly hired employees and encouraging an open discussion with public employee groups would have been a responsible solution to our state’s financial concerns. Unfortunately, Senate Republicans refused to discuss retirement security for all public workers, and sentenced newly hired police officers and fire fighters to a future reliance on taxpayer-funded services.


For more information on the New Hampshire Retirement Security Coalition, please visit nhretirementfacts.com and follow us @NH_RSC

4-7-14 AFT-NH Legislative Update: NH Retirement System Bills, Charter Schools, and Special Education

The following bills were acted upon in the Senate Executive Departments and Administration Committee this past week:

The committee recommended Ought to Pass on HB 1152: This amended bill repeals the optional benefit program available to eligible call, substitute, or volunteer firefighters through the retirement system, and provides for the refund of remaining funds after the completion of payments to the two remaining beneficiaries. AFT-NH has no position on this bill but is monitoring. This bill transfers to a subtrust the assets required to fund this benefit. All individuals who are entitled to benefits will continue to receive them in full.

The committee recommended Ought to Pass on HB 1398: This bill allows the retirement system to make a payment of $15,000 or less to the next of kin of a deceased member when no probate proceedings are pending. Like the bill above AFT-NH has no position on this bill but is monitoring.

The committee recommended Ought to Pass on HB 1617: This amended bill grants NHRS electronic access to a limited data set of death, marriage, and divorce information of members and beneficiaries held by the Division of Vital Records Administration for purposes of administering RSA 100-A.  Again, AFT-NH has no position on this bill but is monitoring.

The House Finance Committee is still working on SB 339: This amended bill authorizes the NH  Department of Administrative Services to contract for a credit card affinity program in which fees received are directed to offset the retirement system’s unfunded liability. The committee will be meeting again April 10th at 1:40 p.m. in room.

This bill allows the Department of Administrative Services to contract with a credit card issuer to establish a credit card affinity program in which the fees received by the state are dedicated to reducing the retirement system’s unfunded liability. This is a “feel good” bill, that will have little impact on the unfunded liability.

The Senate Executive Departments and Administration Committee will be hearing testimony on:HB 1494-FN, relative to administration of the New Hampshire retirement system and authority of the board of trustees.  AFT-NH was originally opposed to this bill as it was a policy overreach by the NHRS, but Rep. Goley’s amended version ensures this is just a housekeeping bill that establishes a procedure for the determination of the costs of purchase of service credits, clarifies the ability to earn service credit while on a salary continuance plan, changes the date for the approval of the comprehensive annual financial report (CAFR), adds a penalty for employers who fail to timely remit data on compensation paid to retired members, and repeals obsolete provisions.

The Senate Health, Education and Human Services committee will be hearing testimony on the following:

HB 1449, relative to the requirements for filing a charter school application.  What we need are laws and regulations requiring full transparency in how charter schools operate and making them directly and openly accountable to the public for student performance and their admissions and enrollment policies.  We need stronger policies mandating respect and support for teacher and staff voice in school policy and program, identification of potential conflicts of interest via disclosure requirements, and the use of public funds in the same rigorous manner required in our public schools. AFT-NH believes that this bill is a small step in increasing transparency in Charter Schools.

HB 1128, establishing a committee to study issues related to students receiving special education services while attending a chartered public school.  The duties of this committee include studying issues related to students receiving special education services while attending a chartered school, including responsibility for funding and provision of special education services, and any other issue deemed relevant by the committee.

Around 2011-2012 the state passed a bill which mandated that local districts must pay for support services for special education students enrolled in Charter schools. This means that a district must send someone to the charter school, contract out the service, or pay the Charter school to provide the services. All of which can add up to tens of thousands of dollars.

AFT-NH supports this bill.  We need to have a clear picture on what it is costing districts to educate special education students enrolled in a Charter school in or out of their home district. Because this is a mandate from the State we also need to have the discussion on who should be paying for these services.

If you have any questions or concerns please email me at lhainey@aft-nh.org.

Thank you!

In Solidarity,
Laura Hainey

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11:00 a.m. SB 378, relative to identification information contained in political advertising.

1:30 p.m. Executive session on:
SB 376, requiring pooled risk management governing board members to comply with financial disclosure requirements,
SB 418, relative to the proclamation of firefighters memorial day.

10:15 a.m. SB 207-FN, relative to paycheck equity.  Please note Rooms 305-307, LOB.
3:00 p.m. Executive session on SB 295, prohibiting an employer from using credit history in employment decisions.

12:30 p.m. LOB 305-307:  Showing of the acclaimed documentary “Inequality for All” which features Robert Reich, economics professor, best-selling author, and former U.S. Secretary of Labor, as he demonstrates how the widening income gap is having a devastating impact on the American economy. The film is described as “a passionate argument on behalf of the middle class.” The showing is open to all. This event is part of the film’s “50 State Capitals Tour” this winter and spring, designed especially for Legislators and policy-makers.


Senate Executive Departments And Administration, Room 100, SH
9:00 a.m. HB 1494-FN, relative to administration of the New Hampshire retirement system and authority of the board of trustees.


9:00 a.m. HB 1447, prohibiting discrimination in educational standards for certain students.
9:20 a.m. HB 533, relative to the mathematics requirement for high school graduation.
9:40 a.m. HB 1141, requiring chartered public schools to share enrollment information with school districts.

10:00 a.m. HB 1449, relative to the requirements for filing a charter school application.
10:20 a.m. HB 1128, establishing a committee to study issues related to students receiving special education services while attending a chartered public school.

House EDUCATION, Room 207, LOB
10:00 a.m. SB 343, relative to the duties of the statewide education improvement and assessment program legislative oversight committee and repealing the school administrative unit legislative oversight committee.
11:00 a.m. SB 350, relative to the transfer of adequacy aid calculation data from the Department of Education to the Department of Revenue Administration.
1:15 p.m. SB 348, establishing a commission to study sexual abuse prevention education in elementary and secondary schools.

WAYS AND MEANS, Rooms 202-204, LOB
9:00 a.m. SB 366-FN-A-L, relative to video lottery and table gaming.


9:30 a.m. NH Supreme Court Oral Argument –voucher case

Senate FINANCE, Room 103, SH
1:00 p.m. HB 1415-FN, establishing a robotics education fund in the Department of Education.

House EDUCATION, Room 207, LOB
10:00 a.m. SB 355, relative to access to social media by educational institutions.
11:00 a.m. SB 414-FN, relative to Medicaid-funded services provided as part of a child’s individualized education program.
1:15 p.m. Presentation by the Department of Education: Perspectives on Accounting and Assessment

10:00 a.m. Executives session on
SB 236, relative to delivery of the final budget and recommendation of the municipal budget committee to the governing body,


10:00 a.m. House in session

12:30 p.m. Big Money and Politics – New Hampshire is the highest per-capita recipient of outside special-interest money. Learn about the efforts to address this issue at the state level, understand the federal landscape and what you can do about it. This presentation, including a panel discussion led by the Coalition for Open Democracy and Americans for Campaign Reform, is part of New England College’s education series to take place at the college’s new Concord facility, 62 North Main Street. Walk south on North Main. Located on the clock tower side, near the Norway Bank, three minutes from the steps of the State House.


10:00 a.m. Senate in Session


11:30 a.m. Regular meeting. Presentation by Paul Leather, Deputy Commission Department of Education on HB 435.

Wondering Where Your Retirement Has Gone?


If you’re wondering what happened to your retirement security, then you really need to read the NY Times excerpt from “The Wolf Hunters of Wall Street.”

The same system that once gave us subprime-mortgage collateralized debt obligations no investor could possibly truly understand now gave us stock-market trades involving fractions of a penny that occurred at unsafe speeds using order types that no investor could possibly truly understand…

“It was so insidious because you couldn’t see it,” Katsuyama says. “It happens on such a granular level that even if you tried to line it up and figure it out, you wouldn’t be able to do it. People are getting screwed because they can’t imagine a microsecond.”

…Even giant investors simply had to take it on faith that Goldman Sachs or Merrill Lynch acted in their interests, despite the obvious financial incentives not to do so.

“Giant investors” would include – yes, that’s right – public pension trust funds.

Like the NH Retirement System Trust Fund… which was 100% funded, as recently as 1999.

Or Detroit’s public pension systems, which were fully funded as recently as 2008 – but are now being used as the “reason” that the City “has” to go through bankruptcy.

Wonder where your retirement has gone?

Read about Wall Street’s “dark pools”… then get really, really mad.

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