5
O.S.E. A. Legislative Program
LIFE INSURANCE, HOURS, WAGES AND TAXES ARE SPOTLIGHTED
Members of the General Council in contribute on the amount xof Salary
their November' session I passed several earned in excess of that matched by
resolutions pertaining to. matters which the employer, and in lieu thereof, to
require legislative action. Subsequently, provide that employers match employees
your Board of Directors has renewed contributions on. salary up -to, but not
the contract of our legal counsel, F. Leo. exceeding $3000 per year (present max
Smith, for another year and has; formu imum, is $200 per month, $2400.. an
lated the following legislative program nually)..
for the current session of legislature.
We are informed that the Retirement
1. Group Life Insurance
Board favors eliminating all employees’
To sponsor an amendment to present contributions on more than the amount
statutes authorizing State Departments; matched by the State in order to reduce
to make payroll deductions for group the heavy administrative costs involved
life insurance premiums. Some depart in handling excess contributions. j
The OB.E.A. favors /ju n ctio n of
ments will hot make such deduction«
Because the present law mentions’ de administrative costs, but does not feel
ductions for '"hospital dues” only. th a t. the benefits under the present act
O.S.È.A. members will have an oppor should be taken away without some
tunity to enjoy the lower ratés of group equitable adjustment. Such adjustment
insurance if fhe proposed amendment can Be made by increasing the maxi-_
mum limit for both employee and em
is passed.
ployer contributions to $3000 per year.
2. Prior Service Credit
This figure is justifiable because (a)
To sponsor an amendment to the the proposed maxiriium would provide
Retirement A ct eliminating the present
a pension at retirement age, after 30
20-year maximum allowance for prior
years service, of about $125per month,
service arid providing that the pension which is not excessive; (bW $3000 a
include an amount equal to $2.50 per
year is the present maximum under
ftionth for every year of service ren-’
Federal Social; Security and is less than
dered prior to July 1, 1946.
I The cost to the State will be very provided irij many existing retirement
plans (California’s maximum is $5000
little as oftly a small number of em annually) ,H Çc) the A ct is intended I
ployees have over 20 years of prior
make retirement possible without sub
service. These are the faithful employees
who are scheduled for early retirement jecting the retired employée to hard
ship conditions. The proposed increase
and who will have little chance to build
will .aid in removing resistance to re
up much of a pension, by their current?
tirement" which might otherwise de
contributions. Some city govern m ents
velop. (d) As routine retirement be
applying for coverage under the A ct are
comes the rule, the incentives for
petitioning for 30-year maximum prior
younger employees to remain on the
service credit, which a ruling o f’ the
Attorney General says is not permissible job increases and the public service
benefits. I
under the present Act. The proposed
4. Reducing Administrative Costs of
change will benefit all groups covered
Retirement Act
by the Act.
To provide that employee contribu
3. Employers' Matching of Employees'
tions not start until after 6 months
Contributions
Employment with the State.
To sponsor an amendment to the
The 6-month waiting period would
Retirement Act, eliminating the em eliminate payroll deductions, opening
ployees present choice to voluntarily^
(Continued on page 6 )'