Image provided by: SEIU Local 503; Salem, OR
About The OSEA news. (Salem, Oregon) 1970-1981 | View Entire Issue (July 1, 1970)
Ju ly, 1970 The OSEA News (continued from page 7) Findings The committee learned that a group of employe organizations, Including the Oregon State Employes Association, the Oregon Education Association and the Oregon School Employes Association, are presently studying the retirement system. This group, in all probability, w ill introduce legislation to the 1971 Legislature to make further improvements in the system. Recommendation Because of the existence o f the committee of em ploye organizations referred to above, the committee did not attempt to study the retirement benefit in depth. Based on the testimony given, however, the committee recommends three changes in the state's retirement system: (1) The 30-year limitation placed on the number of years of service that may be counted in the retirement formula should be removed. That would permit an employe to count all of his actual years of service when computing his retirement benefits. (2) Use of the three highest years of salary out of fhe last ten years of service prior to retirement age, rather than the present five highest years of salary out of the last ten years in computing the state's portion of the employe's retirement benefit. (3) Provide for a more flexible early retirement by allowing employes to retire prior to age 60 at a reduced retirement benefit (at no cost to the state). Recommendation Findings The committee is of the opinion that unemployment compensation Is an excellent benefit for those em ployes whose jobs have been or might be abolished. It recommends that the benefit be retained under the present statute that makes it mandatory for state government to participate in unemployment com pensation . Many state employes are members of the National Guard or m ilitary reserves of the U.S. Armed Services. Those employes are generally required to spend two weeks or longer, each year for m ilitary training pur poses. Benefit: Recomm endation Workmen's Compensation State Practice An employe who incurs an on-the-job Injury is eligible to receive workmen's compensation benefits. The amount of money the employe receives from workmen's compensation Is supplemented by com pensation from sick leave 4o provide employes with a monthly pay check. Findings The most recent statistics from the Workmen's Compensation Board show that in 1968 It paid claims totaling $1,267,237 to state employes who were covered under workmen's compensation insurance. Recommendation Benefit: Social Security State Practice The State of Oregon came under the Social Security Act in 1953. As mentioned elsewhere in this report, the state's retirement benefit, coupled with the social security benefit, w ill provide an employe 50 per cent of his final average salary upon retirement. Findings The social security tax w ill become a heavier tax in 1971 when the rates w ill be increased from 4.8 per cent to 5.2 per cent of the first $7,800 of salary. In addition, there is legislation pending in Congress to Increase the $7,800 to $9,000 per year. The workmen's compensation law is applicable to all employment within Oregon, both public and private. It is the committee's recommendation that workmen's compensation should be retained. Benefit: Training Programs State Practice The m ajority of the state's training programs have been mainly limited to those initiated by Individual state agencies. Findings Recommendation Despite the fact that the social security tax is in creasing, the committee is of the opinion that it provides a very desirable benefit to state employes. Benefit: Unemployment Compensation State Practice Unemployment compensation is provided for state employes on a pay-as-you-go basis by state agencies. Findings Unemployment compensation became available to .the state's work force as the result of 1957 legislation. The first employe claim was paid on July 1, 1959. During 1969, the Employment Division issued 990 checks, totaling $390,000, to former state workers who were displaced from their jobs. During that year there were 1,100 new claims filed. The committee found that the common practice in industry is to grant m ilitary leave, but to pay only the difference between what an employe earns In m ilitary pay and-his salary. One of the prim ary functions of the new Personnel Division in the State Executive Department w ill be to establish comprehensive, career oriented training programs for all agencies. Recomm endation There is a great need for training programs within the state service. The'committee strongly urges the Personnel Division and all agencies of state govern ment to establish such programs as soon as possible. Benefit: Military Leave State Practice The state presently provides a paid leave of absence for a period not exceeding 15 calendar days or 11 work days in any calendar year for employes who have m ilitary obligations. It is the committee's opinion that the state's m ilitary leave benefit is necessary. However, the pay portion of the benefit should be changed to conform with that in industry; I.e., m ilitary pay should be supplemented by the state to equal only the amount the employe would have received had he remained on the job. Under any circumstances employes should be allowed to keep all of their m ilitary pay. Benefit: Differential Pay State Practice The State of Oregon currently provides differential pay to only five classifications out of some 1,150. Findings Differential pay to employes who are required to work night or weekend shifts is and has for years been a common industry practice. Furthermore, studies show more and more public jurisdictions are beginning to pay differentials. Recommendation The committee recommends that the Personnel Division of the State Executive Department carry out further studies on the subject of differential pay. Summary The greatest disparity between state employes and their counterparts in industry and other governmental jurisdictions is the lack of a health Insurance con tribution. A Common Benefit Statistical data indicates this benefit is commonly provided to public and private employes in and out of Oregon. For instance, Oregon and one other state are the only Western States that do not provide a health insurance benefit to their employes. Overwhelming M ajority The overwhelming m ajority of employes in both public and private employment in Oregon now have either the total or a major portion of their health in surance premium paid by their employer. Eighty-eight cities in Oregon presently make a contribution. Twenty-three of Oregon's 36 counties do the same. Eight of 13 telephone companies and 11 of the 33 power, electric and gas utilities pay at least a portion of the employe medical-hospital insurance premium. A two year old survey indicates that 86 per cent of the public and private employers surveyed within Oregon make contributions to the premium cost of their employes' group insurance plans. $10 State Contribution Urged The committee urges the 1971 Legislature to ap propriate funds to provide a $10 per month medical- hospital-surgical insurance contribution for every state employe. Such a contribution represents less than one and one-half per cent of the state's total payroll, and would place Oregon in a more competitive position with competing employment.
