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The March 23 Sun Journal editorial misses the mark in several important regards. The topic was whether to correct one of the three major state pension reductions made in 1993. The editorial correctly noted that in 1993 the Legislature “created a separate and unequal class of worker” by enacting the “Cliff.” That is true, but it failed to point out that this separate, unequal class is paying the same contribution from every paycheck that the “pre-Cliff” employees currently pay. The contribution is the same, but the benefits are unequal. That’s not fair.

Second, LD 1693 only corrects one of the three reductions made in 1993 (the early retirement penalty), while it leaves the increased retirement age and delayed cost-of-living benefit in place.

Third, the editorial fails to recognize that the state and local school districts want to encourage early retirement to reduce salary costs. No participant subject to the 6 percent per year early retirement penalty could accept an early retirement offer. To leave at age 57, a teacher or state employee would have to accept a 30 percent reduction in their pension (compared to only 8 percent for a pre-Cliff participant), and that employee would have to wait six years for a cost-of-living increase.

Fourth, LD 1693 requires no funding in the current fiscal year or next fiscal year. Thereafter, the state’s contribution increases by approximately 3 percent. That is a fairly small price compared to the millions of dollars which the state has saved by the 1993 Cliff pension reductions.

Finally, the funds in the Maine Retirement System are only available to pay pensions, not retiree medical benefits. Therefore, suggesting that the Legislature has a choice whether to correct a portion of the Cliff pension injustice or pay retiree medical costs is misleading.

LD 1693 is a pure fairness issue. This may be the last time that it will be possible to correct any part of the Cliff.

Now is the time to correct that manifest unfairness.

Chris Galgay, Turner

President, Maine Education Association

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