Issue Brief: educator employment standards
Jan. 15 contract settlement deadline
Last year the Legislature eliminated the Jan. 15 deadline to settle teacher contracts in odd-numbered years and the $25 per pupil penalty for failure to settle.
The deadline, enacted in 1989 and first enforced in 1990, had been very effective in achieving settlements and reducing labor strife. In the past 18 years, there have been only three teacher strikes in Minnesota, all of which took place when the Legislature had temporarily suspended the deadline. This graph shows the relationship between the deadline and settlements.
- The Legislature should reinstate the Jan. 15 contract settlement deadline for teachers and pursue a new settlement deadline for educational support professionals.
Competitive bids for school employee insurance
Current Minnesota law allows local school employee unions to independently seek a health insurance bid from the state Public Employee Insurance Program (PEIP). This law has saved millions of dollars for school districts and their employees by introducing another source of competition into the insurance market.
In 2010-11, more than 200 school district unions sought bids from PEIP, resulting in insurance cost increases substantially below national and state averages. Money not spent on insurance is available to educate students. However, bills introduced in the Legislature would significantly change the law to make it more difficult to seek PEIP bids.
- The Legislature should not change the current law giving school employee unions the right to seek a bid and opt into the Public Employee Insurance Program without the approval of the district administration or school board.
Pensions and retirement
Stable pensions, equitable contributions and competitive benefits are critical in attracting and retaining quality teachers for our students.
Minnesota school employees participate in one of four public employee pension funds: the Teachers Retirement Association, St. Paul Teacher Retirement Fund Association, Duluth Teachers’ Retirement Fund Association or the Public Employee Retirement Association. The funds provide a defined benefit based on age, high-five salary and years of service credit. Both active and retired educators share the responsibility of ensuring that it remains healthy.
Legislation enacted in 2010 to stabilize the teacher retirement funds significantly increased the contribution rate for both employees and employers. Teachers’ contributions to the fund will rise to more than the national average of 5 percent by 2014. In addition, annual benefit increases for retired teachers will be suspended in 2011 and 2012.
- The Legislature should make no changes to the pension funds as we allow the pension reforms of 2010 to take effect and improve the fund. However, the funds should continue to be monitored to make sure they are progressing toward a fully funded status.
- The Legislature should retain the current 8.5 percent actuarial investment earnings/interest assumption.
For more information, contact:
Jan Alswager, chief lobbyist, 651-292-4890, jan.alswager@edmn.org
Jodee Buhr, lobbyist, 651-292-4830, jodee.buhr@edmn.org
January 19, 2012