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Archive for the ‘Retirement’ Category

“People are going from the Legislature to other branches of government and spiking their retirement benefits.”

–Sen. Dan Claitor (R-Baton Rouge) speaking in support of his Senate Bill 727 which would have prohibited lawmakers from leaving the legislature for high-paying state jobs and joining the Louisiana State Employees’ Retirement System (LASERS) to boost their retirement incomes–particularly at a time when the administration is trying to gut retirement benefits for rank and file state employees.

“We have a bad reputation in this state as legislators and public officials because we keep filing bills like this and telling people we are crooks.”

–Sen. Dan Martiny (R-Metairie), in a snit as he spoke out against Claitor’s bill, possibly because it might one day adversely impact his own retirement. The Senate defeated Claitor’s bill, thus doing nothing to dispel Martiny’s perception of legislative ideals.

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Even as the administration pushes back floor debate on Gov. Piyush Jindal’s retirement reform for state workers, the full Senate on Wednesday made sure that its members were protected.

While thousands of state employees faced the uncertainty of their careers and retirement years, 35 members of the upper chamber, led by Sen. Daniel Martiny, a self righteous Metairie Republican, flipped a collective bird at state civil service workers in particular and Louisiana citizens in general.

And worst of all, Martiny had the unmitigated gall to accuse a Senate colleague of grandstanding.

Pot, meet Kettle. Kettle, Pot.

The furor was over Senate Bill 727 by Dan Claitor (R-Baton Rouge), which would have barred a few members of the Senate and a couple of former members from membership in the Louisiana State Employees’ Retirement System (LASERS).

The legislature passed a law a few years back prohibiting members of the House and Senate from joining LASERS but the law “grandfathered in” those legislators who were already LASERS members.

Martiny is one of those. The others are Sharon Weston Broome and Yvonne Dorsey-Colomb, both Baton Rouge Democrats, Ed Murray (D-New Orleans) and John Smith (R-Leesville).

Claitor’s bill also would have provided that any legislator who is presently a member of LASERS as of June 30, 2012, may retain accrued service credit but that those members “on and after July 1, 2012, be ineligible to be a member of the system” and that employee and employer contributions would cease as of July 1.

Had the bill passed, it would have adversely affected two formers members of the legislature—former Rep. Noble Ellington (R-Winnsboro) and former Sen. Troy Hebert (D-Jeanerette).

Ellington, the immediate past national president of the American Legislative Exchange Council (ALEC), did not seek re-election last fall after 24 years in the legislature. He was promptly hired to the number-two job in the Department of Insurance at $150,000 even though Insurance Commissioner Jim Donelon said at the time of his hiring that Ellington had virtually no experience in insurance.

Hebert was hired by Jindal to head the Louisiana Alcohol and Tobacco Control Board at $107,800.

Their higher salaries stand to have a significantly positive impact on their retirement incomes—at a time when Jindal is attempting to rip the heart out of state employees’ retirement by making them pay more and to work longer to qualify for fewer benefits.

Claitor said legislative pay ranges from $30,000 to $38,000 per year but now that Ellington’s retirement can be based at least partially on his higher salary, he stands to reap much greater benefits.

Martiny, with a flair for the obvious—and the dramatic—pouted and then ranted in arguing against Claitor’s bill.

In short, he threw a hissy fit.

Of course, being one of the five senators who are still members of LASERS, he had no dog in that hunt; nothing self-serving there by the good senator.

No retirement reform for legislators either—just for state civil service employees. Screw the employees but take care of our own.
Can you say “double standard?”

Ellington and Hebert “are doing the job,” he said of the two former legislators-cum-unclassified fat cats.

How would he know what kind of job Ellington is doing? For that matter, what does he know about Hebert’s job performance? Has he seen their personnel performance evaluations?

Could it possibly be that he would lavish such praise because all three are current or former members of ALEC?

ALEC is a tight fraternity comprised mostly of Republican legislators from across the U.S., but there are a few Democrat members as well, including fellow senators Francis Thompson of Delhi, David Heitmeier of New Orleans, Elbert Guillory of Opelousas, and Ben Nevers of Bogalusa.

In fact, no fewer than 16 of the 39 members of the Louisiana State Senate are members of ALEC.

They include Senate President John Alario (R-Westwego), Robert Adley (R-Benton), Norbert Chabert (R-Houma), A.G. Crowe (R-Pearl River), Heitmeier, Gerald Long (R-Natchitoches), Martiny, Dan Morrish (R-Jennings), Nevers Neil Riser (R-Columbia), Thompson, Mike Walsworth (R-West Monroe), and Mack “Bodi” White (R-Central).

To a person, they were among the 35 senators who effectively defeated Claitor’s bill by returning it to the calendar where bills go to die.

Only two joined Claitor in voting against killing the bill. They were Karen Carter Peterson (D-New Orleans) and Jody Amedee (R-Gonzales).

We would never say that ALEC money may have influenced the vote but consider this: thirteen of the 35 senators who voted to kill the bill received a combined $239,600 from ALEC member corporations and when you add the $65,000 received by Ellington while he was in office, that total jumps to $304,600.

Perhaps there’s no connection between the vote and the ALEC corporations but certainly is peculiar how ALEC beneficiaries all tend to vote together on controversial issues.

Here’s the breakdown on contributions by ALEC:

• Alario—$14,500;

• Adley—$49,900;

• Chabert—$7,000;

• Crowe—$3,000;

• Heitmeier—$8,000;

• Long—$26,000;

• Martiny—$36,000;

• Morrish—$5,500;

• Riser—$7,000;

• Thompson—$8,000;

• Walsworth—$9,000;

• White—$8,500;

• Guillory—$45,200.

“We have a bad reputation in this state as legislators and public officials because we keep filing bills like this and telling people we are crooks,” Martiny said during floor debate. “It’s sad when we have to grandstand on one another.”

Well, Senator, we never said you were a crook. Those are your words.

As for our description of your performance, however, arrogant, idiotic, duplicitous, hypocritical, embarrassing buffoonery does come to mind.

And yes, it indeed is sad when you grandstand.

Because we are watching.

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“The opera ain’t over until the fat lady sings.”

–Generally attributed to Texas Tech Sports Information Director Ralph Carpenter, during the 1978 finals of the Southwest Conference basketball tournament.

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As was the case with last week’s Senate Retirement Committee, the administration is attempting some last-minute arm-twisting on its retirement reform package.

The retirement bills are scheduled to be heard by the full Senate later today and it appeared late Tuesday that they were destined to crash and burn.

But word Tuesday morning was that several closed-door meetings were ongoing as the administration fought back against growing opposition to his retirement “reforms.”

Last week, Senate Retirement Committee hearings were delayed for two hours while last-minute changes were made to Senate Bill 51 to make the bill more palatable. SB 51 was originally written to require state employees to work until age 67 before being able to realize full retirement benefits. That bill would have resulted in at least some employees losing up to 85 percent of their retirement benefits.

Other provisions that had to be re-worked at the last minute by the governor’s storm troopers would have raised employee contributions to their retirement by 3 percent while lowering the state’s contribution by a like amount. The money to have been saved by the state would have gone to the state’s general fund to help Jindal smooth over a huge budget deficit.

The amending version of that provision would allow the 3 percent additional employee tax to go toward reducing the combined unfunded accrued liability of the four state retirement systems.

Even that, however, appeared to be not sufficient to satisfy legislators who have been under the gun from constituents, particularly state employees, teachers, school employees and state police.

The bills appeared doomed.

But wait! Here comes a tiny car into center ring and out jumps a gaggle of clowns disguised as administration staff. Honking their horns, squirting seltzer bottles and squeezing their red noses, they appear to be running amok.

On second blush, however, we see that what we perceive as chaos is actually a plan, a strategy, as it were, to rescue the state from self-inflicted fiscal disaster.

But there’s one thing glaringly wrong with this picture: We can’t see it.

That’s because the coercion that is ongoing as this is being written is taking place behind closed doors, out of sight and out of earshot of the public.

We are simply not privy to the democratic process in action.

That’s the Jindal version of transparency, accountability and openness that, sadly, has become the hallmark of this administration.

In the words of actress Bette Davis: “Fasten your seatbelts. It’s going to be a bumpy ride.”

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Between speaking engagements in New York and New Jersey, something strange happened to one of the crown jewels in Gov. Bobby Jindal’s legislative.

The governor’s retirement bills are scheduled to be taken up for debate on the Senate floor on Wednesday and early indications are they are in trouble.

Jindal, flush from his education reform successes, couldn’t wait to dash off to an ill-advised keynote speaking engagement before the New York Republican state dinner. Next, he’s off to New Jersey next month to speak at the American Federation for Children’s national policy summit in Jersey City. More about that in due course.

In the interim, opposition, led by Cindy Rougeou, executive director of the Louisiana State Employees’ Retirement System (LASERS), has grown statewide to his sweeping state employee retirement reform package that not only slashes retirement benefits for state employees, but requires them to pay more and work longer to get them.

That’s right. Said another way, Piyush would require that state employees chip an additional 3 percent of their paychecks in order to qualify for fewer benefits—and to work longer to get them.

As if that were not bad enough, a Dallas law firm retained by Legislative Auditor Daryl Purpera said everything about the retirement bills stinks. The bills are illegal, said the report by Strasburger Law Firm, because they break contracts with state employees, something expressly forbidden by the U.S. and Louisiana constitutions.

Not to be outdone, the administration promptly retained an outfit named Buck Consultants at a contract cost of $400,000 to counter the Strasburger report. To date, the contents of the Buck report have not been released.

That appears to follow a pattern. It was only a year ago that another somewhat cheaper ($49,999.99) report was ordered by the administration from Chaffe and Associates of New Orleans. That report was supposed to support the administration’s efforts to privatize the Office of Group Benefits (OGB).

It practically took a triple dose of Ex-Lax for legislators to get the administration to (ahem) cough up a copy of the report.

Even while the Buck report was still pending, the administration began backtracking, amending, re-writing and tweaking its retirement bills.

Nothing like having your ducks in a row ahead of time. Another cliché, flying by the seat of your pants, comes to mind. So does FUBAR.

Probably one of the sleaziest tactics employed by Jindal (oh, where do you start when discussing the administration’s sleaze factor?) was his attempt to dump the entire $18.3 billion unfunded accrued liability (UAL) on LASERS. Of the four state retirement systems—state employees, teachers, school employees and state police—LASERS accounts for $6.3 billion of the total UAL. Yet, Jindal never opens his mouth about the remaining three retirement systems and his “reform” package does not include any of the other three. Only LASERS.

Said another way (the governor is not the only one who can wear out a phrase; we can play, too), John, Pete, Sam and Piyush each have bank loans. Sam owes $10,000; John $700, Pete $300 and Piyush owes $7,000. The bank decides to call in all the loans but instead of seeking a pro rata share from each debtor, it sends Piyush the bill for the entire $18,000.

Well, that certainly seems fair.

Such is life in the administration of Piyush Jindal. Up is down, left is right, in is out, and the playbook of the American Legislative Exchange Council (ALEC) is sacrosanct.

So now, while his retirement bills appear to be headed toward a torturous death on the Senate floor, our globe-trotting governor prepares for yet another victorious appearance before a friendly audience.

Ever notice, by the way, that the guy absolutely, positively never appears anywhere where the crowd is not friendly—and controlled?

Ever notice that Piyush absotively, posilutely never puts himself in the position of having to answer tough, probing questions?

Give him an audience of ALEC members, LABI meetings, or chambers of commerce and you can’t shut him up (as witnessed by his performance last week in New York) but never will you catch him speaking to an audience of state employees or teachers. Prudent or cowardly? You decide.

So now Jindal is off to New Jersey where he will speak to the American Federation for Children, formerly called All Children Matter until it was fined $5.2 million in 2006 for funneling campaign money into Ohio through the organization’s various state networks. All Children Matter was also fined an unspecified amount for illegal political activity in Wisconsin.

The American Federation for Children, nee All Children Matter, is run by Betsy DeVos, former chairperson of the Michigan Republican Party. Her brother, Erik Prince, is the founder of Blackwater USA, the private security firm that made international headlines in 2007 when its guards killed Iraqi civilians and then attempted to bribe Iraqi officials to quell criticism of their actions.

Betsy DeVos and her husband, Dick DeVos, contributed $16,000 to Jindal’s first two gubernatorial campaigns in 2003 and 2007. Her husband owns Amway; Amway is a member of ALEC. The circle is now complete.

Betsy DeVos called Jindal one of the nation’s most committed education reformers. “The governor serves as an example of how strong leadership and a bipartisan approach can improve the lives of children, and we can’t wait to hear how he will inspire other governors across the country to stand up for children,” she gushed.

Perhaps he can serve as an inspiration of how not to reform state retirement.

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