The classified union would like to thank CCFT, the faculty union, for their courageous and diligent efforts in pursuing the enforcement of the salary formula for 99/00. They challenged the district all the way to arbitration to see that the salary formula would be implimented correctly. Their actions have benefited all of us. Again, we say thank you to our brothers and sisters in the CCFT.
Start Planning For Retirement... When You Are Hired!
When is the best time to start planning for retirement? When you are hired!
This is probably the last thing on your mind when you receive the news that you will now become a permanent member of the Cuesta staff. But, this is one of the best benefit opportunities that goes along with your hiring. You have several things happening to your financial situation, and retirement planning should be one of the areas that you should concentrate on during your first year as an employee.
The obvious retirement benefit is your mandatory participation in the California Public Employees Retirement System, PERS. Each month 7% of your monthly earnings in excess of $133.33 is contributed from your paycheck to the PERS program. You are also contributing to the Social Security system, which determined that $133.33 figure.
Now, with both Social Security and PERS, why should you be worrying about retirement? We all know that the confidence level for Social Security isn't that great. That is why we have PERS, just about the largest and most stable pension plan ever. But is that really all that you will need to retire comfortably and securely for the rest of your life? No!br>
Even though PERS is a very good program, it may not be enough for a secure retirement. Here are some statistics from PERS that should be a wake-up call for all employees. As of June 30, 2000, the average monthly retirement allowance was $1,354. That is for all of the various public agencies that are a part of PERS. The average monthly service retirement for school members was $678!
The average years of service was 16.7 years.
The average age at retirement was 60.
These statistics should be a wake-up call for all classified employees at Cuesta. You should not feel secure simply because you are part of a big pension program. You need to learn what you can do as early as possible to guarantee that you will be able to retire with a decent income when you are ready to retire. Otherwise, after you retire, you may need to go right back to work flipping hamburgers at minimum wage just to make ends meet.
There are several things that you can do during your employment that are relatively painless to enhance your retirement pension. A few simple ideas will be discussed in this article. The more complicated and in-depth options should be discussed with a reputable financial planner.
Once you are hired in a regular position, you are able to purchase retirement service credit for any time that you were employed as either a student or temporary hourly employee. This "service prior to membership" in PERS can be very beneficial in your final calculation of retirement benefits. The calculation is based on your age, final 12 months of compensation, and number of years of service. When you purchase prior service credit as soon as you are hired, it is very affordable and will greatly enhance your final pension. The longer you wait to purchase the service credit, the more expensive it will be since interest will be charged. Contact PERS for more information about their flexible payment options.
The prior service credit can be purchased using pre-tax dollars. That means that not only can you bolster your retirement service credits, but you can do it with very little impact on your take-home pay. Whenever you put part of you pay check into some type of retirement investment, you can do it as tax deferred. That means that it will reduce your tax burden today and you will only pay the tax when you use it after retirement.
There is a limit that can be deferred and that is often referred to as a maximum exclusion allowance or MEA. You will need to have this MEA calculated for the next area of discussion, 403(b) funds. The 403(b) refers to the section of the tax code for educational workers that invest in tax-deferred/sheltered annuities, TDA or TSA.
This is the avenue that will probably provide you with a comfortable retirement. The earlier you start investing the better. Unfortunately, most new workers feel that they cannot put any money aside because they are barely making ends meet as it is. This is where you need to learn about the marvelous effects of tax-deferred savings and timing. Putting money into a tax-deferred retirement program barely affects your take-home pay because it also lowers your taxable gross.
Because it is difficult to start taking extra money out of your paycheck when you are on the A-Step of the salary schedule, take some time to plan your first deduction. Looking forward, you will see that you will be receiving a 5% raise every year from Step A through Step E. In addition to your annual step increase, you may also be receiving a cost-of-living-adjustment, COLA. Use these salary increases to your advantage. When your Step is scheduled to take effect, place part or all of it into a tax-deferred account. This way you will not feel the false psychological turmoil that you are reducing your take-home pay. Remember, you will probably get some type of increase from a COLA raise.
A person at Range 20, Step A earns $2,080 a month. The raise to Step B is $104. Putting that $104 into a tax-deferred fund will be a substantial return in 20 or 30 years. If you take it all in your paycheck, after taxes you probably won't even be able to see it.
Remember, you are responsible for your financial success or failure in life. Take the time to learn and make wise decisions and you should benefit from the time that you put into your retirement planning. Your union retirement committee will continue to provide learning opportunities for you.
Get To Know Your Contract!
Article IV
Health and Welfare Benefits
4.1 For each year of this Agreement, commencing January 1, 1999, the District agrees to contribute a tenthly dollar amount of $635.90 toward the cost of the total health and welfare benefits program for each full-time employee and eligible dependents. This is a dollar amount contribution for health and welfare benefits.
This tenthly amount totals $6,359 every year. The health and welfare amount, commonly known as the fringe package, was raised to this amount for the 1993/94 school year. This is the ninth year that classified employees have received the same amount of fringe money to provide for their health and welfare needs.
Medical, dental, and vision insurance premiums have consistently risen over the past nine years. Many employees have difficulty affording the constant increases.
Over the past couple of years there has been much discussion about the fringe package. Some trustees have expressed an opinion that the amount is too high and should be reduced. There have been other suggestions that the fringe should not be distributed equally but based on the size of a person's family and their associated insurance needs. Many ideas are out there but none deal with the real issue. The fringe dollars are due for an equal increase to meet the needs of all of the classified employees.
Also, classified employees have received on-schedule salary cost-of-living adjustments for only six of those nine years. Costs go up every year but not our total compensation, salary and fringe.
Your support of the union as we go into negotiations is vitally important. The union can only provide a living wage and fringe package if you make your support known. Join now for a better tomorrow!
NEXT UNION MEETING March 15, 2001!
The annual meeting of the Cuesta College Classified United Employees, AFT Local #4606, will be held on Thursday, March 15, from 2:30 to 3:30 in room 4117 on the San Luis Campus.
The annual meeting provides an opportunity for the members to hear from their officers on the state of the union. The meeting also provides for the formation of the election committee for the upcoming election of officers. Members should review their constitution prior to the meeting to help facilitate the process.
Non-members are welcome to attend the meeting to learn about the issues that the union deals with on their behalf. If a non-member wishes to vote in the May election, he or she must join the union by April 15. An application form is at the bottom of this newsletter. We welcome your involvement and commitment to improving the union and your working environment.
Monthly Quote
"The great end of education is to discipline rather than to furnish the mind; to train it to the use of its own powers, rather than fill it with the accumulation of others."
-Tryon Edwards
This publication is written and compiled by Ric Deschler and edited by Peggy Hudson.
CCCUE, the exclusive representative for all classified employees, will be holding their next meeting on Thursday, February 15th, from 2:30 to 3:30 p.m. in room 4117.
The CCCUE officers invite all classified employees to attend this meeting. Union members are encouraged to bring along their non-member co-workers. It is important that all eligible classified employees become informed of the activities and decisions made by the union membership on their behalf. A well informed and participating union will provide a better functioning bargaining unit to represent all classified employees.
As we approach the beginning of negotiations with the district in the next few weeks, the union's officers must have direct interaction with the membership in a group discussion. These next few union meetings will help shape how the union will represent you in making our working environment more stable and positive.
The union contract with the district allows you to attend this meeting on district release time. Be sure to notify your supervisor in advance so that arrangements can be made for coverage, if necessary. Please refer to Section 13.7 in your contract if you have any questions. Communication with your supervisor, as always, is an essential part of improving relations between the district and the union. We encourage your participation in this process, as does the district, in the spirit and context of the contract.
Remember to mark your calendars!
Thursday, February 15th
Room 4117
2:30 to 3:30 p.m.
Bring along a co-worker!
Union-Sponsored Scholarship Deadline Approaching
There is still time left to apply for scholarships sponsored by union organizations. Both the California Labor Federation and the American Federation of Teachers have scholarships with March deadlines. These scholarships can help you provide your graduating children with that extra opportunity to succeed in college.
Contact union advocate, Delfina Medina, in the Financial Aid office for details on how your high school graduate can apply for these scholarships.
Don't delay, deadline to apply is in March!
KNOW YOUR CONTRACT
Trial Period - Section 9.5
9.5 An employee who has been placed in a vacant position by operation of paragraph 9.3.2.1 or paragraph 9.3.2.2 shall serve a 90-day trial period in the new classification.
This Trial Period section of the contract was created by the union and the district to deal with the situation of an employee that has passed the probationary period in one position on campus and, at some future date, attained a new position with the district. The reference to paragraphs 9.3.2.1 and 9.3.2.2 deals with successfully being hired for another position.
The confusion is caused by the term probationary. Probation is a specific legal term that is defined in the Education Code. You can only be on probation following your initial hiring by the district. Once you have passed your probation, 12 months after starting employment, you are considered a permanent employee. After you become a permanent employee, you can no longer be subjected to the terms and conditions associated with a probationary employee. This is important because, as a probationary employee, you can be terminated for no reason, simply at the district's discretion.
10.2.2 It is understood and agreed that a probationary employee may be separated from employment at any time during the probation period at the District's discretion.
Sad, but true. Even if the employee is performing adequately and the problem is with the supervisor, the classified employee can be terminated at any time during the probationary period without comment.
Contract language on evaluations in section 10.2 has been crafted to help avoid termination by requiring the supervisors to work toward the goal of successful completion of probationary periods.
The Trial Period for permanent employees that change positions is designed to avoid the confusion and risky uncertainty that is associated with probation.
9.5.1 A trial period evaluation of work performance shall be made consistent with the procedures set forth in ARTICLE X, EVALUATION PROCEDURES. If, as a result of the evaluation, the District determines that the employee has not successfully served in the new position during the trial period, or if the employee requests to return to the prior position during the trial period, the employee shall be reverted to the prior position. The trial period evaluation shall not be utilized for any other purpose.
This is an exciting and important section of the contract. It means that during the 90-day trial period, if either you or the district feel that things are not going to work in your new position, you will be able to return to your previous position. You are not risking your job at Cuesta by trying to advance or switch to another position on either campus. If the new position doesn't work, you are not out of a job.
Why was this section added to the contract during the last negotiation process? Because the district wants to promote from within and the union wanted to provide a clear definition of job security for classified employees.
Being a permanent employee means that your character and work ethics have already been successfully tested. That means that you are a known quantity for the director that will be hiring you. Also, you are somewhat familiar with the area and position you are trying to acquire. That is why the trial period is only 90 days. It is believed that if a mistake has been made in expectations, it should come to the surface rather quickly.
This 90-day period also means that if you do need to go back to your previous position, it can be done with only a minimal amount of inconvenience.
9.5.2 Any reversion made during the trial period may result in the bumping, displacement, or layoff, or subsequent reversion of another employee or employees to a position held prior to the initial action on the vacancy.
The District assured the union during negotiations that when people are hired to fill a vacancy created by the promotion or position change under paragraph 9.3.2.1 or 9.3.2.2, the person hired will be clearly informed that they are filling a position that may be reclaimed during a specific time period.
As expected, the reversion clause has not impacted the placement of any employee filling the position vacated by a permanent employee that has moved to another position.
The complicated negotiations that created this protective trial period for permanent employees occurs every time the union sits down with the district to refine the contract. Extensive work is done by the union to see that you receive a labor contract that will serve your career and provide a safe and secure working environment.
Monthly Quote
"Education is a painful, continual and difficult work to be done by kindness, by watching, by warning, by precept, and by praise; but above all, by example"
--John Ruskin
This publication is written and compiled by Ric Deschler and edited by Peggy Hudson.
