Artboardbackpack_iconblog_iconcalendar_iconchat-bubble_iconArtboardclock_iconArtboarddown-arrow-icondownload_iconfacebook-iconflickr-icongears_icongrad-hat_iconhandheart_iconinstagram-iconArtboardlaptop_iconleft-arrow-iconArtboardArtboardnews_iconArtboardpencil_iconpeople_iconpublication_iconArtboardright-arrow-iconruler_iconscroll_iconsearch_iconArtboardspeaker_icontools_icontwitter-iconup-arrow-iconyoutube-icon
‹ Back to List

Take Action: Tell legislators to reject false solutions to the teacher shortage
01/21/2016

 

Oppose%20HB%201004%20-%20FB.png

HB 1004 (Rep. Bob Behning, R – Indianapolis) creates mandates and other changes to employee health insurance, retirement and salary supplements.

 

ISTA has been in discussion with Rep. Behning about problems with the bill and we ask that you contact him and the other members of the House Education Committee to seek changes that will honor the collective voice of teachers and other school employees and not do unintentional additional harm.

 

This bill purports to offer solutions to recruit and retain teachers. However, the proposal’s real impact results in limiting the collective voice and a reduction of benefits for teachers while phasing out a solvent pension system that better supports retirees. Tell legislators to vote “no” on HB 1004.

 

Take_Action_Button.jpg

Here’s a more in-depth analysis of the bill’s impacts:

 

High deductible health insurance
The bill would mandate every school district provide a high deductible health plan to employees. The “savings” resulting from the plan would then be distributed to those teachers who choose it as additional compensation. Salary and wage-related benefits are mandatory subjects of bargaining. This proposal further restricts both health care decisions and ultimately salary and wages from bargaining.

 

Some districts have negotiated high deductible plans, which have been in place for years. However, these districts have moved to these plans because it worked for them—not because the state mandated it. One size does not fit all.

 

Due to the way health insurance works, those who benefit from a more traditional plan will be saddled with higher insurance costs and less money in his/her pocket. 

 

How does this advance the cause of getting more money into the hands of teachers? There is an overall balance that needs to be achieved in terms of district offerings which is best reached through local negotiations, not more top-down, state-driven mandates.

 

Note: In Thursday’s committee meeting, Rep. Behning indicated that this provision is likely to be removed from the bill, but the committee has not voted yet.

 

Extra pay for selected teachers
HB 1004 would allow a school corporation to unilaterally offer supplemental compensation in excess of the negotiated salary to a teacher “who is, or will be,” employed in a position that is “difficult to fill.

 

Public school teaching is not part of the private sector. Unlike what occurs in private business, salary and compensation of individual employees are public concerns. Trying to inject private sector principles into such a sensitive area does not work and poisons the school environment. Not to mention, it causes a few winners at the expense of everyone else.

 

You either believe the full complement of your district’s teachers bring value to the table or you do not. The first grade teacher taught the physicist to read. Let’s see how that physicist does teaching a room full of first graders how to read.

 

401(k) style defined contribution retirement program 
The bill would establish a new voluntary 401(k) style retirement plan, Defined Contribution (DC), for new teachers. Under the guise of increasing teacher recruitment and retention, the rationale for the bill is that shortening the vesting period would attract individuals into the profession.

However, making retirement savings more portable would actually serve as a disincentive for teachers to remain in the profession by removing an incentive to stay in teaching for the long-term. Additionally, these 401(k)-style plans have not resulted in adequate retirement security. A strong body of research demonstrates that traditional pensions in the form of Defined Benefit (DB) plans offer much more financial security for retirees. Indiana’s pension fund is in great shape, and the teacher shortage should not be used as a vehicle for transitioning away from DB plans. The promise of a fair pension for years of public service is a strong incentive for retaining high-quality teachers. While the option would be voluntary on a teacher-by-teacher basis, it sets a dangerous precedent of becoming the new default plan down the road.

 

The move to a DC plan has been part of a separate agenda against public employees for years—it would appear as though some are using the current teacher shortage to further this objective.

 

Summary
None of the principal points behind this bill will address the real issues affecting the teacher shortage. Tell legislators to vote “no" on HB 1004.

Take_Action_Button.jpg