January 2007

Severance Pay

 Under the terms of the contract, severance payments shall be made as an employer contribution to a tax sheltered account that qualifies under Section 403(b) of the IRS Code designated by the district. The LMEA has requested that the district allow employees to use all 403(b) approved carriers available in the district. To date, the district has denied our request. We’ll keep trying.

Though we would like each LMEA member to have the ability to choose the carrier for their severance, it still offers great benefits. Here’s why: As an employer contribution the employee will never pay Social Security (6.2%), Medicare (1.45%), PA tax (3.07%) and Local Tax (if applicable, usually 1.0%) on the contributions. In addition employees will defer federal tax until withdrawn.

The district has designated Metlife (formerly Citistreet) as the sole carrier or conduit for severance pay. While Metlife is the only option as of now, employees have the ability to move funds without cost to the financial institution of their choice after the funds have been deposited. To do this you must open a 403 (b) money market account with Metlife. Be sure to clearly state to the Metlife Representative your intentions to move the funds to your own financial institution after the funds are deposited. If you inadvertently open an annuity, you might be charged a substantial fee to transfer the funds to your financial institution. From the time the funds are deposited the transfer will take approximately 3 weeks. The LMEA suggests you talk with your financial representative before signing an agreement with Metlife or contact the LMEA for clarification.

The LMEA recommends that you talk with your financial representative at least 1 year before you plan to retire. There are significant savings available to you by coordinating 403 (b) and 457 Plan especially in the year you plan to retire. This along with a comprehensive evaluation of your PSERS options will lead to a long successful retirement.

Imputed Income/Life Insurance

 During the 05-10 contract, you may receive 2x your salary in life insurance. If 2x your salary is greater than $50,000, the IRS considers the premium paid by the District on the amount greater than $50,000 as imputed income.

It is important to understand that you pay taxes on the premium not the cost of the premium. For instance, if the premium costs the District $50.00, your cost is around $9.00. If you do not want the additional insurance and do not want to pay taxes for the additional premium, be sure to opt out during the open enrollment period.

Please remember that our contract guarantees that you receive $50,000 life insurance

www.lmeaonline.org

 Minutes, Apple Cores, archives, classified ads (new sub-section), and other information can be found at the LMEA’s web-site www.lmeaonline.org. Please take a few minutes and visit our site.

Minutes

Executive Council and General Membership meeting minutes are distributed to members and posted on www.lmeaonline.org shortly after each Executive Council meeting. Of particular interest are building/unit concerns. Concerns not addressed or actions not taken are investigated. The results of the investigation are reported in the President’s report in the following month’s minutes. If you have a concern regarding discipline, working conditions or the contract, please contact your building rep.

Instruction and Curriculum Council (ICC) and Staff Development Council (SDC) meeting minutes also contain building/unit concerns and are addressed the same as above. They are posted monthly in your building. If you have concerns regarding instruction, curriculum, or staff development, please contact your ICC or SDC rep.

Please take a few minutes each month to read these minutes.

LMEA Events

February 7 –Officers’ Meeting

February 12- Exec. Council, PR&R

February 26- CAPS Work Group

March 7- Officers’ Meeting

March 9 to 11- Minority Affairs Conf.

March 12- Exec. Council, PR&R

March 14- Gen. Membership Meeting

March 19- CAPS

April 9- Exec. Council, PR&R

April 19- Mid-East House

May 9- Officers’ Meeting

May 14- Exec. Council, PR&R

May 16- Gen Membership Meeting

May 18&19-PSEA House of Delegates- Phila.

May 22- LMEA Election Day

May 31- LMEA Spring Banquet

June 5- Officers’ Meeting

June 11- Exec. Council Meeting,PR&R

June 21- MER Golf Classic

June 30 to July 5- NEA-RA- Phila.

July 22 to 27- Gettysburg Leadership Workshop

Executive Council meetings are held the second Monday of the month in the LMEA office at 4:00PM

Officers Meetings are held the Wednesday before Executive Council meetings at the LMEA office.