AUGUSTA — Union members upset over Maine Gov. Paul LePage’s pension proposals are facing off with LePage supporters as the Appropriations Committee meets in Augusta.
The committee heard today from foes and fans of the governor’s proposal to change Maine’s pension system and help shrink its $4.3 billion shortfall.
Supporters said changes that would force employees to pay more into the plan, shrink the pension’s cost-of-living increases and raise the retirement age may be painful, but are necessary. LePage told committee members that if the state doesn’t act, the current retirement system will have to be “cast aside.”
But a number of state employees and retirees told committee members it’s unfair for them to shoulder the entire burden of the problems.
11:10 a.m.
AUGUSTA — Union members upset over Maine Gov. Paul LePage’s budget plan are facing off with LePage supporters as the Appropriations Committee meets in Augusta.
The Maine State Employees Association today launched a two-day show of force as the committee began examining LePage’s proposed $6.1 billion budget package.
It started with a gathering in the Hall of Flags that was supposed to be a time for unionized workers to make their voices heard, but the 100 or so union supporters were met by counter-demonstrators. Some held signs with slogans like, “End Union Greed.”
Tim Lajoie of Lewiston, who’s a union member, was one of the critics of the union tactics. He said it’s time for state government to get finances under control and that unions need to do their part.
9:45 a.m.
AUGUSTA — Hundreds of state workers are expected to come to the State House today to oppose changes to their retirement plan proposed by Gov. Paul LePage.
LePage, who released his $6.1 billion budget last month, is expected to testify this morning on the proposal.
The changes include freezing cost-of-living increases for three years for retirees; reducing the cap on the increases after that from 4 percent to 2 percent; increasing the retirement age from 62 to 65 for new state employees and those with fewer than five years of service; and increasing from 7.65 percent of salary to 9.65 percent the amount that current employees are required to contribute to the retirement system.
The changes would save the state $413 million over the next two years and reduce the long-term liability by more than $6 billion through 2028.
Workers wearing purple Maine State Employees Association T-shirts are already gathering in the Hall of Flags. As of 9:05 a.m., about 35 people had signed up to testify, a number that will grow significantly throughout the day, according to union officials.
The committee will begin proceedings at 10 a.m. Testimony is expected to go into the evening. This is the first of three days of public hearings on proposed changes to the retirement system. Teachers affected by the changes are scheduled to testify on Friday.
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