OPEA Discusses Benefit Allowance with Rep. Peterson

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OPEA Discusses Benefit Allowance with Rep. Peterson

Friday, February 15, 2008 - Bud Elder

OPEA had the opportunity to sit down Thursday and discuss HB 3108 with Rep. Ron Peterson. The legislation, as it is written, would lower the benefit allowance for state employees.

"Rep. Peterson made it a priority to meet with OPEA before he went back to his district," said OPEA Deputy Director Scott Barger. "He mentioned that he had received many phone calls and emails from concerned state employees."

Attending the meeting were Barger, OPEA Executive Director Sterling Zearley, and Research and Policy Director Trish Frazier. OPEA prepared spreadsheets with the impact of HB 3108 as it is currently drafted and possible changes that could be made.

Currently, almost all state employees purchase benefits that allow them to keep some of their benefit allowance as income. With paychecks so far below the market, the additional benefit allowance helps state employees make ends meet.

"It is, also, important to remember that the current benefit allowance is based on high option premiums," said Frazier. "EBC is putting out a new RFP this year on the HMOs. If their premiums go down, state employees could lose money."

Another important factor to remember about state employee insurance is that the increases have not been funded since FY 2002. This has caused state agencies to absorb over $170 million in increased costs.

"Legislators cannot force this cost on to the agencies any longer," said Zearley. "The unfunded benefit allowance cost is one reason that vacancies are increasing across state government, causing a staffing crisis."

Rep. Peterson told OPEA that he would be willing to look at different options on the benefit allowance and he did not want state employees to lose money.

"I am just looking at ways to maintain this program for state employees," said Peterson. "Under the current formula the entire program is in jeopardy."

"If the bill passes committee next week, the title will be off, and it will have significant changes as it goes through the process," Barger said.

"OPEA is committed to ensuring that if there is any money lost from the benefit allowance, it will be returned to state employees as pay," said Zearley. "In addition, we have been working with both parties in both the House and Senate on a pay raise for state employees."

"We appreciate Rep. Peterson taking time to talk to us about this important issue and look forward to working with him as the session continues to find a solution to state employee compensation," concluded Zearley.

OPEA members should continue to watch this as this situation continues to develop.

"This is a great example of why state employees need to be unified," said Zearley. "As money become tighter and tighter, all the organization like the teachers, corporations, local and county government to name a few, will all be ready to rob Peter. Ask your co-worker if it is worth the price of membership to help state employees protect the benefit allowance and fight for a decent pay raise?"

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63 comments (Add your own)

1. JT wrote:: I am glad Opea met with him to stop this mess. I cannot afford a pay cut. Our budget is tight as it is. Keep up the good work and keep us informed. No cuts!
February 15, 2008 @ 4:51 PM
2. EL wrote:: No, I don't want my benefit allowance cut. I don't want to get it back as a taxed pay raise. That is ridiculous & it is not good enough. We need the benefit allowance plus an annual cost of living adjustment plus a pay raise. There is no point to have a union & back down on this!
February 15, 2008 @ 7:49 PM
3. Phil wrote:: I would like to express my appreciation to OPEA for meeting with Representative Peterson to advocate for all state employees to prevent our Health Benefit Package from being cut. I have found myself in a serious financial crunch this year due to below market wages and increased fuel costs, along with rapid inflation, eroding my purchasing power. I think I express the sentiments of majority of State Employees who experience constant erosion of purchasing power. I learned today that my monthly fees to OPEA have not been deducted from my payroll. This has happened twice within the past year without my knowledge. I take my membership in OPEA very seriously because it enables us to speak with one voice. Surely this is a human error and I haved contacted OPEA to reinstate my membership. I urge all state employees to join OPEA and help us fight for a decent standard of living. Thank you again OPEA for all your efforts on behalf of thousands of excellent state employees who give their best to serve our great state.
February 15, 2008 @ 8:40 PM
4. Andy wrote:: I would just like to challenge those of you who either belong to OPEA or who take the time to keep up with this vital information that OPEA puts out to tell at least 5 of your co-workers what is going on with the payraise and the benefit cut proposal. I was talking to some fellow employees yesterday who had no idea that HB 3108 even existed, one employe stated that his neigbor of many years was a State Representative and that he would be visiting with him that night. Tell your co-workers to get involved, I called my State Senator last night and he commented that I was the first person from my facility to even voice a concern, this is unacceptable.
February 16, 2008 @ 7:41 AM
5. clint wrote:: I dont want to seem like I have something against the teachers of this state. but I find it strange that I have to lose money from my benefit allowance and no pay raise, while the teachers to food out of my kids mouth, and I still have to pay for Every little thing at my kids public school ( I.E landscaping, reams of paper etc). But its good that the teachers are making it though. I wonder what would happen if all the Co's of Doc would suddenly get sick, with the national gaurd in Iraq hmmmmmmm
February 16, 2008 @ 12:16 PM
6. Marta wrote:: I wonder what the author of this bill thought would happen if it goes through. Did it not occur to him that even more state employees might decide to leave state employement to find better paying jobs with better benefits? One of the lures that has been used to attract potential employees was that of great benefits. I believe that if this bill is passed, there will be such a great exodus of employees that our state will be virtuley crippled. As a health department employee, we have already lost two positions that will not be refilled any time soon. Although I love working with my clients, and helping the public, I do not believe that I can continue to work for the state any longer if I lose money from my paycheck.

I am just stunned that our loyalty has been taken for granted. If I were given the opportunity to speak with the governor, I would like to ask him why? Why is he doing this to us? Have we offended his office in some manner? And to think I used to give him high praise. I voted for him, and I'm not even a democrat. He is giving me reason to wish that now, I'd voted for his rival.
February 16, 2008 @ 6:33 PM
7. laura wrote:: I think it is said that so many DHS employees do not see the importance of joining OPEA. I think it is even more sad that officials don't fight more aggressively for us too. I am also glad that teachers have been receiving pay raises, but what about us? What about the people that make home visits and go into these homes without weapons to guard us against potential harm? Would about the people that are on call, and still unable to do things with their family during certain weekends? Would about the people that are certifying medical and food benefits, and are now making less than our clients? It is embarrasing to hear about how DHS employees are talked about. We have clients that say they would never work for an agency that expects you to have a college degree, and then pay you as if you only have a G.E.D. Our own clients can not respect us because they think we are stupid. They think we are stupid that we do such hard jobs for little wages. Some of us could justify some of it because we did have such great benefits, and now they are wanting to take that too. The average teacher starts out at the very lowest at $31,700 yearly. This does not include the raise they are up to get. This also does not include the fact that they work so many hours less than we do! The beginning Family Support Worker makes about $26,000 yearly. WOW, so many of DHS employees are beginning to rethink our career choice. Why shouldn't we? We don't even start out making $13.00 an hour with a four year degree. That is sad. I hope that the elected officials really think hard about what they are doing, and give us thought. The Department of Human Services, Department of Transportation, Juvenile Affairs, we have been passed up way too many times for raises.
February 17, 2008 @ 3:51 PM
8. concerned wrote:: It is extremely important that we all join OPEA so we can have a collective voice, and that OPEA can have the money to pay people to spend their time at the capital keeping up with legislation. It is also just as important that we all are register to vote. We can have a collective voice through OPEA, but if we do not have the ability to remove those representatives that don't listen to us, they will represent those that do have the ability to vote them out. That is how the teachers always get what the ask for.
February 18, 2008 @ 8:37 AM
9. Sara wrote:: "I am just looking at ways to maintain this program for state employees," said Peterson. "Under the current formula the entire program is in jeopardy."

I would like for Rep. Peterson to explain this comment. How is the entire program in jeopardy.
February 18, 2008 @ 8:55 AM
10. wrote:: If Ron Peterson cuts back on the current formula or program, the entire state will be in jeapardy! Oklahoma state workers will quit and find other jobs. They will not stand for cuts in benefits or wages. People work for the state because they expect their life and health insurance premiums to be paid. They expect wages and benefits to be current with today's cost of living standards. They expect to retire at a decent age and be covered financially.
February 18, 2008 @ 11:02 AM
11. Lack of Morale wrote:: Talk about causing a lack of morale! It is downright sad that state employees are being treated with such little respect! I agree, people need to get out there and vote! They need to join OPEA and stand up as a whole. Many people are saying they will join if they see any new raises come our way, or if they see that OPEA can really keep us from losing our benefit allowance. I am a member and I am glad to be one, but I can see some people's perspective. They just don't think OPEA does us any good. I do believe it does, but it should be counting for much more than it currently is. Some of that is state employees fault, people want become a member and they won't vote. I am currenlty at a crossroad in my career. I am currenlty looking for something else, as I do not really believe that state employees will ever be valued enough to justify these jobs, especially if our benefit allowance is taken. That is the only great thing we have had going for us lately!
February 18, 2008 @ 1:21 PM
12. Brandon wrote:: Rep. Peterson's proposal seems like a counter to our push for a pay raise for state employees. It is absolutely ridiculous that the legislature will not pay state employees a wage that is at least equal to average market salaries. I say that if we end up losing money (one way or another), its time for us to get tough. I for one would be willing to strike - and I know I'm not alone. I know it's against the current law for state employees to strike, but the legislature needs to understand how quickly things will fall apart if state employees stop working. Legal or not, a work stoppage needs to be on the table. I, and others like me, are willing to face the consequences to stand up for what we rightfully deserve.

Kudos to OPEA for fighting for us! They're the only ones looking out for us, and they need our support!
February 18, 2008 @ 7:10 PM
13. Ross wrote:: The legislature also loves to give raises to state employees and then not give agencys money to fully fund them, leaving them out there to find thier own money to pay for them, unlike the teachers that are fully funded by any raise they get. Then low and behold comes the RIFS at some point for us state employees to sweat out and worry about.Folks, if the legislature is not going to fully fund it, then I say forget about it, its not worth the stress of a possible RIF later on because agencys are left to pick up the bill from the short sighted legislature we have. Be careful what you wish for, you just may get it, and it not be all that it looks like.Food for thought.Its happened before.
Ross
February 18, 2008 @ 10:29 PM
14. Mel wrote:: I find it interesting that some state employees actually received pay raises last year yet we never heard about it - they are called directors and upper level management.
Those who make, on average, $20,000 more a year than the mid-level state employee received a 6% pay raise. Some agency directors received 3 pay raises last year.
Instead of asking for another 5% raise across the board why don't you forfeit monies designated to upper level management and directors and use that towards a pay raise for just lower-level and mid-level employees who are living paycheck to paycheck and need it most?

I can also tell you why the average state employee is 46 and the turnover rate is increasingly high. The average 46 year old is an upper-level employee or manager, is most likely not technologically qualified to leave for the private industry, and does not have the debt that younger employees start with so their pay is sufficient. Young employees have debts to pay - mainly student loans for the education that is required for employment. There was talk last year about the state helping employees with their tuition costs and student loan debt. Come to find out, lower level employees were rejected because of lack of experience in the state. So in order to receive this hypathetical help for student loans to pay tuition (that is the most expensive it has ever been and is rising every year), you had to work at least 3 years full time for a state agency. So again that benefits the upper level employees.

Why is the state constantly helping the people that don't need help? The rich get richer.

If you want a successful generation of state employees to follow I suggest the government stops taking away all the things that could potentially be enticing. The pay is not great, the work can be dangerous (as an inspector), and now the un-taxed benefit allowance is being taken away.
Employees, like myself, have already started looking at the private industry because it just isn't worth staying and working for someone that doens't work for you.
February 19, 2008 @ 1:52 PM
15. wrote:: Folks, I know that the economy is tough. Soybeans, wheat, petroleum, and platinum have hit all-time highs in the past week. Those state employees who happen to earn royalties off oil wells or to run wheat farms on the side likely will benefit greatly if prices do not drop and the weather cooperates. For the other 99% of us, soaring prices eat away at our quality of life; commodities prices--for grain, oil, meat, fuel, rubber, metal, fiber, and more--increased 31.7% since this week last year according to The Economist. And those prices appear to accelerate with each passing month, especially given lower interest rates (from the Federal Reserve printing more money and weakening the dollar), an accelerating federal debt, and wasteful food-to-fuel diversions.

But life in the public sector traditionally grants distinct benefits: incomparable job security and unusually good health benefits. Those who choose to work for the State for decades also can get a modest pension after retirement. Even if a compensatory pay increase somehow accompanies it, this bill begins to erode the health benefits, especially of those State employees near the bottom of the pay scale. A clause increasing state contributions for spouses and children from 75% to 100% might counteract the erosive effects and make the bill acceptable. (And I'm a single guy, so I wouldn't benefit directly.)

Employment in the private sector isn't much better, especially with the economy souring outside commodities-producing enterprises (mostly farmers, oil companies, and granaries in Oklahoma). Health-care benefits progressively deteriorate with each passing year, and with basic costs soaring, fewer employers can afford to insure the health of employees and their families. Neither party in Washington can advance any respectable likely long-term solutions.

So I encourage you all to slash spending as best you can while still keeping your families reasonably well fed, somewhat warm, and decently clothed. Consider Dave Ramsey's advice: eschew debt, save money for emergencies, invest what you can, and prosper. I'm considering moving as close to work as financially reasonable to reduce commuting costs, trading driving a car or public transportation for simply walking or cycling and starting a backyard garden as a hedge against high food prices.

Global-warming taxes probably soon will come, drastically increasing energy costs, intentionally to decrease availability and penetration of electricity and liquid fuels.

Good luck y'all, and good night. Think positively: you'll still have your jobs next year, even if they pay less because of the antics of this representative, taxes increase, and prices soar. Although better prepared than most, I don't like that combination any more than you.
February 19, 2008 @ 9:25 PM
16. Christina wrote:: So, basically the public is going to hear: "State employees get a $225 per month pay raise ($2700 per year)." However, what they are not going to hear is that we are also getting a $259 per month (for those of us with dependents) pay CUT. Really, most of us will be losing money in the end. Seems very "cut-throat" and manipulative to me. Pretty typical political decision, I guess. The above senario is only IF they approve the raise. I guess we could get the pay cut and no pay raise with the way things are going.
February 20, 2008 @ 9:14 AM
17. Jim wrote:: Mr. Peterson is making political sounds like he cares about us, but the numbers are coming up showing that he really wants a feather in his cap for reducing State expenses through 1) taking money out of the "cafeteria" accounts, thereby reducing our paychecks, and 2) Sliding away from the flat $2,700 raise which the Gov has quashed to a watered-down 5%. Mr. Peterson appears to be wearing his "wolf-in'sheep's-clothing" costume and does not really have the best interests of Oklahoma State employees in mind. Time will tell...
February 20, 2008 @ 10:01 AM
18. AH wrote:: I cannot afford a cut, what so ever. I am already considering moving to Texas, where I have been garenteed a position with a substantial pay increase and great benefits. Also no personal income tax and no grocery tax, and the average cost of living is not much more than the area I am currently in. The houses I have been looking at are comparable in price to here, and only the property taxes are substantially higher...however I will make that back in one paycheck. If this cut goes through, I am outta here!
February 20, 2008 @ 1:20 PM
19. Carolyn wrote:: Disturbed, I attended a meeting today with Mr. Barger. He was very professional and highly informative about this issue as well as others. I thank him and all the other OPEA staff members who are working with us to help. I am also concerned about this bill because I have my 3 kids on the state insurance and could not stand the cut, but I also believe that OPEA is working hard on not only this issue but a pay raise, as well as defending state agencies budgets. I saw the article in the paper today where the Governor is asking to cut state agency budgets to balance the budget? So, it seems that all sides are against state employees. I for one am proud of my OPEA membership and would encourage all other state employees to join with us instead of complaining.
February 20, 2008 @ 7:34 PM
20. ???? wrote:: Carolyn, I'm sure you didn't mean to sound as rude & condescending as you did. I think we SHOULD complain when there is so much to be lost. We are very fortunate to have this site so we can talk with one another & voice the concerns & worries so many of us have.
February 20, 2008 @ 9:06 PM
21. Almost fed up wrote:: I am with #18 post. I am a native Oklahoman, and Oklahoma will always be home, however,you have to go where the money and jobs are. If Oklahoma would do like Texas on taxes, there would be a payraise right there! I have always rooted for the OU sooners against the longhorns but this way of poverty living in Oklahoma is getting real tiresome. I can not get half way through the month without being overdrawn on my checking account. Thank God for overdraft protection! If Oklahoma public employees do not get treated right this year, I say forget the grapes of wrath and remember the Alamo!
February 21, 2008 @ 12:07 AM
22. State Employee wrote:: We are all aware of how funding is a nation wide problem. However, the sad truth is that one of the main things that keep state employees hanging on is that they get benefits paid for their family. We are in a highly stressed environment on a day to day basis. We are overworked and underpaid. You have to have a 4 year degree for most of the state agency positions, however you do not get paid enough to compensate what you are paying out of pocket for your education. The bottom line is that if you do not manage your agency's workload, as well as compensate them for their hard work and dedication, then it leads to turnover and hostile work environments. You have to give in order to receive.
February 21, 2008 @ 9:24 AM
23. Jeff wrote:: I've been saying this for a long time, THEY DO NOT CARE FOR THE WELL BEINGS OF THE STATE EMPLOYEES. They always use the State Employees to balance the budget with cuts in there pay or benefits along with the agencies cuts.

I've been telling everyone to find work in another state where it is BETTER and they care for there State Employees. I as well found a State Job in Texas that pays a whole lot more and the benefits are better for my wife and 3 kids. The home I'm looking at is just like the one I'm in now just a little bigger and nicer.

Don't wait to long before you finally realize you don't have any benefits left for them to take away. They have even been talking about taking away our longivity pay (and that hasn't increased in pay in a long time) but they have been talking about not giving it to us anymore. They won't lower the retirement from 90 back to 80 because the teachers got mad that they wasn't included in it so that was turned down a year or 2 ago it was going to pass until they stepped in. Now our Health Insurance premiums just keep going up and up in cost for every member of my family and now they (Peterson) is talking about taking away what we get to pay for our dependents health premiums.
Soon all state employees will be losing there homes and going bankrupt. Run while you can to another State for better benefits and pay!!! Again, They would love to do away with the State Employees don't let there sweet talk full you. They have been saying for a long time there is way to many State Workers to get a raise. The young people run to another state and the old retire while you can before your health kills you. I know everyone in our department as soon as they retire they don't even last a year in retirement before they pass away.

You will see our health insurance benefit allowance get cut so that we can't afford to pay for our spouse and kids and we won't get no pay raise because they keep saying there is no money which they say that every year, that is why we haven't gotten a raise in probably 5 years and only 2 maybe 3 in 10 years.

I'm tired of keeping faith of my State Legislatures to help the State Employees which they won't so I'm also out of here, I just turned in my noticed last week that I'm going to Texas.
February 21, 2008 @ 9:55 AM
24. 20 + years and still working wrote:: I am concerned with the state of things within DHS; I have seen very few pay raises in the last few years while my friends in the private sector see more pay and often more benefits. I have family that are teachers that see on going pay raises and work less out of the year than I do. While I think that teachers are important, are they more important than the people of Oklahoma that I serve 12 months a year? I think not! Everyone should challenge their legislature to consider: what DHS employees do day in and day out, what DHS jobs are statutorily mandated and on call, why a teaching position is considered for increased compensation more than DHS employees who are often on the job well after five p.m. If they don't know, here is your chance to educate them! Tell them that the people of Oklahoma and you are too important to loose a pay raise again and take a cut in pay due to loosing your benefit allowance.
February 21, 2008 @ 10:19 AM
25. 18 years and maybe still working. wrote:: I work at the State Capitol Complex as a computer programmer and we have to do on call duty 24hrs 7 days a week and there is a lot of the time I get a phone call 2 or 3 O'Clock in the morning and I have to get out of bed to fix a program so that job can run so that the "People of Oklahoma" can get there benefits like there unemployment checks.
There is a lot of times I may be out to my kids school functions or family gatherings and then I get a phone call to come into work to fix a program so that the people of Oklahoma can continue to get ther benefits without any delay. While I'm pretty much doing this for free!!
Without getting any kind of pay raises in a long time I'm pretty much gone as well to the private sector which pays computer programmers a lot of money and better benefits.

When I go to the Doctor office or Dentist office and tell them I'm a state worker they fill sorry for me or my kids and want to hand us free things because they know state employees and there families are struggly and can't afford it.

I just got approved to work for 3 times as much as I was working for the State and the benefits is the same but less on the health premiums. I will also get a huge christmas bonus! I will also get a longevity check which is higher in pay then what we have.

Sorry but I've given the State long enough and I'm tired of my family having it rough when the Governor and everyone else at the State Capitol don't care about the families of the State Employees. If we did get an raise which I doubt we will get hard somewhere else since we got one and it won't be like we got a raise. It is always like that we get a raise but something goes up in cost to take away that pay raise in our benefits like our health.
February 21, 2008 @ 10:48 AM
26. Don Avery wrote:: I don't think a 5% raise will make any kind of a dent to help pay for my bills on top of that to lose some of my benefits. How depressing can this keep getting! Boy! The morale is so low nobody wants to come to work! Everyone is running out of annual leave or sick leave.
February 21, 2008 @ 11:01 AM
27. wrote:: I would love to see everyone go on Strike then they will see how unhappy we are and how disgusted we are with the system. This is a lot of BS that the State Employees always got to take the blunt of always the budget cuts for the State.

I guess the only way we can Strike is quite our job which it sounds like a lot of you are doing which I'm going to start looking as well. I guarantee if we post our resumes on a website for businesses to see we will be taken quickly to work for them and be shown how much they care for us and our families. A lot of us has 2 and even 4 years of college education and we are almost making minimum wage and minimum wage is going up this year and next year. State Employees Pay raises "NONE" actually we are going backwards with a pay cut!
February 21, 2008 @ 11:12 AM
28. George Varghese wrote:: I agree with the 'Disturbed about this'. The bottom-line question is: What is the fate of this bill and what OPEA did to kill it? If this bill still goes through the committees and to the final stage of passing, OPEA should think about compiling another bill increasing the benefits and pay and work toward its passage. If this bill passes, it will show the ineffectiveness of OPEA!!
February 21, 2008 @ 11:17 AM

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OPEA Discusses Benefit Allowance with Rep. Peterson

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