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If School Pensions are ‘Vital,’ They Should Have Been Properly Funded
School employees are the state’s largest creditors
Defined benefit pensions could work just fine for both employers … employees. But government pensions have a major problem: They … true cost of these promised pensions occur decades into the future, …
Michigan’s largest government pension system, the one for school … dollar of those promises. The pension fund, then, is $29.1 billion … more
Officials Shortchange School Pension Fund 7th Year In Row
Author of pension study says management making up its own rules
… billion hole in the school pension fund.
A just-released state … additional $2.31 billion into the pension fund for 2016. They did not. … amortize the $26.7 billion pension fund shortfall in a reasonable … rules for how to pay for the pension system and officials change … to contain growing school pension fund liabilities. more
Pension Funding Best Practices Remembered
But only when they serve bureaucrat Interests
… that offers defined benefit pensions or other post-employment … and those overseeing the pension system do little to influence … reset its 5-year smoothing of pension assets in 2007 so it could put fewer dollars into the pension system that year. It did the … attitude is why Michigan’s pension systems are tens of billions … more
School Pension Iceberg: Beware What’s Under Budget Surface
Above or below the line, pension costs come out of education budgets
… on Wednesday. They cover the fiscal year that begins Oct. 1.
Snyder proposes that the state directly deposit $1.1 billion to the school employees pension program known as MPSERS. That’s 7.7 percent of the $14.3 billion K-12 education budget. It’s also more than the amount proposed for special education … more
Close the State School Employee Pension Fund
… government’s public school pension fund. School districts now … the coffers of the state pension fund, while school employees … the state should close its pension fund to new employees and … the $60.9 billion worth of pension benefits earned by public …
These payments on unfunded pension liabilities, along with the … more
Former Teachers Union Heads, Staff, Parlayed Big MEA Paychecks Into Jumbo Public Pensions
Ex-MEA presidents get state-constitution guaranteed six-figure pensions
… an annual Michigan school pension of $144,276.
The outsized public pension Maddox receives is due to … generate a higher school pension payout after he retired. … salary toward getting a state pension today — a payment guaranteed … applying to their public school pension. But they can no longer apply … more
Pension Debt: Not Just a Problem in Detroit
Detroit’s pension woes may be in the news, but municipal employees … should not presume that their pension systems are secure. Indeed, … and its general employee pension system underfunding comes … That is, for every dollar in pension benefits earned by an employee, … that 90 percent of municipal pension plans were underfunded, with … more
Superintendent Gets $240K, School District Out Another $100K In Pension 'Catch-Up Costs'
Past pension underfunding takes amount equal to 40% of school payrolls
Michigan’s public school employee pension system is $33.8 billion short of the amount officials estimate it needs to meet the pension promises made to employees, as of 2019.
What … Michigan Public Schools Employees Retirement System pension.
That’s about the cost of an assistant principal … more
Michigan School Pensions Still Underwater, Democrat's Bill Would Sink Them Lower
Double pension credits for some who collected paychecks during pandemic
… is struggling with rising pension expenses caused by decades … officials underfunding the pension system.
In 2016-17, the district … million to the state-run pension fund for public school employees. … System over the years, the pension fund was still $33.8 billion … amount needed to meet its pension promises. That amount is about twice … more
Teachers Union Presidents Extract Lucrative Benefits from Schools – For Themselves
MEA officials use rare deals with districts to garner rich government pensions
… collects an annual government pension of $85,903, which is more … district into a lucrative state pension. The MEA reimbursed Fraser … cost of Battaglieri’s state pension, setting an example that would … underfunding of the school pension system going back at least … union presidents' lucrative pensions.
If Battaglieri's government … more
Teacher Left Michigan Education Association and Has No Regrets
She says MEA president pension spiking scheme solidified her decision
… her decision to leave, due to hearing about MEA President Steve Cook’s "pension spiking" arrangement with a local school district that will allow him to … educator and went to work full time for the union, Stawasz lost any accrued pension benefit credits when she left a Michigan school job to teach in other states. … more
Why Detroit Pensions are Underfunded
Plenty of blame to go around
… of reasons why Detroit’s pension systems are in poor shape …
The most basic reason that pensions are underfunded in Detroit … proven ineffective at keeping pensions funded during bad times. … system can offer generous pensions and weather bad markets if … practices. Detroit did not.
Pension board members adopt a series … more
Pew Trust: State Pension Managers Failed Even To Meet Own Funding Estimates
A cascade of failures leave taxpayers on hook for $26.7 billion in unfunded pension promises
… contributions to the public school employees pension system in 2014, the amount wasn't even enough … billion in 2014. Of this, $317 million was for new pension promises made to school employees during the past … actuaries said was required to avoid sending the pension plan even deeper into the hole. While this story … more
Teacher Pension Poverty Claim Warrants Scrutiny
MEA article said teacher pensions forced retirees to live 'barely' above poverty level
… school employee’s annual pension.
Gary Olson, a former Senate … closer scrutiny.
The average pension for a public school employee … report.
That annual MPSERS pension is still higher than the average U.S. government pension, according to a Congressional … found people with government pensions had a median pension of $18,000 … more
Michigan School Pension Deficits Eat District Budgets
Thanks to state underfunding, Lansing Schools' pension expense is up despite smaller enrollment and staff
… retirement benefits in the form of annual pensions to employees hired before … significantly, the cost of unfunded pension obligations owed to employees … February 2016 is on the rise.
“Pension debt hurts teachers and taxpayers … have done a lot stop future pension debts, they also got deep … contributions to the state-run pension system increased from $17.3 … more
Wayne Co. Schools’ $80 Million Annual Tax Hike Won’t Cover Pensions
Backers promise more teachers and smaller classes, but filling pension hole is the reality
… are sending them less money, but because an underfunded school employee pension system is absorbing an ever greater proportion of their revenue.
Michigan … 2015.
In four years, these five school districts have seen their combined pension expenses increase from $65.5 million in 2011 to $106.6 million in 2015. … more
Fire Chief Calls City’s $92 Million Pension Debt ‘Responsible’
Midland’s underfunding has been going up, not down, with only 70 cents on the dollar saved
… responsible job of funding its pension liabilities,” Coughlin said … “responsible job of funding its pension liabilities.”
According to … the city’s police and fire pension fund has only 71 percent of … pay future benefits. The pension fund for other city employees … total amount of Midland's pension underfunding is $92.9 million, … more
Overtime In Final Years Will Spike Ann Arbor Cop’s Lifetime Pension Payout
This detective also put in lots of overtime
… experience would collect an annual pension of $126,000 if he retired … eligible for that six-figure pension because he collected $47,491 … 2017 would permanently boost his pension payout by $13,495 in every … retirement. That’s because the pension system Ann Arbor created for … city of Ann Arbor. If his pension benefit amount were based … more
Commentary: Pension Liabilities Larger Than Reported
Report shows that taxpayers could be on the hook for even larger pension costs than previously thought
… the defined-benefit school pension system to newly hired employees, … Michigan state government pension systems — not just the one … the current defined-benefit pension system is a lemon — its actual … liabilities in just the school pension system are now projected at …
Commentary: Low-Balled School Pension Contributions Kick Taxpayers … more
How Politicians Game the Pension System
There are few political gains from properly funding a defined benefit plan
… employers should pay the pensions that its employees earn. … across the country, government pensions systems have failed to set … money required to pay those pensions.
Michigan's recent discussion … incentives to ensure that pensions are properly funded.
The … coffers, but instead is going to pension funding.
The state runs the … more
Cities hurt budgets with police/fire pension spiking schemes, blame state
Got a ticket in Ann Arbor? That cop may have added to his income for the rest of his life
… employees who had retired with pensions paying more than their base … sergeant retired with a $88,612 pension after earning $70,093 a year … the Lansing police and fire pensions between 2010 and 2016 is … employees retiring with higher pensions than base wages is a symptom … likely to point the finger at the pension formulas that reward city … more
Pension Spiking, Early Payouts, Second Careers Make For High-Income Cops
East Lansing’s former chief an example
… spike his lifetime police pension to $91,000 a year.
Immediately … calculates Murphy’s annual pension payouts, which he was eligible … leave time boosted his annual pension payout by about $7,900.
It … working and begin collecting a pension as young as age 50 or even … Murphy would have had a bigger pension had he stayed on for two more … more
Flint Has 29 Cents For Each Dollar Needed To Cover Pension Promises
Annual income: $100 million; total pension promises: $388 million; result: misery
… the amount it should have invested to cover the pension promises it has made to its employees. The amount represents just 29 cents for every dollar in unfunded pension debt.
Flint has also offered to provide post-employment … it should have $266 million set aside. Unlike pensions however, these payments are not guaranteed by … more
Why Detroit's Pension Funds Failed
The assumption problems are statewide
… analyst, explains why Detroit’s pension funds are in crisis and why … employee and school employee pension systems.
Excerpt:
The failure of Detroit’s pension systems has been blamed on … requires governments to pay for pensions as they are earned, but doesn’t … going in are flawed, then the pension system’s performance will … more
The Legislature Must Fix Teacher Pensions the Right Way
… Michigan’s school employee pension system, the largest government pension fund in the state, but could … long-term problem of the pension system while the House plan … long-term underfunding of pensions for more than 444,000 members … income taxes directly into the pension fund and it still wouldn’t … more
Myth And Muddle Blocking Pension Reform
… liabilities for government pension plans nationally are measured … switching from defined-benefit pension systems to defined-contribution … liability-prone conventional pension systems, instead providing … state’s defined-benefit school pension system to new hires. When … Benefit to Defined Contribution Pension Reform is So Misunderstood." … more
Michigan’s Credit Rating Upgraded, Agency Cites School Pension Reform
Teachers unions and public school establishment had claimed going to 401(k)s would hurt state
… last week thanks in part to pension reform, a move that could … state’s public school employee pension system, who said the reforms … that the “adopted various pension payment methodology, assumption … reforms to address its sizable pension and other postemployment benefit … signed into law comprehensive pension reforms which overhauled the … more
Michigan Pensions Good at Controlling Fraud
… employees defrauding their pension systems. Thankfully, Michigan’s … outrageous costs on taxpayers.
Pension plans typically offer benefits … benefits usually include pension enhancements or looser vesting … Michigan’s two largest state pension systems, however, only 9,230 … owes $21 billion in unfunded pension liabilities, an amount that … more
What the New Legislature Should Stand For — And What It Should Not
… public employees to pay more for their health care and shored up public pension systems.
The icing on this reform cake came at the end of the term, when … free enterprise and fiscal responsibility over the next two years.
Pass pension reform to stop piling on unfunded liabilities to future taxpayers. Make … more
Teacher Pension Underfunding Hits $22B
… report on the school employee pension fund shows that the state … employee and state employee pension funds' unfunded liability … rates the payments to prefund pension benefits earned by members … Senate voted to close the pension system to new members and … from developing unfunded pension liabilities for members in … more
School Retirement System Continues to Harm Members
… have an employer-sponsored pension income, he says, than employer-sponsored … have a right to receive a pension. If they leave before then, they won’t get a pension. And roughly half of Michigan’s …
When it comes to funding the pension system, the state has had … employees who are counting on a pension and you have a shortfall of … more
Legislature Tries To End Public Pension Spiking By Union Officials
An earlier reform ended six-figure payouts, but union officials still accrue regular school pensions
… their taxpayer-backed school pensions. Senate Bill 795, which was … salaries — with government pensions based on those amounts. … these officials’ government pension credits to the amount they … government employees earn state pension credits for performing union … Cook benefitted from this pension-spiking scheme when he retired. … more
Astroturf? Facebook Page Promotes Union Politics Under Tea Party Flag
On pension reform, it quacks like a government employee union
… stance the MEA has taken on pension reform. The Legislature is … bills addressing the state's pension crisis sometime in the near … May, four of them opposing pension reform proposals.
Wendy Day, … work against themselves.”
Pension reform began getting more … imagined.
The public school pension system has a $29.1 billion … more
House Pension Reform Savings are Phony
… benefits. Unlike regular pensions, where the state attempts … actually earned far less on its pension funds.
The larger problem … that unlike money in regular pension funds, nothing prohibits a … Senate-passed version of school pension reform does something very real: it closes the pension system to new school retirees. … more
Comparing Apples to Lemons in Pension Reform
… the "normal costs" of the pension plan — the amount state officials … billion gap.
The school pension fund has been a lemon. The … "catching up" on all that past pension underfunding. Specifically, … matching requirements in their pension reform bill. The new terms … for new employees of the pension system.
The Legislature is … more
Wayne County Pensions Underwater; Union Sues To Preserve ‘13th Check’
‘A ridiculous practice’; pension fund is 43 percent short of amount needed to pay regular benefits
… paying the “13th check,” a pension boost to retirees, back in … contracts.
Wayne County’s pension fund from which this and other … needed to meet the county’s pension promises.
Derk Wilcox, senior … shame, because Wayne County’s pensions are severely underfunded,” … the only municipality with pension underfunding.
Michigan’s … more
Michigan Funding Its Pensions, Using More Realistic Numbers
Hat trick: Legislature also contained school pension liabilities by closing system to new hires
… Michigan’s public school pension system increased again last … the fund now to make future pension payouts, so a more conservative … assumed rate of return on the pension plan was lowered from 7.50 … contributing enough to the school pension fund to cover the pension promises made to employees. … more
Skyrocketing Pension Costs Trigger Parent Angst Over Loss of Teachers
Just the increase in pension costs could have hired 140 new Grand Ledge educators
… costs for the school employee pension system over the past five … costs of the state-run school pension system.
In June of 2010, … paid $4.2 million into the pension system. For 2015-16, the district … research on the Michigan school pension system, and recommends closing … has created a crisis in our pension system,” Metcalf said.
The … more
Michigan Universities Also Socked by Massively Underfunded School Pensions
Seven of 15 state schools affected; 20 percent of Ferris State’s budget goes to pensions
… of a massively underfunded pension system. Seven of the state’s … before then remained in the pension system and continue to accrue pension credits from it.
If the state run pension system were fully funded this … for another year’s worth of pension credits earned by each covered … more
It is Fine to Get Detroit Out of the School Pension System
Other districts already pay for Detroit's liabilities
… to catch up on Detroit’s pension liabilities. Every school … billion more than it has in the pension fund to cover these benefits. … off-loaded the bulk of its pension cost onto other districts. … DPS added to the state’s pension liabilities when it was large … pay for underfunding of the pension system and to catch up on … more
Pension Funding: Why Your Town is Going Broke
Not because you don't pay enough taxes
… aside enough money to pay the pensions promised to their workers. … System (MERS) administers pension systems for 728 local cities, … have adequately funded their pension obligations, according to … $53.4 million a month in pension payments. The broadly defined … aside enough to cover their pension promises.
"This is pretty … more
Pension Tax Affected 8 Percent Of All Taxpayers
It’s a lot of people and a lot of revenue
… repeal the state’s so-called pension tax ever since it was first … create a new direct tax on pensions but rather changed the tax … retirement income. Public pensions had been exempt from state … taxes, and private sector pensions received a generous exemption. … changed this preference for pensions to a blanket exemption for … more
River Rouge Not A Large School District, But Superintendent Paid $258k
There's a discrepancy between the amount reported by the district and by pension officials
… retirement office maintains individual pay data for purposes of calculating the pension and other post-retirement benefits owed to state and public school employees. … office to report a lower salary than the school district. This is because pensions are calculated by using not just an employee’s base salary; instead, the … more
State Pension Underfunding Enough To Give Pontiac Teachers $11,000 Bonuses
There are no bonuses; that's how much more district paid pension fund in 2020 vs. 2010
… each year to the state-run school pension system.
The district went from having … million extra it has to pay for pensions in 2020, compared to a decade ago, … state has neglected to fully fund its pension obligations.
The Michigan Public … years, annual contributions to the pension fund were below the required amount. … more
Rising Pension Costs Bury Michigan Schools Despite Past Tweaks to System
Tuesday's big Wayne County school tax hike proposal would only pay half of recent pension cost increases
… enrollment and skyrocketing pension costs.
Since 2011, a reduced … state funding, while its pension expenses have more than doubled, … will cover half the recent pension cost increases.
But Livonia … 2012 to the state-run school pension system may help going forward. … going toward an underfunded pension system,” said James Hohman, … more
Overspending, Pensions Push Michigan’s No. 2 School District To Fiscal Edge
Superintendent silent on pension debt; blames inflation, alleged funding cuts, constitutional tax hike limits
… state-run school employee pension system. The Michigan Public … system. By 2017, the annual pension payment had grown to $43.9 … that effectively closed the pension system that racked up the … response did not cite growing pension expense as a factor for the … address those skyrocketing pension expenses. In 2016-17, the … more
School Pension Fund Needs Fewer Gimmicks
Legislature still putting off real reform
… bill to rework the school pension underfunding problem but the … bill represents just another pension gimmick, and a harmful one … should instead consider real pension reform.
House Bill 4190 would … catching up on years of school pension system underfunding. The $22.4 … system expects to pay out in pensions must be closed. To do so … more
Property Tax Bills May Spike Due To School Pension Underfunding
Sales pitch varies for May 2 school tax hike votes, but underfunded pension gorilla lurks behind all
… officials have failed to adequately fund the school pension system over the past 30 years. The cost of catching up on unfunded pension promises is stressing local school budgets and … Lansing to cover the district’s share of past pension underfunding. In 2011-12, the district only had … more
How the Pandemic Will Affect Public Sector Pension Plans
The system currently has a lot of debt and is underfunded
… will show up is in their pension systems. But it will take a while.
Public pension systems are pre-funded. That … employee is working and earning pension benefits, the employer sets … grows, and is used to make pension payments when the employee retires.
When the market falls, pension savings take a hit. To make … more
School Board Member: Close Teacher Pension System
System crowding out classroom funding
… traditional defined benefit pension plan she says is taking money … careers for some type of secure pension in retirement.
Stead said … Schools paid $17.8 million in pension costs and another $10.3 million … education but an underfunded pension system has been eating up … risk that defined benefit pension plans pose to their budgets," … more
Fraser Public Schools Explains Its Role In A Union Pension Spiking Scheme
Superintendent says the law allows it and legislators had the chance to end it but didn't
Foundation Examines Michigan Pensions and Finds - Mismanagement
'This mismanagement was caused by explicit underfunding'
… an updated study on public pension reform conducted by the Los-Angeles … the state not reformed the pension program, it would only have … even higher.
The study, “Pension Reform Case Study: Michigan … promised.
“A properly managed pension reform process would have … optimistic assumptions of future pension fund earnings and other factors … more
10 Facts About Pension Systems in Michigan
Why reform is so vital
… talking about underfunded pension systems, but here are some … costs are devoted to the pension system – up from 12 percent … current employees spend on pensions goes to catch up on past … to decline.
The teacher pension system assumes annual payroll … few open defined-benefit pension systems in Michigan are fully … more
The Detroit Bailout and Meaningful Pension Reform
Looking at the 'grand bargain' for the city
… that the defined benefit pension system is closed.
That was … from two national experts on pension reform at an Issues & Ideas … Detroit Bailout and Meaningful Pension Reform," featured Richard … 5568, would close the current pension system and begin offering …
Regarding the closing of the pension system, which has contributed … more
Ten Facts About Government Pensions In Michigan
With all the charts you need to explain the problems
… $67.7 billion invested in the pension fund right now. But persistent … limited to schools, though: Pension funds at Michigan’s counties … contributions (ARC) into school pensions have increased 85 percent … needed each year to cover new pension promises and keep up with … billion.) Increased spending on pensions crowds out other state spending … more
County Road Commissions Fill Pension Potholes
Bills would encourage paying down retirement debts
… commissions to pay down their pension debt and prefund their retiree … required to give their workers a pension, though most do. If the road commission employees want a pension and their employers want to … set aside a dollar into the pension system for every dollar’s worth of pensions their employees earn.
This … more
Schools' Double Whammy: Declining Enrollment, Soaring Pension Expense
Decades of state pension underfunding may have cost each Holly teacher $8,450 last year
… was sliding, decades of underfunding by managers of the state-run school pension system caused the cost of teacher retirement benefits to soar.
For example, … years later, the payment was $3.86 million, an 88 percent increase. Had pension expenses remained at 2011 levels, every one of Holly’s 213 teachers could … more
Management Model No Guarantee of County Pension Soundness
Management culture important for success or failure
… traditional defined benefit pension plan, it has two options for … better job of keeping their pension promises funded at sustainable levels.
On average, county pensions managed by MERS have funding … they should have to pay the pension promises they have made). … retirees and taxpayers. If pension beneficiaries live longer … more
Education Union Should Be Voice For Pension Reform
School employees deserve more than political promises
… state-controlled defined benefit pension plan that has accumulated $26.7 billion … MEA could have argued to stop the pension underfunding. It could have called … school districts to contribute to the pension system. The costs for districts rose … fewer dollars were needed to keep pension system afloat.
Instead of requiring … more
Michigan Teacher Pension System Liabilities Increase Again
System underfunding up to $25.8 billion
… the costs for the teachers' pension fund a budget breaker. They … Roeder Smith & Company. The pension liability in 2009 was about … years of “smoothing” where pension funds blend several years … includes $25.8 billion in pension and $12.49 billion in health care.) … number of people drawing a pension and healthcare, etc.”
Dave … more
Teacher Making $53,000 Says She Could Earn More as a Waitress
Also receives pension and generous health benefits
Grasping At Taxes to Pay for Pensions
Schools, municipalities get creative
… governments increasing taxes in order to pay increased pension requirements.
Malanga follows tax … value and tax bill. With health and pension costs creating a $1 million deficit, … shore up underfunded police and fire pension systems. The increased contributions required by the pension system is one of the reasons that … more
Michigan’s Former Top Cop Given $639k In 'Deferred' Pension Benefits While Still On Payroll
Government solution to officer attrition from early pension eligibility was legalized double-dipping
… on a $640,000 nest egg of pension benefits awarded to her between … otherwise retire with full pension benefits, which come after … been eligible to draw on pension payments accumulated in a … advocate.
Separate from the past pension payments that were deferred … collecting regular current pension payments estimated at about … more
Teachers Union Rails at For-Profit Charters While its Leaders Spike Own School Pensions
Past three MEA presidents are set to receive pensions larger than their school salaries
… to their school government pensions.
Former MEA President Luigi … payout from his public school pension. In 2014, Battaglieri's government pension was $85,903, compared to the … Schools. In 2014, her government pension was $140,000 a year.
Steve … he will have a government pension estimated at $105,000 a year. … more
Pension Obligation Bonding Bills Expected To Move
… governments to use bonds to cover unfunded liabilities in their defined benefit pension systems is expected to move when the legislature returns on Aug. 15.
Under … around and vetoes it."
~~~~~
See also:
Beware Doubling-Down on Municipal Pension Dysfunctions more
Incomplete Analysis of Pension Scheme Bill Paints False Picture
Fiscal Agency ignores benefit spiking costs, underfunding risks
… Michigan’s school employee pension system. Yet a Senate Fiscal … the risks of underfunding pensions and the “benefit spiking” … reimburses the district for the pension fund contributions made on … benefits under a defined-benefit pension system the employer must contribute … factors such as potential pension fund investment returns, life … more
Another School District-Teachers Union Pension Spiking Deal
Union leaders benefit from special deals with their members’ employers
… union have entered into a pension spiking arrangement that benefits … from the state-run school pension system.
The deal between … amount of a school employee's pension benefit is based on the person's … to accumulate government pension credits even though she has … under Strachan’s deal, her pension will be based on a $103,224 … more
Legislators Should Look To Oklahoma To Address Pension Change ‘Transition Costs’
… liabilities for Michigan’s school pension fund increased to $25.8 billion … unfunded liabilities in its pension system, Oklahoma closed its pension system to new employees of … transition costs in the school pension system, “Five Options for … Costs’ When Closing the MPSERS Pension Plan.” If legislators feel their … more
Experts To Rebut Claims of Opponents Protesting Detroit Pension Reform Plan
Reformers under pressure from unions, who prefer broken status quo system
Reforming Detroit's pension system remains a major issue in … farsighted reform plan.
The pension proposal is possibly the most … closing its defined benefit pensions to new employees in 1997, … improve after adopting the same pension reform measures that Michigan … Jack McHugh wrote that the pension measure "unconditionally puts … more
Whistleblowers Allege Police Pension Spiking Scheme
Ann Arbor officers may add millions to taxpayer burdens
… nearing retirement engaged in a pension spiking scheme that involves … thousands of dollars in lifetime pension benefits for these individuals, … increases, or spikes, the annual pension payouts by artificially boosting … compensation figure used in pension formulas.
According to the … to the individual’s annual pension benefit payments. Many employees … more
The Worst Funded Pension Systems In Michigan
Part 1 in a series looking at municipal retiree funds in the state
… liabilities in the general pension system ran from 94 percent … Michigan’s largest cities have pension benefit systems in far worse … Confidential of the employee pension systems for Michigan’s 100 … cities continue to offer pensions and these defined benefit … state employees off of the pension system and providing them … more
Commentary: State Budget Windfall Invalidates Pension Reform Excuses
Legislators should use extra money to shift new school employees to 401(k)-type accounts
… liabilities in the school pension system. The temporary revenue … billion gap between the school pension system’s future commitments … conventional defined-benefit pension system. Every state and practically … government in the country faces pension fund shortfalls. In Michigan, … happens because politicians and pension bureaucrats can’t resist exploiting … more
Congress May Protect Private Pensions from State Bureaucrats
Recent regulations allow states to create and manage retirement for private employees
… think states mismanage the pensions of their own employees, just … removed safeguards for private pensions and forced some employers … Health, Employment, Labor, and Pensions.
The regulation, published … have established employee pension benefit plans under” federal … local governments to set up pension plans outside the scope of … more
Michigan Catching Up On State Employee Pension Debt
Progress is being made, but another $7.5 billion is still needed
… closed its defined-benefit pension plan to new employees in 1997, … money saved to pay for the pension benefits promised to state … lawmakers promise employees a pension, they have to guess at what these pensions will cost in the future. … are going to collect their pensions and how much interest the … more
Commentary: Low-Balled School Pension Contributions Kick Taxpayers in the Teeth
They've been low-balled for too many years
… covered by the state-run school pension system (called "MPSERS"), … each year to pre-fund future pensions earned by all current school … taxpayers can expect the unfunded pension liabilities to grow even larger … past (and likely current) pension underfunding, readers may … cost” of prefunding future pensions — has been going down, not … more
Public School Administrators Complain About Pension Costs; Don't Offer Solutions
… state still get traditional pensions as retirement benefits. Other … unfunded liability for teacher pension benefits increased to $25.8 …
See also:
Michigan Teacher Pension System Liabilities Increase …
How Michigan Can Fix Its Pension Problems
Pension Costs Mean Tighter Budgets … more
The State Is Already Addressing 'Transition Costs' in School Pension Fund
… "transition costs" when closing the pension fund and offering new members … would continue on in the pension system, but the university …
Study Finds That Teacher Pension Plan Unlikely to be Fully-Funded …
Fix the Real Problem of the Pension System
The Legislature Must Fix Teacher Pensions the Right Way
GOP-Led House … more
Pension Costs Mean Tighter Budgets For Classrooms, Taxpayers
MPSERS has unfunded liability of $24.3 billion
… million this year for its pension and health care costs.
The … for 2013-14.
The teacher pension system has become an issue … skyrocketing cost for the pension system shows how K-12 spending … of the traditional annual pension. That lowered the MPSERS unfunded … accounts.
"The defined benefit pension plan has become too expensive," … more
How Some Michigan Cities Dodge the Unfunded Pension Liability Trap
Shifting to a 401(k) avoids hollowing out core functions
… to properly fund employee pensions in the year they are earned, … services to pay the deferred pension costs.
Flint is one example … cost of catching up on past pension underfunding has skyrocketed, … new employees out of the pension system to get a handle on … Township capped its unfunded pension liabilities. The city then … more
Pension Study Consultants Have History Defending Expensive Pension Plans
Segal Co. getting $140K to see if teachers should be switched to 401(k)-style programs
… independent study on teacher pension costs concluded previously that closing defined benefit pensions plans is a bad idea.
That's …
Legislators passed a teacher pension reform bill this summer that … sector.
Michigan's teacher pension program is underfunded by … close the defined benefit pension plan, said he's still looking … more
Few Outside Government Get This Michigan School Retiree Benefit
Pension checks with 3% COLAs, which are mostly ancient history in the private sector
… get a 3% increase in their pension payouts every year. This represents … superintendent, collected an annual pension of $136,027.
In 2020-21, Washburn’s annual pension had increased to $175,992.
The 3% annual pension increase is a lucrative benefit … taxpayers.
The school retirement pension fund is $33.8 billion short … more
Fixing Michigan's Budget-Killing School Employees' Pension Up in the Air
MPSERS reform may be murky
… voted 20-18 to close the pension system to new hires and offer … ongoing underfunding of the pension system, which saw its required … from it.”
“With the MPSERS pension system the numbers involved … state's chronically underfunded pension system is a model that the … the bill,” he said. “Public pensions have their advantages as … more
I Don’t Have Answers to These Questions
There aren't always easy answers to policy questions
… during the 2011 tax reforms. These rates have a much larger impact on the state budget — and each and every family budget — than the much-discussed pension tax.
How do public electric utilities actually make money? In a regulated market, it is not likely by selling more electricity to customers.
Why … more
Two Cheers for Teacher Pension Reform Bill
… proposed school employee pension reform.
However, when the … current “defined- benefit” pension system, and will no longer … contribute more toward their pensions, or else receive benefits … they’re the amount of past pension underfunding the state must … however, Michigan’s long school pension nightmare is not yet over. … more
Rigged Pension Study Produces Expected Conclusions
Legislators should close underfunded defined-benefit system
… the state’s school employee pension system to a defined-contribution … suspect that the state’s pension system is perfectly fine. … state would not even consider pension reform; pension costs would be the relatively … state repeatedly considers pension reform, however, because things … more
Teachers Who Talk Down Their Profession Often Don’t Mention The Benefits
A decent pension and good health coverage for life among them
… retired and will collect a monthly pension check for the rest of his life, something … teaching. A teacher who had been accruing pension benefits for that length of time … eligible to begin collecting an annual pension of $38,210, plus health insurance. … deducted from that individual’s monthly pension checks. more
You are Entering the Government Pension Zone …
An alternative universe of finance and accounting practices
… government defined-benefit pension systems operate, which is … that the methods used in pension funding and accounting are …
But projecting the cost of pension systems requires making various … contributed to meet defined-benefit pension promises. Making a wrong assumption … methods to amortize unfunded pension liabilities in ways that require … more
With Income Tax Rejected By Voters, East Lansing Looks at Spending Cuts
A common story: Residents will pay for years of pension underfunding by elected officials
… amount of East Lansing's pension liability in 2016 has been … its underfunded employee pension fund.
Beier said these retirement … the entity that administers pension systems for East Lansing and … its assumptions on how well pension fund investments will do. … fiscal year, East Lansing’s pension fund was $88.2 million short … more
Constitutional Convention Delegates Wanted State Worker Pensions To Be Fully Funded
Notes from the 1962 constitutional convention show true intent of what voters passed
Retiree pensions in Detroit were underfunded. Politicians fretted …
That was 1961 and retiree pensions were underfunded to the tune … attempted to protect those pensions in a new constitution — the … Kevyn Orr projects the city's pension liability at $3.5 billion and wants to cut the pension debt. In two recent editorials, … more
Pay for New Ann Arbor Teachers Up 24-44 Percent in Four Years
Veteran teachers see slight decrease; payments to pension system soar
… district reported to the state pension office. The state pension office factors in all compensation for pension calculations.
For example, … that was reported to the state pension office was $75,605 for 2014-15, … Ann Arbor has faced rising pension costs.
According to the district’s … more
Rough Road for Pension Reform in New Senate?
Many Senators who supported reform are leaving
… the defined-benefit school pension system to new hires and – … perpetual underfunding of the pension system, in which required … debt from outdated public pensions, and MPSERS is the biggest … up support for closing the pension in the new Senate Republican … voted against closing the pension system in 2012. In 2015, the … more
Public School Pension System Totally Broken
Taxpayers on the hook for billions in unfunded liabilities
… health care retirement and pension costs, said James Hohman, … multi-billion dollar unfunded pension and retiree health care liability … billion in 2012, just for pension liabilities. That unfunded pension liability was $835 million … libraries — to pay for MPSERS pension is capped at 24.79 percent … more
Unfunded State Employee Pension Liabilities Remain at $6.2 Billion
… n’s closed state employee pension system got some good news … carries $16.2 billion in pension liabilities, and $10.0 billion … variations in the market value of pension fund investments using a five-year … (unsmoothed) market value of the pension fund’s current assets exceed …
Thankfully, nearly 20 years ago the pension system was closed to state … more
Norton Shores Resident Fears Pension Underfunding Will Cause Tax Increases, Job Losses
'The financial death spiral happens ... and big companies move out'
… of Norton Shores’ unfunded pension and retiree health benefit … Mackinac Center’s ranking of pension underfunding for Michigan’s … sixth from the bottom in pension underfunding. According to … annual financial report, the pension liability is $20.3 million. … less than 51 percent of its pension obligations and less than … more
Teachers Union Membership Down 20 Percent, But Executive's Pay up $61,000
Union officer's pay hikes also part of school pension-spiking scheme
… his eventual payouts from the state-run school pension system. Trainor previously taught in Mt. Pleasant Public Schools for 21 years, and under the pension-spiking scheme he's still considered an employee … taxpayers will probably have to cover the extra pension benefits his higher salary levels will generate. … more
Michigan Bans Direct Tesla Car Sales, But Made Money Trading Its Stock
State pension funds realized $22M buying and selling electric carmaker’s stock
… even allowed to sell vehicles here.
The state’s pension funds realized $22 million in gains on Tesla when … lock in investment gains, and to meet regular pension system cash flow needs. She said $22 million was … and Exchange Commission showed that Michigan pension funds held 339,623 shares of Tesla, at the time … more
Disgruntled? Double-Dipping Part-Time School Teacher Was Doing Pretty Well
State law allowed her to return to the classroom while collecting a teacher’s pension
… another teacher.
When Groth retired, she began collecting a Michigan school pension of $42,264 a year and benefiting from some special carveouts enacted by … Manchester job, she was allowed to collect both the full amount of her pension and her part-time salary, a practice known as double-dipping. She also … more
What Will Cities Do To Solve Their Pension Problems?
Part 2 in a series looking at municipal retiree funds in the state
As pension funding crowds out important functions of local governments … funding ratios for their pension systems, only two of them … from the defined benefit pension system.
Lincoln Park has … cents on the dollar for its pension obligations. It began offering … defined-contribution plan or a hybrid pension plan to new employees in 2004. … more
How Michigan Can Fix Its Pension Problems
Event featuring former Utah State Senator Dan Liljenquist
… to $4 trillion in unfunded pension liabilities across the states. … titled, “How States Are Fixing Pension Problems – And Michigan Can … shifting new employees off of a pension plan in 1997 under former … credit for.”
But there are pension systems for teachers and many … a 30 percent hole in our pension fund.”
That would have required … more
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