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Time to End the Use of Public Pension Plans for Private Gain
Michigan Capitol Confidential ^ | 3/13/2016 | Jarrett Skorup

Posted on 03/17/2016 5:01:02 AM PDT by MichCapCon

Michigan citizens expect that the money they pay in taxes will be used for the core government services that are supposed to be provided. Education dollars are supposed to be used to educate students. Money spent on pensions is supposed to provide a retirement for government workers.

That's not the case today.

In 2015, the Mackinac Center broke two stories about an abuse of tax dollars happening in Michigan, one dealing with union release time and the other with union executives spiking the pensions they earned while working as government employees. There are two bills that would fix these issues.

More than 70 school districts are currently providing "release time" to local union presidents. The way it typically works is that the head of a local union for a school district gets paid to work on union business, rather than taxpayer business. All the while, they receive all or part of their salary and benefits from the public school district — paid for by taxpayers. The direct cost of this practice is at least $3 million per year across the state, though the actual cost is much higher since schools then have to hire a teacher to replace the union president who is no longer teaching. Senate Bill 280 would end these special arrangements. It has passed the state Senate and now sits in the Michigan House.

The current and past heads of the state's largest teachers union are also taking advantage of taxpayers. At least 50 people, including the last three presidents of the Michigan Education Association, are using their union salaries to increase their public pensions. In the case of the MEA presidents, salaries top out at over $200,000. Senate Bill 279 would prevent this going forward. It has passed the Senate and is now in the state House.

Taxpayers have better uses for their money and these deals should end.


TOPICS: Government
KEYWORDS: michigan; nea; pensions; unions
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1 posted on 03/17/2016 5:01:02 AM PDT by MichCapCon
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To: MichCapCon

“Money spent on pensions is supposed to provide a retirement for government workers. “

All gov pensions should be rolled into the “social security trust fund”, and then we ALL retire at age 50.


2 posted on 03/17/2016 5:08:11 AM PDT by JPJones
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To: MichCapCon

“More than 70 school districts are currently providing “release time” to local union presidents. The way it typically works is that the head of a local union for a school district gets paid to work on union business, rather than taxpayer business. All the while, they receive all or part of their salary and benefits from the public school district — paid for by taxpayers.”

So does the federal government. BTW, little known secret. You remember the government shutdown in 95? Do you remember the media interviewing government employees who only wanted to go to work? The ones who said they would work for free if only the mean, evil Newt Gingrich would let them? Ever wonder why someone would complain about paid time off? These guys were union workers paid by the federal government to only do union work just like these state workers, ie, they were paid political workers.


3 posted on 03/17/2016 5:10:39 AM PDT by DugwayDuke
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To: JPJones

I’m past age 50. I have no intention of retiring any time soon. Social Security should be abolished. The Congress has zero authority even to create an old-age pension system, much less to mandate participation in it.


4 posted on 03/17/2016 5:12:10 AM PDT by NorthMountain (A plague o' both your houses.)
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To: NorthMountain

“I’m past age 50.”

So am I.

“I have no intention of retiring any time soon.”

I couldn’t retire even if I wanted to.

“Social Security should be abolished. The Congress has zero authority even to create an old-age pension system, much less to mandate participation in it.”

You’re old enough to know that that’s fantasyland stuff.


5 posted on 03/17/2016 5:15:52 AM PDT by JPJones
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To: JPJones
You’re old enough to know that that’s fantasyland stuff.

Yeah. Government actually obeying the Constitution?!?!

That's crazy talk ...

6 posted on 03/17/2016 5:20:52 AM PDT by NorthMountain (A plague o' both your houses.)
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To: NorthMountain
You are like me. I will probably die in the harness.
7 posted on 03/17/2016 5:23:45 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: NorthMountain

Yeah. Government actually obeying the Constitution?!?!

That’s crazy talk ... “

Lol, ok well let me put it this way:

At this point in time, the idea of getting rid of SS is SO impractical, to be silly.

First, Let’s see if we can reduce gov spending year over year by 0.0000001%.

After that relatively easy task gets accomplished we can see about “abolishing Social Security”.


8 posted on 03/17/2016 5:26:28 AM PDT by JPJones
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To: JPJones
All gov pensions should be rolled into the “social security trust fund”, and then we ALL retire at age 50.

The Irony of you comments are priceless. You clearly think SSI is wrong and/or a scam. Which I agree with. However, you then suggest Government Employees who, some have paid in another 4-8 percent to be in those pensions should have their pension combined with SSI so you can retire earlier?

They pay in the 8.65% for SSI and another 7 for their pension. While you pay just the 8.65. Sounds like a sweet deal if your a democrat. /s

What was the point behind your rant again?

9 posted on 03/17/2016 5:42:51 AM PDT by VRWCarea51 (The original 1998 version)
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To: JPJones
First, Let’s see if we can reduce gov spending year over year by 0.0000001%.

Like I said ...

10 posted on 03/17/2016 6:59:06 AM PDT by NorthMountain (A plague o' both your houses.)
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To: VRWCarea51

“The Irony of you comments are priceless. You clearly think SSI is wrong and/or a scam. Which I agree with.”

Not what I said: I think anyone who believes that it’s going to be eliminated is in La-La land.

“However, you then suggest Government Employees who, some have paid in another 4-8 percent to be in those pensions should have their pension combined with SSI so you can retire earlier? “

Yes. Why should “public servants” retire with more money than the people they “serve”?

In the current system: “Public servants” (who are NOT net taxpayers) retire at 55, some with 6-figure pensions, drive around the country with a huge RV, or lie on the beach sipping gin-fizzes, while people who’ve paid their salary have to dig ditches until age 62.

It’s NOT public service it’s a privileged class, and it needs to end.

So yes, take their ALL their pensions, and roll it into the SS fund so the people who’ve actually PAID taxes can benefit from them.

“They pay in the 8.65% for SSI and another 7 for their pension. While you pay just the 8.65. Sounds like a sweet deal if your a democrat. /s”

What was the point behind your rant again?”

They DON’T pay it, I pay it.

You’re a gov worker, aren’t you?


11 posted on 03/17/2016 7:08:50 AM PDT by JPJones
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To: JPJones

I paid into Social Security for 30 years, then worked for city government for 16 years before retiring. My social security benefits were cut by 2/3rds because I receive a “government pension”. If I had stayed in private industry until retirement, I would receive full retirement and full social security benefits. Does that seem right or fair to you?


12 posted on 03/17/2016 7:16:05 AM PDT by Duchess47 ("One day I will leave this world and dream myself to Reality" Crazy Horse)
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To: MichCapCon
...the head of a local union for a school district gets paid to work on union business, rather than taxpayer business. All the while, they receive all or part of their salary and benefits from the public school district — paid for by taxpayers. The direct cost of this practice is at least $3 million per year across the state, though the actual cost is much higher since schools then have to hire a teacher to replace the union president who is no longer teaching. Senate Bill 280 would end these special arrangements. It has passed the state Senate and now sits in the Michigan House.

1. Usually this is written into the CBA, so it's going to be difficult to end immediately by legislation. They can prevent similar provisions in future contracts, but they can't just void a provision in signed contracts because they now decide they don't like it.

2. "The actual cost is much higher" has some faulty logic. The cost of the program is either the cost paying the person doing union work or the cost of paying the replacement teacher, but not both. (If the program ends, someone is still going to have to teach.)

3. The union is going to have to fund that position somehow and the only source of money for the whole deal is the taxpayers. The union may negotiate a pay raise and an increase in dues to cover it. There may be some other backdoor trick they devise. The action is only going to be symbolic, and my guess is it will end up costing more.

13 posted on 03/17/2016 7:23:21 AM PDT by Gil4 (And the trees are all kept equal by hatchet, ax and saw)
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To: Duchess47; JPJones; VRWCarea51

I really wish some of these untruths would finally be put to rest...Everyone pays the SS TAX. It’s not yours to ‘get’.

Neither does the employer pay the ‘other half’. The employee’s wages/benefits were reduced enough to cover the cost.

Govt HAS no $$ of its own. Public sector works pay for *nothing*, it’s paid BY the taxpayer (so, yes, taxpayers ARE paying for the Pub. sec. job, taxes and benefits).

Nothing in life is ‘fair’. Not even Justice is ‘fair’, at times; let alone just. Who expects ‘fair’ from govt?


14 posted on 03/17/2016 8:16:55 AM PDT by i_robot73 ("A man chooses. A slave obeys." - Andrew Ryan)
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To: JPJones

#11 You don’t know what the hell you are talking about.

Go to MPERS (Michigan) and read it for yourself you fool! The ones I know are paying 7%, 3% for retirement health and 4 % into the pension system.

They do pay payroll taxes for their Pension plus SSI. They also pay the same income and property taxes as you, so again you don’t know what the hell you are posting.


15 posted on 03/17/2016 9:41:14 AM PDT by VRWCarea51 (The original 1998 version)
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To: i_robot73

I am so glad you gave me that explanation. Perhaps you could also explain where the funds taken from my check every two weeks for retirement went. Oh, and the funds taken out for Medicare.

And the 30 years previous, who got the funds taken out of my checks for Social Security?

And the money taken out of my Social Security every month to pay the Medicare premium?

By the way, I did pay taxes while working a Public Sec. job. Where did that go if I was getting a “free” ride on the back of tax payers?


16 posted on 03/17/2016 12:39:39 PM PDT by Duchess47 ("One day I will leave this world and dream myself to Reality" Crazy Horse)
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To: VRWCarea51

“They do pay payroll taxes for their Pension plus SSI. They also pay the same income and property taxes as you, so again you don’t know what the hell you are posting.”

Sure I do!

Where does the money they “pay taxes” with, come from?


17 posted on 03/17/2016 4:33:59 PM PDT by JPJones
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To: Duchess47

“I paid into Social Security for 30 years, then worked for city government for 16 years before retiring. My social security benefits were cut by 2/3rds because I receive a “government pension”.”

I’ve paid into Social Security for 40 years, don’t have a government pension and can never retire.

“If I had stayed in private industry until retirement, I would receive full retirement and full social security benefits. Does that seem right or fair to you?”

Not at all. You get a gov pension paid for by me, while I have to work till I drop.


18 posted on 03/17/2016 4:38:25 PM PDT by JPJones
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To: JPJones

You did not pay for my government retirement, I did. Every other week, out of my paycheck.


19 posted on 03/17/2016 5:44:01 PM PDT by Duchess47 ("One day I will leave this world and dream myself to Reality" Crazy Horse)
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To: Duchess47

:You did not pay for my government retirement, I did. Every other week, out of my paycheck.”

LOL!


20 posted on 03/17/2016 7:30:42 PM PDT by JPJones
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