Michigan legislative action thread
Posted on 08/22/2013 1:07:30 PM PDT by ThethoughtsofGreg
Americans have become accustomed to hearing about unfunded liabilities generated by the various federal entitlement programs, but many state and local governments have serious public finance problems looming as well. On the state and local level, public employee pension plans are underfunded by trillions of dollars. Underfunding has real consequences: essential public service may be crowded out by legacy costs for retired employees, politicians may turn to growth-harming tax increases, and retirees stuck on fixed incomes may see the pension payments they are counting on slashed. A new American Legislative Exchange Council study titled Keeping the Promise: State Solutions for Government Pension Reform attempts to quantify the depth of the problem and chart a path forward towards fiscal solvency for states with underwater pension systems.
(Excerpt) Read more at americanlegislator.org ...
Just the other day the emergency manager of Pontiac announced that the city was ready to return to public hands nearly 2 years ahead of schedule.
One reason they were able to get finances under control was the fact that they cut the number of full time city employees from 500 to 20.
DID anybody catch how michigan got around paying their current retirees whats do them including their colas? Or on the other hand are they honoring their commitments ? Illinois retirees would like to know that....
Or they could do what the federal government does to it’s employees. Government employees pay their own pensions. Sure people think that Federal Employees get these nice pensions after 30+ years, but guess what? Every 2 weeks a nice chunk of change is taken from the employee.....and those after 1981 get TWO chucks of change taken from them. One for the measly pension and the other into a 401K. And God forbid you don’t do the entire 30+ years because those in the 401K get that money. However, if you are in the old system and those 1981 and after do not get the pension portion that they put into. So I always wonder why federal workers allow the bullies to LIE about how great the pension is? That is always a question to me.
In the case of my cousin they transferred him over to a 401K. He didn’t like it at first but has increased the amount he pays in.
Ping me if you get an answer, please.
we’re gaining, but not enough. the law that required pensioned employees (hired before ‘97) to contribute 4% towards their own retirement got struck down this month, and the state had to pay them all back the money that was taken.
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