Posted on 09/25/2014 10:13:02 AM PDT by MichCapCon
The state of Michigan will spend more money in 2015 on trying to catch up on underfunding for the public school employees pension liabilities and retirement health care than it will spend on the Michigan Department of Corrections.
Michigan is planning on spending $1.937 billion to catch up on underfunding for the Michigan Public School Employees Retirement System and another $880 million to catch up on public school employee retiree health care costs.
The state’s 2015 budget for corrections is $2.040 billion.
In 2013, the state underfunded its annual costs for pension and retiree health care for public school employees. The state only paid 70 percent of the anticipated costs for pensions that year and 66 percent of the anticipated costs for retiree health care.
The MPSERS’ pension has $25.8 billion in unfunded liabilities. Retiree health insurance benefits are also provided by the system and the value of benefits under current policies amounts to an estimated $13.4 billion exposure.
“Catching up on pension underfunding is a serious problem that’s crowding out other priorities,” said James Hohman, assistant director of fiscal policy for the Mackinac Center for Public Policy. “The state should offer defined-contribution retirement plans in order to contain this problem.”
So, put the teacher retirees in prison. Combine the liabilities... might lead to savings. /S
stop sending non-violent people to prison, and homeschool your kids. Problem solved :-)
In a utopia no one would be incarcerated, but there would be retired teachers.
The Dept.of corrections they are talking about has had defined contribution (I.e. 401k) for 18 years now, as well as almost all other state agencies. I’m amazed they still have defined benefit for teachers.
CC
LOL
75% of Illinois taxes fund government pensions.
It would be one big reunion.
‘Mikey! I haven’t seen you since you stole my car out of the teacher’s parking lot!’
Michiganders spend a lot on their ME$$A heath insurance when they’re working, too.
http://www.mackinac.org/depts/epi/insurance.aspx
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.