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To: Kieri

Does MI have a looming benefits funding shortage for their state/teachers. In NJ we have a $ 5 billion annual budget shortage funded by increased fees, bonds and some cuts. Our biggest problem is that we have not funded our healthcare fund for state worker/teacher retirees since 1994. The state signed a contract with the state workers and teachers that if they worked atleast 25 years and have the age to retire, their health insurance will be 100% covered. No one told them that the state stopped funding the fund since 1994 and now the fund is $ 58 billion short. Unlike the federal government, the state can not print money, and unlike Social Security/Medicare the benefits between the state and the state workers is a legal contract. It must be paid (if union went to state court they will win) backed by court order or the state can declare bankruptcy (state court can block that and mandate the legislature to raise taxes or cut spendings to meet their contractual obligations). I am getting out of NJ as soon as possible.


39 posted on 09/14/2007 6:57:10 AM PDT by Fee (An American empire can only be built by leaders with the stomach of Romans.)
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To: Fee
Does MI have a looming benefits funding shortage for their state/teachers. In NJ we have a $ 5 billion annual budget shortage funded by increased fees, bonds and some cuts. Our biggest problem is that we have not funded our healthcare fund for state worker/teacher retirees since 1994. The state signed a contract with the state workers and teachers that if they worked atleast 25 years and have the age to retire, their health insurance will be 100% covered. No one told them that the state stopped funding the fund since 1994 and now the fund is $ 58 billion short. Unlike the federal government, the state can not print money, and unlike Social Security/Medicare the benefits between the state and the state workers is a legal contract. It must be paid (if union went to state court they will win) backed by court order or the state can declare bankruptcy (state court can block that and mandate the legislature to raise taxes or cut spendings to meet their contractual obligations). I am getting out of NJ as soon as possible.

In MI, teachers' health care and that for retires is *golden.* It's the cream of the crop compared to any other private or public plan in the state. Some in our legislature have been trying to allow districts to look at bids from other companies besides MESSA, but MESSA (and the MEA) refuse to open their books as to what they spend. Laws to change that are DOA. Most state workers (those who hired after 1991, I think) contribute to a 401(k) and don't have a traditional pension.

75 posted on 09/14/2007 11:32:20 AM PDT by Kieri (Midwest Snark Claw & Feather Club Founder)
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