Monday, October 1, 2007

Reform of "teacher" retirement system

Michigan Public School Employees Retirement System (MPSERS) teacher contribution rate is currently 4.3% of salary, this bill raises the statuatory rate to 6.4% of salary. Passed the House by a tally of 56 - 53.

4 comments:

T said...

That is the first time I have seen what the teacher "contribution" portion has been. What a concession that they will now contribute 6.3%, when the rest of us still pay 7.65%. It really is time for this benefit express to be changed from top to bottom for all public employees, including our elected officials. From the process we have been watching, public initiative appears to be the only avenue left for us to pursue.

Anonymous said...

In response to T:
Excuse me, but all public school employees pay the same 7.65% towards FICA/Medicare that everyone else does. The additional 6.3% to which you refer is a mandatory contribution towards the state school employees' pension fund. Except now, with the passage of this legislation, that contribution will cost more, without any increase in benefit. In fact, it guarantees that new school employees will need to work longer to receive the same benefits as their more senior counterparts.

wolflady48884 said...

Anonymous:

Excuse me if I don't shed any tears for you.

Mitch said...

This increase is a drop in the bucket on what needs to be done to reform the Teacher's pension plan. Read Ron French's three part series on the plan in the Detroit News. Those buggers can get free health care for life if they work 110 hours after retirement!

The problem in the teacher's pension plan is bankrupting local school boards, and will make the Big 3's retirement issues seem small in comparison.