SCHOOL EMPLOYEES PENSION ACTION DAY –
Tuesday November 29, in Lansing
to see the pdf flyer for more information. To RSVP, call Capitol Services at (517) 372-0860.
- Ten years ago, MPSERS was fully funded. Now we have an unfunded liability (which has been improving) as the result of the devastating economic downturn of 2008, combined with decisions made in Lansing to balance the budget with unrealistic projected rates of return. Like any investment, it simply needs time to rebound-and is on track to do so.
- Recent changes have dramatically increased employee contributions into MPSERS.
- PA 300 of 2012 also placed school employees hired after its effective date into a “hybrid” system, combining elements of a traditional pension and a 401(k)-style defined contribution plan. The savings to the state stemming from this change will not be fully realized for several years.
- The hybrid system is fully funded. Why would we eliminate a system that’s working?
- The 2012 law also eliminated retirement healthcare benefits for new hires.
- The changes made in 2012 need time to continue to work. As with any investment, if left alone the system will heal itself.
- Pension income is spent in Michigan and supports more than 77,000 Michigan jobs.
- Retirees’ spending from pensions supports $11.1 billion in economic output in Michigan.
- 45 percent of public school employees receive a pension of less than $14,500 per year.
- Hedge fund managers and other Wall Street corporations are the real winners in eliminating traditional pension plans and moving money to their 401(k).
- A pension system distributes both the risk and reward evenly-vs. the winners/losers system of the 401(k). We don’t need a competitive system that creates winners at the expense of others; we need retirement security for all.
- Numerous studies have shown that, in addition to being much less secure than a traditional pension, any savings to the state for making such a change would not be realized for more than 30 years – and the immediate cost to close MPSERS would run into the hundreds of millions of dollars per year.
Source: MEA – Retired