michigan teachers pension "reform" - not good.

[Hannah Bell]

The bill signed last Wednesday by Michigan Democratic Governor Jennifer Granholm changing the Michigan Public Schools Employees Retirement System (MPSERS) is a sweeping attack on public school teachers and the state’s educational system...In order to induce them to retire, the state is offering veteran teachers a paltry increase in the multiplier that determines the size of their pension, which will rise from the current level of 1.5 percent to between 1.55 to 1.6 percent.

This will be funded by making teachers who remain contribute an additional 3 percent of their pay towards retiree medical benefits—in other words, by imposing a 3 percent pay cut. Current employees have no guarantee that by the time they retire, they will receive health insurance as part of their pension, as language that covered this very question was removed from the legislation.

In addition, the newly hired teachers that the state is hoping will replace retirees will be forced into a so-called “hybrid” plan that substitutes part of their pension for a 401K. New hires will not be eligible for pensions until they turn 60.

In one of the more blatantly punitive aspects of this legislation, retirees who leave after July 1, 2010 will lose their pension and health care benefits if they are rehired back into the school system and make more than one-third of their average final compensation, or if they work for an independent contractor providing services to the public schools (e.g. a charter school)...

http://www.wsws.org/articles/2010/may2010/mich-m24.shtml

In addition, charter teachers aren't required to join the pension system = declining funding.

I see a pension/health care default coming...

[MichiganVote]

1. Brought to us by the Democrats, thank you very much.

[Dinger]

2. Soon To Be Ex-Politicians

As in out-of-office Democratic politicians.

[MichiganVote]

3. No kidding. The true rape and pillage of Michigan begins after the election.

[cloudbase]

5. Doesn't matter.

Their pensions are secure.

[proud2BlibKansan]

4. So do the charter teachers have a different pension system

or none at all?

[MichiganVote]

6. Depends on which company/university is sponsoring them.