The Michigan legislature is taking action to kill the MPSERS pension system every public school employee has worked under and is currently working under. They will reduce it to a simple 401k system thus discouraging college students from becoming educators, administrators, custodians, bus drivers, secretaries or educational specialists and further eroding the quality of the profession of teacher. House HB4647 and  Senate SB401 have identical language and are moving forward.

Making sense of the the terrible pension killing bills and their impact.

Remember the unilateral change from 1.5% multiplier most of us planned on during our career? It was voted down to a 1.25% that no employee impacted by it could stop. It was never voted on by the electorate just a vote of the politicians to weaken and reduce the pension for all school employees. Same deal is happening now with these proposed bills.

Remember the unconstitutional 3% money grab by the Governor and Republicans in Lansing that was deemed unconstitutional by the courts? That ruling was appealed and upheld as unconstitutional. Even the GOP Attorney General says to abide the two courts’ rulings and return it to the workers… and yet.. we’re not getting it and it is held up for several more years waiting for supreme court to hear the case?  Same deal
This proposed change will stop ALL money going into MPSERS from future employees. It is NOT just teachers but all those within the MPSERS system.  NOTHING more will be contributed by ANY public school employee hired in after the bill becomes law. That means only those still working under a pension system are paying in and that will only occur up to the point they retire. Then the billions in unfunded liability burden fall entirely on the state. Might it seem logical that in 20 or 30 years when people are drawing pensions and NO ONE is paying into MPSERS the State politicians again vote to stop or reduce payments to pensioners? Almost a certainty.
Any Governor, Senator or Congressman passing these bills will be term limited and long gone so they will not be impacted by the horrible decision and the dreadful negative fall out. It will be promises broken by the State to its loyal career educators and support staff.
By weakening and eliminating the pension it will build an easier climate for the Charter and Private schools that Trump, DeVos and Snyder favor to gain access to public funds and to match the public schools’ benefits package. Currently the pension and benefits and pay are still significantly better in public sector. This, along with the sweeping reductions and attacks from 2011, will allow FOR PROFIT companies to exploit the negative climate and make massive profits on the back of the students and staff.
Call your legislator and implore them to vote no