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    Tag: MEA teachers union Education Action Group

    MEA's pension plan more expensive than ever


    By EducationActionGroupdotOrg, Section News
    Posted on Tue Mar 17, 2009 at 03:03:24 PM EST
    Tags: MEA teachers union Education Action Group (all tags)

    (Promoted by Nick...)

    visit MEAexposed.com to see their true agenda The Senate Education Committee continues deliberation without action on the Michigan Education Association's plan to increase pensions for eligible teachers as an incentive to thin the ranks and allegedly save on school salary costs.

    Despite the MEA's attempt to shrink the increase as a way the salvage the plan, the Senate Fiscal Agency found it would cost significantly more in retirement costs than what the MEA was claiming to save school districts in salary costs.

    According to an analysis dated March 16, the agency predicts the cost will balloon to $3.9 billion over the 30 year amortization period.  The original plan had an estimated cost of $1.6 billion.

    The new version appears to actually be worse.  Sen. Kuipers would serve taxpayers well by declaring this slight-of-hand plan dead.

    The analysis also says, "To fund the required increase in employer contributions to pay for the increased liability, the [MPSERS retirement] rate would rise by an estimated 0.9 of a percentage point during the first year, and would steadily rise every year during the amortization period as payments to the system increased."  Schools currently pay about 17%.

    The MEA's plan needs to continue dying a slow death in committee.  As Michigan's financial picture continues to look grim, the last thing we need to do is add to the burden.  Leave it to the MEA to constantly talk about "collectivism" while pushing a plan that only benefits their organization and leaves taxpayers holding the bag.

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