MPSERS study goes to Chicago firm
A Chicago-based firm, Segal Co., has landed the $140,000 contract to conduct a legislative study called for in SB 1040--now PA 300. In addition to overhauling the insurance portion of the Michigan Public School Employee Retirement System (MPSERS), the new law called for an outside firm to study the possibility of shutting down the current hybrid system and moving members to a 401(k) defined contribution system.
Senate Majority Leader Randy Richardville (R-Monroe), Budget Director John Nixon and House Speaker Jase Bolger (R-Marshall) picked the firm because "they were the best fit for the work." Segal is a private, independent actuarial and consulting firm. They had been the actuary for Michigan's Office of Retirement until 2000.
The study is to be completed by Nov. 15--right after the election. Depending on the results of the study, Richardville has left open the possibility of additional retirement legislation.
Portions of the law are on hold since MEA and AFT-Michigan won a temporary restraining order the day the bill was signed into law by Gov. Snyder.