New CSR study says MPSERS problems fixable
The Coalition for Secure Retirement (CSR) released a study today examining the current state of the Michigan Public School Employees Retirement System (MPSERS) and analyzing the reasons why the system is experiencing financial problems. MEA is a partner in the coalition.
Gary Olson, former Senate Fiscal Agency Director, authored the study. “The changes contained in SB 1040 do not address the structural problems with the MPSERS system,” Olson said. “Instead they simply shift more of the costs onto the backs of school employees and retirees.”
Olson blames the worsening condition of MPSERS on devastating market losses, the privatization of school employees, and major increases in health care costs with the failure to prefund those costs. He still believes the system is fixable, but cautions the legislators to move slowly with SB 1040 considering the financial impact it will have on current retirees and school employees.