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It's Baaaack! - the MEA Pension BoondoggleBy Theblogprof, Section News
cross-posted at theblogprof
I thought this boondoggle was on it's way out. Turns out, the MEA got the funny idea that most people with enough brain cells not to drop a load in their pants at any time discerned that this boondoggle was a really, really bad idea. The idea was to get teachers to retire but with an uptick in the pension benefit, and therein lies the problem. As I wrote in a prior post, By the way, the Senate Fiscal Agency analysis found that "the salary savings didn't come close to offsetting the increased retirement costs." Like to the tune of a net annual loss of almost $127 million!!! Only in the MEA's world is this a winner for citizens.An op-ed in the Oakland Press was a little more honest:
So who are the winners in this game? The real winner is the MEA.That's about right. Today, the AP has this piece in the Detroit News: Michigan teachers union revises pension plan. From the article: Michigan's largest teachers union is revising its retirement incentive proposal because concerns were raised about the price tag. ...Maybe it's just me, but the numbers appear to not reflect the cost of retiree healthcare in the formula. They're trying to turn this into a zero-sum game, but in effect what the result will be is a debt snowball (just the opposite of what Dave Ramsey recommends by the same name). It will simply get bigger over time. Nowhere in this article do you find that the pension fund is almost $30 billion underfunded right now. Adding to this is just plain silly, but not surprising. What is surprising, at least to me, is that this boondoggle is being pushed by Senate Education Chairman Wayne Kuipers, R-Holland. How did the MEA buy him off? It appears that something will go down this coming week with the legislation. Right now, it's like a retrovirus, changing into something that will pass muster, at least on its surface, but that will infect the system for years to come. Hopefully, what's coming this week is it's death, kicking and screaming and all that...
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It's Baaaack! - the MEA Pension Boondoggle | 3 comments (3 topical, 0 hidden)
It's Baaaack! - the MEA Pension Boondoggle | 3 comments (3 topical, 0 hidden)
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 Related Links+ theblogpro f+ this boondoggle was on it's way out + As I wrote in a prior post + was a little more honest + Michigan teachers union revises pension plan + almost $30 billion underfunded right now + MEA Boondoggle back in the News + Kuipers/ME A pension boondoggle moving forward + More on that MEA pension boondoggle + MLive: Union, Granholm pitch different plans to buyout teachers + MEA to MI: save money by making pension problem worse! + Also by Theblogprof |
