Tuesday, June 13, 2017

Yup, everything they control is a financial disaster-----Michigan Universities Also Socked by Massively Underfunded School Pensions [Michigan Capitol Confidential]

Michigan Universities Also Socked by Massively Underfunded School Pensions [Michigan Capitol Confidential]:
"Michigan’s public school districts are not the only educational institutions grappling with the financial burdens of a massively underfunded pension system.
Seven of the state’s 15 public universities are also having to pay large sums to catch up on the public school system’s debt, which since just 2009 has risen from $12.0 billion to $29.1 billion.
The schools are paying these costs even though no new university employees have been enrolled in the Michigan Public School Employees Retirement System since 1995.
Image result for Pension TsunamiBut all those who were hired before then remained in the pension system and continue to accrue pension credits from it.
...According to Michigan Technological University Vice President Ellen Horsch, roughly 250 of MTU’s current 1,300 employees are covered by the traditional pension system.
Michigan Tech spent an average of $28,607 for each employee in MPSERS, of which $17,513 goes towards the underfunding in the system between July 1, 2014, and June 30, 2016, according to data provided by the university.
“The fact that we got out of this system is helpful, because we have that light at the end of the tunnel in 2038 [when MTU’s unfunded liabilities are projected to be met],” Horsch added.
But she also said that MTU and the other universities in the system still need financial relief from the burdens it imposes..."
Read on!

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