pensions

Politics & Government
5:33 pm
Mon October 6, 2014

Democrats call for repealing Michigan's pension tax

State Rep. Theresa Abed speaks during a news conference outside the state capitol.
Credit Steve Carmody / Michigan Radio

State House Democrats are once again calling for a repeal of Michigan’s tax on pensions.

The 2011 tax code rewrite means some retirees are paying taxes on previously untaxed pension income.

State Rep. Theresa Abed, D-Grand Ledge, says it’s unfair to seniors.

“It is wrong to balance the budget on the backs of those on a fixed income with no way to make it up,” says Abed.

The pension tax is expected to generate about $350 million this year.

A bill to repeal the pension tax has been languishing in the Legislature since 2013.

Read more
Politics & Government
11:57 am
Wed September 17, 2014

The week in Michigan politics

Credit Lester Graham / Michigan Radio

This Week in Michigan Politics, Emily Fox and Jack Lessenberry discuss the possibility of new teachers losing their pensions, the latest in the Detroit bankruptcy trial, and how Aramark is under fire again.


Read more
Politics & Government
8:32 am
Wed June 25, 2014

Education spending, charter schools and retirement plans make political headlines

Credit user jdurham / morguefile

This Week in Michigan Politics, Jack Lessenberry and Christina Shockley discuss new investigations into charter schools, the new education spending bill and the impacts after the removal of state pension plans.

Read more
Politics & Government
5:52 pm
Tue June 24, 2014

Michigan economists warn against ending pensions for public employees

Credit user cedarbenddrive / Flickr

Some economists say Michigan failed to consider the consequences of ending pension plans for public workers.

The state stopped offering pensions to new employees in 1997. Budget officials say that decision has cut Michigan’s long-term debt by about $5 billion.

A new report from Great Lakes Economic Consulting says the new 401(k) style plans may be cheaper. But it says it’s not fair to compare them to traditional pensions, which provide better protections for both workers and employers.

Read more
Politics & Government
11:01 am
Mon March 24, 2014

Michigan Attorney General Schuette launches reelection campaign

In his speech, Michigan Attorney General Bill Schuette (R) touted his record in office, including efforts to combat human trafficking and protect pensions.
Steve Carmody Michigan Radio

Michigan Attorney General Bill Schuette kicked off his reelection campaign today in his hometown of Midland.

In his speech, Schuette touted his record in office, including efforts to combat human trafficking and protect pensions.

“A record that’s strong and clear. It’s a record of being a voice for victims. A voice for the constitution and a voice for Michigan,” says Schuette. “It’s a long election and I’m going to win. I’m going to take my case to the citizens across the state of Michigan.”

Schuette didn’t directly address the controversy over same-sex marriage.

Read more
Politics & Government
2:43 pm
Sat January 18, 2014

Snyder: Michigan pension tax will stand despite surplus

Gov. Rick Snyder (R-MI) (file photo)
Steve Carmody/Michigan Radio

DETROIT (AP) - Gov. Rick Snyder says he won't reconsider a controversial tax on income of certain Michigan retirees.

Michigan has a large budget surplus, but Snyder tells The Detroit News that revisiting the 2012 tax is not on his radar. He calls it an issue of fairness, saying pensions shouldn't be treated differently for tax purposes than other retirement income.

Read more
Stateside
4:49 pm
Thu December 5, 2013

Detroit is not the only city in Michigan facing enormous budget challenges

The financial woes Detroit is facing aren't isolated.
Steve Carmody Michigan Radio

All eyes are on Detroit this week, following Tuesday’s historic ruling on Detroit’s eligibility for bankruptcy. For those living outside the city, it's easy to separate themselves from Detroit's problems. 

But many experts say Detroit is not alone.

Detroit is not Michigan's only city that faces enormous budget challenges. Unfunded liabilities and retiree debt are adding up all across our state.

Ted Roelofs, a contributing writer to Bridge Magazine, recently wrote a piece that argues that other cities in Michigan will not be immune to rising legacy costs that, in part, did Detroit in.

Roelofs and John Pottow, a bankruptcy expert at the University of Michigan, talk with us about the future of other Michigan cities in the wake of Detroit’s bankruptcy.

Listen to the full interview above.

Stateside
4:47 pm
Tue December 3, 2013

Detroit can file for Chapter 9 bankruptcy. Now what?

Detroit Mayor Dave Bing, Gov. Rick Snyder, and the city's Emergency Manager Kevyn Orr.
mich.gov Michigan Government

Today, U.S. Bankruptcy Judge Steven Rhodes ruled that Detroit is eligible to enter Chapter 9 bankruptcy protection, and to cut the pensions of city retirees.

What does it mean for residents? Current city employees? City pensioners?

Eric Scorsone, a municipal finance expert from Michigan State University, talks to us about what lies ahead after today’s ruling.

Listen to full interview above.

Economy
3:59 pm
Fri November 15, 2013

The 10 Michigan communities with the highest legacy costs

Detroit has the third-highest legacy debt per capita.
Patricia Drury Flickr

To call Detroit’s legacy costs underfunded would be, well, an understatement.

According to the city’s numbers, Detroit’s pension and retiree healthcare funds are about $9.2 billion short.

But Detroit is not the only Michigan city with major legacy costs — not by a long shot.

Legacy costs, or costs undertaken by local government for future use, have been taken on by more than 280 of Michigan’s 1,800 communities, according to data compiled by Bridge Magazine.

And while Detroit has the highest amount of total unfunded legacy cost, the per capita numbers show a slightly different picture.

Read more
Politics & Government
8:30 am
Fri October 18, 2013

If Benton Harbor voters approve income tax, manager would pay down pension liabilities

The City of Benton Harbor has been under the control of a state-appointed emergency manager since March 2010.
Lindsey Smith Michigan Radio

Benton Harbor Emergency Manager Tony Saunders is breaking months of silence on a proposed city income tax. Saunders says he has some concerns about the proposal.

“I want to make sure we have a strong climate for business investment here. Also, you know this is one of the poorest cities in Michigan, so the last thing I want to see is our citizens being taxed once again when they’re already struggling to make ends meet,” Saunders said.

Read more
Week in Review
8:30 am
Sat September 28, 2013

Talking about Common Core, Detroit extra pension paychecks, adoption refusal bill

David Defoe flickr

Each week, I review the news with political analyst Jack Lessenberry.

Today we discussed Common Core education standards, new details about some practices that led to Detroit's financial crisis, and legislation to refuse adoptions based on religious reasons.

Read more
Politics & Government
5:23 pm
Fri September 6, 2013

Misspent retirement funds 'robbed' Detroit's General pension

Detroit's Emergency Manager Kevyn Orr.
State of Michigan Michigan.gov

Money in Detroit’s pension fund was misspent on bonus checks, The Detroit News’ Robert Snell reported.

That information is coming from a report on the city’s General pension fund from consulting firm Conway MacKenzie. According to the report, more than $532 million was distributed as bonus checks over the last two decades, instead of staying in the pension fund’s coffers.

The so-called 13th checks — or annual bonuses — weren’t a part of the city’s pension plan. Yet, the report claims that even in the “good and bad years,” the money intended for the workers’ saving plans was doled out early -- which according to the report, was “effectively robbing (the General pension fund) of precious funds necessary to support the traditional pensions the city had promised.”

Read more
Law
10:26 am
Tue August 6, 2013

Michigan's new tax on pensions challenged in court

Retired Battle Creek school teacher Connie Cole Burland waves a sign at a state Capitol rally to oppose Gov. Rick Snyder’s plan to tax pensions.
Rick Pluta Michigan Public Radio Network

A class-action lawsuit has been filed on behalf of retired public employees against the state for extending Michigan’s income tax to pensions.

Extending the income tax to pensions was part of a tax overhaul adopted by the Legislature in 2011 that scrapped the Michigan Business Tax.

People born after 1945 started paying taxes on pension income last year.

The lawsuit claims the state broke a promise made in writing to retirees.

Read more
Opinion
8:37 am
Tue August 6, 2013

The truth about Detroit pensioners

Detroiters are voting today in one of the strangest and yet most important primary elections the city’s ever had. Those they send to the November runoff will be fighting for jobs which at first will have no power. That’s because everything is now in the hands of Emergency Manager Kevyn Orr, and U.S. Bankruptcy Judge Stephen Rhodes.

Read more
Stateside
5:33 pm
Tue July 30, 2013

Detroit and other Michigan municipalities are behind in pension and retiree health care obligations

A hospital wing
Clarita MorgueFile

By now you’ve heard a bit about Detroit’s Chapter 9 bankruptcy filing. About half of Detroit’s nearly $20 billion in debt is due to shortfalls in the funds for retiree’s benefits. According to emergency manager Kevyn Orr’s estimates, the pension funds are behind by about $3.5 billion and behind in retiree health care funds by about $5.7 billion.

Detroit is not unique in its unfunded pension and retiree health care obligations. Other municipalities in the state are also behind.

Anthony Minghine is the chief operating officer of the Michigan Municipal League.  He joined us today.

Listen to the full interview above.

Investigative
7:00 am
Tue July 30, 2013

Detroit just among the first facing troubles funding retiree costs

Detroit city limits
Credit Sam Beebe / Ecotrust

Detroit’s bankruptcy is getting the headlines right now, but many governments in Michigan could be facing similar financial troubles in the future. Detroit might be just the first of many financial catastrophes in the state.

Detroit’s debt is supposed to be as much as $20 billion. About half of that is blamed on underfunded pensions and benefits for Detroit city retirees.

Read more
Opinion
8:53 am
Mon July 29, 2013

Michigan Attorney General intends to intervene on behalf of Detroit pensioners

Last week, Michigan Attorney General Bill Schuette did something many found startling, especially those politically liberal. Schuette announced that in Detroit's bankruptcy filing he intended to intervene on behalf of those who have pensions coming.

Read more
Law
8:17 pm
Sat July 27, 2013

Michigan Attorney General to challenge changes to Detroit pensions

Michigan Attorney General Bill Schuette
AG's office

Michigan Attorney General Bill Schuette says the state constitution protects Detroit pension benefits from being reduced or eliminated by the city’s bankruptcy.

Schuette says he will be in court Monday asking to join the case on behalf of pensioners.

U.S. Bankruptcy Judge Steven Rhodes took control of lawsuits challenging the bankruptcy filing because it puts city pension benefits in jeopardy. But he has not ruled on the substance of the question, which is whether the benefits are shielded by protections in the Michigan Constitution.

Read more
Politics & Government
4:00 pm
Fri July 26, 2013

What do Detroit's pensioners think about city's bankruptcy?

Credit Bernt Rostad / creative commons

Detroit’s bankruptcy could impact many people’s daily lives, perhaps the city’s retirees most of all. At a banquet hall in Livonia this week the Detroit Retired City Employees Association held its annual luncheon. Over one thousand people attended. Many of them worry they may lose part or all of their pensions in the bankruptcy. 

Hear the worries, frustrations, and thoughts of retirees with close to 200 years of city service between them in their own voices below.  


Politics & Government
7:27 am
Wed July 24, 2013

In this morning’s news: Federal bankruptcy hearing, teacher evaluations, and funding for Great Lakes

User: Brother O'Mara flickr

First federal bankruptcy hearing today

Detroit kicks off federal bankruptcy hearings today, and the first order of business will be deciding if the city can cut pensions to pay down its debts.

“City officials say the pension funds are $3.5 billion short. But Michigan's state constitution says you can't cut public pensions. That’s why city employees and retirees are suing to block the bankruptcy. A federal judge will consider whether the pension debate is a state or federal issue,” Michigan Radio’s Kate Wells report.

New teacher evaluations submitted to state

A new evaluation system for Michigan teachers has been submitted to the state. Under the new system, teachers would be evaluated by student growth based on standardized test scores and classroom observations of their teaching practice. The recommendations come from the Michigan Council for Educator Effectiveness. If approved by the legislature, hearings on the new system could start this summer.

Proposed bill to cut funding for the Great Lakes 

"A bill that will drastically cut federal funding for the Great Lakes Restoration Initiative was approved by a U.S. House of Representative subcommittee yesterday. The bill will cut funding from the program from an original budget of $285 million down to $60 million for the 2014 fiscal year. The bill also proposes an 80% cut in a loan fund for local sewer system upgrades," Michigan Radio's Lindsay Hall reports. 

Pages