Tagged: pensions

We didn’t have an early spring this year, but it looks like an early summer. I say that because while it is still technically spring, the authorities are already engaged in what has been a late summer Michigan ritual, digging up a field to look for Jimmy Hoffa.

Usually, it strikes me as strange that this case still gets so much attention, but this year we’ve been so overwhelmed with news from Detroit that we probably need a little escape.

Next week Kevyn Orr will be meeting with creditors to start negotiations in attempts to keep the city from going bankrupt.

According to Matt Helms of the Detroit Free Press, the negotiations will includes over 150 representatives from the city’s major creditors including national banks who hold the city’s bonds, insurers, union representatives, and pensioners.

This week in review Rina Miller and Jack Lessenberry discuss the possibility of repealing a tax on pensions, how Michigan's home foreclosure rate is no longer the worst, and how the international trade crossing has a presidential permit to move forward.

Michigan’s 250,000 teachers and state school employees face a  deadline of October 26th to choose a new retirement plan. But some groups are asking the State Supreme Court to extend that deadline.

State legislators passed a law changing the pension system in August. Ellen Hoekstra represents the Michigan Federation of Teachers.

"We’re advising people to get as much information as they can and at least fix in their own mind what option they think would be best for themselves and their own family – prior to the 26th – in case that ends up being the deadline," said Hoekstra.

School employees will have four options.

One would require them to pay more than they pay now, to get the same pension.

Another option would allow people to pay the same amount they pay now, but get a smaller pension when they retire.

Thousands of state employees are applauding a judge’s ruling that they shouldn't be forced to pay for their pension benefits.

An Ingham County Circuit Court judge said today that a rule requiring state employees cough up four-percent of their salaries to keep their pensions is unconstitutional.

She said it’s effectively a pay cut, something only the Michigan Civil Service Commission has the authority to enact.

Ray Holman is with UAW Local 6000, the largest state employee union in Michigan.